Verizon Communications (NYSE:VZ) Stock Price Up 11.8% After Better-Than-Expected Earnings

Verizon Communications Inc. (NYSE:VZ)’s stock price shot up 11.8% during trading on Friday following a better than expected earnings announcement. The company traded as high as $44.63 and last traded at $44.5170. 123,293,721 shares changed hands during mid-day trading, an increase of 260% from the average session volume of 34,242,641 shares. The stock had previously closed at $39.81.

The cell phone carrier reported $1.09 earnings per share for the quarter, topping analysts’ consensus estimates of $1.06 by $0.03. Verizon Communications had a net margin of 14.43% and a return on equity of 19.31%. The firm had revenue of $36.38 billion during the quarter, compared to analyst estimates of $36.20 billion. During the same quarter in the prior year, the business earned $1.10 earnings per share. Verizon Communications’s revenue for the quarter was up 2.0% on a year-over-year basis. Verizon Communications has set its FY 2026 guidance at 4.900-4.950 EPS.

Verizon Communications Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, February 2nd. Stockholders of record on Monday, January 12th will be given a dividend of $0.69 per share. This represents a $2.76 dividend on an annualized basis and a dividend yield of 6.2%. The ex-dividend date of this dividend is Monday, January 12th. Verizon Communications’s payout ratio is presently 58.97%.

Key Stories Impacting Verizon Communications

Here are the key news stories impacting Verizon Communications this week:

• Positive Sentiment: Q4 beat on EPS and revenue — Verizon reported $1.09 EPS vs. consensus $1.06 and revenue of $36.38B, topping estimates and showing 2% year-over-year revenue growth. Read More.
• Positive Sentiment: Raised FY‑2026 EPS guidance — management set guidance of $4.90–$4.95, above consensus, improving forward earnings visibility and supporting valuation. Read More.
• Positive Sentiment: Strong subscriber momentum — Verizon logged its highest quarterly wireless net adds in years (notably large postpaid phone adds), a primary driver of the upside in revenue and service growth metrics. Read More.
• Positive Sentiment: Capital return program — management outlined a large buyback program (cited in call writeups), which supports EPS and signals confidence in cash flow. Read More.
• Positive Sentiment: Unusual options activity — heavy call buying was reported intraday, consistent with speculative/hedged bullish positioning by some investors. (Options volume report)
• Neutral Sentiment: Operational resilience highlighted — company actions to harden networks for winter storms were noted; supports customer experience but is a longer-term benefit. Read More.
• Neutral Sentiment: Positive media/analyst writeups emphasize value after the beat, framing VZ as an income + growth story for yield-seeking investors. Read More.
• Negative Sentiment: Execution and cost risks called out — deeper analysis warns that aggressive subscriber promotions, the Frontier deal and integration/unit economics could pressure margins and near-term earnings visibility. Read More.
• Negative Sentiment: Analyst target cut — Wells Fargo trimmed its target in a sector reassessment, a reminder that some shops remain cautious on wireless pricing and capital intensity. Read More.
• Negative Sentiment: Dividend-safety concerns re-surfacing — articles questioning sustainability of the ~7% yield could weigh on long-term income-focused demand if cash flow dynamics shift. Read More.
• Negative Sentiment: Minor institutional selling — a small manager reduced its position, noted in filings; not a major red flag but adds to mixed signals. Read More.

Analysts Set New Price Targets

VZ has been the topic of a number of analyst reports. Weiss Ratings reissued a “hold (c+)” rating on shares of Verizon Communications in a research note on Wednesday, January 21st. TD Cowen dropped their price objective on Verizon Communications from $56.00 to $51.00 and set a “buy” rating for the company in a research note on Thursday, October 30th. Morgan Stanley reduced their price target on shares of Verizon Communications from $48.00 to $47.00 and set an “equal weight” rating for the company in a research report on Wednesday, December 10th. Royal Bank Of Canada lowered their target price on Verizon Communications from $46.00 to $44.00 and set a “sector perform” rating for the company in a report on Thursday, October 30th. Finally, Scotiabank boosted their price objective on Verizon Communications from $50.50 to $51.00 and gave the company a “sector perform” rating in a research report on Thursday, October 30th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $47.43.

Institutional Trading of Verizon Communications

Several large investors have recently made changes to their positions in the business. Hudock Inc. boosted its stake in shares of Verizon Communications by 0.6% during the 2nd quarter. Hudock Inc. now owns 39,842 shares of the cell phone carrier’s stock worth $1,724,000 after buying an additional 238 shares during the last quarter. McLean Asset Management Corp raised its position in Verizon Communications by 2.9% during the third quarter. McLean Asset Management Corp now owns 8,571 shares of the cell phone carrier’s stock valued at $355,000 after purchasing an additional 243 shares in the last quarter. Red Spruce Capital LLC lifted its holdings in Verizon Communications by 0.3% in the 3rd quarter. Red Spruce Capital LLC now owns 71,541 shares of the cell phone carrier’s stock worth $3,144,000 after buying an additional 246 shares during the period. Camden National Bank boosted its stake in Verizon Communications by 4.6% during the 2nd quarter. Camden National Bank now owns 5,666 shares of the cell phone carrier’s stock valued at $245,000 after purchasing an additional 248 shares during the last quarter. Finally, FRG Family Wealth Advisors LLC boosted its position in shares of Verizon Communications by 1.8% in the second quarter. FRG Family Wealth Advisors LLC now owns 14,517 shares of the cell phone carrier’s stock worth $628,000 after purchasing an additional 250 shares during the period. Institutional investors own 62.06% of the company’s stock.

Verizon Communications Stock Up 11.8%

The company has a debt-to-equity ratio of 1.19, a current ratio of 0.74 and a quick ratio of 0.69. The company has a 50-day simple moving average of $40.25 and a 200-day simple moving average of $41.55. The firm has a market cap of $187.70 billion, a PE ratio of 9.51, a price-to-earnings-growth ratio of 3.76 and a beta of 0.34.

Verizon Communications Company Profile

Verizon Communications Inc (NYSE: VZ) is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.

The company’s consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.