Verizon's Strong Q1 Performance Boosts Stock Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy VZ?
Source: Fool
- Accelerated Earnings Growth: Verizon's Q1 revenue grew by 2.9% year-over-year to $34.4 billion, and while this growth may seem modest, net income increased by 3.3%, demonstrating improved operating leverage and significant progress in profitability.
- Customer Growth Milestone: The company achieved a net addition of 55,000 postpaid phone users in Q1, marking its first positive result in this metric since 2013, a sharp turnaround from a net loss of 289,000 users a year ago, indicating successful efforts to reduce churn and improve customer economics.
- Optimistic Outlook: Management raised its 2026 adjusted earnings-per-share guidance to $4.95 to $4.99, reflecting a year-over-year growth expectation of 5% to 6%, an increase from the previous guidance of 4% to 5%, showcasing the positive momentum of the company's turnaround.
- Capital Return Program: Verizon completed $2.5 billion in share repurchases in Q1 and is on track to repurchase at least $3 billion for the full year, alongside a 2.5% increase in dividends, marking the 20th consecutive year of dividend increases, demonstrating a strong commitment to shareholder returns.
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Analyst Views on VZ
Wall Street analysts forecast VZ stock price to rise
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 46.380
Low
43.00
Averages
46.42
High
51.00
Current: 46.380
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 Q1 Earnings Beat Expectations with Cash Flow Growth
- Earnings Performance: Verizon's Q1 non-GAAP EPS of $1.28 exceeded expectations by $0.07, indicating ongoing improvements in profitability, although total revenue of $34.4 billion, up 2.9% year-over-year, fell short of expectations by $490 million, reflecting increased market competition pressures.
- Strong Cash Flow Growth: The company reported free cash flow of $3.8 billion in Q1, a 4% increase from $3.6 billion in the same quarter last year, demonstrating effective cost control and spending optimization strategies, with expectations for 2026 free cash flow to exceed $21.5 billion, marking the highest level since 2020.
- Significant User Growth: Verizon achieved 55,000 postpaid phone net additions in Q1, marking the first positive growth in this category since 2013, with a year-over-year improvement of over 340,000, showcasing the company's success in attracting new customers.
- Stable Service Revenue: Mobility and broadband service revenue reached approximately $22.9 billion, a 1.6% year-over-year increase, despite an 80 basis point impact on service revenue growth due to a January network outage, yet the company still anticipates service revenue growth of 2% to 3% in 2026, reflecting resilient market demand.
See More
Verizon's Strong Q1 Performance Boosts Stock Price
- Accelerated Earnings Growth: Verizon's Q1 revenue grew by 2.9% year-over-year to $34.4 billion, and while this growth may seem modest, net income increased by 3.3%, demonstrating improved operating leverage and significant progress in profitability.
- Customer Growth Milestone: The company achieved a net addition of 55,000 postpaid phone users in Q1, marking its first positive result in this metric since 2013, a sharp turnaround from a net loss of 289,000 users a year ago, indicating successful efforts to reduce churn and improve customer economics.
- Optimistic Outlook: Management raised its 2026 adjusted earnings-per-share guidance to $4.95 to $4.99, reflecting a year-over-year growth expectation of 5% to 6%, an increase from the previous guidance of 4% to 5%, showcasing the positive momentum of the company's turnaround.
- Capital Return Program: Verizon completed $2.5 billion in share repurchases in Q1 and is on track to repurchase at least $3 billion for the full year, alongside a 2.5% increase in dividends, marking the 20th consecutive year of dividend increases, demonstrating a strong commitment to shareholder returns.
See More
Verizon Reports Highest EPS Growth in Four Years
- Earnings Growth: Verizon's adjusted earnings per share reached $1.28, surpassing analyst expectations with a year-over-year growth rate of 7.6%, marking the company's best quarterly growth since 2021 and indicating significant improvements in profitability.
- Customer Growth Rebound: In Q1 2026, Verizon achieved 55,000 net additions of postpaid phone users, marking its first positive result in this quarter since 2013, a sharp turnaround from a net loss of 289,000 in the previous year, suggesting effective churn reduction strategies.
- Cash Flow and Dividend Commitment: Verizon maintained its free cash flow outlook of at least $21.5 billion, supporting a 6.1% dividend yield, while management reiterated an
See More
Verizon Communications Stock Rises with Dividend Growth
- Accelerated Earnings Growth: Verizon's Q1 revenue grew 2.9% year-over-year to $34.4 billion, and while this may seem modest, net income rose 3.3%, indicating improved operating leverage and significant progress in profitability.
