Core Insights - Verizon Communications Inc. reported strong fourth-quarter 2025 results, exceeding both adjusted earnings and revenue estimates, while fulfilling its 2025 guidance [1] Financial Performance - Net income for the quarter was $2.45 billion, or 55 cents per share, down from $5.11 billion, or $1.18 per share, in the prior year, primarily due to increased operating expenses [3] - For 2025, GAAP earnings totaled $17.61 billion, or $4.06 per share, compared to $17.95 billion, or $4.14 per share, in 2024; adjusted earnings were $4.71 per share, up from $4.59 [4] - Total operating revenues increased by 2% to $36.38 billion, driven by higher wireless equipment revenues and customer growth, surpassing the consensus estimate of $35.94 billion; total revenues for 2025 reached $138.19 billion, a 2.5% year-over-year increase [5] Segment Results - Consumer segment revenues rose by 3.2% year-over-year to $28.44 billion, with service revenues up 0.9% to $20.25 billion and wireless equipment revenues increasing by 9.6% to $7.11 billion [6] - Business segment revenues decreased by 1.8% to $7.37 billion, impacted by lower wholesale and enterprise revenues, despite growth in business markets [9] Subscriber Growth - The company achieved 319,000 net additions in fixed wireless access, bringing the total subscriber base to nearly 5.7 million, with a target of 8 to 9 million by 2028 [2][10] - Wireless retail postpaid churn was recorded at 1.21%, while retail postpaid phone churn was 0.95% [7] Operating Metrics - Operating income declined to $5 billion, down 32.6% due to an 11% increase in total operating expenses, which reached $31.38 billion [12] - EBITDA for the consumer segment improved by 0.3% to $10.38 billion, with a margin of 36.5%, down from 37.5% in the prior year [8] Cash Flow and Liquidity - Verizon generated $37.14 billion in net cash from operating activities for 2025, compared to $36.91 billion in 2024; free cash flow was $20.13 billion, up from $19.82 billion [13] Future Guidance - For 2026, Verizon anticipates flat wireless service revenue, with total mobility and broadband service revenues expected to grow by 2-3%; adjusted earnings are projected to increase by 4-5% to a range of $4.90-$4.95 per share [14]

Financial Data and Key Metrics Changes - The company achieved over 1 million net adds across mobility and broadband in Q4, the highest quarterly volumes in 6 years [16] - Consolidated adjusted EBITDA for Q4 was $11.9 billion, with full-year adjusted EBITDA at $50 billion, reflecting a 2.5% increase from the prior year [21] - Adjusted EPS for Q4 was $1.09, bringing the full year to $4.71, a growth of 2.6% from the previous year [21] - Free cash flow for the full year was $20.1 billion, anticipated to be industry-leading [22] Business Line Data and Key Metrics Changes - Postpaid phone net adds were 616,000 in Q4, the best quarter in 6 years, with consumer postpaid phone net adds of 551,000 [10][17] - Fixed Wireless Access net adds were 319,000, while Fios Internet delivered 67,000 net adds, the highest since 2020 [18] - The company continued to gain share in the prepaid segment, with 109,000 net adds in Q4, marking the sixth consecutive quarter of positive growth [18] Market Data and Key Metrics Changes - The company added 125,000 fiber net additions through Frontier, a 29% increase over the prior year [19] - The total broadband subscriber base exceeded 16 million, including over 10.5 million fiber customers [72] Company Strategy and Development Direction - The company is focused on a transformation strategy aimed at improving operational efficiency and customer experience, with a target of $5 billion in operating expense savings [8][26] - The Frontier acquisition is expected to provide significant cross-sell opportunities and operational synergies, with a goal of reaching 40-50 million fiber passings over the medium term [12][19] - The company aims to invest in customer experience and leverage AI to enhance operations and reduce churn [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a network outage that impacted customer service, emphasizing a commitment to improving service quality [3][4] - The company expects 2026 to be a transitional year with a focus on volume-based growth, targeting 750,000 to 1 million postpaid phone net adds [25][30] - Management expressed confidence in achieving a step function improvement in performance metrics, with adjusted EPS growth projected at 4%-5% [30][27] Other Important Information - The company announced a $25 billion share repurchase program, with at least $3 billion expected in 2026 [35] - A dividend increase of 2.5% was declared, marking the 20th consecutive year of dividend increases [34] Q&A Session Questions and Answers Question: What investments are needed to drive subscriber growth? - Management indicated that improvements in churn rates and customer experience will be key, with no need for excessive promotions [40][44] Question: Can you elaborate on the fiber passings outlook? - Management confirmed the target of 40-50 million fiber passings, supported by the Frontier acquisition and internal growth initiatives [46][50] Question: How is the company addressing customer lifetime values? - Management highlighted the importance of reducing churn and improving customer experience to enhance lifetime values [55][58] Question: What are the expectations for service revenue growth? - Management guided for 2%-3% growth in mobility and broadband service revenue, with flat wireless service revenue anticipated due to prior price increases [70][71]

