Verizon Communications (NYSE: VZ) lifts 2026 outlook on record Q2 cash flow
Rhea-AI Filing Summary
Verizon Communications Inc. reported second‑quarter 2026 operating revenue of $34.3 billion, down 0.7% year over year, as a nearly 20% decline in wireless equipment revenue offset 3.5% growth in service revenues and other. Mobility and broadband service revenue was approximately $23.4 billion, up 2.8%. GAAP net income was $3.9 billion and EPS $0.92, both down about 22% largely due to $1.8 billion of pre‑tax special items tied to asset sales, restructuring and the Frontier acquisition.
On an adjusted basis, consolidated EBITDA rose 7.2% to a record $13.7 billion, lifting the adjusted EBITDA margin to 40.1%, while adjusted EPS increased 6.6% to $1.30. Cash from operations for the first half grew 9.9% to $18.4 billion, driving free cash flow up 16.0% to $10.2 billion; second‑quarter free cash flow was $6.4 billion, up 24.4%. Operationally, Verizon added 184,000 postpaid phone lines and 348,000 broadband connections, bringing total broadband connections to 17.1 million. Supported by these trends, the company raised 2026 guidance for mobility and broadband service revenue growth, adjusted EPS of $4.99–$5.04, cash from operations and free cash flow, and increased its share‑repurchase target to up to $4.5 billion.
Positive
- Record consolidated adjusted EBITDA of $13.7 billion with margin rising to 40.1%.
- First‑half 2026 free cash flow increased 16.0% to $10.2 billion, with Q2 up 24.4%.
- Mobility and broadband service revenue grew 2.8% year over year with 348,000 broadband net adds.
Negative
- GAAP net income declined 22.9% to $3.9 billion and EPS fell 22.0% to $0.92.
- Total operating revenue slipped 0.7% as wireless equipment revenue dropped nearly 20% year over year.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total operating revenue: $34.3 billion
Net income: $3.9 billion
Adjusted EBITDA: $13.7 billion
+5 more
8 metrics
Total operating revenue
$34.3 billion
Three months ended June 30, 2026; down 0.7% year over year
Net income
$3.9 billion
Q2 2026 consolidated net income; down 22.9% from Q2 2025
Adjusted EBITDA
$13.7 billion
Q2 2026 consolidated adjusted EBITDA; up 7.2% year over year
Adjusted EBITDA margin
40.1%
Q2 2026 consolidated adjusted EBITDA margin; up from 37.1% in Q2 2025
Diluted EPS
$0.92
Q2 2026 diluted EPS; down 22.0% from $1.18 a year earlier
Adjusted EPS
$1.30
Q2 2026 adjusted EPS; up 6.6% versus $1.22 in Q2 2025
Free cash flow (first half)
$10.2 billion
Free cash flow for first six months of 2026; up 16.0% year over year
Free cash flow forecast 2026
$21.94–$22.14 billion
Revised 2026 free cash flow forecast; implies 9.0–10.0% growth
Key Terms
Consolidated Adjusted EBITDA, Net Unsecured Debt, Free cash flow forecast, Segment EBITDA Margin, +1 more
5 terms
Consolidated Adjusted EBITDA financial
"Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA the effect of non-operational items"
Consolidated adjusted EBITDA is a company’s combined operating profit across all its units before interest, taxes, depreciation and amortization, further cleaned up by removing one‑time, noncash or unusual items so it shows the ongoing cash-generating performance. Think of it as the business’s engine power after stripping out financing, tax rules and one-off events—investors use it to compare operating health and value companies, but it’s not a formal accounting measure.
Net Unsecured Debt financial
"Net Unsecured Debt is calculated by subtracting secured debt, equity credit and cash from total unsecured debt"
Net unsecured debt is the amount a company owes on loans and bonds that are not backed by specific collateral, after subtracting the company's cash and cash-like assets. Think of it like the unpaid portion of a credit card bill after you use your savings to pay down balance—these are claims creditors have without a tied-down asset. Investors watch it as a measure of how much unprotected borrowing a company carries and how that could affect solvency and credit risk.
Free cash flow forecast financial
"Free cash flow forecast is calculated by subtracting capital expenditures forecast from forecasted net cash provided by operating activities"
Segment EBITDA Margin financial
"Segment EBITDA Margin is calculated by dividing Segment EBITDA by total segment operating revenues"
Segment EBITDA margin measures how much profit a particular business unit or product line generates from its own revenue after subtracting the direct operating costs, but before interest, taxes and certain accounting charges. Think of it like the share of each dollar from one shop in a chain that remains after paying the shop’s day-to-day expenses; investors use it to compare efficiency across parts of a company and to judge which units drive value or pose risk.
Fixed-to-Fixed Rate Junior Subordinated Notes financial
"5.7427% Fixed-to-Fixed Rate Junior Subordinated Notes due 2056 are listed under Verizon securities"
A fixed-to-fixed rate junior subordinated note is a loan-like security that pays a set interest rate for an initial period and then switches to a different set interest rate for a later period, with both rates fixed. It ranks below senior debt in a company’s repayment order, so it offers higher yields to compensate for greater risk; investors should care because it affects expected income and how quickly they would be repaid if the issuer faces financial trouble—think of holding a higher step on a repayment ladder with predictable but riskier payments.
Earnings Snapshot
Total operating revenue: $34.3 billion · Guidance included
three months ended June 30, 2026
Total operating revenue
$34.3 billion
(0.7)% year over year
Net income
$3.9 billion
(22.9)% year over year
Adjusted EBITDA
$13.7 billion
+7.2% year over year
Diluted EPS
$0.92
(22.0)% year over year
Adjusted EPS
$1.30
+6.6% year over year
Free cash flow (Q2)
$6.4 billion
+24.4% year over year
Guidance
For 2026, Verizon targets mobility and broadband service revenue growth of 2.5–3.0%, adjusted EPS of $4.99–$5.04, cash from operations growth of 2–4%, free cash flow growth of 9–10%, capital expenditures of $16.0–$16.5 billion, and total retail postpaid phone net additions in the upper half of the 750,000–1.0 million range.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Verizon (VZ) perform financially in the second quarter of 2026?
Verizon generated $34.3 billion in operating revenue, down 0.7% year over year, and net income of $3.9 billion, down 22.9%. Adjusted EBITDA reached a record $13.7 billion with a 40.1% margin, while EPS was $0.92 and adjusted EPS $1.30.
What were Verizon (VZ)'s key subscriber and broadband trends in Q2 2026?
Verizon reported 184,000 postpaid phone net additions and 73,000 core prepaid net additions. Broadband net additions were 348,000, including 193,000 fixed wireless and 155,000 fiber adds, bringing total broadband connections to 17.1 million, up 34.5% from a year earlier.
How did Verizon (VZ)'s cash flow and free cash flow change in first-half 2026?
Net cash provided by operating activities rose 9.9% to $18.4 billion in the first half of 2026. Free cash flow increased 16.0% to $10.2 billion, including second‑quarter cash from operations of $10.4 billion and free cash flow of $6.4 billion, up 24.4% year over year.
What 2026 guidance did Verizon (VZ) provide or raise?
Verizon now targets 2.5–3.0% mobility and broadband service revenue growth in 2026, adjusted EPS of $4.99–$5.04, cash from operations growth of 2.0–4.0%, and free cash flow growth of 9.0–10.0%, with capital expenditures of $16.0–$16.5 billion.
