Verizon (VZ) Up 4.9% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Verizon Communications (VZ). Shares have added about 4.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Verizon due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Verizon Communications Inc. before we dive into how investors and analysts have reacted as of late.

VZ Beats Q3 Earnings Estimates, Misses on Revenues

Verizon reported solid third-quarter 2025 results with industry-leading wireless service revenues of $21 billion, up 2.1% year over year. However, while adjusted earnings beat the Zacks Consensus Estimate, revenues missed the same. 

The company registered solid broadband growth with total fixed wireless access net additions of 261,000, growing the subscriber base to nearly 5.4 million. The company remains well poised to achieve its target of 8 to 9 million fixed wireless access subscribers by 2028.    

Net Income

On a GAAP basis, net income in the quarter was $5.06 billion or $1.17 per share compared with $3.41 billion or 78 cents per share in the prior-year quarter. The improvement was primarily attributable to top-line growth and lower operating expenses. Excluding non-recurring items, quarterly adjusted earnings were $1.21 per share compared with $1.19 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 2 cents. 

Revenues

Quarterly total operating revenues improved 1.5% to $33.82 billion with growth in service revenues and 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, however, missed the consensus estimate of $34.18 billion. 

Quarterly Segment Results

Consumer: Total revenues from this segment improved 2.9% year over year to $26.1 billion with growth across all businesses. The segment revenues exceeded our estimate of $26.02 billion. Service revenues were up 2.1% to $20.34 billion, while wireless equipment revenues improved 6.4% to $4.77 billion. Other revenues totaled $1 billion, up 3.9% year over year.

Wireless retail postpaid churn was 1.12%, while retail postpaid phone churn was 0.91%. The company recorded 61,000 Fios Internet net additions as high demand for reliable fiber optic broadband was spurred by higher video consumption. Verizon delivered 306,000 broadband net additions in the quarter. However, it registered 70,000 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 increased 0.8% to $7.66 billion with a margin of 29.4%. EBITDA improved 2% to $11.23 billion with a margin of 43% compared with 43.4% in the prior-year quarter due to lower costs of wireless equipment.

Business: The segment revenues were down 2.8% to $7.14 billion due to lower wholesale and enterprise and public sector revenues, partially offset by growth in business markets and other revenues. It was also lower than our estimates of $7.3 billion, largely due to challenging macroeconomic conditions. The segment had 110,000 wireless retail postpaid net additions in the quarter, including 51,000 postpaid phone net additions. Wireless retail postpaid churn was 1.56%, while retail postpaid phone churn was 1.25%. Fixed wireless broadband net additions were 140,000 for the quarter. 

Operating income improved to $637 million from $565 million in the year-ago quarter with respective margins of 8.9% and 7.7%. Segment EBITDA was up 4.2% to $1.67 billion owing to an improvement in wireless service revenues for a margin of 23.4% compared with 21.8% in the year-earlier quarter.

Other Quarterly Details

Total operating expenses were down 6.2% to $25.72 billion, while operating income improved 36.8% to $8.1 billion. Consolidated adjusted EBITDA increased to $12.77 billion from $12.49 billion, led by wireless service revenue growth and perceived benefits from lower upgrade volumes for respective margins of 37.8% and 37.5%.

Cash Flow & Liquidity

Verizon generated $28 billion of net cash from operating activities for the first nine months of 2025 compared with $26.48 billion in the year-ago period. Free cash flow was $6.96 billion for the quarter compared with $5.96 billion in the prior-year period. As of Sept. 30, 2025, the company had $7.71 billion in cash and cash equivalents with $126.63 billion of long-term debt. 

Guidance 

For 2025, Verizon continues to expect wireless service revenue growth in the range of 2%-2.8%. Adjusted EBITDA is expected to grow 2.5%-3.5%. The company expects adjusted earnings to grow 1-3% range with a cash flow of $37-$39 billion on capital expenditures of $17.5-$18.5 billion.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

At this time, Verizon has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Verizon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Verizon is part of the Zacks Wireless National industry. Over the past month, AT&T (T), a stock from the same industry, has gained 4.6%. The company reported its results for the quarter ended September 2025 more than a month ago.

AT&T reported revenues of $30.71 billion in the last reported quarter, representing a year-over-year change of +1.6%. EPS of $0.54 for the same period compares with $0.60 a year ago.

For the current quarter, AT&T is expected to post earnings of $0.49 per share, indicating a change of -9.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.

AT&T has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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This article originally published on Zacks Investment Research (zacks.com).

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