Financial Data and Key Metrics Changes - The company achieved over 1 million net adds across mobility and broadband in Q4, the highest quarterly volumes in 6 years [16] - Consolidated adjusted EBITDA for Q4 was $11.9 billion, with full-year adjusted EBITDA at $50 billion, reflecting a 2.5% increase from the prior year [22] - Adjusted EPS for Q4 was $1.09, bringing the full-year total to $4.71, a growth of 2.6% from the previous year [22] - Free cash flow for the full year was $20.1 billion, anticipated to be industry-leading [23] Business Line Data and Key Metrics Changes - Postpaid phone net adds were 616,000 in Q4, the best quarter in 6 years, with consumer postpaid phone net adds of 551,000 [10][16] - Fixed Wireless Access net adds were 319,000, while Fios Internet delivered 67,000 net adds, the highest since 2020 [19] - The company continued to take share in the prepaid segment, with Q4 net adds of 109,000, marking the sixth consecutive quarter of positive growth [18] Market Data and Key Metrics Changes - The company added 125,000 fiber net additions through Frontier, representing a 29% increase over the prior year [20] - The total broadband subscriber base exceeded 16 million, including over 10.5 million fiber customers [73] - The company expects to achieve 2%-3% growth in mobility and broadband service revenue in 2026, equating to approximately $93 billion [27] Company Strategy and Development Direction - The company is focused on a transformation strategy aimed at improving efficiency and customer experience, with a goal of becoming the most efficient telecom company in the industry [8] - Plans include a significant fiber build-out, targeting 40-50 million fiber passings over the medium term, with at least 2 million added in 2026 [12][34] - The company aims to leverage AI to optimize operations and enhance customer experience, with a focus on reducing churn and improving customer lifetime value [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a network outage that impacted customer service, emphasizing the need for improvement in service quality [3] - The company is optimistic about its transformation, expecting significant improvements in performance metrics in 2026 compared to historical trends [32] - Management highlighted the importance of customer loyalty and brand trust as key drivers for future growth [9] Other Important Information - The company plans to return $25 billion to shareholders through share repurchases over the next three years, with at least $3 billion in 2026 [36] - A dividend increase of 2.5% per share was announced, marking the 20th consecutive year of dividend increases [35] - The company has reduced its workforce by 13,000 in Q4, contributing to cost transformation efforts [76] Q&A Session Questions and Answers Question: What investments are needed to drive subscriber growth? - Management indicated that subscriber growth will be driven by improved customer experience, reduced churn, and leveraging convergence opportunities, rather than relying heavily on promotions [40][45] Question: Can you elaborate on the fiber passings outlook? - Management expressed confidence in achieving the new target of 40-50 million fiber passings, citing opportunities from the Frontier acquisition and partnerships [47][51] Question: How will customer lifetime values be maintained? - Management emphasized the importance of reducing churn and improving customer experience to enhance customer lifetime values, while avoiding price increases without corresponding value [56][58] Question: What are the expectations for service revenue growth? - Management guided for flat wireless service revenue in 2026 due to prior year price increases and ongoing promotional amortization, while anticipating volume-based growth in mobility and broadband [71][72]

Financial Data and Key Metrics Changes - The company achieved over 1 million net adds across mobility and broadband in Q4 2025, the highest quarterly volumes in 6 years [16] - Consolidated adjusted EBITDA for Q4 was $11.9 billion, with full-year adjusted EBITDA at $50 billion, reflecting a 2.5% increase from the prior year [22] - Adjusted EPS for Q4 was $1.09, bringing the full year to $4.71, a growth of 2.6% from the previous year [22][29] - Free cash flow for the full year was $20.1 billion, anticipated to be industry-leading [23] Business Line Data and Key Metrics Changes - Postpaid phone net adds were 616,000 in Q4, the best quarter in 6 years, with consumer contributing 551,000 [10][16] - Fixed Wireless Access net adds were 319,000, while Fios Internet added 67,000, marking