How leveraged is Verizon (VZ) after Q2 2026?
At June 30, 2026, Verizon had unsecured debt of $136.5 billion and net unsecured debt of $128.7 billion. The net unsecured debt to consolidated adjusted EBITDA ratio was 2.5x, while unsecured debt to last‑twelve‑month consolidated net income stood at 8.2x.
What special items affected Verizon (VZ)'s Q2 2026 GAAP earnings?
Results included about $1.8 billion of pre‑tax special items. These covered a $746 million loss on disposition of an international wireline business, $397 million of severance, $258 million of asset rationalization, and acquisition and integration charges related to the Frontier transaction.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________________________________________
FORM 8-K
______________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: July 24, 2026
(Date of earliest event reported)
______________________________________________________________________________
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code: (212 ) 395-1000
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
Attached as an exhibit hereto are a press release and financial tables, dated July 24, 2026, issued by Verizon Communications Inc. (Verizon).
Non-GAAP Measures
Verizon’s press release and financial tables attached to the report include financial information prepared in conformity with generally accepted accounting principles in the United States (GAAP) as well as non-GAAP financial information. It is management's intent to provide non-GAAP financial information to enhance the understanding of Verizon's GAAP financial information, and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. We believe that providing these non-GAAP measures in addition to the GAAP measures allows management, investors and other users of our financial information to more fully and accurately assess both consolidated and segment performance. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be directly comparable to that of other companies.
EBITDA and EBITDA Margin Related Non-GAAP Measures
Consolidated earnings before interest, taxes, depreciation and amortization (Consolidated EBITDA), Segment EBITDA and Segment EBITDA Margin are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating operating profitability on a more variable cost basis as they exclude the depreciation and amortization expense related primarily to capital expenditures and acquisitions, as well as in evaluating operating performance in relation to Verizon's competitors.
Consolidated EBITDA is calculated by adding back interest, taxes, depreciation and amortization expense to net income.
Segment EBITDA is calculated by adding back segment depreciation and amortization expense to segment operating income. Segment EBITDA Margin is calculated by dividing Segment EBITDA by total segment operating revenues.
Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin
Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin are non-GAAP financial measures that we believe provide relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operations and underlying business trends. We believe that Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin are widely used by investors to compare a company’s operating performance to its competitors by minimizing impacts caused by differences in capital structure, taxes, and depreciation and amortization policies. Further, the exclusion of non-operational items and special items enables comparability to prior period performance and trend analysis.
Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA the effect of the following non-operational items: equity in earnings and losses of unconsolidated businesses and other income and expense, net, and the following special items: severance charges, acquisition and integration related charges, asset and business rationalization and loss on disposition of business. Severance charges recorded during 2026 and 2025 relate to separations in connection with workforce reduction initiatives. Acquisition and integration related charges recorded during 2026 and 2025 primarily relate to transaction and integration expenses associated with the acquisition of Frontier Communications Parent, Inc. completed in January 2026. Asset rationalization recorded during 2026 relates to the decision to cease use of certain real estate and network assets as part of our transformation initiatives. Asset and business rationalization recorded during 2025 predominately relates to the decision to cease use of certain real estate assets and exit non-strategic portions of certain businesses as part of our transformation initiatives. Loss on disposition of business recorded during 2026 relates to the classification of the assets and liabilities representing Verizon's international wireline connectivity and managed network services business as assets and liabilities held for sale.
Consolidated Adjusted EBITDA Margin is calculated by dividing Consolidated Adjusted EBITDA by consolidated operating revenues.
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating Verizon’s ability to service its unsecured debt from continuing operations.
Net Unsecured Debt is calculated by subtracting secured debt, a fifty percent equity credit related to junior subordinated notes, and cash and cash equivalents, from the sum of debt maturing within one year and long-term debt. Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio is calculated by dividing Net Unsecured Debt by Consolidated Adjusted EBITDA. For purposes of Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, Consolidated Adjusted EBITDA is calculated for the last twelve months.
Adjusted Earnings per Common Share (Adjusted EPS) and Adjusted EPS Forecast
Adjusted EPS and Adjusted EPS Forecast are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating our operating results and understanding our operating trends without the effect of special items which could vary from period to period. We believe excluding special items provides more comparable assessment of our financial results from period to period.
Adjusted EPS is calculated by excluding from the calculation of reported EPS the effect of the following special items: amortization of acquisition-related intangible assets, severance charges, acquisition and integration related charges, asset rationalization, and loss on disposition of business.
We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe that it is important for investors to understand that our non-GAAP financial measure adjusts for the intangible asset amortization but does not adjust the revenue that is generated in part from the use of such intangible assets.
We exclude the acquisition and integration related charges because the amount and timing of such charges are significantly impacted by the timing, size, and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the related costs to integrate an acquired business into our operations are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of acquisition and integration related charges facilitates more consistent comparisons of our operating results with historical periods, and with both acquisitive and non-acquisitive peer companies.
We have not provided a reconciliation for our Adjusted EPS Forecast because we cannot, without unreasonable effort, predict the special items that could arise during 2026.
Free Cash Flow and Free Cash Flow Forecast
Free cash flow and free cash flow forecast are non-GAAP financial measures that reflect an additional way of viewing our liquidity that, we believe, when viewed with our GAAP results, provide management, investors and other users of our financial information with a more complete understanding of factors and trends affecting our cash flows. We believe they are more conservative measures of cash flow since capital expenditures are necessary for ongoing operations. Free cash flow and free cash flow forecast have limitations due to the fact that they do not represent the residual cash flow available for discretionary expenditures. For example, free cash flow and free cash flow forecast do not incorporate payments made or expected to be made on finance lease obligations or cash payments for business acquisitions or wireless licenses. Therefore, we believe it is important to view free cash flow and free cash flow forecast as complements to our entire condensed consolidated statements of cash flows.
Free cash flow is calculated by subtracting capital expenditures (including capitalized software) from net cash provided by operating activities. Free cash flow forecast is calculated by subtracting capital expenditures forecast (including capitalized software) from forecasted net cash provided by operating activities.
See the accompanying schedules for reconciliations of non-GAAP financial measures to GAAP.