- Customer Growth Milestone: Verizon reported 55,000 net additions of postpaid phone users in Q1 2026, marking its first positive result in this metric since 2013, a sharp turnaround from a loss of 289,000 users a year ago, suggesting effective efforts to reduce churn.
- Optimistic Outlook: Management raised the 2026 adjusted earnings-per-share guidance to $4.95 to $4.99, reflecting a year-over-year growth of 5% to 6%, an increase from the previous guidance of 4% to 5%, indicating positive momentum in the company's turnaround efforts.
- Capital Return Program: Verizon completed $2.5 billion in share repurchases in Q1 and plans to buy back at least $3 billion for the full year, demonstrating management's confidence in the stock's value, while also marking the 20th consecutive year of dividend increases with a recent 2.5% boost.
See More
U.S. Stocks Decline Amid Geopolitical Tensions and Earnings Strength
- Geopolitical Tensions: Stalled peace negotiations between the U.S. and Iran have led to rising oil prices, raising fresh concerns about inflation and global economic growth, as investors balance strong corporate earnings against geopolitical uncertainties.
- Earnings Performance: Verizon (VZ) reported a better-than-expected Q1, while Domino's Pizza (DPZ) posted disappointing results and announced an additional $1 billion share repurchase program, highlighting the varied market reactions to different companies.
- Acquisition Activity: Shell (SHEL) agreed to acquire ARC Resources (AETUF) for C$32.80 per share, while China blocked Meta's (META) acquisition of AI startup Manus, reflecting the complexities of the global M&A landscape.
- Market Index Fluctuations: Near midday, the Dow was down 0.25%, the Nasdaq down 0.28%, and the S&P 500 down 0.14%, indicating the market's sensitive response to geopolitical tensions and economic data.
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US Stocks Fluctuate Slightly, Tech Stocks Reach New All-Time Highs
- Tech Stock Surge: The S&P 500 and Nasdaq 100 indices rose by 0.12% and 0.01% respectively on Monday, reaching all-time highs, reflecting strong market optimism regarding AI infrastructure demand, which is expected to boost technology earnings.
- Oil Price Impact: WTI crude oil prices surged over 2%, exerting downward pressure on the market as President Trump canceled negotiations with Iran, raising inflation expectations that could affect the broader economic landscape.
- Rising Treasury Yields: The 10-year Treasury yield increased to 4.337% due to rising inflation expectations from higher oil prices, with markets anticipating the Fed will keep rates unchanged this week while awaiting further developments in oil prices and inflation.
- Health Insurance Stocks Rally: Health insurance stocks such as Centene, Elevance Health, and Humana all rose over 3% on Monday, providing support to the overall market and demonstrating resilience in the sector amid the current economic environment.
See More
Verizon Q1 Earnings Beat Expectations with Cash Flow Growth
- Earnings Performance: Verizon's Q1 non-GAAP EPS of $1.28 exceeded expectations by $0.07, indicating ongoing improvements in profitability, although total revenue of $34.4 billion, up 2.9% year-over-year, fell short of expectations by $490 million, reflecting increased market competition pressures.
- Strong Cash Flow Growth: The company reported free cash flow of $3.8 billion in Q1, a 4% increase from $3.6 billion in the same quarter last year, demonstrating effective cost control and spending optimization strategies, with expectations for 2026 free cash flow to exceed $21.5 billion, marking the highest level since 2020.
- Significant User Growth: Verizon achieved 55,000 postpaid phone net additions in Q1, marking the first positive growth in this category since 2013, with a year-over-year improvement of over 340,000, showcasing the company's success in attracting new customers.
- Stable Service Revenue: Mobility and broadband service revenue reached approximately $22.9 billion, a 1.6% year-over-year increase, despite an 80 basis point impact on service revenue growth due to a January network outage, yet the company still anticipates service revenue growth of 2% to 3% in 2026, reflecting resilient market demand.
See More
Verizon's Strong Q1 Performance Boosts Stock Price
- Accelerated Earnings Growth: Verizon's Q1 revenue grew by 2.9% year-over-year to $34.4 billion, and while this growth may seem modest, net income increased by 3.3%, demonstrating improved operating leverage and significant progress in profitability.
