Verizon Communications (NYSE:VZ) Shares Up 2.1% Following Better-Than-Expected Earnings

Verizon Communications Inc. (NYSE:VZ) shares shot up 2.1% during mid-day trading on Monday following a better than expected earnings announcement. The stock traded as high as $47.56 and last traded at $47.3480. Approximately 30,145,364 shares traded hands during mid-day trading, an increase of 3% from the average session volume of 29,164,730 shares. The stock had previously closed at $46.38.

The cell phone carrier reported $1.30 earnings per share for the quarter, topping the consensus estimate of $1.27 by $0.03. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. The business had revenue of $34.25 billion during the quarter, compared to the consensus estimate of $35.16 billion. During the same quarter in the prior year, the firm earned $1.22 earnings per share. The business’s quarterly revenue was down .7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS.

Verizon Communications Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be paid a dividend of $0.7075 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 annualized dividend and a yield of 6.0%. Verizon Communications’s dividend payout ratio is currently 73.70%.

Verizon Communications News Summary

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

• Positive Sentiment: Verizon reported second-quarter adjusted EPS of $1.30, ahead of the $1.27 consensus estimate. Lower customer churn, reduced device-subsidy costs, and stronger broadband additions supported expectations for improved earnings and cash flow. VZ Q2 Earnings Call Signals Faster Growth From Churn Gains
• Positive Sentiment: Management raised its 2026 financial and free-cash-flow outlook after stronger subscriber trends and operating performance. The company’s robust free cash flow also continues to provide substantial coverage for its dividend, supporting Verizon’s appeal to income-focused investors. Is VZ Stock a Buy After Verizon Raises Its 2026 Financial Outlook?
• Positive Sentiment: A wireless subscriber beat, broadband growth, and expanding 5G and fiber services are strengthening Verizon’s longer-term growth profile beyond its traditional wireless business. Verizon Communications Rides a Wireless Subscriber Beat
• Positive Sentiment: Verizon’s more than $1 billion dark-fiber agreement with Alphabet highlights possible demand from AI infrastructure and data connectivity. Analysts also raised price targets, including TD Cowen to $56 and Scotiabank to $52.50. Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight
• Neutral Sentiment: Analyst sentiment remains mixed: Morgan Stanley, Wells Fargo, Barclays, and RBC maintained neutral or equal-weight ratings despite raising targets, while several targets remain near the current trading level.
• Negative Sentiment: Quarterly revenue fell year over year and missed estimates by roughly $1 billion, indicating that cost controls and subscriber gains have not yet translated into broad-based top-line growth. Verizon Structural Problems Persist
• Negative Sentiment: Investors continue to monitor heavy debt, substantial dividend commitments, competitive pressure, and execution risks associated with Verizon’s fiber and AI investments.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Erste Group Bank reiterated a “hold” rating on shares of Verizon Communications in a research note on Tuesday, May 5th. Freedom Capital raised Verizon Communications to a “hold” rating in a report on Friday, June 12th. JPMorgan Chase & Co. lifted their price objective on shares of Verizon Communications from $49.00 to $52.00 and gave the company a “neutral” rating in a research report on Thursday, April 30th. TD Cowen boosted their price objective on shares of Verizon Communications from $54.00 to $56.00 and gave the company a “buy” rating in a research note on Monday. Finally, Scotiabank boosted their price objective on shares of Verizon Communications from $51.50 to $52.50 and gave the company a “sector outperform” rating in a research note on Monday. Nine investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $50.97.

Hedge Funds Weigh In On Verizon Communications

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Norges Bank purchased a new stake in shares of Verizon Communications in the fourth quarter valued at approximately $2,357,158,000. Bank of America Corp DE grew its holdings in Verizon Communications by 15.4% during the first quarter. Bank of America Corp DE now owns 62,101,021 shares of the cell phone carrier’s stock worth $3,117,471,000 after acquiring an additional 8,289,877 shares during the period. Bank of New York Mellon Corp raised its position in Verizon Communications by 31.2% in the fourth quarter. Bank of New York Mellon Corp now owns 31,584,162 shares of the cell phone carrier’s stock worth $1,286,423,000 after acquiring an additional 7,509,055 shares in the last quarter. State Street Corp raised its position in Verizon Communications by 3.5% in the fourth quarter. State Street Corp now owns 222,951,399 shares of the cell phone carrier’s stock worth $9,080,810,000 after acquiring an additional 7,461,335 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its holdings in Verizon Communications by 5.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 116,570,816 shares of the cell phone carrier’s stock valued at $4,747,930,000 after acquiring an additional 5,851,715 shares during the period. Institutional investors and hedge funds own 62.06% of the company’s stock.

Verizon Communications Trading Up 2.1%

The company has a quick ratio of 0.57, a current ratio of 0.60 and a debt-to-equity ratio of 1.36. The company has a market cap of $197.70 billion, a price-to-earnings ratio of 12.33, a P/E/G ratio of 1.13 and a beta of 0.26. The business has a fifty day simple moving average of $45.40 and a 200 day simple moving average of $46.29.

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.