Item 9.01. Financial Statements and Exhibits
| (d) Exhibits. | ||||||||
| Exhibit Number | Description | |||||||
99 | Press release and financial tables, dated | |||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Verizon Communications Inc. | ||||||||||||||||||||
| (Registrant) | ||||||||||||||||||||
| Date: | July 24, 2026 | /s/ Mary-Lee Stillwell | ||||||||||||||||||
| Mary-Lee Stillwell | ||||||||||||||||||||
| Senior Vice President and Controller | ||||||||||||||||||||
VZQTR20FIN
Exhibit 99
News Release
FOR IMMEDIATE RELEASE | Media contacts: | ||||
| July 24, 2026 | Katie Magnotta | ||||
| 201-602-9235 | |||||
| katie.magnotta@verizon.com | |||||
| Jamie Serino | |||||
| 201-401-5460 | |||||
| jamie.serino@verizon.com | |||||
Verizon Delivers Record 2Q26 Results as Strategic Transformation Ignites Accelerated Growth
Company Achieves Strong Growth on Key Metrics and Raises Full-Year Guidance for the Second Consecutive Quarter
Key Highlights:
•Mobility and broadband service revenue grew by 2.8 percent in second-quarter 2026, and forecasted to rise to approximately 4.0 percent growth in fourth-quarter 2026
•Delivered 184,000 postpaid phone net additions, with the best Consumer second-quarter postpaid phone net additions in the past five years
•Generated more than 550,000 total mobility and broadband net additions in second-quarter 2026, an increase of more than 230,000 compared to second-quarter 2025
•Delivered more than 1 million mobility and broadband net additions in first-half of 2026, more than doubling the mobility and broadband net additions in first-half of 2025
•Built account momentum, achieving new postpaid account growth over the past 60 days
•Grew cash flow from operations in first-half of 2026 by 9.9 percent compared to first-half of 2025 to fuel a 16.0 percent surge in free cash flow¹. Second-quarter 2026 cash flow from operations grew by 16.3 percent and free cash flow¹ grew by 24.4 percent
•Executed with strict operational discipline and delivered solid consolidated net income performance to drive the highest adjusted EBITDA¹ and adjusted EBITDA margin¹ ever reported
•Raised full year guidance for mobility and broadband service revenue, cash flow from operations, free cash flow¹ and adjusted earnings per share (EPS)¹
•Returned $9.4 billion in total capital to shareholders in first-half of 2026 while expanding the full-year share buyback target to up to $4.5 billion
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NEW YORK, NY — Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced exceptional second-quarter 2026 financial and operational results, showcasing how its customer-first strategic transformation is driving sustainable growth and momentum. Intense operational discipline and improved unit economics translated directly into subscriber growth, lower churn, strong operating cash flow and industry-leading free cash flow¹ generation. With these results, Verizon raised its full-year guidance for the second consecutive quarter. Verizon also expanded its full-year share buyback target to up to $4.5 billion.
“We’re putting customers at the center of every decision we make,” said Dan Schulman, Verizon CEO. “With recent updates including our new Simplicity plans, Verizon One converged offerings, and an industry-leading loyalty program, we are gaining subscribers and earning long-term retention based on real value rather than subsidized promotions. Our second-quarter results provide clear, compelling evidence that this transformation is driving a structural inflection point across our entire business. We are accelerating across our key metrics, achieving a step-change in churn reduction while lowering our customer acquisition and retention costs. By compounding lower churn with healthier unit economics, we have generated the strongest operating position we have seen in years. Our core connectivity business is gaining momentum, and with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon’s growth trajectory.”
2Q 2026 Highlights
Mobility and Broadband
•Mobility and broadband service revenue reached approximately $23.4 billion, representing a 2.8 percent increase year-over-year.
•In second-quarter 2026, Verizon reported total postpaid phone net additions of 184,000, with the best Consumer second-quarter postpaid phone net additions in five years.
•Total core prepaid2 net additions were 73,000, representing eight consecutive quarters of positive net additions.
•Verizon delivered 348,000 broadband net additions in second-quarter 2026, a year-over-year increase of 12.3 percent. This includes total fixed wireless access net additions of 193,000 and 155,000 fiber broadband net additions.
•Verizon now has approximately 17.1 million fixed wireless access and fiber broadband connections.
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Consolidated Financial Results
•Total operating revenue was $34.3 billion, down 0.7 percent year-over-year, as sequential improvement in mobility and broadband service revenue was offset by a nearly 20 percent, or over $1.2 billion, decline in equipment revenue. This decline resulted primarily from significantly lower upgrade volumes, as the average time customers keep their mobile devices continues to increase, and the company's strategic decision to reduce spending on device subsidies. It is another demonstration of Verizon’s more disciplined approach as the company structurally evolves its business model.
•Consolidated net income was $3.9 billion, a 22.9 percent decrease year-over-year. This decrease was primarily driven by $1.8 billion in pre-tax special items, including, among others, a $746 million loss on disposition of business in connection with the classification of the net assets representing Verizon's international wireline connectivity and managed network services business as assets and liabilities held for sale; asset rationalization charges of $258 million; and severance charges of $397 million.
•Consolidated adjusted EBITDA1 grew 7.2 percent year-over-year to $13.7 billion, the highest the company ever reported.
•Consolidated net income margin was 11.5 percent compared to 14.8 percent in second-quarter 2025.
•Consolidated adjusted EBITDA1 margin grew from 37.1 to 40.1 percent, the highest the company ever reported.
•EPS was $0.92 in second-quarter 2026, a 22.0 percent decrease compared to $1.18 in second-quarter 2025; adjusted EPS1, excluding special items, was $1.30 in second-quarter 2026, a 6.6 percent increase compared to $1.22 in second-quarter 2025.
•Cash flow from operations was $18.4 billion for the first-half of the year compared to $16.8 billion for the first-half of 2025, representing a growth rate of 9.9 percent.
•Capital expenditures were $8.2 billion through the end of the second quarter, as the company continues to invest strategically for network excellence and future growth opportunities within mobility and broadband.
•Free cash flow1 was $10.2 billion for the first-half of 2026 compared to $8.8 billion for the first-half of 2025, representing a growth rate of 16.0 percent.
•In second quarter 2026, strong cash from operations was $10.4 billion, up 16.3 percent year-over-year. Free cash flow1 was $6.4 billion, up 24.4 percent year-over-year, marking one of the strongest free cash flow¹ quarters ever reported.
•Verizon's total unsecured debt as of the end of second-quarter 2026 was $136.5 billion, compared to $142.5 billion at the end of first-quarter 2026. The company's net unsecured debt1 at the end of second-quarter 2026 was $128.7 billion compared to $130.1 billion at the end of first-quarter 2026. At the end of second-quarter 2026, Verizon's ratio of unsecured debt to consolidated net income (LTM) was 8.2 times and its net unsecured debt to consolidated adjusted EBITDA ratio1 was 2.5 times.
•Verizon successfully completed $1.0 billion of share repurchases in second-quarter 2026, bringing year-to-date repurchases to $3.5 billion. The full-year share repurchase target has been raised to up to $4.5 billion.
Outlook and Guidance
Verizon does not provide a reconciliation for certain of the following adjusted (non-GAAP)
forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
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Given the strong second-quarter performance and visibility into the second half of the year, Verizon is raising guidance as follows:
•Mobility and broadband service revenue growth for 2026 to be 2.5 to 3.0 percent, with wireless service revenue growth approximately flat in 2026 as the company transitions to sustainable volume-based growth. Total mobility and broadband service revenue growth is expected to approach 3.0 percent in third-quarter 2026 and approximately 4.0 percent in fourth-quarter 2026, accelerating from the 2.8 percent increase reported in the second-quarter 2026.
•Adjusted EPS1 of $4.99 to $5.04, or year-over-year growth of 6.0 to 7.0 percent, representing a significant acceleration compared to recent historical performance.
•Cash flow from operations growth of approximately 2.0 to 4.0 percent year-over-year.
•Free cash flow1 growth of 9.0 to 10.0 percent year-over-year.
In addition, for 2026, Verizon continues to expect the following:
•Total retail postpaid phone net additions are expected to be in the upper half of the 750,000 to 1.0 million range, which is approximately 2 to 3 times the 2025 reported result.
•Capital expenditures of $16.0 billion to $16.5 billion.
1 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
2 Represents total prepaid results excluding our SafeLink brand.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $138.2 billion in 2025. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.
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VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/about/news. For images and logos, visit verizon.com/about/news/media-resources. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.
