Verizon Raised Guidance Three Times in Its Q2 Earnings Release. Here’s Why.

Key Takeaways for Verizon Stock as of July 2026

• Verizon reported second quarter revenue of $34,253 million, missing the $35,105.80 million estimate by 2.43% and slipping 0.73% year over year, while adjusted EPS of $1.30 beat estimates by 2.71% and rose 6.56% from a year ago.
• Management raised full year guidance across the board: mobility and broadband service revenue growth to 2.5-3%, adjusted EPS growth to 6-7%, and free cash flow growth to 9-10%, up from a prior guide of at least 7%.
• Free cash flow of $6,426 million jumped 24.37% year over year and beat estimates by 22.89%, the sharpest improvement in the quarter, driven by $10,435 million of operating cash flow against $4,009 million of capital spending.
• “When you compound lower churn with healthier acquisition economics, you get exactly the kind of operating leverage you are seeing in our financial results,” CEO Dan Schulman said, tying the churn improvement directly to Verizon stock’s margin story.

Verizon stock traded at $46 heading into the print. TIKR’s model puts real upside on Verizon stock even after a revenue miss. See the full breakdown behind that split on Verizon’s earnings page on TIKR for free →

Verizon’s Q2 Earnings Show a Real Inflection Beneath a Revenue Miss

Verizon (VZ) reported second quarter 2026 revenue of $34,253 million, missing the $35,105.80 million estimate by 2.43% and slipping 0.73% year over year, yet adjusted earnings per share of $1.30 beat estimates by 2.71% and climbed 6.56% from a year ago. The gap between those two numbers is the story of the quarter for Verizon stock.

Equipment revenue fell nearly 20%, or over $1.2 billion, as Verizon deliberately cut upgrade volumes by 27% to hold down subsidy costs. That trade paid off lower in the income statement. Adjusted EBITDA hit $13,723 million, up 7.15% year over year, and the 40.06% margin marked the highest Verizon has ever reported, a 295 basis point jump from last year. EBIT told a rougher story, falling 12.15% year over year to $7,179 million and missing the $8,601.27 million estimate by 16.54%, a sign that depreciation tied to the Frontier integration and network buildout is still weighing on the bottom of the income statement even as operating leverage builds above it.

Free cash flow told the clearest story: $6,426 million, up 24.37% year over year and 22.89% ahead of estimates, driven by $10,435 million of cash from operations against $4,009 million of capital spending. Management raised full year guidance across the board: mobility and broadband service revenue growth to 2.5-3%, adjusted EPS growth to 6-7%, and free cash flow growth to 9-10%, up from a prior guide of at least 7%. That cash flow strength followed twenty straight years of dividend increases, a streak Verizon extended in January and one the second quarter’s 24% free cash flow growth only makes easier to keep alive.

Behind those numbers sits a churn story. Consumer postpaid phone churn fell to 84 basis points, down from 90 in the first quarter and improving 6 basis points year over year, the second straight quarterly decline. CEO Dan Schulman connected that trend directly to the cost structure on the Q2 2026 earnings call: “When you compound lower churn with healthier acquisition economics, you get exactly the kind of operating leverage you are seeing in our financial results.” Consumer postpaid phone net adds posted their best result in five years, and Verizon signed a dark fiber deal with Google worth over $1 billion, the first contract under what it calls AI Connect, a new revenue stream the company expects to start showing up in 2027.

Verizon just signed its first AI infrastructure fiber contract, with more deals promised by year end. Track segment-level detail on Verizon stock on TIKR for free →

TIKR Values Verizon Stock at $71, Pricing In an Accelerating Core Business

TIKR’s mid-case model values Verizon stock at $71 by December 2030, implying 53% total return from the current price of $46, or 10% annualized over 4.4 years.

That annualized return sits well above what a low single-digit revenue grower typically commands, reflecting a business the model treats as re-rating rather than merely compounding its current multiple. The target rests on the same dynamics visible in the second quarter print: EBITDA margins at a record 40.06%, free cash flow up 24.37% year over year, and guidance raised on revenue, EPS, and cash flow in the same quarter that churn hit its lowest level in years.

Layer in AI Connect revenue starting in 2027 and the model’s mid-case path to $71 reads less like a forecast and more like an extension of a trend already showing up in the numbers.

TIKR’s model puts 53% upside on Verizon stock through 2030. Compare that target against the company’s own guidance on TIKR for free →

Should You Invest in Verizon Communications Inc.?

The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.

Pull up Verizon Communications Inc. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.

You can build a free watchlist to track Verizon Communications Inc. alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.

Access Professional Tools to Analyze VZ stock on TIKR for Free →

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!