Verizon (VZ) Stock Forecast & Price Target

Verizon Communications has demonstrated a strong financial performance, with consolidated revenue of $34.5 billion reflecting a 5.2% year-over-year increase and surpassing consensus expectations by 2.2%. Its consumer segment also performed well, achieving a 6.9% year-over-year revenue growth to $26.6 billion, which was 3% above consensus estimates, driven by higher average revenue per account (ARPA). Furthermore, business adjusted EBITDA increased 6% year-over-year to $1.7 billion, supported by margin expansion from operational efficiencies, indicating a solid operational foundation for continued growth.

Verizon Communications reported a 0.3% year-over-year decline in business revenue to $7.3 billion, suggesting ongoing challenges in its legacy segments despite some growth in wireless and new AI-driven offerings. The company's other postpaid additions fell significantly short of expectations, with only 164,000 net additions compared to the anticipated 218,000, mainly due to disappointing growth in tablets and wearables. Additionally, total broadband net additions of 293,000 were below consensus forecasts of 340,000, indicating potential weaknesses in both consumer and business segments, which has led to a downward revision of expectations for service revenue growth in 2025 and 2026.