Forward-looking statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets,” "will" or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives, network performance and quality, and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology, including artificial intelligence, and address changes in consumer demand; the inability to implement our business strategy; adverse conditions in the U.S. and international
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economies, including inflation and changing interest rates in the markets in which we operate; changes to international trade and tariff policies and related economic and other impacts; cyberattacks impacting our networks or systems and any resulting financial or reputational impact; our ability to implement business transformation initiatives and achieve their anticipated benefits; system failures and disruptions to our networks and operations and any resulting financial, reputational or business impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors, public health crises, natural disasters or extreme weather conditions; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; significant amount of outstanding debt; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; our ability to return capital to shareholders, including the amount, timing, and effect of share repurchases and dividends; and risks associated with mergers, acquisitions, divestitures and other strategic transactions, including our ability to obtain cost savings and other synergies and anticipated benefits of completed transactions within the expected time period or at all.
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Verizon Communications Inc.
Condensed Consolidated Statements of Income
(dollars in millions, except per share amounts) | ||||||||||||||||||||||||||||||||||||||
| Unaudited | 3 Mos. Ended 6/30/26 | 3 Mos. Ended 6/30/25 | % Change | 6 Mos. Ended 6/30/26 | 6 Mos. Ended 6/30/25 | % Change | ||||||||||||||||||||||||||||||||
| Operating Revenues | ||||||||||||||||||||||||||||||||||||||
| Service revenues and other | $ | 29,229 | $ | 28,249 | 3.5 | $ | 57,988 | $ | 56,336 | 2.9 | ||||||||||||||||||||||||||||
| Wireless equipment revenues | 5,024 | 6,255 | (19.7) | 10,705 | 11,653 | (8.1) | ||||||||||||||||||||||||||||||||
| Total Operating Revenues | 34,253 | 34,504 | (0.7) | 68,693 | 67,989 | 1.0 | ||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||
| Cost of services | 7,225 | 6,878 | 5.0 | 14,392 | 13,828 | 4.1 | ||||||||||||||||||||||||||||||||
| Cost of wireless equipment | 5,859 | 7,007 | (16.4) | 12,365 | 13,113 | (5.7) | ||||||||||||||||||||||||||||||||
| Selling, general and administrative expense | 8,982 | 7,812 | 15.0 | 16,615 | 15,686 | 5.9 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 5,008 | 4,635 | 8.0 | 9,900 | 9,212 | 7.5 | ||||||||||||||||||||||||||||||||
| Total Operating Expenses | 27,074 | 26,332 | 2.8 | 53,272 | 51,839 | 2.8 | ||||||||||||||||||||||||||||||||
| Operating Income | 7,179 | 8,172 | (12.2) | 15,421 | 16,150 | (4.5) | ||||||||||||||||||||||||||||||||
| Equity in earnings (losses) of unconsolidated businesses | 44 | (3) | * | 49 | 3 | * | ||||||||||||||||||||||||||||||||
| Other income, net | 36 | 79 | (54.4) | 513 | 200 | * | ||||||||||||||||||||||||||||||||
| Interest expense | (1,985) | (1,639) | 21.1 | (3,925) | (3,271) | 20.0 | ||||||||||||||||||||||||||||||||
| Income Before Provision For Income Taxes | 5,274 | 6,609 | (20.2) | 12,058 | 13,082 | (7.8) | ||||||||||||||||||||||||||||||||
| Provision for income taxes | (1,325) | (1,488) | (11.0) | (2,963) | (2,978) | (0.5) | ||||||||||||||||||||||||||||||||
| Net Income | $ | 3,949 | $ | 5,121 | (22.9) | $ | 9,095 | $ | 10,104 | (10.0) | ||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | $ | 114 | $ | 118 | (3.4) | $ | 215 | $ | 222 | (3.2) | ||||||||||||||||||||||||||||
| Net income attributable to Verizon | 3,835 | 5,003 | (23.3) | 8,880 | 9,882 | (10.1) | ||||||||||||||||||||||||||||||||
| Net Income | $ | 3,949 | $ | 5,121 | (22.9) | $ | 9,095 | $ | 10,104 | (10.0) | ||||||||||||||||||||||||||||
| Basic Earnings Per Common Share | ||||||||||||||||||||||||||||||||||||||
| Net income attributable to Verizon | $ | 0.92 | $ | 1.18 | (22.0) | $ | 2.12 | $ | 2.34 | (9.4) | ||||||||||||||||||||||||||||
| Weighted-average shares outstanding (in millions) | 4,168 | 4,224 | 4,186 | 4,223 | ||||||||||||||||||||||||||||||||||
Diluted Earnings Per Common Share(1) | ||||||||||||||||||||||||||||||||||||||
| Net income attributable to Verizon | $ | 0.92 | $ | 1.18 | (22.0) | $ | 2.12 | $ | 2.34 | (9.4) | ||||||||||||||||||||||||||||
| Weighted-average shares outstanding (in millions) | 4,171 | 4,228 | 4,190 | 4,227 | ||||||||||||||||||||||||||||||||||
(1)Where applicable, Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
* Not meaningful
Verizon Communications Inc.
Condensed Consolidated Balance Sheets
| (dollars in millions) | ||||||||||||||||||||
| Unaudited | 6/30/26 | 12/31/25 | $ Change | |||||||||||||||||
| Assets | ||||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 1,752 | $ | 19,048 | $ | (17,296) | ||||||||||||||
| Accounts receivable | 27,734 | 28,347 | (613) | |||||||||||||||||
| Less Allowance for credit losses | 1,248 | 1,250 | (2) | |||||||||||||||||
| Accounts receivable, net | 26,486 | 27,097 | (611) | |||||||||||||||||
| Inventories | 2,036 | 2,441 | (405) | |||||||||||||||||
| Prepaid expenses and other | 7,297 | 8,336 | (1,039) | |||||||||||||||||
| Total current assets | 37,571 | 56,922 | (19,351) | |||||||||||||||||
| Property, plant and equipment | 357,086 | 337,991 | 19,095 | |||||||||||||||||
| Less Accumulated depreciation | 231,589 | 228,524 | 3,065 | |||||||||||||||||
| Property, plant and equipment, net | 125,497 | 109,467 | 16,030 | |||||||||||||||||
| Investments in unconsolidated businesses | 783 | 785 | (2) | |||||||||||||||||
| Wireless licenses | 158,159 | 157,039 | 1,120 | |||||||||||||||||
| Goodwill | 30,664 | 22,841 | 7,823 | |||||||||||||||||
| Other intangible assets, net | 12,317 | 10,458 | 1,859 | |||||||||||||||||
| Operating lease right-of-use assets | 23,158 | 23,498 | (340) | |||||||||||||||||
| Other assets | 22,037 | 23,248 | (1,211) | |||||||||||||||||
| Total assets | $ | 410,186 | $ | 404,258 | $ | 5,928 | ||||||||||||||
| Liabilities and Equity | ||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||
| Debt maturing within one year | $ | 21,783 | $ | 18,618 | $ | 3,165 | ||||||||||||||
| Accounts payable and accrued liabilities | 20,422 | 24,981 | (4,559) | |||||||||||||||||
| Current operating lease liabilities | 4,835 | 4,542 | 293 | |||||||||||||||||
| Other current liabilities | 15,171 | 14,229 | 942 | |||||||||||||||||
| Total current liabilities | 62,211 | 62,370 | (159) | |||||||||||||||||
| Long-term debt | 143,448 | 139,532 | 3,916 | |||||||||||||||||
| Employee benefit obligations | 11,758 | 11,099 | 659 | |||||||||||||||||
| Deferred income taxes | 50,234 | 48,717 | 1,517 | |||||||||||||||||
| Non-current operating lease liabilities | 18,392 | 18,951 | (559) | |||||||||||||||||
| Other liabilities | 18,947 | 17,848 | 1,099 | |||||||||||||||||
| Total long-term liabilities | 242,779 | 236,147 | 6,632 | |||||||||||||||||
| Equity | ||||||||||||||||||||
| Common stock | 429 | 429 | — | |||||||||||||||||
| Additional paid in capital | 13,258 | 13,372 | (114) | |||||||||||||||||
| Retained earnings | 97,728 | 94,744 | 2,984 | |||||||||||||||||
| Accumulated other comprehensive loss | (1,784) | (1,727) | (57) | |||||||||||||||||
| Common stock in treasury, at cost | (6,312) | (3,255) | (3,057) | |||||||||||||||||
| Deferred compensation – employee stock ownership plans and other | 601 | 897 | (296) | |||||||||||||||||
| Noncontrolling interests | 1,276 | 1,281 | (5) | |||||||||||||||||
| Total equity | 105,196 | 105,741 | (545) | |||||||||||||||||
| Total liabilities and equity | $ | 410,186 | $ | 404,258 | $ | 5,928 | ||||||||||||||
Verizon Communications Inc.
