Verizon Sees Significant Customer Rebound
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: NASDAQ.COM
- Strong Customer Growth: Verizon achieved its highest net customer additions since 2019 in Q4, gaining 616,000 postpaid phone users and 372,000 broadband subscribers, demonstrating the company's ability to win back customers in a competitive market.
- Robust Financial Performance: The company reported a 2% year-over-year increase in operating revenue to $36.4 billion in Q4, and although adjusted earnings per share slightly declined to $1.09, it surpassed Wall Street's expectations of $1.06, indicating stable profitability.
- Free Cash Flow Growth Outlook: Management anticipates free cash flow will grow approximately 7% to at least $21.5 billion in 2026, driven by expected net additions of 750,000 to 1 million retail postpaid phone users, providing strong financial support for future growth.
- Strategic Transformation Commitment: New CEO Dan Schulman emphasized that Verizon will no longer be a
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Analyst Views on VZ
Wall Street analysts forecast VZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VZ is 46.42 USD with a low forecast of 43.00 USD and a high forecast of 51.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 39.810
Low
43.00
Averages
46.42
High
51.00
Current: 39.810
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.
Verizon Reports Strong Q4 Results and Optimistic 2026 Guidance
- Significant User Growth: Verizon achieved 616,000 postpaid phone net additions in Q4 2025, a 22.2% increase from 504,000 in Q4 2024, marking the best quarterly performance since 2019, indicating a strong recovery in customer attraction and market share.
- Strong Financial Performance: In 2025, Verizon reported total revenue of $138.2 billion, up 2.5% from $134.8 billion in 2024, with earnings per share (EPS) at $4.06 and adjusted EPS at $4.71, reflecting ongoing improvements in profitability and revenue growth.
- Acquisition Drives Network Expansion: The completion of the Frontier acquisition on January 20, 2026, expands Verizon's fiber footprint to over 30 million homes and businesses, accelerating its national mobility and broadband convergence strategy and enhancing competitive positioning.
- Positive Future Outlook: Verizon expects retail postpaid phone net additions of 750,000 to 1 million in 2026, with service revenue growth of 2% to 3%, and adjusted EPS projected at $4.90 to $4.95, showcasing strong growth potential during its transformation phase.
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Verizon's Strong Subscriber Growth Boosts Stock Price
- Significant User Growth: Verizon added 616,000 postpaid phone subscribers and 372,000 broadband subscribers in Q4, marking its highest quarterly net customer additions since 2019, indicating a resurgence in a competitive market.
- Stock Price Surge: Following the robust subscriber growth report, Verizon's stock price rose over 11%, closing at $44.52, reflecting market optimism about its future growth potential.
- Strong Financial Performance: Q4 operating revenue increased by 2% year-over-year to $36.4 billion, and although adjusted earnings per share slightly declined to $1.09, it surpassed Wall Street's estimate of $1.06, demonstrating the company's resilience in profitability.
- Optimistic Cash Flow Outlook: Verizon anticipates a 7% growth in free cash flow to at least $21.5 billion in 2026, driven by net additions of 750,000 to 1 million retail postpaid phone subscribers, indicating strong growth potential in the coming years.
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