the highest fourth quarter net addition since 2020 [19][20] - The prepaid segment continued to grow, with 109,000 net adds in Q4, marking the sixth consecutive quarter of positive growth [18] Market Data and Key Metrics Changes - The company added 125,000 fiber net additions through Frontier, a 29% increase year-over-year, contributing to over 16 million broadband subscribers [20] - The company expects to achieve 2-3% growth in mobility and broadband service revenue in 2026, equating to approximately $93 billion [27] Company Strategy and Development Direction - The company is focused on a transformation strategy aimed at improving efficiency and customer satisfaction, with a goal to be the most efficient telecom company in the industry [8] - Plans include a significant fiber build-out, targeting 40-50 million fiber passings over the medium term, with at least 2 million added in 2026 [12][34] - The company aims to leverage AI to enhance customer experience and operational efficiency [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a network outage that impacted customer service, emphasizing the need for improvement in service quality [3] - The company is optimistic about its transformation, expecting significant improvements in performance metrics in 2026 compared to historical trends [32] - Management highlighted the importance of reducing churn and enhancing customer experience as key drivers for future growth [45][58] Other Important Information - The company plans to return $25 billion to shareholders through share repurchases over the next three years, with at least $3 billion in 2026 [36] - A dividend increase of 2.5% was announced, marking the 20th consecutive year of dividend increases [35] Q&A Session Summary Question: Outlook for postpaid phones in 2026 - Management discussed the investments needed to drive subscriber growth, emphasizing improvements in churn rates and customer experience rather than relying heavily on promotions [40][41] Question: Fiber passings outlook - Management confirmed an increase in the fiber passings target to 40-50 million, citing opportunities in both organic and inorganic growth [47][49] Question: Customer lifetime values and CapEx opportunities - Management addressed concerns about customer lifetime values, stating that reducing churn and improving customer experience will enhance LTV [54][56] - On CapEx, management explained that efficiencies were found by narrowing focus to growth areas and eliminating non-core investments [62][63]

Financial Data and Key Metrics Changes - The company achieved over 1 million net adds across mobility and broadband in Q4 2025, the highest quarterly volume in six years [16] - Consolidated adjusted EBITDA for Q4 was $11.9 billion, with full-year adjusted EBITDA at $50 billion, reflecting a 2.5% increase from the prior year [22] - Adjusted EPS for Q4 was $1.09, bringing the full-year total to $4.71, a growth of 2.6% from the previous year [22] - Free cash flow for the full year was $20.1 billion, anticipated to be industry-leading [23] Business Line Data and Key Metrics Changes - Postpaid phone net adds were 616,000 in Q4, the best performance in six years, with consumer postpaid phone net adds at 551,000 [16][17] - Fixed Wireless Access (FWA) net adds were 319,000, while Fios Internet delivered 67,000 net adds, the highest since 2020 [18] - The company continued to gain share in the prepaid segment, with 109,000 net adds in Q4, marking six consecutive quarters of positive growth [18] Market Data and Key Metrics Changes - The company added 125,000 fiber net additions through Frontier, representing a 29% increase year-over-year [19] - The total broadband subscriber base exceeded 16 million, including over 10.5 million fiber customers [71] Company Strategy and Development Direction - The company is focused on a transformation strategy aimed at improving operational efficiency and customer experience, with a goal of achieving $5 billion in operating expense savings [7][27] - Plans to expand fiber build-out to reach 40-50 million fiber passings over the medium term, with at least 2 million new passings in 2026 [11][34] - The company aims to leverage AI to enhance customer experience and operational efficiency [13][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a critical inflection point for the company, emphasizing the need to shift culture towards customer satisfaction and brand trust [6] - The outlook for 2026 includes a target of 750,000 to 1 million postpaid phone net adds, which is 2-3 times the total from 2025 [26] - The company expects 2%-3% growth in mobility and broadband service revenue, equating to approximately $93 billion [26] Other Important Information - The company has authorized up to $25 billion in share repurchases over the next three years, with at least $3 billion planned for 2026 [36] - The board declared a dividend increase of 2.5% per share, marking the 20th consecutive year of dividend increases [35] Q&A Session Summary Question: Outlook for postpaid phones and investments needed for subscriber growth - Management