Verizon Communications (NYSE:VZ) Shares Up 5.7% After Earnings Beat

Verizon Communications Inc. (NYSE:VZ)’s share price rose 5.7% during trading on Friday following a better than expected earnings announcement. The stock traded as high as $46.44 and last traded at $46.3350. 40,626,513 shares changed hands during trading, an increase of 39% from the average daily volume of 29,152,141 shares. The stock had previously closed at $43.82.

The cell phone carrier reported $1.30 EPS for the quarter, beating the consensus estimate of $1.27 by $0.03. Verizon Communications had a return on equity of 19.25% and a net margin of 12.46%.The firm had revenue of $34.25 billion for the quarter, compared to analysts’ expectations of $35.16 billion. During the same quarter in the previous year, the business posted $1.22 EPS. The business’s quarterly revenue was down .6% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS.

Verizon Communications Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be given a $0.7075 dividend. This represents a $2.83 dividend on an annualized basis and a dividend yield of 6.1%. The ex-dividend date of this dividend is Friday, July 10th. Verizon Communications’s payout ratio is currently 69.02%.

Verizon Communications News Summary

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

• Positive Sentiment: Verizon beat Q2 earnings estimates, with adjusted EPS of $1.30 versus $1.27 expected, while free cash flow rose 24.4% and adjusted EBITDA margin hit a record 40.1%.
• Positive Sentiment: The company raised its FY 2026 guidance again, lifting both adjusted earnings and cash flow outlooks, which signals improving confidence in the business. Article Title
• Positive Sentiment: Verizon added 184,000 postpaid phone customers, beating expectations, and said its new unlimited 5G plans and rewards programs are helping drive subscriber gains. Article Title
• Positive Sentiment: Verizon also announced a more than $1 billion dark fiber deal with Google for AI data centers, which adds a new growth narrative around enterprise connectivity and AI infrastructure demand.
• Positive Sentiment: The company expanded its full-year share buyback target to up to $4.5 billion and highlighted improved capital returns, which can support the stock.
• Neutral Sentiment: Revenue came in below estimates at $34.25 billion, and overall sales were down slightly from a year ago, so top-line pressure remains a concern even after the earnings beat.
• Neutral Sentiment: Unusually heavy call option trading suggests traders are positioning for more upside following the earnings and guidance news.
• Negative Sentiment: Verizon still faces a significant debt load, and some commentary noted that the stock is being helped by operational improvement rather than a full resolution of longer-term balance sheet pressure.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. BNP Paribas Exane lowered their price target on shares of Verizon Communications from $46.00 to $44.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 14th. Dbs Bank downgraded shares of Verizon Communications from a “moderate buy” rating to a “hold” rating in a research note on Tuesday, April 7th. Scotiabank decreased their price objective on Verizon Communications from $54.50 to $51.50 and set a “sector outperform” rating for the company in a report on Wednesday, July 15th. Royal Bank Of Canada decreased their price objective on Verizon Communications from $48.00 to $46.00 and set a “sector perform” rating for the company in a report on Monday. Finally, Erste Group Bank reiterated a “hold” rating on shares of Verizon Communications in a report on Tuesday, May 5th. Nine research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat, Verizon Communications has an average rating of “Hold” and an average price target of $50.03.

Hedge Funds Weigh In On Verizon Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Econ Financial Services Corp grew its position in shares of Verizon Communications by 23.5% in the fourth quarter. Econ Financial Services Corp now owns 78,172 shares of the cell phone carrier’s stock valued at $3,184,000 after purchasing an additional 14,862 shares during the last quarter. USS Investment Management Ltd lifted its holdings in Verizon Communications by 4.6% during the 1st quarter. USS Investment Management Ltd now owns 713,156 shares of the cell phone carrier’s stock worth $35,790,000 after purchasing an additional 31,354 shares during the last quarter. Teacher Retirement System of Texas lifted its holdings in Verizon Communications by 41.0% during the 4th quarter. Teacher Retirement System of Texas now owns 2,197,366 shares of the cell phone carrier’s stock worth $89,499,000 after purchasing an additional 639,380 shares during the last quarter. Clarity Financial LLC boosted its stake in Verizon Communications by 697.0% in the 4th quarter. Clarity Financial LLC now owns 471,127 shares of the cell phone carrier’s stock valued at $19,189,000 after purchasing an additional 412,018 shares during the period. Finally, Cibc World Market Inc. grew its holdings in Verizon Communications by 15.3% in the 4th quarter. Cibc World Market Inc. now owns 2,382,975 shares of the cell phone carrier’s stock valued at $97,059,000 after buying an additional 316,854 shares in the last quarter. Institutional investors own 62.06% of the company’s stock.

Verizon Communications Trading Up 5.7%

The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.61 and a current ratio of 0.64. The stock has a market capitalization of $193.47 billion, a price-to-earnings ratio of 11.30, a price-to-earnings-growth ratio of 1.08 and a beta of 0.26. The business has a fifty day simple moving average of $45.39 and a 200 day simple moving average of $46.20.

About Verizon Communications

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.