VZ
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XBRL · SEC EDGAR2008–2025(18yr)| Metric | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $97.4B | $107.8B | $106.6B | $110.9B | $115.8B | $120.5B | $127.1B | $131.6B | $126.0B | $126.0B | $130.9B | $131.9B | $128.3B | $133.6B | $136.8B | $134.0B | $134.8B | $138.2B | +2.5% |
| Gross Profit | $58.3B | $63.5B | $62.4B | $65.0B | $69.6B | $75.7B | $77.1B | $108.5B | $103.7B | $103.9B | — | — | — | — | — | — | — | — | — |
| Gross Margin | 59.9% | 58.9% | 58.6% | 58.6% | 60.1% | 62.8% | 60.7% | 82.4% | 82.3% | 82.4% | — | — | — | — | — | — | — | — | — |
| Operating Income | $16.9B | $14.0B | $14.6B | $12.9B | $13.2B | $32.0B | $19.6B | $33.1B | $27.1B | $27.4B | $22.3B | $30.4B | $28.8B | $32.4B | $30.5B | $22.9B | $28.7B | $29.3B | +2.0% |
| Operating Margin | 17.3% | 13.0% | 13.7% | 11.6% | 11.4% | 26.5% | 15.4% | 25.1% | 21.5% | 21.8% | 17.0% | 23.0% | 22.4% | 24.3% | 22.3% | 17.1% | 21.3% | 21.2% | -0.1pp |
| Net Income | $6.4B | $3.7B | $2.5B | $2.4B | $875.0M | $11.5B | $9.6B | $17.9B | $13.1B | $30.1B | $15.5B | $19.3B | $17.8B | $22.1B | $21.3B | $11.6B | $17.5B | $17.2B | -1.9% |
| Net Margin | 6.6% | 3.4% | 2.4% | 2.2% | 0.8% | 9.5% | 7.6% | 13.6% | 10.4% | 23.9% | 11.9% | 14.6% | 13.9% | 16.5% | 15.5% | 8.7% | 13.0% | 12.4% | -0.6pp |
| Free Cash Flow | $10.3B | $14.5B | $16.9B | $13.5B | $15.3B | $22.2B | $13.4B | $21.2B | $5.7B | $8.1B | $17.7B | $17.8B | $23.6B | $19.3B | $14.1B | $18.7B | $19.8B | $20.1B | +1.5% |
| FCF Margin | 10.6% | 13.5% | 15.9% | 12.2% | 13.2% | 18.4% | 10.6% | 16.1% | 4.5% | 6.4% | 13.5% | 13.5% | 18.4% | 14.4% | 10.3% | 14.0% | 14.7% | 14.6% | -0.1pp |
| EPS (Diluted) | $2.26 | $1.29 | $0.90 | $0.85 | $0.31 | $4.00 | $2.42 | $4.37 | $3.21 | $7.36 | $3.76 | $4.65 | $4.30 | $5.32 | $5.06 | $2.75 | $4.14 | $4.06 | -1.9% |
1. THE BIG PICTURE
Verizon is currently a high-stakes transformation story, doubling down on physical infrastructure—evidenced by the January 2026 Frontier acquisition—to offset a maturing wireless business. While it remains a massive cash-flow engine, Verizon is struggling to translate revenue into profit, as seen by a sharp decline in net income even as it expands its fiber and 5G footprint.
2. WHERE THE RISKS HIT HARDEST
Verizon’s "award-winning" network infrastructure is threatened by intense competitive pressure because rivals are using "aggressive pricing, price locks, and guarantees" to turn premium connectivity into a commodity (10-K Item 1). Furthermore, the strategic priority of "Network Evolution" through AI and 5G is complicated by $131.1 billion in unsecured indebtedness; this massive debt load consumes significant cash flow for interest payments, potentially starving the very technical innovations Verizon relies on to differentiate itself (Risks).
