Verizon Communications Inc. (NYSE:VZ) shares rose 2.7% on Friday after the telecommunications company reported second-quarter earnings that exceeded analyst expectations and lifted its full-year guidance, offsetting a slight revenue shortfall.
While quarterly revenue came in below Wall Street forecasts, investors welcomed stronger subscriber growth, improving profitability and a more optimistic outlook for the remainder of the year.
Earnings outperform despite lower revenue
Verizon reported adjusted earnings of $1.30 per share for the second quarter, ahead of analysts’ consensus estimate of $1.28 per share.
Revenue totaled $34.3 billion, below the expected $35.28 billion and down 0.7% from the same period last year.
The company said the decline was largely driven by a sharp drop in equipment revenue, reflecting longer device replacement cycles and lower promotional spending on handset subsidies.
Wireless and broadband businesses continue to grow
Despite weaker equipment sales, Verizon’s core service businesses delivered steady growth.
Mobility and broadband service revenue increased 2.8% year-on-year to approximately $23.4 billion.
The company added 184,000 postpaid phone subscribers during the quarter, comfortably ahead of market expectations of 103,900 net additions and marking its strongest second-quarter consumer performance in five years.
Broadband growth also remained robust, with 348,000 net additions, including 193,000 fixed wireless access customers and 155,000 fiber broadband subscribers.
Profitability and cash generation improve
Verizon reported record adjusted EBITDA of $13.7 billion for the quarter, an increase of 7.2% from a year earlier.
Adjusted EBITDA margin expanded to 40.1%, compared with 37.1% in the second quarter of 2025.
During the first half of 2026, cash flow from operations rose 9.9% to $18.4 billion, while free cash flow increased 16.0% to $10.2 billion.
Company raises financial guidance
Following the stronger quarterly performance, Verizon increased its adjusted earnings per share guidance for 2026 to a range of $4.99 to $5.04, representing annual growth of between 6.0% and 7.0%.
The midpoint of the revised forecast exceeded previous market expectations.
“We’re putting customers at the center of every decision we make,” said Dan Schulman, Verizon CEO. “Our second-quarter results provide clear, compelling evidence that this transformation is driving a structural inflection point across our entire business.”
The company also raised its full-year free cash flow growth forecast to between 9.0% and 10.0% and expanded its share repurchase programme, increasing the buyback target to as much as $4.5 billion.
In addition, Verizon lifted its forecast for 2026 mobility and broadband service revenue growth to between 2.5% and 3.0%, with growth expected to accelerate to around 4.0% during the fourth quarter.
Verizon Communications stock price