Consolidated - Selected Financial and Operating Statistics
| (dollars in millions, except per share amounts) | ||||||||||||||
| Unaudited | 6/30/26 | 12/31/25 | ||||||||||||
| Total debt | $ | 165,231 | $ | 158,150 | ||||||||||
| Unsecured debt | $ | 136,471 | $ | 131,083 | ||||||||||
Net unsecured debt(1) | $ | 128,682 | $ | 110,053 | ||||||||||
| Unsecured debt / Consolidated Net Income (LTM) | 8.2 | x | 7.4 | x | ||||||||||
Net unsecured debt / Consolidated Adjusted EBITDA(1)(2) | 2.5 | x | 2.2 | x | ||||||||||
| Common shares outstanding, end of period (in millions) | 4,155 | 4,217 | ||||||||||||
Total employees (‘000)(3) | 97.6 | 89.9 | ||||||||||||
| Quarterly cash dividends declared per common share | $ | 0.7075 | $ | 0.6900 | ||||||||||
Footnotes:
(1)Non-GAAP financial measure.
(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.
(3)Number of employees on a full-time equivalent basis.
Verizon Communications Inc.
Condensed Consolidated Statements of Cash Flows
| (dollars in millions) | ||||||||||||||||||||
| Unaudited | 6 Mos. Ended 6/30/26 | 6 Mos. Ended 6/30/25 | $ Change | |||||||||||||||||
| Cash Flows from Operating Activities | ||||||||||||||||||||
| Net Income | $ | 9,095 | $ | 10,104 | $ | (1,009) | ||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
| Depreciation and amortization expense | 9,900 | 9,212 | 688 | |||||||||||||||||
| Employee retirement benefits | 35 | 331 | (296) | |||||||||||||||||
| Deferred income taxes | 1,433 | 95 | 1,338 | |||||||||||||||||
| Provision for expected credit losses | 1,043 | 1,135 | (92) | |||||||||||||||||
| Equity in (earnings) losses of unconsolidated businesses, net of dividends received | (35) | 29 | (64) | |||||||||||||||||
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | (3,418) | (3,318) | (100) | |||||||||||||||||
| Other, net | 366 | (831) | 1,197 | |||||||||||||||||
| Net cash provided by operating activities | 18,419 | 16,757 | 1,662 | |||||||||||||||||
| Cash Flows from Investing Activities | ||||||||||||||||||||
| Capital expenditures (including capitalized software) | (8,210) | (7,953) | (257) | |||||||||||||||||
| Cash paid related to acquisitions of businesses, net of cash acquired | (9,480) | — | (9,480) | |||||||||||||||||
| Acquisitions of wireless licenses | (1,155) | (234) | (921) | |||||||||||||||||
| Other, net | 345 | 997 | (652) | |||||||||||||||||
| Net cash used in investing activities | (18,500) | (7,190) | (11,310) | |||||||||||||||||
| Cash Flows from Financing Activities | ||||||||||||||||||||
| Proceeds from long-term borrowings | 9,940 | 1,676 | 8,264 | |||||||||||||||||
| Proceeds from asset-backed long-term borrowings | 12,028 | 4,962 | 7,066 | |||||||||||||||||
| Repayments of long-term borrowings and finance lease obligations | (14,426) | (5,530) | (8,896) | |||||||||||||||||
| Repayments of asset-backed long-term borrowings | (13,912) | (4,512) | (9,400) | |||||||||||||||||
| Dividends paid | (5,864) | (5,712) | (152) | |||||||||||||||||
| Purchase of common stock for treasury | (3,500) | — | (3,500) | |||||||||||||||||
| Other, net | (1,380) | (1,155) | (225) | |||||||||||||||||
| Net cash used in financing activities | (17,114) | (10,271) | (6,843) | |||||||||||||||||
| Decrease in cash, cash equivalents and restricted cash | (17,195) | (704) | (16,491) | |||||||||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 19,499 | 4,635 | 14,864 | |||||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 2,304 | $ | 3,931 | $ | (1,627) | ||||||||||||||
Verizon Communications Inc.
Consumer - Selected Financial Results
| (dollars in millions) | ||||||||||||||||||||||||||||||||||||||
| Unaudited | 3 Mos. Ended 6/30/26 | 3 Mos. Ended 6/30/25 | % Change | 6 Mos. Ended 6/30/26 | 6 Mos. Ended 6/30/25 | % Change | ||||||||||||||||||||||||||||||||
| Operating Revenues | ||||||||||||||||||||||||||||||||||||||
Mobility and broadband service(1) | $ | 19,637 | $ | 19,002 | 3.3 | $ | 38,817 | $ | 37,803 | 2.7 | ||||||||||||||||||||||||||||
| Wireless equipment | 4,178 | 5,369 | (22.2) | 9,002 | 9,901 | (9.1) | ||||||||||||||||||||||||||||||||
Other(2) | 2,427 | 2,277 | 6.6 | 4,876 | 4,562 | 6.9 | ||||||||||||||||||||||||||||||||
| Total Operating Revenues | 26,242 | 26,648 | (1.5) | 52,695 | 52,266 | 0.8 | ||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||
| Cost of services | 4,928 | 4,581 | 7.6 | 9,748 | 9,155 | 6.5 | ||||||||||||||||||||||||||||||||
| Cost of wireless equipment | 4,658 | 5,806 | (19.8) | 9,961 | 10,718 | (7.1) | ||||||||||||||||||||||||||||||||
| Selling, general and administrative expense | 4,837 | 5,036 | (4.0) | 9,723 | 10,201 | (4.7) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 3,787 | 3,582 | 5.7 | 7,517 | 7,125 | 5.5 | ||||||||||||||||||||||||||||||||
| Total Operating Expenses | 18,210 | 19,005 | (4.2) | 36,949 | 37,199 | (0.7) | ||||||||||||||||||||||||||||||||
| Operating Income | $ | 8,032 | $ | 7,643 | 5.1 | $ | 15,746 | $ | 15,067 | 4.5 | ||||||||||||||||||||||||||||
| Operating Income Margin | 30.6 | % | 28.7 | % | 29.9 | % | 28.8 | % | ||||||||||||||||||||||||||||||
Segment EBITDA(3) | $ | 11,819 | $ | 11,225 | 5.3 | $ | 23,263 | $ | 22,192 | 4.8 | ||||||||||||||||||||||||||||
Segment EBITDA Margin(3) | 45.0 | % | 42.1 | % | 44.1 | % | 42.5 | % | ||||||||||||||||||||||||||||||
Footnotes:
(1) Mobility and broadband service revenue primarily includes revenue from mobility communication services, FWA broadband, Fios internet and other fiber-based services.
