- Price
- $44.79
- Fair value
- $54.00
- Discount
- 17.1%
- Uncertainty
- High
- LSEG rating
- 2.46
- Moat
- Narrow
- Next earnings
- 2026-10-26
- Next earnings is estimate
- No
- Company name
- Verizon
- Sector
- Telecommunications
- About
- Verizon provides wireless phone service, home broadband and network services, mostly in the United States. Its largest business is postpaid mobile service for consumers and businesses. It also sells fiber broadband and fixed wireless access broadband. It bought Frontier Communications on January 20, 2026, which expanded its fiber network to 31 states and Washington, D.C., and it bought Starry on January 30, 2026. Revenue was $138.2 billion in 2025. At June 30, 2026, Verizon had about 17.1 million fixed wireless access and fiber broadband connections. Dan Schulman is CEO.
- Thesis
- The market prices Verizon for slow growth and high debt. Total operating revenue fell 0.7% in Q2 2026, because equipment revenue fell by more than $1.2 billion as customers kept their phones longer and Verizon cut device subsidies. Verizon expects wireless service revenue to be about flat in 2026. Unsecured debt was $136.5 billion at June 30, 2026, and the wireless market has strong price competition. For the gap to close, three things must be true. Mobility and broadband service revenue growth must rise to about 4% in Q4 2026, as Verizon expects, from 2.8% in Q2. Postpaid phone net additions must reach the upper half of the 750,000 to 1.0 million range for 2026. Free cash flow must grow 9% to 10% in 2026, so that Verizon can pay its dividend, buy back up to $4.5 billion of shares and reduce debt. The Q3 2026 report on October 26, 2026 gives the first test. The Q4 2026 report and the 2027 guidance in January 2027 show whether growth continues. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a price war in wireless, which can stop the subscriber gains or lower margins.
- Risks
- The wireless market has strong price competition. If competitors cut prices or raise promotions, Verizon can lose its subscriber gains or must accept lower margins.
Unsecured debt was $136.5 billion at June 30, 2026. Higher interest rates increase the cost to refinance it, and the debt limits the money left for buybacks.
Verizon is changing its business model, with lower device subsidies and large cost cuts. Q2 2026 included $397 million of severance charges and $258 million of asset charges. If the changes harm customer service, churn can rise.
The joint venture with BT needs regulatory approvals. A delay or new conditions can change its value.
- Balance sheet
- Cash: $1.8B
Debt: $136.5B
Net debt: $134.7B
Net debt / EBITDA: 2.5× (medium)
Interest cover: 3.9×
Verizon funds its business with unsecured notes and other debt in several currencies. At June 30, 2026, unsecured debt was $136.5 billion, down from $142.5 billion at March 31, 2026, and cash was $1.75 billion. Net unsecured debt as Verizon defines it was $128.7 billion, and net unsecured debt to consolidated adjusted EBITDA was 2.5 times. Interest cover is operating income divided by interest expense for the first six months of 2026. Free cash flow was $10.2 billion in the first half of 2026, up 16.0%.
As of 2026-06-30.
- Checkpoints
- Oct 26, 2026: Q3 2026 earnings: service revenue growth. Pending. Watch: Mobility and broadband service revenue growth near 3% and positive postpaid phone net additions pass; slower service revenue growth or a guidance cut fails.
Jan 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: Service revenue growth near 4% in Q4 2026 and 2027 guidance for free cash flow growth pass; growth below 3% or lower free cash flow guidance fails.
- Recent events
- 2026-09-25: The board elected Charles Phillips, Co-Founder and Managing Partner of Recognize Partners, as a director.
2026-07-24: Verizon reported Q2 2026 results. Mobility and broadband service revenue rose 2.8% to about $23.4 billion, and postpaid phone net additions were 184,000. Adjusted EPS was $1.30 and adjusted EBITDA was a record $13.7 billion. Net income fell 22.9% to $3.9 billion because of $1.8 billion of special items. Verizon raised its 2026 guidance to adjusted EPS of $4.99 to $5.04 and raised its buyback target to up to $4.5 billion.
2026-06-28: Verizon agreed with BT Group to combine their international wireline connectivity and managed network services businesses in a 50/50 joint venture. Verizon will pay $625 million in cash. It expected a loss of $700 million to $800 million in Q2 2026 when it classified its business as held for sale. The deal needs regulatory approvals.
2026-01-20: Verizon completed the purchase of Frontier Communications, which expanded its fiber footprint to 31 states and Washington, D.C.