- Customer Growth Milestone: The company achieved a net addition of 55,000 postpaid phone users in Q1, marking its first positive result in this metric since 2013, a sharp turnaround from a net loss of 289,000 users a year ago, indicating successful efforts to reduce churn and improve customer economics.
- Optimistic Outlook: Management raised its 2026 adjusted earnings-per-share guidance to $4.95 to $4.99, reflecting a year-over-year growth expectation of 5% to 6%, an increase from the previous guidance of 4% to 5%, showcasing the positive momentum of the company's turnaround.
- Capital Return Program: Verizon completed $2.5 billion in share repurchases in Q1 and is on track to repurchase at least $3 billion for the full year, alongside a 2.5% increase in dividends, marking the 20th consecutive year of dividend increases, demonstrating a strong commitment to shareholder returns.
See More
Verizon Reports Highest EPS Growth in Four Years
- Earnings Growth: Verizon's adjusted earnings per share reached $1.28, surpassing analyst expectations with a year-over-year growth rate of 7.6%, marking the company's best quarterly growth since 2021 and indicating significant improvements in profitability.
- Customer Growth Rebound: In Q1 2026, Verizon achieved 55,000 net additions of postpaid phone users, marking its first positive result in this quarter since 2013, a sharp turnaround from a net loss of 289,000 in the previous year, suggesting effective churn reduction strategies.
- Cash Flow and Dividend Commitment: Verizon maintained its free cash flow outlook of at least $21.5 billion, supporting a 6.1% dividend yield, while management reiterated an
See More
Verizon Communications Stock Rises with Dividend Growth
- Accelerated Earnings Growth: Verizon's Q1 revenue grew 2.9% year-over-year to $34.4 billion, and while this may seem modest, net income rose 3.3%, indicating improved operating leverage and significant progress in profitability.
- Customer Growth Milestone: Verizon reported 55,000 net additions of postpaid phone users in Q1 2026, marking its first positive result in this metric since 2013, a sharp turnaround from a loss of 289,000 users a year ago, suggesting effective efforts to reduce churn.
- Optimistic Outlook: Management raised the 2026 adjusted earnings-per-share guidance to $4.95 to $4.99, reflecting a year-over-year growth of 5% to 6%, an increase from the previous guidance of 4% to 5%, indicating positive momentum in the company's turnaround efforts.
- Capital Return Program: Verizon completed $2.5 billion in share repurchases in Q1 and plans to buy back at least $3 billion for the full year, demonstrating management's confidence in the stock's value, while also marking the 20th consecutive year of dividend increases with a recent 2.5% boost.
See More
U.S. Stocks Decline Amid Geopolitical Tensions and Earnings Strength
- Geopolitical Tensions: Stalled peace negotiations between the U.S. and Iran have led to rising oil prices, raising fresh concerns about inflation and global economic growth, as investors balance strong corporate earnings against geopolitical uncertainties.
- Earnings Performance: Verizon (VZ) reported a better-than-expected Q1, while Domino's Pizza (DPZ) posted disappointing results and announced an additional $1 billion share repurchase program, highlighting the varied market reactions to different companies.
- Acquisition Activity: Shell (SHEL) agreed to acquire ARC Resources (AETUF) for C$32.80 per share, while China blocked Meta's (META) acquisition of AI startup Manus, reflecting the complexities of the global M&A landscape.
- Market Index Fluctuations: Near midday, the Dow was down 0.25%, the Nasdaq down 0.28%, and the S&P 500 down 0.14%, indicating the market's sensitive response to geopolitical tensions and economic data.
See More
US Stocks Fluctuate Slightly, Tech Stocks Reach New All-Time Highs
- Tech Stock Surge: The S&P 500 and Nasdaq 100 indices rose by 0.12% and 0.01% respectively on Monday, reaching all-time highs, reflecting strong market optimism regarding AI infrastructure demand, which is expected to boost technology earnings.
- Oil Price Impact: WTI crude oil prices surged over 2%, exerting downward pressure on the market as President Trump canceled negotiations with Iran, raising inflation expectations that could affect the broader economic landscape.
- Rising Treasury Yields: The 10-year Treasury yield increased to 4.337% due to rising inflation expectations from higher oil prices, with markets anticipating the Fed will keep rates unchanged this week while awaiting further developments in oil prices and inflation.
- Health Insurance Stocks Rally: Health insurance stocks such as Centene, Elevance Health, and Humana all rose over 3% on Monday, providing support to the overall market and demonstrating resilience in the sector amid the current economic environment.
See More
