A Business at a Glance
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VERIZON COMMUNICATIONS INC
VZ
$196.2B
Mkt Cap
$46.38
+5.84%
VERIZON COMMUNICATIONS INC (VZ) has a current P/E ratio of 11.4, compared to its historical median P/E of 9.5. The stock is currently considered Fair based on its historical valuation range.
VERIZON COMMUNICATIONS INC (VZ) has a 5-year average return on invested capital (ROIC) of 9.2%. This is below average and may indicate limited pricing power.
VERIZON COMMUNICATIONS INC (VZ) has a market capitalization of $193.7B. It is classified as a large-cap stock.
Yes, VERIZON COMMUNICATIONS INC (VZ) pays a dividend with a trailing twelve-month yield of 5.96%.
Based on historical P/E analysis, VERIZON COMMUNICATIONS INC (VZ) appears fair. The current P/E of 11.4 is 20% above its historical median of 9.5. The estimated fair value CAGR (P/E method) is -3.3%.
VERIZON COMMUNICATIONS INC (VZ) operates in the Telephone Communications (No Radiotelephone) industry, within the Communication Services sector.
VERIZON COMMUNICATIONS INC (VZ) reported annual revenue of $138.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Verizon Communications is a holding company operating two reportable segments—Consumer and Business—that together provide wireless, wireline broadband, video, voice, and managed services to consumers, businesses, and government entities across the United States and globally. The Consumer segment generates approximately 77% of consolidated revenues through postpaid and prepaid wireless services (116 million connections as of December 31, 2025), fiber-optic and copper-based residential broadband (11 million connections), fixed wireless access (FWA) broadband, and video services (2 million Fios video connections), distributed through company-operated stores, indirect agents, national retailers, and digital channels. The Business segment, representing 21% of revenues, serves enterprises, public sector customers, and carriers with wireless mobility, broadband, IoT connectivity, managed network services, and voice solutions across 31 million postpaid wireless connections and 3 million broadband connections, organized into Enterprise and Public Sector (46% of Business revenues), Business Markets and Other (47%), and Wholesale (7%). Verizon operates one of the most extensive wireless networks covering approximately 147 million retail connections and an extensive broadband network covering approximately 14 million connections, leveraging advanced technologies including 5G, fiber-optic transport, cloud infrastructure, AI, virtualized radio access networks (vRAN), and Open RAN solutions; the company also owns and operates one of the largest global fiber-optic networks serving customers in more than 180 countries. The business model emphasizes postpaid subscription services with monthly access charges, device payment plans, and value-added services (perks), complemented by capital-efficient FWA and fiber broadband expansion; competitive differentiation derives from network quality and reliability, extensive infrastructure, spectrum holdings across multiple bands (700 MHz, 850 MHz, 1900 MHz, AWS, C-Band, and millimeter wave), and increasingly from fiber convergence following the January 2026 acquisition of Frontier Communications and January 2026 acquisition of Starry Group Holdings to expand broadband footprint and FWA capabilities.
【Transformation-driven growth acceleration】 Management is executing a comprehensive transformation program focused on customer experience, operational efficiency, and disciplined volume-based growth rather than price increases. The company expects mobility and broadband service revenue growth of 2%-3% in 2026, with Q1 representing the low point of the year as prior-year price increases lap and promotional amortization headwinds moderate; management anticipates improvements in average revenue per account (ARPA) as the year progresses through reduced reliance on expensive promotions and micro-segmented customer offers. Operating expense savings of $5 billion are targeted for 2026 through elimination of redundant structures, automation, and cost discipline, positioning the company to deliver adjusted EPS growth of 5%-6% and free cash flow growth of approximately 7% or more, with management confident in achieving these targets based on first-quarter 2026 momentum and clear line of sight to remaining cost and capital efficiency actions. The company is investing in network excellence, fiber expansion (targeting 32 million fiber passings by year-end 2026 and 40-50 million over the medium term), and customer-centric initiatives while maintaining its dividend and returning to a target net unsecured leverage ratio of 2.0x-2.25x by 2027, with capital allocation priorities unchanged and additional shareholder returns through stock buybacks commencing in 2026.
