Verizon Projects Strong Free Cash Flow Growth for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
0mins
Should l Buy VZ?
Source: NASDAQ.COM
- Free Cash Flow Growth: Verizon expects its free cash flow to reach $21.5 billion in 2026, up 7% from $20.1 billion in 2025, marking the highest level since 2020 and indicating significant improvement in the company's financial health.
- Earnings Enhancement: The company projects adjusted earnings per share (EPS) between $4.90 and $4.95 for 2026, reflecting a year-over-year growth of 4% to 5%, which signifies a substantial acceleration compared to recent historical performance, boosting investor confidence in future earnings.
- Business Foundation Improvement: Verizon achieved its highest postpaid phone net additions since 2019 in Q4 2025, with wireless services revenue rising 1.1% to $21 billion, indicating a steady recovery of the company's core business.
- Positive Acquisition Progress: Verizon plans to finalize its acquisition of Frontier Communications on January 20, 2026, which is expected to significantly scale its fiber footprint to over 30 million homes and businesses, viewed as a pivotal step in the company's turnaround strategy.
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Analyst Views on VZ
Wall Street analysts forecast VZ stock price to fall
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 49.390
Low
43.00
Averages
46.42
High
51.00
Current: 49.390
Low
43.00
Averages
46.42
High
51.00
About VZ
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, technology, information and streaming products and services to consumers, businesses and government entities. Its Consumer segment provides wireless and wireline communications services. It also provides fixed wireless access (FWA) broadband through its 5G or 4G Long-Term Evolution (LTE) networks portfolio. The Company's Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products. It provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dividend Appeal: With a history of 22 consecutive years of dividend increases, Verizon's latest quarterly dividend of $0.71 and a yield of approximately 5.6% provide a solid investment opportunity for those seeking stable returns during market volatility.
- Acquisition Expansion: The completion of the Frontier Communications acquisition has expanded Verizon's fiber access to over 30 million homes and businesses, enhancing its competitive edge in the high-speed internet market.
- Market Environment Impact: Amid increasing market volatility, investors are shifting from growth stocks to high-dividend value stocks, benefiting Verizon's performance, although the likelihood of sustained outperformance against the broader market remains low.
See More
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- Surge of Lawsuits: A jury in New Mexico ruled Meta liable for child safety, while a Los Angeles case accused its product design of fostering addiction in minors, indicating increasing regulatory scrutiny on tech giants.
- AI Mode Controversy: Google's AI Mode is accused of disclosing personal information of Epstein victims, with plaintiffs arguing that this design intentionally incites harassment, potentially exposing the company to greater legal risks.
- Uncertain Industry Outlook: Although the financial penalties to date are under $400 million, these verdicts set a troubling precedent for the tech industry, which may affect future investments and innovation directions.
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- Dividend Growth: Verizon has raised its dividend for 22 consecutive years, with the latest quarterly dividend set at $0.71 per share, resulting in a dividend yield of approximately 5.6%, making it an attractive option for high-yield investors and enhancing the company's appeal.
- Strong Earnings: In Q4 2025, Verizon reported 616,000 net additions of postpaid phone users, marking the highest quarterly net additions since 2019, indicating robust performance in market competition and increasing customer demand.
- Acquisition Expansion: Verizon's acquisition of Frontier Communications has expanded its fiber access to over 30 million homes and businesses, further solidifying its position in the telecommunications market and driving future growth potential.
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- Stable Dividend Growth: Verizon has raised its dividend for 22 consecutive years, with the latest quarterly dividend set at $0.71, resulting in a dividend yield of approximately 5.6%, making it attractive for income-seeking investors.
- Significant User Growth: In Q4 2025, Verizon reported 616,000 postpaid phone net additions, the highest quarterly net additions since 2019, indicating strong market demand and customer acquisition.
- Acquisition Expands Network: Verizon's acquisition of Frontier Communications has expanded its fiber access to over 30 million homes and businesses, enhancing its competitive position and service capabilities in the telecommunications market.
See More
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- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average can provide valuable insights for investors, helping them assess market trends and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting the fund's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs experiencing significant inflows or outflows can provide investors with critical information regarding market sentiment and potential investment opportunities.
See More
