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 over 146 million retail connections as of mid-2025. The company delivers a wide range of services, including mobility, network connectivity, and security, continually investing in next-generation technologies like 5G and fiber-optic networks.
Verizon Communications’ stock has exhibited volatility in recent months, with declines across shorter time frames. Over the last 5 days, Verizon fell by 3.8%, extending to a 9.3% drop in the past month. In the year to date, the stock remains flat while providing a 30% gain over a 2-year timeframe.
The telecommunications company falls significantly behind the S&P 500 Index’s ($SPX) 14% gain over the past 52-week period. This underperformance relative to the market highlights Verizon’s competitive and sector-specific challenges despite improved operational momentum in certain segments.
Verizon reported robust second-quarter results on July 21, surpassing analyst expectations across 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 revenue reached $34.5 billion, exceeding analyst projections of $33.74 billion and representing a 5.2% year-over-year increase. Both net income and adjusted EBITDA also saw year-over-year growth, highlighting the strength of Verizon’s diversified wireless and broadband portfolio.
A deep dive into Verizon’s financials reveals consistent improvement in core business segments. Wireless service revenue increased 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 positive momentum in fixed wireless access.
Free cash flow for the first half of 2025 rose to $8.8 billion from $8.5 billion in the prior year.
Looking ahead, Verizon revised its full-year guidance upward, now targeting adjusted EPS growth of 1%-3%, adjusted EBITDA growth of 2.5%-3.5%, and free cash flow in the range of $19.5 billion to $20.5 billion, a significant raise from earlier projections. The company cited operational strength, accelerated network upgrades, and favorable tax reform benefits, positioning itself for enhanced flexibility and strategic investments as it moves toward a planned merger with Frontier (FYBR).
Plus, the stock is a consistent dividend payer, with a current high yield of 6.92%.
On Wednesday, AST SpaceMobile (ASTS) revealed a pivotal commercial agreement with Verizon, aiming to deliver direct cellular service via satellites across the continental United States starting next year.
This innovative arrangement will enable Verizon subscribers to access cellular connectivity “when needed,” utilizing AST’s space-based broadband network, and is designed to fill coverage gaps beyond the reach of terrestrial cell towers. The deal expands an alliance announced last year, signaling Verizon’s commitment to space-enabled connectivity and harnessing its 850 MHz spectrum for seamless integration with AST’s satellite infrastructure.
Investors responded to the news swiftly as AST SpaceMobile’s shares shot up 8% following the news, building on its more-than-250% rally over the past 52 weeks. However, Verizon’s stock edged lower as investors absorbed news of the latest tech-forward venture. AST has demonstrated the feasibility of space-to-phone connections via recent voice and data calls between standard smartphones and its BlueBird satellites, supporting its claim as a leading developer of global satellite cellular networks.
Although the details of the agreement remain undisclosed, the announcement reinforces Verizon’s and AST SpaceMobile’s ambition to define connectivity, especially for remote areas.
Analysts have a positive take on the telecommunication provider with a consensus “Moderate Buy” rating and a mean price target of $48.29, signifying upside potential of 22%.
The stock has been reviewed by 30 analysts in total, receiving 9 “Strong Buy” ratings, 3 “Moderate Buy” ratings, and 18 “Hold” ratings from Wall Street.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
Verizon (VZ) is a leading global telecommunications company, recognized for its innovation and scale. Verizon operates the largest wireless network in the United States, with over 146 million retail connections as of mid-2025. The company delivers a wide range of services, including mobility, network connectivity, and security, continually investing in next-generation technologies like 5G and fiber-optic networks.
Verizon Communications’ stock has exhibited volatility in recent months, with declines across shorter time frames. Over the last 5 days, Verizon fell by 3.8%, extending to a 9.3% drop in the past month. In the year to date, the stock remains flat while providing a 30% gain over a 2-year timeframe.
The telecommunications company falls significantly behind the S&P 500 Index’s ($SPX) 14% gain over the past 52-week period. This underperformance relative to the market highlights Verizon’s competitive and sector-specific challenges despite improved operational momentum in certain segments.
Verizon reported robust second-quarter results on July 21, surpassing analyst expectations across 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 revenue reached $34.5 billion, exceeding analyst projections of $33.74 billion and representing a 5.2% year-over-year increase. Both net income and adjusted EBITDA also saw year-over-year growth, highlighting the strength of Verizon’s diversified wireless and broadband portfolio.
A deep dive into Verizon’s financials reveals consistent improvement in core business segments. Wireless service revenue increased 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 positive momentum in fixed wireless access.
Free cash flow for the first half of 2025 rose to $8.8 billion from $8.5 billion in the prior year.
Looking ahead, Verizon revised its full-year guidance upward, now targeting adjusted EPS growth of 1%-3%, adjusted EBITDA growth of 2.5%-3.5%, and free cash flow in the range of $19.5 billion to $20.5 billion, a significant raise from earlier projections. The company cited operational strength, accelerated network upgrades, and favorable tax reform benefits, positioning itself for enhanced flexibility and strategic investments as it moves toward a planned merger with Frontier (FYBR).
Plus, the stock is a consistent dividend payer, with a current high yield of 6.92%.
On Wednesday, AST SpaceMobile (ASTS) revealed a pivotal commercial agreement with Verizon, aiming to deliver direct cellular service via satellites across the continental United States starting next year.
This innovative arrangement will enable Verizon subscribers to access cellular connectivity “when needed,” utilizing AST’s space-based broadband network, and is designed to fill coverage gaps beyond the reach of terrestrial cell towers. The deal expands an alliance announced last year, signaling Verizon’s commitment to space-enabled connectivity and harnessing its 850 MHz spectrum for seamless integration with AST’s satellite infrastructure.
Investors responded to the news swiftly as AST SpaceMobile’s shares shot up 8% following the news, building on its more-than-250% rally over the past 52 weeks. However, Verizon’s stock edged lower as investors absorbed news of the latest tech-forward venture. AST has demonstrated the feasibility of space-to-phone connections via recent voice and data calls between standard smartphones and its BlueBird satellites, supporting its claim as a leading developer of global satellite cellular networks.
Although the details of the agreement remain undisclosed, the announcement reinforces Verizon’s and AST SpaceMobile’s ambition to define connectivity, especially for remote areas.
Analysts have a positive take on the telecommunication provider with a consensus “Moderate Buy” rating and a mean price target of $48.29, signifying upside potential of 22%.
The stock has been reviewed by 30 analysts in total, receiving 9 “Strong Buy” ratings, 3 “Moderate Buy” ratings, and 18 “Hold” ratings from Wall Street.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