| Metric | Target | Period |
|---|---|---|
| Adjusted EPS growth | 5%-6% | FY2026 |
| Postpaid phone net adds | upper half of 750,000-1 million range | FY2026 |
| Mobility and broadband service revenue growth | 2%-3% | FY2026 |
| Free cash flow growth | approximately 7% or more | FY2026 |
| Operating expense savings | $5 billion | FY2026 |
| Free cash flow | $21.5 billion or more | FY2026 |
| CapEx | $16 billion-$16.5 billion | FY2026 |
| Fiber passings | more than 32 million | FY2026 |
| Net unsecured leverage ratio | 2.0x-2.25x | 2027 timeframe |
Adjusted EPS growth (FY2026): “we are raising our guidance for adjusted EPS growth to 5%-6% versus the prior range of 4%-5%”
Postpaid phone net adds (FY2026): “We also now anticipate our postpaid phone net adds to be in the upper half of our 750,000-1 million range”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Service revenues and other | — | $109.63B | $109.65B | $111.57B | $112.72B | 33% |
Wireless Service | — | $74.35B | $79.53B | $82.07B | $83.70B | 25% |
Operating Segments Excluding Intersegment Elimination | — | $73.14B | $77.13B | $79.25B | $80.62B | 24% |
Wireless equipment | — | $27.21B | $24.32B | $23.22B | $25.47B | 7% |
Operating Segments | — | $27.00B | $26.40B | $25.90B | $25.40B | 7% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 139.1B | 138.2B | 134.8B | 134.0B | 136.8B | 133.6B |
| Net Income | 17.3B | 17.2B | 17.5B | 11.6B | 21.3B | 22.1B |
| EPS | $4.11 | $4.06 | $4.14 | $2.75 | $5.06 | $5.32 |
| Free Cash Flow | 33.6B | 33.3B | 33.6B | 33.7B | 31.1B | -8.1B |
| ROIC | 8.3% | 8.9% | 8.8% | 6.4% | 9.4% | 12.2% |
| Gross Margin | - | 63.8% | 64.8% | 58.8% | 59.4% | 60.5% |
| Debt/Equity | 1.71 | 1.72 | 1.67 | 1.87 | 1.91 | 1.81 |
| Dividends/Share | $2.76 | $2.74 | $2.69 | $2.64 | $2.59 | $2.54 |
| Operating Income | 29.5B | 29.3B | 28.7B | 22.9B | 30.5B | 32.4B |
| Operating Margin | 21.2% | 21.2% | 21.3% | 17.1% | 22.3% | 24.3% |
| ROE | 16.6% | 16.6% | 18.0% | 12.5% | 24.2% | 28.9% |
| Shares Outstanding | 4,176M | 4,230M | 4,229M | 4,223M | 4,201M | 4,148M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 127.1B | 131.6B | 126.0B | 126.0B | 130.9B | 131.9B | 128.3B | 133.6B | 136.8B | 134.0B | 134.8B | 138.2B | 139.1B |
| Gross Margin | 60.7% | 63.8% | 61.6% | 61.7% | 57.8% | 61.9% | 63.4% | 60.5% | 59.4% | 58.8% | 64.8% | 63.8% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 41.0B | 30.0B | 28.1B | 28.6B | 31.1B | 29.9B | 31.6B | 28.7B | 30.1B | 32.7B | 34.1B | 33.8B | 33.6B |
| EBIT | 19.6B | 33.1B | 29.2B | 27.4B | 22.3B | 30.4B | 28.8B | 32.4B | 30.5B | 22.9B | 28.7B | 29.3B | 29.5B |
| Op. Margin | 15.4% | 25.1% | 23.2% | 21.8% | 17.0% | 23.0% | 22.4% | 24.3% | 22.3% | 17.1% | 21.3% | 21.2% | 21.2% |
| Net Income | 9.6B | 17.9B | 13.1B | 30.1B | 15.5B | 19.3B | 17.8B | 22.1B | 21.3B | 11.6B | 17.5B | 17.2B | 17.3B |