3. WHAT THE NUMBERS SAY TOGETHER
While management frames the end of 2025 as a "critical inflection point," the financials reveal a disconnect: fourth-quarter revenue grew to $36.4 billion, yet net income fell by more than half to $2.4 billion (8-K). This suggests that the "play to win" mandate and the transition to a "leaner" organization are currently expensive to execute. Despite being one of the slowest growers in its peer group (+2.5% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth), Verizon maintains a superior operating margin of 22.3% compared to AT&T’s 16.7%, indicating that its virtualized network (vRAN) is providing some structural efficiency (Peer Benchmarking). Short interest stands at 3.5% of the float, reflecting a moderate but notable level of market doubt regarding the speed of this turnaround (Supplemental Signals).
4. IS IT WORTH IT AT THIS PRICE?
At a forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 9.7x, Verizon trades at a significant discount to the peer median of 13.8x. This "attractively valued" position is supported by a 5.6% dividend yield—the highest among its peers—and a 2026 forecast of $21.5 billion or more in free cash flow (8-K). At this multiple, the market is pricing in a meager 0.5% long-term growth rate (CAPM analysis). This appears pessimistic compared to management’s 2026 guidance for mobility and broadband service revenue growth of 2.0% to 3.0%. However, the $139.1 billion in net debt results in a 6.4x net leverage ratio, which explains why investors are demanding such a steep valuation discount despite Verizon's cash-generating power.
5. WHAT WOULD CHANGE THIS VIEW?
- Constructive if the Frontier acquisition drives broadband net additions significantly above the 372,000 recorded in Q4 2025, proving the fiber-expansion strategy is effectively capturing market share (8-K).
- Cautious if adjusted EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric for 2026 falls below the guided range of $4.90 to $4.95, signaling that "margin-eroding pricing adjustments" are neutralizing cost-cutting efforts (8-K, Risks).
- Cautious if further nation-state cyberattacks, such as the "Salt Typhoon" group breach, lead to increased "remediation expenses" or significant customer attrition (Risks).
6. BOTTOM LINE
Structural Advantage: A massive, dual-threat infrastructure of C-Band spectrum and a 100% fiber-optic network that uses virtualization (vRAN) to decouple hardware from software and lower operating costs. Bottom Line: Verizon is a high-yield utility play that will remain stuck at a discount until it proves it can grow its broadband base without further cannibalizing its bottom line.
1. Top 5 Material Risks
- Competitive Pressure: Verizon faces aggressive pricing and promotional strategies from cable, wireless, and satellite providers. This competition, combined with a moderating industry growth rate, threatens to reduce market share and force margin-eroding pricing adjustments.
- Technological Adaptation: Verizon must continuously invest in new technologies, such as AI, to remain competitive. Failure to successfully phase out outdated, unprofitable services or to gain market acceptance for new offerings could lead to reduced profits and customer attrition.
- Economic and Trade Volatility: Unfavorable economic conditions, including inflation and recession, may cause customers to reduce discretionary spending or switch to lower-cost competitors. Additionally, new tariffs on imported goods could increase Verizon's cost structure and negatively impact profitability.
- Cybersecurity Threats: Verizon is a target for sophisticated cyberattacks, including those by nation-state actors like the "Salt Typhoon" group. These incidents can cause service disruptions, loss of sensitive data, and significant expenses related to investigations, litigation, and customer retention incentives.
- Business Transformation Execution: Verizon is undertaking initiatives to streamline operations and reduce costs. These efforts involve substantial investments and carry the risk that anticipated efficiencies may not materialize, or that execution may take longer and cost more than expected.
2. Company-Specific Risks
- Labor Relations: Approximately 27% of the workforce is represented by the Communications Workers of America or the International Brotherhood of Electrical Workers as of December 31, 2025, creating the risk of work stoppages and increased costs during contract renegotiations.
- Infrastructure Outages: Verizon’s reliance on complex networks makes it vulnerable to widespread service disruptions, such as the outage experienced in early 2026, which can result in lost revenue and significant remediation costs.
- Pension and Healthcare Obligations: With approximately 89,900 employees and 179,400 retirees as of December 31, 2025, Verizon faces significant financial exposure to rising healthcare costs and potential volatility in pension plan investment returns and discount rates.
- Lead Sheathed Cable Allegations: Media reports regarding lead sheathed copper cables in the network infrastructure have triggered government investigations and litigation, potentially leading to material remediation costs and reputational damage.
