Verizon Raises 2026 Guidance After Strong Third-Quarter Results
Verizon reported third-quarter adjusted earnings of $1.31 per share and raised its 2026 targets for postpaid phone additions, wireless and broadband revenue growth, adjusted EPS growth and free cash flow growth. Analysts cited subscriber momentum and broadband expansion, while noting competitive and promotional risks.
Verizon Communications Inc (NYSE: VZ ) Monday reported strong third-quarter results. Here are some key analyst takeaways: BofA Securities analyst Michael Funk maintained a Neutral rating and price target of $48. TD Cowen analyst Gregory Williams reiterated a Buy rating but cut the price target from $56 to $55. Check out other analyst stock ratings.
Bank of America Securities: The company reported consolidated revenue of $34.3 billion, slightly short of consensus because equipment sales fell, Funk said in a note. He added, however, that adjusted EBITDA reached $13.8 billion, beating market expectations. The analyst further highlighted that: Free cash flow came in at a strong $7.8 billion, driven primarily by lower-than-anticipated capital expenditures. Adjusted earnings came in at $1.31 per share, beating the consensus of $1.28 per share.
Verizon’s strong subscriber momentum prompted management to raise its full-year 2026 guidance, Funk said. He added that Verizon raised its 2026 targets for: Postpaid phone net additions to 1.1-1.2 million Wireless and broadband revenue growth to 2.5%-3.0% Adjusted EPS growth to 7.0%-7.5% Free cash flow growth to 12% The company’s expansion of gigabit-speed Fixed Wireless Access (FWA) using millimeter wave spectrum is projected to add 10-15 million premises to its addressable broadband coverage, supplementing its existing target of 40-50 million fiber premises, the analyst said.
Despite improving volume execution and disciplined subscriber acquisition costs, Funk identified potential disruption from a new wireless competitor and promotional margin pressure as risks. TD Cowen: Despite Verizon’s strong results, its stock fell around 3.5%, reflecting the overhang from Space Exploration Technologies Corp’s (NASDAQ: SPCX ) Starlink Mobile, Williams said.
He added, however, that management seemed "highly confident" in the company’s ability to "not just compete but win against SpaceX." Verizon delivered the highest account additions in a decade, with postpaid phone adds of 406,000 versus Street expectations of 199,000, on churn of 0.94%, the analyst noted. This implies gross adds grew about 11% and that all adds are paying customers, he added. VZ Price Action: Verizon shares rose 0.72% to $43.42 at the time of publication on Tuesday. Read More: Verizon CEO Says SpaceX May Be Years Away From Becoming America’s ‘Sixth’ Wireless Competitor Image: Shutterstock