| Net Margin | 7.6% | 13.6% | 10.4% | 23.9% | 11.9% | 14.6% | 13.9% | 16.5% | 15.5% | 8.7% | 13.0% | 12.4% | 12.5% |
| Non-Recurring | 500M | 600M | 1.4B | 2.3B | 6.7B | 651M | 95M | 915M | 304M | 6.4B | 1.7B | 1.7B | 1.7B |
| Returns on Capital | |||||||||||||
| ROIC | 12.3% | 18.1% | 15.1% | 19.0% | 11.2% | 14.8% | 11.9% | 12.2% | 9.4% | 6.4% | 8.8% | 8.9% | 8.3% |
| ROE | 17.6% | 113.5% | 62.7% | 87.6% | 31.2% | 32.8% | 26.9% | 28.9% | 24.2% | 12.5% | 18.0% | 16.6% | 16.6% |
| ROA | 3.8% | 7.5% | 5.4% | 12.0% | 5.9% | 6.9% | 5.9% | 6.5% | 5.7% | 3.1% | 4.6% | 4.4% | 4.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 30.6B | 39.0B | 21.7B | 24.3B | 34.3B | 35.7B | 41.8B | 39.5B | 37.1B | 37.5B | 36.9B | 37.1B | 37.3B |
| Free Cash Flow | 13.4B | 21.3B | 4.6B | 7.1B | 17.7B | 34.8B | 37.7B | -8.1B | 31.1B | 33.7B | 33.6B | 33.3B | 33.6B |
| Owner Earnings | 13.8B | 22.7B | 5.4B | 6.9B | 14.3B | 18.8B | 24.2B | 19.9B | 18.0B | 18.6B | 19.0B | 17.8B | -199.9B |
| CapEx | 17.2B | 17.8B | 17.1B | 17.2B | 16.7B | 898M | 4.1B | 47.6B | 6.0B | 3.8B | 3.3B | 3.8B | 3.8B |
| Maint. CapEx | 16.5B | 16.0B | 15.9B | 17.0B | 17.4B | 16.7B | 16.7B | 16.2B | 17.1B | 17.6B | 17.9B | 18.3B | 236.2B |
| Growth CapEx | 658M | 1.8B | 1.1B | 293M | 0 | 0 | 0 | 31.4B | 0 | 0 | 0 | 0 | 0 |
| D&A | 16.5B | 16.0B | 15.9B | 17.0B | 17.4B | 16.7B | 16.7B | 16.2B | 17.1B | 17.6B | 17.9B | 18.3B | 236.2B |
| CapEx/OCF | 56.1% | 45.7% | 74.8% | 70.9% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 10.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 7.8B | 8.5B | 9.3B | 9.5B | 9.8B | 10.0B | 10.2B | 10.4B | 10.8B | 11.0B | 11.2B | 11.5B | 11.5B |
| Dividend Yield | 7.4% | 7.7% | 7.4% | 7.7% | 6.9% | 6.1% | 6.0% | 6.1% | 7.1% | 8.6% | 7.2% | 6.7% | 6.0% |
| Share Buybacks | 0 | 5.1B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | 4.6% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 300M | 300M | 400M | 440M | 2.7B | 284M | 840M | 3.4B | 2.0B | 1.2B | 52M | 1.0B | 999M |
| Debt Repayment | 17.7B | 9.3B | 19.2B | 23.8B | 10.9B | 17.6B | 8.8B | 9.1B | 2.0B | 2.0B | 4.7B | 9.0B | 9.0B |
| Balance Sheet | |||||||||||||
| Net Debt | 101.8B | 104.8B | 104.9B | 115.0B | 110.3B | 130.5B | 128.7B | 147.9B | 173.9B | 172.9B | 164.2B | 163.0B | 170.0B |
| Cash & Equiv. | 10.6B | 4.5B | 2.9B | 2.1B | 2.7B | 2.6B | 22.2B | 2.9B | 2.6B | 2.1B | 4.2B | 19.0B | 8.4B |
| Long-Term Debt | 110.5B | 103.2B | 105.4B | 113.6B | 105.9B | 100.7B | 123.2B | 143.4B | 140.7B | 137.7B | 121.4B | 139.5B | 144.2B |
| Debt/Equity | 8.26 | 6.14 | 4.48 | 2.62 | 2.07 | 2.12 | 2.18 | 1.81 | 1.91 | 1.87 | 1.67 | 1.72 | 1.71 |
| Interest Coverage | 4.0 | 6.7 | 6.7 | 5.8 | 4.6 | 6.4 | 6.8 | 9.3 | 8.4 | 4.1 | 4.3 | 4.4 | 69.6 |
| Equity | 13.7B | 17.8B | 24.0B | 44.7B | 54.7B | 62.8B | 69.3B | 83.2B | 92.5B | 93.8B | 100.6B | 105.7B | 104.6B |
| Total Assets | 232.6B | 244.2B | 244.2B | 257.1B | 264.8B | 291.7B | 316.5B | 366.6B | 379.7B | 380.3B | 384.7B | 404.3B | 417.9B |
