Verizon Surpasses Q4 Earnings Estimates on Healthy Revenue Growth

Verizon Communications Inc. VZ recorded solid fourth-quarter 2025 results with healthy wireless traction and fiber densification. Both adjusted earnings and revenues beat the respective Zacks Consensus Estimate, with the company delivering on its 2025 guidance. The company registered solid broadband growth with total fixed wireless access net additions of 319,000, growing the subscriber base to nearly 5.7 million. The company remains well poised to achieve its target of 8 to 9 million fixed wireless access subscribers by 2028.    Net IncomeOn a GAAP basis, net income in the quarter was $2.45 billion or 55 cents per share compared with $5.11 billion or $1.18 per share in the prior-year quarter. Despite top-line improvement, the decline in GAAP earnings was primarily attributable to higher operating expenses. Excluding non-recurring items, quarterly adjusted earnings were $1.09 per share compared with $1.10 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 3 cents. For 2025, Verizon recorded GAAP earnings of $17.61 billion or $4.06 per share compared with $17.95 billion or $4.14 per share in 2024. Excluding non-recurring items, adjusted earnings for 2025 were $4.71 per share compared with $4.59 in the prior year.  Verizon Communications Inc. Price, Consensus and EPS Surprise Verizon Communications Inc. price-consensus-eps-surprise-chart | Verizon Communications Inc. QuoteRevenuesQuarterly total operating revenues improved 2% to $36.38 billion with higher wireless equipment revenues driven by targeted pricing actions, customer growth, sales of perks and add-on services and growth in fixed wireless access. The top line beat the consensus estimate of $35.94 billion. For 2025, Verizon recorded total revenues of $138.19 billion, up 2.5% year over year.Quarterly Segment ResultsConsumer: Total revenues from this segment improved 3.2% year over year to $28.44 billion with growth across all businesses. Service revenues were up 0.9% to $20.25 billion, while wireless equipment revenues improved 9.6% to $7.11 billion. Other revenues totaled $1.08 billion, up 6.6% year over year.Wireless retail postpaid churn was 1.21%, while retail postpaid phone churn was 0.95%. The company recorded 65,000 Fios Internet net additions as high demand for reliable fiber optic broadband was spurred by higher video consumption. Verizon delivered 372,000 broadband net additions in the quarter. However, it registered 53,000 Fios Video net losses in the quarter, reflecting the ongoing shift from traditional linear video to over-the-top offerings.The segment’s operating income decreased marginally to $6.9 billion with a margin of 24.3%. EBITDA improved 0.3% to $10.38 billion with a margin of 36.5% compared with 37.5% in the prior-year quarter due to lower costs of wireless equipment.Business: The segment revenues were down 1.8% to $7.37 billion due to lower wholesale and enterprise and public sector revenues, partially offset by growth in business markets and other revenues. The segment had 11,000 wireless retail postpaid net additions in the quarter and 65,000 postpaid phone net additions. Wireless retail postpaid churn was 1.64%, while retail postpaid phone churn was 1.27%. Fixed wireless broadband net additions were 110,000 for the quarter. Operating income declined slightly to $593 million from $594 million in the year-ago quarter with respective margins of 8.1% and 7.9%. Segment EBITDA was down 2.2% to $1.62 billion for a margin of 22% compared with 22.1% in the year-earlier quarter.Other Quarterly DetailsTotal operating expenses were up 11% to $31.38 billion. Consequently, operating income declined 32.6% to $5 billion. Consolidated adjusted EBITDA decreased to $11.86 billion from $11.93 billion, for respective margins of 32.6% and 33.4%.Cash Flow & LiquidityVerizon generated $37.14 billion of net cash from operating activities in 2025 compared with $36.91 billion in 2024. Free cash flow was $20.13 billion for 2025 compared with $19.82 billion in the prior-year period.As of Dec. 31, 2025, the company had $19.05 billion in cash and cash equivalents with $139.53 billion of long-term debt compared with respective tallies of $4.19 billion and $121.38 billion in the year-ago period.  GuidanceFor 2026, Verizon expects wireless service revenue to be relatively flat as it transitions to sustainable volume-based growth. Total mobility and broadband service revenues are likely to grow 2-3% with total retail postpaid phone net additions of 750,000 to 1.0 million. The company expects adjusted earnings to grow 4-5% to $4.90-$4.95 per share with a cash flow of $37.5-$38 billion on capital expenditures of $16-$16.5 billion.Zacks Rank & Stock to ConsiderVerizon currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming ReleasesArista Networks Inc. ANET is scheduled to release fourth-quarter 2025 earnings on Feb. 12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting a growth of 15.4% from the year-ago reported figure.Arista has a long-term earnings growth expectation of 20.1%. Arista delivered an average earnings surprise of 10.2% in the last four reported quarters.Akamai Technologies, Inc. AKAM is slated to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating a 5.4% growth from the year-ago reported figure.Akamai has a long-term earnings growth expectation of 6%. Akamai delivered an average earnings surprise of 10.5% in the last four reported quarters.Pinterest, Inc. PINS is set to release fourth-quarter 2025 earnings on Feb. 12. The Zacks Consensus Estimate for earnings is pegged at 67 cents per share, implying a growth of 19.6% from the year-ago reported figure.Pinterest has a long-term earnings growth expectation of 27.7%. Pinterest delivered an average negative earnings surprise of 6.8% in the last four reported quarters.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. 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