highlighted that the strong outlook for postpaid phones in 2026 will be driven by improved churn rates and investments in customer experience rather than aggressive promotions [40][41] Question: Fiber passings outlook and opportunities - Management confirmed the raised target for fiber passings to 40-50 million, citing opportunities from the Frontier acquisition and partnerships [46][49] Question: Customer lifetime values and strategies to attract high-value customers - Management emphasized the importance of reducing churn and improving customer experience to enhance customer lifetime values, while avoiding price increases without corresponding value [53][56] Question: Flat service revenue growth and organic EBITDA growth - Management explained that flat service revenue growth is expected due to prior year price increases and ongoing promotional amortization, while EBITDA growth is anticipated to accelerate due to cost transformation efforts [68][72]

Core Insights - Verizon Communications Inc. reported strong third-quarter 2025 results with wireless service revenues of $21 billion, reflecting a year-over-year increase of 2.1% [1][4] - Adjusted earnings surpassed the Zacks Consensus Estimate, while total revenues fell short of expectations [1][4] Financial Performance - Net income for the quarter was $5.06 billion, or $1.17 per share, compared to $3.41 billion, or 78 cents per share, in the same quarter last year, driven by top-line growth and reduced operating expenses [3] - Total operating revenues increased by 1.5% to $33.82 billion, but missed the consensus estimate of $34.18 billion [4] - Adjusted earnings were $1.21 per share, slightly above the previous year's $1.19 per share [3] Segment Results - Consumer segment revenues rose by 2.9% year over year to $26.1 billion, exceeding estimates [5] - Business segment revenues declined by 2.8% to $7.14 billion due to lower wholesale and enterprise revenues, falling short of estimates [8] Subscriber Growth - Fixed wireless access net additions reached 261,000, bringing the total subscriber base to nearly 5.4 million, with a target of 8 to 9 million by 2028 [2] - Wireless retail postpaid churn was recorded at 1.12%, while retail postpaid phone churn was 0.91% [6] Operating Metrics - Operating income improved by 36.8% to $8.1 billion, with total operating expenses down by 6.2% to $25.72 billion [11] - Consolidated adjusted EBITDA increased to $12.77 billion, reflecting growth in wireless service revenue [11] Cash Flow and Guidance - Verizon generated $28 billion in net cash from operating activities for the first nine months of 2025, compared to $26.48 billion in the previous year [12] - For 2025, the company anticipates wireless service revenue growth of 2%-2.8% and adjusted EBITDA growth of 2.5%-3.5% [13]

Financial Data and Key Metrics Changes - Verizon's third quarter consolidated revenue was $33.8 billion, up 1.5% year-over-year [10] - Adjusted EBITDA for the third quarter was $12.8 billion, reflecting a 2.3% increase year-over-year [12] - Adjusted EPS was $1.21, up 1.7% year-over-year, driven by growth in adjusted EBITDA [13] - Free cash flow for the third quarter was $7 billion, representing a nearly 17% improvement year-over-year [14] - Net unsecured debt at the end of the quarter was $112 billion, a $9.4 billion improvement year-over-year [15] Business Line Data and Key Metrics Changes - In consumer mobility, postpaid phone gross adds increased by 8.4% year-over-year, but net losses were 7,000 due to a churn rate of 0.91% [7][8] - Core prepaid business saw 47,000 net adds, marking the fifth consecutive quarter of positive subscriber growth [8] - Verizon Business delivered 51,000 phone net adds, with strong demand from small and medium businesses [9] - Broadband segment added 306,000 net subscribers, with Fios Internet delivering 61,000 net adds, the best quarterly result in two years [9] Market Data and Key Metrics Changes - The broadband base increased by 1.3 million subscribers year-over-year, now totaling over 13.2 million [9] - Fixed Wireless Access (FWA) net adds were 261,000 for the quarter, with approximately 5.4 million FWA subscribers [10] - Annualized revenue from FWA has surpassed $3 billion and continues to grow [10] Company Strategy and Development Direction - The company is shifting to a customer-first focus, aiming to redefine its trajectory and enhance customer experience [6][19] - Verizon plans to aggressively transform its culture and financial profile, focusing on customer-centric growth and financial discipline [17][22] - The acquisition of Frontier is expected to close in early 2026, creating significant cross-sell opportunities and expanding the fiber footprint [15][24] - The company intends to leverage AI to improve customer experience and operational efficiency [22][87] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that Verizon has not captured customer growth opportunities despite a strong network foundation [5][17] - The focus will be on reducing churn and improving customer retention through enhanced value propositions [31][32] - Management is committed to delivering sustainable revenue growth and increasing shareholder returns while maintaining a strong dividend policy [33][25] Other Important Information - The company is on track to meet its full-year financial guidance, including adjusted EBIT growth and free cash flow [7] - Verizon's capital expenditures through the end of the third quarter totaled $12.3 billion, with expectations to meet investment goals [14] Q&A Session Summary Question: Can you expand on your vision for the company and how to turn consumer volumes? - The CEO emphasized the need to shift from a technology-centric to a customer-centric approach, aiming for the lowest churn rate in the industry [30][31] Question: How do you drive share for Verizon higher without painful back book repricing? - The CEO highlighted the importance of addressing customer pain points and creating targeted value propositions rather than relying solely on pricing [40][42] Question: What strategies do you think are best for reducing churn? - The CEO mentioned the need for proactive measures to address customer issues and improve the overall customer experience [82][84] Question: How do you view the balance between organic fiber expansion and the acquisition of Frontier? - Management stated that both organic and acquisition strategies are essential for expanding the fiber footprint and enhancing convergence opportunities [91][92]

Core Insights - Verizon Communications Inc. reported strong second-quarter 2025 results with adjusted earnings and revenues exceeding Zacks Consensus Estimates [1] Financial Performance - The company achieved net income of $5.12 billion or $1.18 per share, an increase from $4.7 billion or $1.09 per share in the prior-year quarter, primarily driven by top-line growth [3] - Total operating revenues rose by 5.2% to $34.5 billion, surpassing the consensus estimate of $33.58 billion, fueled by growth in service revenues and higher wireless equipment revenues [4] Segment Performance - Consumer segment revenues increased by 6.9% year over year to $26.65 billion, exceeding estimates of $25.63 billion, with service revenues up 2.1% to $20.26 billion and wireless equipment revenues up 29.6% to $5.37 billion [5] - Business segment revenues decreased by 0.3% to $7.27 billion, falling short of estimates due to lower wholesale and enterprise revenues, partially offset by growth in business markets [8] Subscriber Growth - Verizon recorded 278,000 net additions in fixed wireless access, bringing the total subscriber base to over 5.1 million, positioning the company to meet its target of 8 to 9 million subscribers by 2028 [2][9] - Wireless retail postpaid churn was 1.12%, while retail postpaid phone churn was 0.9%, indicating stable customer retention [6] Cash Flow and Guidance - The company generated $16.76 billion in net cash from operating activities for the first half of 2025, with free cash flow of $5.17 billion for the quarter [12] - For 2025, Verizon expects wireless service revenue growth of 2%-2.8% and adjusted EBITDA growth of 2.5%-3.5%, with adjusted earnings anticipated to grow by 1-3% [13]

Core Insights - Verizon Communications Inc. reported strong first-quarter 2025 results with adjusted earnings and revenues surpassing Zacks Consensus Estimates [1][2] Financial Performance - Net income for the quarter was $4.98 billion, or $1.15 per share, compared to $4.72 billion, or $1.09 per share, in the same quarter last year, driven by top-line growth [2] - Adjusted earnings were $1.19 per share, up from $1.15 year-over-year, beating the consensus estimate by 3 cents [2] - Total operating revenues increased by 1.5% to $33.48 billion, exceeding the consensus estimate of $33.32 billion, supported by growth in service revenues and higher wireless equipment revenues [3] Segment Results - Consumer segment revenues rose 2.2% year-over-year to $25.62 billion, surpassing estimates of $25.23 billion, with service revenues up 2.3% to $20.07 billion [4] - Business segment revenues decreased by 1.2% to $7.29 billion, below estimates of $7.35 billion, primarily due to lower wireline revenues [6] Customer Metrics - The company achieved 137,000 retail prepaid net additions, the highest since the TracFone acquisition, while retail postpaid and retail postpaid phone net additions contracted [1] - Wireless retail postpaid churn was 1.13%, and retail postpaid phone churn was 0.9% [5] - Fios Internet net additions were 41,000, while fixed wireless broadband net additions reached 199,000 [5] Operating Metrics - Operating income improved to $7.98 billion, a 6.1% increase, with total operating expenses remaining flat at $25.51 billion [9] - Consolidated adjusted EBITDA rose to $12.56 billion from $12.07 billion, driven by wireless service revenue growth [10] Cash Flow and Guidance - Verizon generated $7.78 billion in net cash from operating activities, with free cash flow of $3.64 billion, up from $2.71 billion year-over-year [11] - For 2025, the company expects wireless service revenue growth of 2%-2.8% and adjusted EBITDA growth of 2%-3.5% [12]