Verizon Communications (VZ) Earnings Date & Reports
Wireless services account for 75% of Verizon Communications' total service revenue and nearly all of its operating income... Show more
VZ is expected to report earnings to $1.28 per share on July 21
Verizon (VZ) Q1 2026 Earnings Recap: EPS Beats and Subscriber Turnaround
Key Takeaways
- Verizon reported adjusted earnings per share (EPS) of $1.28, a 7.6% increase year-over-year, surpassing consensus estimates of $1.23.+Releases+Q1+2026+Earnings)
- Total operating revenue reached $34.4 billion, up 2.9% from the prior year, though slightly below Wall Street expectations.
- Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) hit a record $13.4 billion, rising 6.7% year-over-year.
- Postpaid phone net additions turned positive at 55,000, the first Q1 gain since 2013.
- Broadband net additions totaled 341,000, including strong fixed wireless access growth.
- Company raised full-year 2026 adjusted EPS guidance to $4.95–$4.99, implying 5%–6% growth.
Earnings Context and Why It Matters
Verizon's Q1 2026 earnings, for the quarter ended March 31, 2026, come amid intense competition in the U.S. wireless and broadband markets. As a leading telecom provider, Verizon has focused on transformation initiatives, including 5G network expansion and the recent Frontier acquisition, which contributed results starting January 20. Subscriber trends have been a pain point, with prior quarters showing declines, making the return to postpaid phone growth a pivotal signal. Investors watch these results closely for signs of margin expansion and cash flow strength, essential for sustaining dividends and share repurchases in a maturing industry facing regulatory and economic pressures. Strong execution here could reaffirm Verizon's stability amid peers' aggressive promotions.
Verizon delivered mixed but positive Q1 results. Total operating revenue grew 2.9% year-over-year to $34.4 billion, driven by mobility and broadband service revenue of about $22.9 billion (up 1.6%), though it fell short of analyst forecasts around $34.9 billion. Consolidated net income rose 3.3% to $5.1 billion, with diluted EPS up 4.3% to $1.20. Adjusted EPS excluding special items jumped 7.6% to $1.28, exceeding expectations.
Key operating metrics shone: adjusted EBITDA reached a record $13.4 billion, up 6.7%. Postpaid phone net additions marked 55,000—the first positive Q1 since 2013—while core prepaid added 115,000 and broadband gained 341,000 (214,000 fixed wireless access, 127,000 fiber). Free cash flow increased 4.0% to $3.8 billion. Verizon affirmed service revenue growth guidance of 2.0%–3.0% and raised full-year adjusted EPS outlook to $4.95–$4.99, with free cash flow of $21.5 billion or more.
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Market Reaction and Investor Sentiment
Verizon shares rose about 3% in premarket trading following the release, reflecting optimism over the EPS beat, record EBITDA, subscriber gains, and raised guidance despite the revenue miss. Investors appeared to prioritize operational improvements and forward outlook, overlooking moderated equipment sales and a January network outage impact. Sentiment turned positive, with focus on sustainable growth in postpaid and broadband segments amid competitive pressures.
Forward Outlook and Key Factors to Monitor
Verizon's raised guidance signals confidence in its transformation, but execution will be key. Investors should track retail postpaid phone net additions, now expected in the upper half of 750,000–1.0 million for 2026—roughly double 2025 levels. Broadband expansion, including fixed wireless access and fiber, remains a growth driver, with total connections nearing 17 million.
Financial health hinges on free cash flow of $21.5 billion+, supporting $3 billion+ in share repurchases and dividends. Watch net unsecured debt to adjusted EBITDA ratio (currently 2.6x) as Frontier integration progresses, with most debt repayment targeted by year-end. Mobility service revenue growth of 2%–3% will depend on churn control and promotional discipline.
Upcoming catalysts include Q2 results in July, 5G/edge computing updates, and industry dynamics like spectrum auctions or mergers. Margin pressures from capex ($16.0–$16.5 billion) and competition warrant attention, alongside macroeconomic factors affecting consumer spending.
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General Information
a provider of wired and wireless telecommunication services
Industry MajorTelecommunications