Verizon (VZ) is a leading global telecommunications company, recognized for its innovation and scale. Verizon operates the largest wireless network in the United States, with more than 146 million retail connections by mid-2025. The company offers a wide range of services, including mobility, network connectivity and security, and continually invests in next-generation technologies such as 5G and fiber optic networks.
Verizon Communications stock has shown volatility in recent months, with declines over shorter time frames. Over the past five days, Verizon fell 3.8%, extending a 9.3% drop over the past month. Year-to-date, the stock is stable and providing a 30% gain over a 2-year period.
The telecommunications company lags far behind the S&P 500 Index ($SPX)’s 14% gain over the past 52-week period. This underperformance highlights Verizon’s competitive and sector-specific challenges despite improved operating momentum in certain segments.
Verizon reported strong second-quarter results on July 21, beating analyst expectations on key financial metrics. The company posted adjusted earnings per share of $1.22, above the consensus estimate of $1.19 and up from $1.15 a year earlier. Total operating income reached $34.5 billion, exceeding analyst projections of $33.74 billion and representing a 5.2% year-over-year increase. Both net revenue and adjusted EBITDA also experienced year-over-year growth, highlighting the strength of Verizon’s diversified portfolio of wireless and broadband services.
A deep dive into Verizon’s financials reveals steady improvement across core business segments. Wireless revenue rose 2.2% to $20.9 billion, while wireless equipment revenue rose 25% to $6.3 billion, indicating strong device sales and effective promotional efforts. The broadband division added 293,000 net subscribers, continuing the positive momentum in fixed wireless access.
Free cash flow for the first half of 2025 increased to $8.8 billion from $8.5 billion a year earlier.
Looking ahead, Verizon revised up its full-year guidance and is now targeting adjusted earnings per share growth of 1% to 3%, adjusted EBITDA growth of 2.5% to 3.5% and free cash flow in the range of $19.5 billion to $20.5 billion, a significant increase from previous projections. The company cited its operational strength, accelerated network upgrades and favorable benefits from tax reform, positioning itself for greater flexibility and strategic investments as it moves toward a planned merger with Frontier (FYBR).