| Total Liabilities | 57.5B | 224.9B | 59.9B | 40.2B | 41.6B | 46.0B | 47.6B | 52.9B | 54.7B | 57.3B | 282.8B | 297.2B | 21.9B |
| Intangibles | 5.7B | 7.6B | 8.9B | 10.2B | 9.8B | 9.5B | 9.4B | 11.7B | 11.5B | 11.1B | 11.1B | 10.5B | 12.8B |
| Retained Earnings | 2.4B | 11.2B | 15.1B | 35.6B | 43.5B | 53.1B | 60.5B | 72.0B | 82.4B | 82.9B | 89.1B | 94.7B | 96.8B |
| Working Capital | 1.5B | -12.7B | -3.9B | -3.1B | -3.3B | -7.4B | 14.9B | -10.4B | -12.3B | -16.4B | -24.2B | -5.4B | -25.2B |
| Current Assets | 29.5B | 22.4B | 26.4B | 29.9B | 34.6B | 37.5B | 54.6B | 36.7B | 37.9B | 36.8B | 40.5B | 56.9B | 44.7B |
| Current Liabilities | 28.0B | 35.1B | 30.3B | 33.0B | 37.9B | 44.9B | 39.7B | 47.2B | 50.2B | 53.2B | 64.8B | 62.4B | 69.9B |
| Per Share Data | |||||||||||||
| EPS | 2.42 | 4.37 | 3.21 | 7.36 | 3.76 | 4.65 | 4.30 | 5.32 | 5.06 | 2.75 | 4.14 | 4.06 | 4.11 |
| Owner EPS | 3.47 | 5.55 | 1.31 | 1.69 | 3.46 | 4.53 | 5.85 | 4.81 | 4.28 | 4.41 | 4.49 | 4.20 | -47.87 |
| Book Value | 3.44 | 4.36 | 5.88 | 10.93 | 13.25 | 15.17 | 16.73 | 20.06 | 22.01 | 22.21 | 23.79 | 25.00 | 25.06 |
| Cash Flow/Share | 7.70 | 9.54 | 5.30 | 5.95 | 8.31 | 8.63 | 10.09 | 9.53 | 8.84 | 8.87 | 8.73 | 8.78 | 60.73 |
| Dividends/Share | 2.16 | 2.23 | 2.29 | 2.34 | 2.39 | 2.44 | 2.49 | 2.54 | 2.59 | 2.64 | 2.69 | 2.74 | 2.76 |
| Shares Out. | 4.0B | 4.1B | 4.1B | 4.1B | 4.1B | 4.1B | 4.1B | 4.1B | 4.2B | 4.2B | 4.2B | 4.2B | 4.2B |
| Valuation | |||||||||||||
| P/E Ratio | 11.0 | 6.2 | 10.1 | 4.6 | 9.8 | 9.2 | 10.0 | 7.5 | 6.2 | 11.8 | 8.9 | 9.8 | 11.3 |
| P/FCF | 7.9 | 5.3 | 28.8 | 19.8 | 8.6 | 5.1 | 4.7 | N/A | 4.2 | 4.1 | 4.6 | 5.0 | 5.8 |
| EV/EBIT | 10.8 | 6.7 | 8.8 | 9.3 | 12.0 | 9.7 | 9.3 | 9.8 | 9.4 | 12.9 | 10.9 | 10.5 | 12.3 |
| Price/Book | 7.7 | 6.3 | 5.5 | 3.1 | 2.8 | 2.8 | 2.6 | 2.0 | 1.4 | 1.5 | 1.5 | 1.6 | 1.9 |
| Price/Sales | 0.8 | 0.8 | 1.0 | 1.0 | 1.1 | 1.3 | 1.3 | 1.3 | 1.1 | 1.0 | 1.2 | 1.2 | 1.4 |
| FCF Yield | 12.7% | 19.0% | 3.5% | 5.1% | 11.6% | 19.6% | 21.2% | -4.8% | 23.8% | 24.7% | 21.7% | 19.8% | 17.3% |
| Market Cap | 105.9B | 111.6B | 133.2B | 139.7B | 152.8B | 177.9B | 177.9B | 166.5B | 130.9B | 136.5B | 155.2B | 168.3B | 193.7B |
| Avg. Price | 26.59 | 26.98 | 30.77 | 30.27 | 34.27 | 39.84 | 41.37 | 41.41 | 36.46 | 30.44 | 36.91 | 40.39 | 46.38 |
| Year-End Price | 26.62 | 27.27 | 32.58 | 34.16 | 37.01 | 42.95 | 42.97 | 40.15 | 31.17 | 32.32 | 36.71 | 39.79 | 46.38 |
VERIZON COMMUNICATIONS INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
VERIZON COMMUNICATIONS INC trades at 11.4x trailing earnings, compared to its 15-year median P/E of 9.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 5.3x vs a median of 5.0x. The company's 5-year average ROIC is 9.2% with a gross margin of 61.5%. Total shareholder yield (dividends) is 6.0%. At current prices, the estimated annualized return to fair value is -0.0%.
