Core Viewpoint - Verizon Communications has shown significant improvement in its financial performance, making it an attractive option for income investors, particularly due to its robust free cash flow growth, accelerating earnings, and an improving underlying business. Group 1: Financial Performance - Verizon's shares increased by 11.83% following its Q4 update, reflecting positive investor sentiment [2][3] - The company reported free cash flow of $20.1 billion for 2025, an increase from $19.8 billion in the previous year, with guidance projecting a further growth of at least 7% to $21.5 billion in 2026 [3][4] - Adjusted earnings per share (EPS) are projected to be between $4.90 and $4.95 in 2026, indicating a year-over-year growth of 4% to 5% [5][6] Group 2: Business Improvement - Verizon's underlying business is showing noticeable improvement, with the highest quarterly postpaid phone net additions since 2019 [6][8] - Wireless services revenue rose by 1.1% to $21 billion in Q4, while wireless equipment revenue increased by 9.1% year over year to $8.2 billion [8] - The company has successfully reduced its net unsecured debt to $110.1 billion at the end of Q4 2025, down from $113.7 billion the previous year [8] Group 3: Strategic Moves - The acquisition of Frontier Communications, set to close on January 20, 2026, is viewed as a pivotal step in Verizon's turnaround strategy, significantly expanding its fiber footprint to over 30 million homes and businesses [9]

Core Insights - Verizon Communications reported fourth-quarter earnings and revenue that exceeded analyst expectations, leading to a more than 9% increase in shares intraday [1] Financial Performance - The company posted adjusted earnings per share of $1.09, surpassing consensus estimates of $1.06 [2] - Revenue reached $36.4 billion, exceeding expectations of $36.1 billion [2] - Wireless service revenue rose 1.1% year over year to $21.0 billion [3] - Wireless equipment revenue climbed 9.1% to $8.2 billion [3] Subscriber Growth - Verizon recorded its highest quarterly total mobility and broadband volumes since 2019, including 616,000 postpaid phone net additions [2] - Broadband subscriber additions totaled 372,000, which included 319,000 fixed wireless access customers and 67,000 Fios internet additions [3] Future Outlook - For 2026, Verizon projected adjusted earnings per share of $4.90 to $4.95, well above analyst consensus of $4.76 [4] - The company forecasted total retail postpaid phone net additions of 750,000 to 1.0 million [4] - Total mobility and broadband service revenue growth is expected to be between 2.0% to 3.0% [4]

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]