3. Regulatory/Legal Risks
- Regulatory Frameworks: Verizon is subject to FCC and international oversight that can restrict business expansion or impose new costs. Specifically, Verizon faces potential state-level regulations on broadband pricing and service quality.
- Privacy Compliance: Verizon must navigate complex global data protection laws, such as the California Consumer Privacy Act and Europe’s General Data Protection Regulation, which carry significant penalties for non-compliance.
- Tax Controversies: Verizon is subject to ongoing audits and tax controversies; adverse outcomes could result in additional taxes, penalties, and interest that differ materially from current accruals.
- Litigation Exposure: Verizon faces a substantial volume of litigation, including shareholder lawsuits, patent infringement claims, and health-related allegations concerning wireless devices, which could result in significant damage awards or settlements.
4. Financial Impact Map
Competitive Pricing Pressure → Operating Margins → Increased promotional spending and potential price reductions to maintain market share. Debt Service Obligations → Cash Flow from Operations → $131.1 billion in unsecured debt requires significant cash allocation for principal and interest, reducing funds available for capital expenditures and dividends. Cybersecurity Incidents → Operating Expenses → Costs include expensive customer retention incentives, increased cybersecurity spending, and potential litigation damages. Economic Downturn/Inflation → Revenue → Consumers and business customers may shift to lower-cost plans or delay purchasing decisions, directly impacting top-line growth. Pension and Healthcare Costs → Profitability → Rising healthcare costs and changes in discount rates for the 269,300 total employees and retirees directly increase funding commitments and reduce net income.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Jan 2026 | — |
| 10-Q | Oct 2025 | Sep 2025 |
| 14A | Apr 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Goldman Sachs, Citi Raise Verizon Price Targets to $55 on EBITDA and Cash Flow Focus
- ▸Goldman Sachs raised VZ price target to $55 from $50, maintained Buy rating
- ▸Citigroup raised VZ price target to $55 from $50, maintained Buy rating
- ▸Verizon shifting segment reporting to focus on EBITDA and free cash flow
- ▸Analysts cite cost streamlining and converged services as key growth drivers
- ▸Company targeting return to annual service revenue growth by 2027
Verizon Resolves Fractus Patent Infringement Lawsuit, Removing Longstanding Legal Overhang
- ▸Resolved patent infringement lawsuit with Fractus regarding IoT antenna technology
- ▸Q4 2024 fixed wireless access revenue grew 51.6% YoY
- ▸Goldman Sachs raised price target to $55 citing EBITDA and FCF focus
- ▸Projected 2029 revenue $147.5B with $21.9B earnings target
- ▸Maintains 5.7% dividend yield amid ongoing Frontier integration and capex
Goldman Sachs raises Verizon price target to $55 from $50, maintains Buy rating
- ▸Goldman Sachs raises VZ price target to $55 from $50
- ▸FY2024 free cash flow totaled $19.822 billion
- ▸Q4 2024 Fixed Wireless Access revenue +51.6% YoY to $611 million
- ▸Targeting 8 to 9 million FWA subscribers by 2028
- ▸FY2025 EBITDA growth guidance set at 2.0% to 3.5%
YieldMax launches DDDD ETF targeting double the yield of SCHD via options overlay
- ▸DDDD ETF launched March 11, 2026
- ▸Strategy utilizes options overlay on SCHD holdings
- ▸Targets approximately double the 3.39% yield of SCHD
- ▸Actively managed ETF structure
- ▸Designed for income-focused investors holding SCHD
Oppenheimer raises Verizon price target to $56 citing subscriber growth and cost cuts
- ▸Price target raised to $56 from $50 by Oppenheimer
- ▸Outperform rating reiterated
- ▸Planned $5 billion in total expense reductions
- ▸10% reduction in headcount targeted
- ▸Asset rationalization expected to yield $500 million in savings
Verizon projects 750k-1M postpaid phone net adds for 2026, 2-3x growth over 2025
- ▸Q4 wireless retail postpaid phone gross adds 3.5M, +13% YoY
- ▸Q4 consumer postpaid phone gross adds 2.7M, +15.3% YoY
- ