Verizon Communications Inc.

Verizon reported second-quarter 2026 revenue of $34.3 billion, down 0.7% year over year. Mobility and broadband service revenue was $23.4 billion, up 2.8% year over year, while wireless service revenue declined 0.7% to $20.8 billion. Adjusted EPS was $1.30, up 6.6% year over year, and adjusted EBITDA was $13.7 billion, up 7.2%, with an adjusted EBITDA margin of 40.1%. Free cash flow was $6.4 billion, up 24% year over year. For 2026, the company now expects mobility and broadband service revenue growth of 2.5% to 3%, adjusted EPS growth of 6% to 7%, free cash flow growth of 9% to 10%, and share repurchases of up to $4.5 billion. Management also said Q3 mobility and broadband service revenue should approach 3% growth and Q4 should be approximately 4% year over year.

Dan Schulman framed the quarter as evidence that Verizon’s transformation is becoming a structural inflection in results. He emphasized customer-first execution, lower churn, better acquisition economics, and a new value proposition built around loyalty, simplicity, and Verizon One. He also pointed to network improvements, Frontier integration, and AI infrastructure opportunities as the foundation for a multiyear growth story, saying the back half of 2026 should be stronger and 2027 stronger still.

Tony Skiadas said the quarter showed a step-function improvement in operational and financial performance, supported by better customer experience and cost discipline. He cited adjusted EBITDA of $13.7 billion, 40.1% margin, adjusted EPS of $1.30, first-half operating cash flow of $18.4 billion, capital expenditures of $8.2 billion, and first-half free cash flow of $10.2 billion. He also noted Frontier debt paydown ahead of schedule, net unsecured debt to adjusted EBITDA of 2.5x, and reiterated that the company is on track for $16 billion to $16.5 billion of capex and over $1 billion of operating cost run-rate synergies by 2028.

Analysts focused on the competitive backdrop, the impact of the new value proposition, broadband/fixed wireless trends, and the AI fiber opportunity. Management said competition is shifting away from subsidies toward end-to-end customer experience, and that the new offers are already producing better-than-expected gross adds and net account growth, with consumer churn improving before the full launch benefit is even visible. On broadband and AI, management said fiber and FWA are both contributing, satellite is not seen as a meaningful threat in Verizon’s core urban and suburban footprint, and AI Connect revenues could become meaningful starting next year and grow over 5 to 10 years.