Verizon Communications Inc. (VZ) AI Stock Analysis

Verizon Communications Inc. is a telecommunications provider delivering services to consumers, businesses, and government entities globally. The Consumer segment offers postpaid and prepaid wireless service plans, wireless equipment, residential fixed connectivity solutions, and network access for mobile virtual network operators. As of December 31, 2021, Verizon served approximately 115 million wireless retail connections, 7 million wireline broadband connections, and 4 million Fios video connections. The Business segment offers network connectivity products, voice and video services, unified communications, contact center solutions, data security services, and Internet of Things products. By the end of 2021, it managed approximately 27 million wireless retail postpaid connections.

Revenue increased from $133.61B in FY2021 to $138.19B in FY2025, reflecting a 5-year revenue CAGR of 1.5%. Net income was $22.07B in FY2021, fell to $11.61B in FY2023, and recovered to $17.17B in FY2025. Diluted earnings per share reached $4.71 in FY2025, matching FY2023 levels. Gross margin stood at 45.6% in FY2025, while operating margin was 21.2%. Free cash flow reached $19.68B in FY2025, up from $18.92B in FY2024. In the latest quarter ended June 30, 2026, quarterly revenue declined 0.7% year-over-year and quarterly earnings declined 22.0% year-over-year.

As of June 30, 2026, Verizon held $1.75B in cash and short-term investments against $188.46B in total debt, resulting in net debt of $186.71B. Total assets were $410.19B and shareholders' equity was $103.92B. The company recorded a current ratio of 0.60 and a debt-to-equity ratio of 1.81. In FY2025, operating cash flow reached $37.14B. Verizon used its cash to fund capital expenditures of $17.46B and paid dividends of $11.48B, while its 5-year share count change was 0.0%.

Verizon trades at a trailing price-to-earnings ratio of 11.7x and a forward price-to-earnings ratio of 8.7x, below the median of its S&P 500 Communication Services peers of 20.5x and 15.4x, respectively. Its enterprise value to EBITDA ratio of 7.9x is lower than the peer median of 11.7x, and its price-to-sales ratio is 1.3x versus the peer median of 1.9x. Over the past year, the stock returned 18.4%, compared to 16.8% for the S&P 500 benchmark. Over five years, the stock returned 18.0% compared to 83.0% for the S&P 500.

Verizon pays a quarterly dividend with an annualized forward payout of $2.83 per share, representing a dividend yield of 6.32%. The company's payout ratio is 57.7%, and it has paid dividends for 43 consecutive years. Over the last five years, its annualized dividend growth rate was 2.0%. The last ex-dividend date was October 9, 2026.

Wall Street analysts covering Verizon hold 8 Strong Buy, 3 Buy, and 14 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target of $51.24 implies upside of 14.4% from the last close of $44.79. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $140.80B and EPS of $5.02. Verizon beat EPS estimates in each of the last 4 quarters, and its next earnings date is October 26, 2026.

This page is an AI-written research summary of Verizon Communications Inc. (VZ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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