Core Insights - Verizon Communications experienced a significant increase in subscriber gains during the recent quarter, indicating strong performance in customer acquisition [1] - CEO Dan Schulman emphasized that the company will no longer act as a "hunting ground" for competitors, suggesting a strategic shift towards retaining customers and enhancing competitive positioning [1] Subscriber Growth - The article highlights the impressive subscriber growth achieved by Verizon, which is a key indicator of the company's market strength and operational success [1] Strategic Direction - The statement from CEO Dan Schulman reflects a commitment to focus on internal growth and customer retention rather than allowing competitors to benefit from Verizon's subscriber base [1]

Core Viewpoint - Verizon's annual profit and free cash flow forecasts exceed market expectations, driven by aggressive promotions during the peak holiday period, resulting in the highest quarterly wireless subscriber growth for the company [1] Group 1: Financial Performance - Verizon reported a significant increase in quarterly wireless subscriber growth, attributed to effective promotional strategies [1] - The company anticipates annual profit and free cash flow to surpass market expectations, indicating strong financial health [1] Group 2: Market Strategy - Aggressive promotions during the holiday season played a crucial role in enhancing Verizon's market position and subscriber acquisition [1]

Financial Performance - Total operating revenue for 2025 was $138.2 billion, up from $134.8 billion in 2024, with Q4 2025 revenue at $36.4 billion[7]. - Adjusted EPS for 2025 was $4.71, with Q4 2025 adjusted EPS at $1.09, reflecting strong performance[7]. - Net income attributable to Verizon for the twelve months ended December 31, 2025, was $17,174 million, a decrease of 1.9% from $17,506 million in 2024[20]. - Consolidated net income for the quarter was $2,448 million, reflecting a decrease from $5,114 million in the same quarter last year[47]. - Adjusted EPS for the 12 months ended December 31, 2025, was $4.71, compared to $4.59 for the same period in 2024, reflecting a year-over-year increase of 2.6%[53]. Cash Flow and Debt - Cash flow from operating activities was $37.1 billion in 2025, compared to $36.9 billion in 2024, with free cash flow at $20.1 billion[7]. - Free Cash Flow for the 12 months ended December 31, 2025, was $20,126 million, compared to $19,822 million in 2024, indicating a growth of 1.5% year-over-year[54]. - Total debt rose to $158,150 million as of December 31, 2025, up from $144,014 million in the previous year[23]. - Net Unsecured Debt decreased to $110,053 million as of December 31, 2025, compared to $113,682 million in 2024, resulting in a Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio of 2.2x, down from 2.3x[51]. Capital Expenditures - Capital expenditures for 2026 are projected to be between $16.0 billion and $16.5 billion, including a fiber build pace of at least 2.0 million passings[15]. - Capital expenditures for the twelve months ended December 31, 2025, were $17,011 million, slightly lower than $17,090 million in 2024[25]. Customer Growth and Service Revenue - Verizon reported over 1 million total net additions across mobility and broadband in Q4 2025, the highest since 2019, including 616,000 postpaid phone net additions[3]. - For 2026, Verizon expects retail postpaid phone net additions of 750,000 to 1.0 million, and mobility and broadband service revenue growth of 2.0% to 3.0%[15]. - Wireless retail postpaid connections reached 95,678, a 0.6% increase from 95,118 in the previous year[30]. - Fixed wireless access (FWA) broadband connections grew by 25.5% to 3,407 from 2,714 year-over-year[30]. - Wireless service revenue for the quarter reached $3,589 million, a 0.5% increase from $3,572 million[38]. Operating Income and Expenses - Operating income decreased by 32.6% to $5,004 million for the three months ended December 31, 2025, down from $7,421 million in the same period last year[20]. - Total operating expenses increased by 4.3% to $21,539 million for the three months ended December 31, 2025, from $20,656 million in the same period of 2024[27]. - Operating Income for the Business segment for the 12 months ended December 31, 2025, increased to $2,532 million from $2,058 million in 2024, marking a significant growth[57]. Employee and Asset Changes - The number of employees decreased to 89.9 thousand as of December 31, 2025, down from 99.6 thousand in the previous year[23]. - Total assets increased by $19,547 million to $404,258 million as of December 31, 2025, compared to $384,711 million as of December 31, 2024[22]. - Cash and cash equivalents increased significantly by $14,854 million to $19,048 million as of December 31, 2025, compared to $4,194 million in 2024[22]. Business Segment Performance - Total operating revenues for the Business segment decreased by 1.8% to $7,366 million for the three months ended December 31, 2025, compared to $7,504 million in the same period of 2024[36]. - Operating income for the Business segment increased by 23.0% to $2,532 million for the twelve months ended December 31, 2025, compared to $2,058 million in the previous year[36]. - Segment EBITDA margin for the Business segment improved to 22.9% for the twelve months ended December 31, 2025, up from 21.6% in the prior year[36]. Future Projections - Verizon anticipates adjusted EPS of $4.90 to $4.95 for 2026, representing a year-over-year growth of 4.0% to 5.0%[15]. - Free cash flow for 2026 is expected to be $21.5 billion or more, marking a growth of approximately 7.0% from 2025[15]. - The forecast for Free Cash Flow for the 12 months ending December 31, 2026, is projected to be $21,500 million, representing a growth forecast of 6.8%[55].

