Verizon (VZ) Up 4.9% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Verizon Communications reported solid third-quarter 2025 results, with strong wireless service revenues but missed revenue estimates, leading to questions about future performance [3][6][17]. Financial Performance - Verizon's Q3 2025 net income was $5.06 billion or $1.17 per share, up from $3.41 billion or $0.78 per share year-over-year, driven by top-line growth and lower operating expenses [5]. - Total operating revenues increased by 1.5% to $33.82 billion, but fell short of the consensus estimate of $34.18 billion [6]. - Adjusted earnings were $1.21 per share, beating the Zacks Consensus Estimate by 2 cents [5]. Segment Results - Consumer segment revenues rose 2.9% year-over-year to $26.1 billion, exceeding estimates, with service revenues up 2.1% to $20.34 billion [7]. - Business segment revenues declined 2.8% to $7.14 billion, below estimates, due to lower wholesale and enterprise revenues [10]. Subscriber Growth - Verizon achieved 261,000 net additions in fixed wireless access, bringing the total subscriber base to nearly 5.4 million, on track to meet its 2028 target of 8 to 9 million subscribers [4]. - Wireless retail postpaid churn was 1.12%, with 110,000 wireless retail postpaid net additions in the business segment [8][10]. Operating Metrics - Total operating expenses decreased by 6.2% to $25.72 billion, while operating income improved by 36.8% to $8.1 billion [12]. - Consolidated adjusted EBITDA increased to $12.77 billion, reflecting growth in wireless service revenues [12]. Cash Flow and Guidance - Verizon generated $28 billion in net cash from operating activities for the first nine months of 2025, with free cash flow of $6.96 billion for the quarter [13]. - For 2025, Verizon expects wireless service revenue growth of 2%-2.8% and adjusted EBITDA growth of 2.5%-3.5% [14]. Market Position - Verizon's stock has a subpar Growth Score of D and a strong value score of A, placing it in the top 20% for value investors [16]. - The stock has a Zacks Rank 3 (Hold), indicating an expected in-line return in the coming months [17].