GET DAILY SIGNALSVerizon (VZ) Delivers Solid Q3 Results with Record EBITDA and Subscriber Gains
Key Takeaways
- Verizon reported third-quarter 2026 adjusted earnings per share (EPS) of $1.31, beating the analyst consensus of $1.28 by $0.03.
- Total operating revenue rose 1.5% year over year to $34.31 billion, but came in slightly below the consensus estimate of $34.77 billion.
- Postpaid phone net additions reached 406,000, up more than 820% year over year and the company's strongest third quarter in five years.
- Adjusted EBITDA rose 8% to a record $13.8 billion, with margins expanding to 40.2%.
- Free cash flow grew 12.1% to $7.8 billion, the highest quarterly level since 2020, prompting a third consecutive full-year guidance increase.
- Verizon also announced a dark fiber agreement with Amazon Web Services valued at more than $2 billion to support AI data-center connectivity.
Why This Quarter Matters
Verizon's third-quarter report provides a useful checkpoint on the turnaround strategy led by CEO Dan Schulman. The focus has been on customer-first offerings and more disciplined promotions rather than heavy device subsidies. Ahead of the print, the question was whether the wireless carrier could keep adding subscribers against T and TMUS while protecting profitability. The results help show whether those additions are translating into steadier service-revenue growth and wider margins, which in turn support the dividend and cash-flow outlook. The integration of the Frontier Communications acquisition and expansion into AI-driven fiber connectivity also came into view.
The Quarter in Numbers
Adjusted EPS came in at $1.31, up 8.3% from a year earlier and $0.03 ahead of consensus. Total operating revenue increased 1.5% year over year to $34.31 billion, though that missed the $34.77 billion expected, mainly because wireless equipment revenue fell 9% as upgrade volumes dropped more than 20%.
Operationally the story was stronger. Postpaid phone subscribers rose by 406,000 compared with roughly 44,000 a year earlier, and postpaid net accounts added 137,000, the best account growth in more than a decade. Broadband net additions reached 314,000, and postpaid phone churn improved 4 basis points to 94 basis points. Mobility and broadband service revenue grew 2.9% to about $23.5 billion.
Adjusted EBITDA climbed 8% to a record $13.8 billion, lifting the margin to 40.2%, up 240 basis points from last year. Free cash flow increased 12.1% to $7.8 billion, the highest quarterly total since 2020. Management raised full-year guidance for adjusted EPS growth to 7.0%–7.5% ($5.04–$5.06) and lifted free cash flow growth expectations to approach 12%.
To see how these metrics compare with other names in the sector, I ran a quick check through Tickeron’s AI Screener.
Market Reaction
Shares of VZ rose about 0.7% after the release. The earnings beat, record profitability, and raised guidance were supportive, while the revenue miss and weaker equipment sales kept the move modest. Competitive pressures in wireless and concerns around SpaceX-related disruption had been in focus beforehand, yet the ability to add subscribers at lower acquisition and retention costs highlighted the emphasis on profitable growth. The third straight upward revision to full-year guidance reflected confidence in ongoing momentum, though attention remains on leverage and the Frontier integration.
What to Watch Next
Verizon heads into the fourth quarter with momentum in subscriber growth and cash generation. Management now expects 1.1 million to 1.2 million postpaid phone net additions for the full year and projects mobility and broadband service revenue growth to accelerate to roughly 4% in the fourth quarter. A return to wireless service revenue growth is also anticipated.
Several areas deserve monitoring. Investors will want to see whether subscriber gains can continue without a return to costly promotions, given the sharp drop in acquisition and retention costs this quarter. The fiber build remains central, with targets of more than 32 million fiber passings by year-end and 40 million to 50 million over the medium term. The new AWS dark fiber agreement, part of roughly $4 billion in signed contracts, points to emerging AI-infrastructure demand that management expects to contribute meaningfully into 2027. Progress on the $9 billion cost-reduction plan and Frontier synergies will also influence margins and cash flow. While the quarter reinforced the turnaround narrative, execution on these fronts will determine if the momentum holds.
Using AI Tools in My Research
When reviewing earnings like these, I often turn to Tickeron’s AI Screener to quickly filter comparable names in telecom and related sectors by fundamentals, technical patterns, and performance metrics. It helps surface ideas and context without spending hours on manual screens. The tool is available at https://tickeron.com/app-ng/screener/stocks/diy/industries and has become a regular part of how I cross-check sector trends.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
VZ's RSI Oscillator recovers from oversold territory
The RSI Oscillator for VZ moved out of oversold territory on October 12, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 36 similar instances when the indicator left oversold territory. In 28 of the 36 cases the stock moved higher. This puts the odds of a move higher at 78%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 23, 2026. You may want to consider a long position or call options on VZ as a result. In 38 of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 46%.
The Moving Average Convergence Divergence (MACD) for VZ just turned positive on October 16, 2026. Looking at past instances where VZ's MACD turned positive, the stock continued to rise in 27 of 47 cases over the following month. The odds of a continued upward trend are 57%.
Following a +3.83% 3-day Advance, the price is estimated to grow further. Considering data from situations where VZ advanced for three days, in 144 of 313 cases, the price rose further within the following month. The odds of a continued upward trend are 46%.
VZ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
VZ moved below its 50-day moving average on September 21, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for VZ crossed bearishly below the 50-day moving average on September 28, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 22 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 45%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where VZ declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 48%.
The Aroon Indicator for VZ entered a downward trend on October 20, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 16 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 50 (best 1 - 100 worst), indicating steady price growth. VZ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 54 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 62 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.786) is normal, around the industry mean (1.855). P/E Ratio (11.630) is within average values for comparable stocks, (-3.989). Projected Growth (PEG Ratio) (0.830) is also within normal values, averaging (8.005). Dividend Yield (0.063) settles around the average of (0.122) among similar stocks. P/S Ratio (1.509) is also within normal values, averaging (5.777).
The Tickeron Profit vs. Risk Rating rating for this company is 78 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. VZ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of wired and wireless telecommunication services
Industry MajorTelecommunications
Advertisement