VERIZON COMMUNICATIONS INC (VZ) has a net profit margin of 12.4%. This is a healthy margin.
VERIZON COMMUNICATIONS INC (VZ) generated $33.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
VERIZON COMMUNICATIONS INC (VZ) has a debt-to-equity ratio of 1.72. This indicates higher leverage, which may increase financial risk.
VERIZON COMMUNICATIONS INC (VZ) reported earnings per share (EPS) of $4.06 in its most recent fiscal year.
VERIZON COMMUNICATIONS INC (VZ) has a return on equity (ROE) of 16.6%. This indicates the company generates strong returns for shareholders.
VERIZON COMMUNICATIONS INC (VZ) has a 5-year average gross margin of 61.5%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for VERIZON COMMUNICATIONS INC (VZ), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
VERIZON COMMUNICATIONS INC (VZ) has a book value per share of $25.00, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is executing a comprehensive transformation program focused on customer experience, operational efficiency, and disciplined volume-based growth rather than price increases. The company expects mobility and broadband service revenue growth of 2%-3% in 2026, with Q1 representing the low point of the year as prior-year price increases lap and promotional amortization headwinds moderate; management anticipates improvements in average revenue per account (ARPA) as the year progresses through reduced reliance on expensive promotions and micro-segmented customer offers. Operating expense savings of $5 billion are targeted for 2026 through elimination of redundant structures, automation, and cost discipline, positioning the company to deliver adjusted EPS growth of 5%-6% and free cash flow growth of approximately 7% or more, with management confident in achieving these targets based on first-quarter 2026 momentum and clear line of sight to remaining cost and capital efficiency actions. The company is investing in network excellence, fiber expansion (targeting 32 million fiber passings by year-end 2026 and 40-50 million over the medium term), and customer-centric initiatives while maintaining its dividend and returning to a target net unsecured leverage ratio of 2.0x-2.25x by 2027, with capital allocation priorities unchanged and additional shareholder returns through stock buybacks commencing in 2026.
Based on recent SEC filings and earnings calls, VERIZON COMMUNICATIONS INC (VZ) has provided the following forward guidance: Adjusted EPS growth: 5%-6% (FY2026); Postpaid phone net adds: upper half of 750,000-1 million range (FY2026); Mobility and broadband service revenue growth: 2%-3% (FY2026); Free cash flow growth: approximately 7% or more (FY2026); Operating expense savings: $5 billion (FY2026), plus 4 additional metrics.
Mobility and broadband service revenue growth (FY2026): “We are reaffirming the balance of our guidance, mobility and broadband service revenue growth of 2%-3%”
Free cash flow growth (FY2026): “free cash flow growth of approximately 7% or more versus last year”
Operating expense savings (FY2026): “we are well on our way towards our OpEx savings target of $5 billion in 2026”
Free cash flow (FY2026): “We are on track to deliver our full-year free cash flow guidance of $21.5 billion or more”
CapEx (FY2026): “We're on track to achieve our CapEx guidance of $16 billion-$16.5 billion for the full year”
Fiber passings (FY2026): “we expect to end the year with more than 32 million fiber passings”