Core Insights - The mobile carrier exceeded Wall Street's revenue expectations and is projecting aggressive growth [1] Group 1 - The company reported better-than-expected revenue figures, indicating strong performance in the market [1] - The aggressive growth forecast suggests confidence in future business expansion and market demand [1]

Core Insights - Verizon Communications Inc. reported strong fourth-quarter and full-year 2025 results, indicating a significant turnaround for the company driven by strategic initiatives under CEO Dan Schulman [1][2] Financial Performance - In 2025, Verizon's total operating revenue reached $138.2 billion, up from $134.8 billion in 2024, with consolidated net income of $17.6 billion and adjusted EBITDA of $50.0 billion [7] - For the fourth quarter of 2025, Verizon reported total operating revenue of $36.4 billion, with consolidated net income of $2.4 billion and adjusted EBITDA of $11.9 billion [7] - Earnings per share (EPS) for 2025 was $4.06, while adjusted EPS, excluding special items, was $4.71 [7][24] Customer Growth and Market Strategy - Verizon achieved over 1 million total net additions across mobility and broadband in the fourth quarter, the highest since 2019, including 616,000 postpaid phone net additions [6][7] - The acquisition of Frontier, completed on January 20, 2026, expanded Verizon's fiber footprint to over 30 million homes and businesses, enhancing its mobility and broadband convergence strategy [2][6] Future Outlook - For 2026, Verizon anticipates total retail postpaid phone net additions of 750,000 to 1 million, with mobility and broadband service revenue growth projected at 2.0% to 3.0% [16] - The company expects adjusted EPS to be between $4.90 and $4.95, representing a year-over-year growth of 4.0% to 5.0% [16] - Free cash flow is forecasted to exceed $21.5 billion, marking a growth of approximately 7.0% from 2025 [16][28]

Core Viewpoint - The market is shifting as rate pressures ease and earnings visibility improves, creating opportunities for fundamentally sound investments that were previously overlooked [1][14]. Group 1: Market Dynamics - A narrow group of mega-cap companies dominated the market in the past two years, particularly in AI and cloud sectors, while other sectors were neglected [1]. - As 2026 begins, sectors that faced challenges in 2025 are gaining renewed interest from investors [1][14]. Group 2: Investment Opportunities - The article highlights three companies that are undervalued and poised for recovery: Verizon Communications Inc., Crown Castle Inc., and ServiceNow Inc. [3][14]. Verizon Communications Inc. - Verizon is seen as a dividend giant that has been overlooked due to its perceived slow growth and sensitivity to rising rates [4]. - The company is stabilizing subscriber growth, increasing free cash flow, and improving its dividend outlook as rate pressures ease [4][6]. - Verizon has focused on tightening its balance sheet and reducing unnecessary spending, which positions it well for a market that rewards discipline [5][6]. Crown Castle Inc. - Crown Castle, a major player in wireless towers and fiber infrastructure, suffered in 2025 due to rising interest rates and a slowdown in 5G buildouts [7][8]. - The sell-off was excessive, as Crown Castle owns critical infrastructure that supports the wireless system, which is expected to see increased demand due to AI applications [8][9]. - The company is streamlining operations and focusing on high-return segments, setting the stage for improved margins and cash flow visibility [10]. ServiceNow Inc. - ServiceNow faced a slump in 2025 as it was overshadowed by the AI hype, despite having strong fundamentals and a focus on automation [11][12]. - The company is well-positioned for growth in 2026, with recurring revenue and expanding product offerings, making it a candidate for a significant breakout [13]. Group 3: Broader Market Trends - The current market reset is characterized by cooling inflation and the end of aggressive rate hikes, allowing for a broader range of companies to gain attention beyond the mega-cap tech giants [14][15]. - Companies like Verizon, Crown Castle, and ServiceNow are not merely rebound plays but represent a shift back to fundamental investing, as they were mispriced rather than fundamentally broken [15].

