Verizon (VZ) Stock Forecast & Price Target

Verizon Communications demonstrated a strong financial performance, with consolidated revenue reaching $34.5 billion, marking a 5.2% year-over-year increase and exceeding consensus estimates by 2.2%. The company's consumer revenue grew by 6.9% year-over-year to $26.6 billion, also surpassing expectations, while business adjusted EBITDA rose 6% year-over-year to $1.7 billion, aided by cost-saving initiatives and operational efficiency improvements. Additionally, the impressive growth in equipment revenue, which increased 30% year-over-year to $5.4 billion, highlights Verizon's robust wireless segment, underscoring the firm’s positive outlook in the telecommunications market.

Verizon Communications is experiencing a decline in business revenue, which fell by 0.3% year-over-year to $7.3 billion, reflecting persistent pressures in legacy segments despite some growth in wireless and emerging AI-driven services. The company's postpaid additions, particularly in the business unit, significantly underperformed expectations, with only 164,000 net additions compared to a consensus forecast of 218,000, indicating weaker demand for devices like tablets and wearables. Furthermore, total broadband net additions were also disappointing, with 293,000 new subscribers falling short of the anticipated 340,000, leading to a revised outlook for service revenue growth in 2025 and 2026.