(2) Other revenue primarily includes revenue from wireline products that provide legacy voice, video and data solutions, as well as broadband solutions over a traditional copper-based network. Other revenue also includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, leasing and interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement.
(3) Non-GAAP financial measure.
During the first quarter of 2026, Verizon revised its presentation of revenue reporting for its reportable segments. Accordingly, beginning in the first quarter of 2026, Verizon has reported Consumer revenue disaggregated by products and services as follows: Mobility and broadband service revenue, Wireless equipment revenue and Other revenue. Prior period operating revenue results have been recast to conform to the current period presentation. There was no change to the composition of our reportable segments and total segment results, nor to the determination of segment profit.
The segment financial results above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
Verizon Communications Inc.
Business - Selected Financial Results
| (dollars in millions) | ||||||||||||||||||||||||||||||||||||||
| Unaudited | 3 Mos. Ended 6/30/26 | 3 Mos. Ended 6/30/25 | % Change | 6 Mos. Ended 6/30/26 | 6 Mos. Ended 6/30/25 | % Change | ||||||||||||||||||||||||||||||||
| Operating Revenues | ||||||||||||||||||||||||||||||||||||||
Mobility and broadband service(1) | $ | 3,728 | $ | 3,733 | (0.1) | $ | 7,416 | $ | 7,450 | (0.5) | ||||||||||||||||||||||||||||
| Wireless equipment | 846 | 886 | (4.5) | 1,703 | 1,752 | (2.8) | ||||||||||||||||||||||||||||||||
Other(2) | 2,581 | 2,354 | 9.6 | 5,166 | 4,773 | 8.2 | ||||||||||||||||||||||||||||||||
| Total Operating Revenues | 7,155 | 6,973 | 2.6 | 14,285 | 13,975 | 2.2 | ||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||
| Cost of services | 2,023 | 2,060 | (1.8) | 4,140 | 4,214 | (1.8) | ||||||||||||||||||||||||||||||||
| Cost of wireless equipment | 1,203 | 1,201 | 0.2 | 2,405 | 2,395 | 0.4 | ||||||||||||||||||||||||||||||||
| Selling, general and administrative expense | 1,847 | 1,990 | (7.2) | 3,653 | 3,909 | (6.5) | ||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 1,091 | 998 | 9.3 | 2,140 | 1,987 | 7.7 | ||||||||||||||||||||||||||||||||
| Total Operating Expenses | 6,164 | 6,249 | (1.4) | 12,338 | 12,505 | (1.3) | ||||||||||||||||||||||||||||||||
| Operating Income | $ | 991 | $ | 724 | 36.9 | $ | 1,947 | $ | 1,470 | 32.4 | ||||||||||||||||||||||||||||
| Operating Income Margin | 13.9 | % | 10.4 | % | 13.6 | % | 10.5 | % | ||||||||||||||||||||||||||||||
Segment EBITDA(3) | $ | 2,082 | $ | 1,722 | 20.9 | $ | 4,087 | $ | 3,457 | 18.2 | ||||||||||||||||||||||||||||
Segment EBITDA Margin(3) | 29.1 | % | 24.7 | % | 28.6 | % | 24.7 | % | ||||||||||||||||||||||||||||||
Footnotes:
(1) Mobility and broadband service revenue primarily includes revenue from mobility communication services, FWA broadband, Fios internet and other fiber-based services.
(2) Other revenue primarily includes revenue from wireline products that provide legacy voice, video and data solutions, as well as broadband solutions over a traditional copper-based network. Other revenue also includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, leasing and interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement.
(3) Non-GAAP financial measure.
During the first quarter of 2026, Verizon revised its presentation of revenue reporting for its reportable segments. Accordingly, beginning in the first quarter of 2026, Verizon has reported Business revenue disaggregated by products and services as follows: Mobility and broadband service revenue, Wireless equipment revenue and Other revenue. Prior period operating revenue results have been recast to conform to the current period presentation. There was no change to the composition of our reportable segments and total segment results, nor to the determination of segment profit.
In the second quarter of 2026, the net assets representing Verizon's international wireline connectivity and managed network services business were classified as assets and liabilities held for sale and moved from the Business segment to Corporate and other. Where applicable, historical segment results have been reclassified to conform to the current period presentation.
The segment financial results above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
Verizon Communications Inc.
Total Operating Statistics
| Unaudited | 6/30/26 | 6/30/25 | % Change | |||||||||||||||||||||||||||||||||||
| Connections (‘000) | ||||||||||||||||||||||||||||||||||||||
| Wireless retail | 146,953 | 146,136 | 0.6 | |||||||||||||||||||||||||||||||||||
| Wireless retail postpaid | 126,619 | 125,895 | 0.6 | |||||||||||||||||||||||||||||||||||
| Wireless retail postpaid phone | 94,098 | 93,207 | 1.0 | |||||||||||||||||||||||||||||||||||
Wireless retail core prepaid(1) | 19,351 | 19,017 | 1.8 | |||||||||||||||||||||||||||||||||||
Wireless retail core prepaid phone(1) | 18,654 | 18,502 | 0.8 | |||||||||||||||||||||||||||||||||||
| Fiber broadband | 10,913 | 7,613 | 43.3 | |||||||||||||||||||||||||||||||||||
| FWA broadband | 6,208 | 5,112 | 21.4 | |||||||||||||||||||||||||||||||||||
Total broadband(2) | 17,121 | 12,725 | 34.5 | |||||||||||||||||||||||||||||||||||
| Unaudited | 3 Mos. Ended 6/30/26 | 3 Mos. Ended 6/30/25 | % Change | 6 Mos. Ended 6/30/26 | 6 Mos. Ended 6/30/25 | % Change | ||||||||||||||||||||||||||||||||
| Net Additions Detail (‘000) | ||||||||||||||||||||||||||||||||||||||
| Wireless retail | 223 | 177 | 26.0 | 107 | 112 | (4.5) | ||||||||||||||||||||||||||||||||
| Wireless retail postpaid | 188 | 155 | 21.3 | (8) | (4) | * | ||||||||||||||||||||||||||||||||
| Wireless retail postpaid phone | 184 | (9) | * | 239 | (298) | * | ||||||||||||||||||||||||||||||||
Wireless retail core prepaid(1) | 73 | 50 | 46.0 | 188 | 187 | 0.5 | ||||||||||||||||||||||||||||||||
Wireless retail core prepaid phone(1) | 24 | 24 | — | 94 | 134 | (29.9) | ||||||||||||||||||||||||||||||||
| Fiber broadband | 155 | 32 | * | 282 | 77 | * | ||||||||||||||||||||||||||||||||
| FWA broadband | 193 | 278 | (30.6) | 407 | 586 | (30.5) | ||||||||||||||||||||||||||||||||
Total broadband(2) | 348 | 310 | 12.3 | 689 | 663 | 3.9 | ||||||||||||||||||||||||||||||||
| Account Statistics | ||||||||||||||||||||||||||||||||||||||
Wireless retail postpaid accounts (‘000)(3) | 34,237 | 34,646 | (1.2) | |||||||||||||||||||||||||||||||||||
Wireless retail postpaid ARPA(4) | $ | 168.35 | $ | 170.79 | (1.4) | $ | 167.50 | $ | 170.30 | (1.6) | ||||||||||||||||||||||||||||
Wireless retail core prepaid ARPU(5) | $ | 33.37 | $ | 32.56 | 2.5 | $ | 33.34 | $ | 32.24 | 3.4 | ||||||||||||||||||||||||||||
| Churn Detail | ||||||||||||||||||||||||||||||||||||||
| Wireless retail postpaid phone | 0.92 | % | 0.97 | % | 0.94 | % | 0.96 | % | ||||||||||||||||||||||||||||||
Wireless retail core prepaid(1) | 3.59 | % | 3.60 | % | 3.52 | % | 3.53 | % | ||||||||||||||||||||||||||||||
| Wireless Retail Postpaid Connection Statistics | ||||||||||||||||||||||||||||||||||||||
| Upgrade rate | 2.6 | % | 3.6 | % | ||||||||||||||||||||||||||||||||||
Footnotes:
(1) Represents total prepaid results excluding our SafeLink brand.