Group 1: Investment Case and Financial Health - Verizon has raised its dividend payout for 19 consecutive years, indicating a strong commitment to returning value to shareholders [4] - By late 2025, Verizon is projected to reduce its net unsecured debt to approximately $112 billion, with a debt-to-EBITDA ratio of around 2.2, suggesting improved financial stability [4] - Management emphasizes the importance of balance sheet progress to protect the dividend and support investments in 5G and fiber infrastructure [5] Group 2: Market Position and Competitive Landscape - Wells Fargo has lowered its price target for Verizon from $43 to $41, maintaining an Equal Weight rating, reflecting a reassessment of the wireless sector [2] - Despite better-than-expected subscriber growth trends in the fourth quarter, competitive pressures remain a concern, leading to cautious investor sentiment [3] - Verizon's strategy focuses on core wireless and broadband services, avoiding high-risk ventures into AI-related projects or large acquisitions [5] Group 3: Company Overview - Verizon Communications Inc. operates as a holding company, providing communications, technology, information, and streaming services to various customer segments, including consumers, businesses, and government [6]

Core Insights - Dividend stocks are favored by investors, particularly Boomers and older Gen X, due to their ability to provide steady passive income and total return potential [1][2] - Total return includes interest, capital gains, dividends, and distributions, exemplified by a stock purchased at $20 with a 3% dividend yielding a total return of 13% when the price rises to $22 [1] - Anticipation of two rate cuts in 2026 suggests that investors should consider high-yield dividend stocks now [1] Dividend Stocks Overview - Since 1926, dividends have contributed approximately 32% to the S&P 500's total return, with capital appreciation accounting for 68% [4] - A study indicates that dividend stocks delivered an annualized return of 9.18% from 1973 to 2023, significantly outperforming non-payers at 3.95% [4] Featured Companies - **Altria Group Inc.**: Offers a 7.30% dividend yield and is a major player in the tobacco industry, selling primarily through wholesalers [5][6] - **Apple Hospitality REIT Inc.**: Owns a large portfolio of upscale hotels, providing an 8.10% monthly dividend [9][10] - **Energy Transfer L.P.**: A leading midstream energy company with a 7.97% distribution, owning over 114,000 miles of pipelines [11][12] - **Healthpeak Properties Inc.**: Focuses on healthcare real estate with a 7.56% dividend, managing properties across various healthcare segments [17][18] - **Verizon Communications Inc.**: A telecommunications giant with a 6.71% dividend, showing strong financial metrics and consistent dividend growth over 20 years [19][20]

Verizon Communications (NYSE:VZ) offers income investors a 6.9% yield, roughly double the S&P 500's dividend return. ...

We came across a bullish thesis on Verizon Communications Inc. on Phaetrix Investing’s Substack by Phaetrix. In this article, we will summarize the bulls’ thesis on VZ. Verizon Communications Inc.'s share was trading at $39.62 as of January 26th. VZ’s trailing and forward P/E were 8.45 and 8.27 respectively according to Yahoo Finance. Ericsson (ERIC) Touches 3-Year High on Strong Earnings TunedIn by Westend61/Shutterstock.com Verizon Communications Inc., through its subsidiaries, engages in the provisio ...