Verizon Communications 8-K
PositiveEarningsGuidance raisedImpairment / charge
Raises full-year guidance and buyback target as mobility and broadband services grow despite slumping equipment sales.
Filed 2026-07-24 07:00 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with raised FY2026 guidance. Revenue fell 0.7% as stronger service revenue was offset by a nearly 20% decline in equipment revenue, while adjusted EBITDA rose 7.2%. Verizon raised its full-year outlook for mobility and broadband service revenue growth, adjusted EPS, operating cash flow and free cash flow, and increased its share-buyback target.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Total operating revenue | $34.3B | $34.5B | -0.7% |
| Operating income | $7.18B | $8.17B | -12.2% |
| Net income | $3.95B | $5.12B | -22.9% |
| Adjusted EBITDA, non-GAAP | $13.7B | $12.8B | +7.2% |
| Diluted EPS | $0.92 | $1.18 | -22.0% |
| Adjusted EPS, non-GAAP | $1.30 | $1.22 | +6.6% |
| Operating cash flow | $10.4B | $8.98B | +16.3% |
| Free cash flow, non-GAAP | $6.43B | $5.17B | +24.4% |
- Net income included $1.8B of pretax special items, including a $746M loss on the held-for-sale international wireline business, $397M of severance charges and $258M of asset rationalization charges. Adjusted EBITDA margin reached 40.1%, up from 37.1%.
- First-half operating cash flow was $18.4B, up 9.9%; free cash flow was $10.2B, up 16.0%. Verizon repurchased $3.5B of shares YTD, including $1.0B in Q2, and raised its full-year buyback target to up to $4.5B. Total capital returned to shareholders in H1 was $9.4B; shares outstanding were 4.155B at quarter-end vs 4.217B at year-end 2025.
- Q2-end unsecured debt was $136.5B vs $142.5B at Q1-end; net unsecured debt was $128.7B vs $130.1B. Cash and cash equivalents were $1.75B at 6/30/2026 vs $19.0B at 12/31/2025.
- Mobility and broadband service revenue grew 2.8%; Verizon added 184,000 postpaid phone connections and 348,000 broadband connections. Postpaid phone churn improved to 0.92% from 0.97%.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Mobility and broadband service revenue growth | FY2026 | 2.5%-3.0% | — | Raised |
| Mobility and broadband service revenue growth | Q3 2026 | Approaching 3.0% | — | — |
| Mobility and broadband service revenue growth | Q4 2026 | ≈4.0% | — | — |
| Wireless service revenue growth | FY2026 | Approximately flat | — | — |
| Adjusted EPS, non-GAAP | FY2026 | $4.99-$5.04; 6.0%-7.0% Y/Y growth | — | Raised |
| Operating cash flow | FY2026 | $37.94B-$38.64B; 2.2%-4.0% Y/Y growth | $37.5B-$38.0B; 1.0%-2.3% growth | Raised |
| Free cash flow, non-GAAP | FY2026 | $21.94B-$22.14B; 9.0%-10.0% Y/Y growth | $21.5B; 6.8% growth | Raised |
| Retail postpaid phone net additions | FY2026 | Upper half of 750,000-1.0M | — | Reaffirmed |
| Capital expenditures | FY2026 | $16.0B-$16.5B | $16.0B-$16.5B | Reaffirmed |
Investor Takeaways
- Track whether mobility and broadband service revenue growth approaches 3% in Q3 and ≈4% in Q4, as projected.
- Full-year performance will test the raised cash flow and adjusted EPS outlook alongside the target for postpaid phone net additions.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3