(2) Total broadband excludes solutions provided over a traditional copper-based network.
(3) Statistic presented as of end of period.
(4) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(5) Wireless retail core prepaid ARPU - average service revenue per unit from retail prepaid connections excluding our SafeLink brand.
Where applicable, the operating results reflect certain adjustments, including those related to migration activity among different types of devices and plans, customer profile changes, product-related changes and adjustments in connection with mergers, acquisitions and divestitures. Where applicable, historical results have been recast to conform to the current period presentation.
* Not meaningful
Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA and Consolidated Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||||||||||||
| Unaudited | 3 Mos. Ended 6/30/26 | 3 Mos. Ended 3/31/26 | 3 Mos. Ended 12/31/25 | 3 Mos. Ended 9/30/25 | 3 Mos. Ended 6/30/25 | 3 Mos. Ended 3/31/25 | ||||||||||||||||||||||||||||||||
| Consolidated Net Income | $ | 3,949 | $ | 5,146 | $ | 2,448 | $ | 5,056 | $ | 5,121 | $ | 4,983 | ||||||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 1,325 | 1,638 | 615 | 1,471 | 1,488 | 1,490 | ||||||||||||||||||||||||||||||||
Interest expense(1) | 1,985 | 1,940 | 1,759 | 1,664 | 1,639 | 1,632 | ||||||||||||||||||||||||||||||||
Depreciation and amortization expense(2) | 5,008 | 4,892 | 4,519 | 4,618 | 4,635 | 4,577 | ||||||||||||||||||||||||||||||||
| Consolidated EBITDA | $ | 12,267 | $ | 13,616 | $ | 9,341 | $ | 12,809 | $ | 12,883 | $ | 12,682 | ||||||||||||||||||||||||||
| Add/(subtract): | ||||||||||||||||||||||||||||||||||||||
Other (income) expense, net(3) | $ | (36) | $ | (477) | $ | 185 | $ | (92) | $ | (79) | $ | (121) | ||||||||||||||||||||||||||
| Equity in (earnings) losses of unconsolidated businesses | (44) | (5) | (3) | 6 | 3 | (6) | ||||||||||||||||||||||||||||||||
| Severance charges | 397 | — | 1,715 | — | — | — | ||||||||||||||||||||||||||||||||
| Acquisition and integration related charges | 135 | 261 | 39 | 52 | — | — | ||||||||||||||||||||||||||||||||
| Asset and business rationalization | 258 | — | 583 | — | — | — | ||||||||||||||||||||||||||||||||
| Loss on disposition of business | 746 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| 1,456 | (221) | 2,519 | (34) | (76) | (127) | |||||||||||||||||||||||||||||||||
| Consolidated Adjusted EBITDA | $ | 13,723 | $ | 13,395 | $ | 11,860 | $ | 12,775 | $ | 12,807 | $ | 12,555 | ||||||||||||||||||||||||||
| Consolidated Operating Revenues | $34,253 | $34,504 | ||||||||||||||||||||||||||||||||||||
| Consolidated Net Income Margin | 11.5 | % | 14.8 | % | ||||||||||||||||||||||||||||||||||
| Consolidated Adjusted EBITDA Margin | 40.1 | % | 37.1 | % | ||||||||||||||||||||||||||||||||||
| Consolidated Adjusted EBITDA - Year over year change % | 7.2 | % | ||||||||||||||||||||||||||||||||||||
| Footnotes: | ||||||||||||||||||||||||||||||||||||||
(1) Includes a portion of the Acquisition and integration related charges, where applicable. | ||||||||||||||||||||||||||||||||||||||
(2) Includes Amortization of acquisition-related intangible assets. | ||||||||||||||||||||||||||||||||||||||
(3) Includes Pension and benefits remeasurement adjustments, where applicable. | ||||||||||||||||||||||||||||||||||||||
Verizon Communications Inc.
| Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM) | ||||||||||||||
(dollars in millions) | ||||||||||||||
| Unaudited | 12 Mos. Ended 6/30/26 | 12 Mos. Ended 12/31/25 | ||||||||||||
| Consolidated Net Income | $ | 16,599 | $ | 17,608 | ||||||||||
| Add: | ||||||||||||||
| Provision for income taxes | 5,049 | 5,064 | ||||||||||||
Interest expense(1) | 7,348 | 6,694 | ||||||||||||
Depreciation and amortization expense(2) | 19,037 | 18,349 | ||||||||||||
| Consolidated EBITDA | $ | 48,033 | $ | 47,715 | ||||||||||
| Add/(subtract): | ||||||||||||||
Other income, net(3) | $ | (420) | $ | (107) | ||||||||||
Equity in losses of unconsolidated businesses | (46) | — | ||||||||||||
| Severance charges | 2,112 | 1,715 | ||||||||||||
| Acquisition and integration related charges | 487 | 91 | ||||||||||||
| Asset and business rationalization | 841 | 583 | ||||||||||||
| Loss on disposition of business | 746 | — | ||||||||||||
| 3,720 | 2,282 | |||||||||||||
| Consolidated Adjusted EBITDA | $ | 51,753 | $ | 49,997 | ||||||||||
| Footnotes: | ||||||||||||||
(1) Includes a portion of the Acquisition and integration related charges, where applicable. | ||||||||||||||
(2) Includes Amortization of acquisition-related intangible assets. | ||||||||||||||
(3) Includes Pension and benefits remeasurement adjustments, where applicable. | ||||||||||||||
Verizon Communications Inc.
| Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | ||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||
| Unaudited | 6/30/26 | 3/31/26 | 12/31/25 | |||||||||||||||||
| Debt maturing within one year | $ | 21,783 | $ | 28,229 | $ | 18,618 | ||||||||||||||
| Long-term debt | 143,448 | 144,231 | 139,532 | |||||||||||||||||
| Total Debt | 165,231 | 172,460 | 158,150 | |||||||||||||||||
| Less: Secured debt | 28,760 | 29,962 | 27,067 | |||||||||||||||||
| Unsecured Debt | 136,471 | 142,498 | 131,083 | |||||||||||||||||
Less: Equity credit for junior subordinated notes(1) | 6,037 | 4,079 | 1,982 | |||||||||||||||||
| Less: Cash and cash equivalents | 1,752 | 8,366 | 19,048 | |||||||||||||||||
Net Unsecured Debt | $ | 128,682 | $ | 130,053 | $ | 110,053 | ||||||||||||||
| Consolidated Net Income (LTM) | $ | 16,599 | $ | 17,608 | ||||||||||||||||
| Unsecured Debt to Consolidated Net Income Ratio | 8.2 | x | 7.4 | x | ||||||||||||||||
| Consolidated Adjusted EBITDA (LTM) | $ | 51,753 | $ | 49,997 | ||||||||||||||||
| Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | 2.5 | x | 2.2 | x | ||||||||||||||||
| Footnote: | ||||||||||||||||||||
(1) Represents a fifty percent equity credit related to junior subordinated notes outstanding. | ||||||||||||||||||||
Adjusted Earnings per Common Share (Adjusted EPS) | ||||||||||||||||||||||||||||||||
(dollars in millions, except per share amounts) | ||||||||||||||||||||||||||||||||
| Unaudited | 3 Mos. Ended 6/30/26 | 3 Mos. Ended 6/30/25 | ||||||||||||||||||||||||||||||
| Pre-tax | Tax | After-Tax | Pre-tax | Tax | After-Tax | |||||||||||||||||||||||||||
| EPS | $ | 0.92 | $ | 1.18 | ||||||||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | $ | 274 | $ | (69) | $ | 205 | 0.05 | $ | 192 | $ | (49) | $ | 143 | 0.03 | ||||||||||||||||||
| Severance charges | 397 | (98) | 299 | 0.07 | — | — | — | — | ||||||||||||||||||||||||
Acquisition and integration related charges | 135 | (18) | 117 | 0.03 | — | — | — | — | ||||||||||||||||||||||||
| Asset rationalization | 258 | (63) | 195 | 0.05 | — | — | — | — | ||||||||||||||||||||||||
| Loss on disposition of business | 746 | 29 | 775 | 0.19 | — | — | — | — | ||||||||||||||||||||||||
| $ | 1,810 | $ | (219) | $ | 1,591 | $ | 0.38 | $ | 192 | $ | (49) | $ | 143 | $ | 0.03 | |||||||||||||||||
| Adjusted EPS | $ | 1.30 | $ | 1.22 | ||||||||||||||||||||||||||||
Year over year change % | 6.6 | % | ||||||||||||||||||||||||||||||
| Footnote: | ||||||||||||||||||||||||||||||||
| Adjusted EPS may not add due to rounding. | ||||||||||||||||||||||||||||||||
| Free Cash Flow | ||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||
| Unaudited | 3 Mos. Ended 6/30/26 | 3 Mos. Ended 6/30/25 | 6 Mos. Ended 6/30/26 | 6 Mos. Ended 6/30/25 | ||||||||||||||||||||||
| Net Cash Provided by Operating Activities | $ | 10,435 | $ | 8,975 | $ | 18,419 | $ | 16,757 | ||||||||||||||||||
| Capital expenditures (including capitalized software) | (4,009) | (3,808) | (8,210) | (7,953) | ||||||||||||||||||||||
| Free Cash Flow | $ | 6,426 | $ | 5,167 | $ | 10,209 | $ | 8,804 | ||||||||||||||||||
| Year over year change % | 24.4 | % | 16.0 | % | ||||||||||||||||||||||
Verizon Communications Inc.
| Free Cash Flow Forecast for Full Year 2026 | ||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||
Revised | Original | |||||||||||||||||||
| Unaudited | Forecast | Forecast | ||||||||||||||||||
| Net Cash Provided by Operating Activities Forecast | $ | 37,940 - 38,640 | $ | 37,500 - 38,000 | ||||||||||||||||
| Capital expenditures forecast (including capitalized software) | (16,000 - 16,500) | (16,000 - 16,500) | ||||||||||||||||||
| Free Cash Flow Forecast | $ | 21,940 - 22,140 | $ | 21,500 | ||||||||||||||||
| Net Cash Provided by Operating Activities Growth Forecast % | 2.2 % - 4.0 % | 1.0 % - 2.3 % | ||||||||||||||||||
Free Cash Flow Growth Forecast % | 9.0 % - 10.0 % | 6.8 | % | |||||||||||||||||
Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
| Segment EBITDA and Segment EBITDA Margin | ||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||
| Unaudited | 3 Mos. Ended 6/30/26 | 3 Mos. Ended 6/30/25 | 6 Mos. Ended 6/30/26 | 6 Mos. Ended 6/30/25 | ||||||||||||||||||||||
| Operating Income | $ | 8,032 | $ | 7,643 | $ | 15,746 | $ | 15,067 | ||||||||||||||||||
| Add: Depreciation and amortization expense | 3,787 | 3,582 | 7,517 | 7,125 | ||||||||||||||||||||||
| Segment EBITDA | $ | 11,819 | $ | 11,225 | $ | 23,263 | $ | 22,192 | ||||||||||||||||||
| Year over year change % | 5.3 | % | 4.8 | % | ||||||||||||||||||||||
| Total operating revenues | $ | 26,242 | $ | 26,648 | $ | 52,695 | $ | 52,266 | ||||||||||||||||||
| Operating Income Margin | 30.6 | % | 28.7 | % | 29.9 | % | 28.8 | % | ||||||||||||||||||
| Segment EBITDA Margin | 45.0 | % | 42.1 | % | 44.1 | % | 42.5 | % | ||||||||||||||||||
| Business | ||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||
| Unaudited | 3 Mos. Ended 6/30/26 | 3 Mos. Ended 6/30/25 | 6 Mos. Ended 6/30/26 | 6 Mos. Ended 6/30/25 | ||||||||||||||||||||||
| Operating Income | $ | 991 | $ | 724 | $ | 1,947 | $ | 1,470 | ||||||||||||||||||
| Add: Depreciation and amortization expense | 1,091 | 998 | 2,140 | 1,987 | ||||||||||||||||||||||
| Segment EBITDA | $ | 2,082 | $ | 1,722 | $ | 4,087 | $ | 3,457 | ||||||||||||||||||
| Year over year change % | 20.9 | % | 18.2 | % | ||||||||||||||||||||||
| Total operating revenues | $ | 7,155 | $ | 6,973 | $ | 14,285 | $ | 13,975 | ||||||||||||||||||
| Operating Income Margin | 13.9 | % | 10.4 | % | 13.6 | % | 10.5 | % | ||||||||||||||||||
| Segment EBITDA Margin | 29.1 | % | 24.7 | % | 28.6 | % | 24.7 | % | ||||||||||||||||||
Footnote:
In the second quarter of 2026, the net assets representing Verizon's international wireline connectivity and managed network services business were classified as assets and liabilities held for sale and moved from the Business segment to Corporate and other. Where applicable, historical segment results have been reclassified to conform to the current period presentation.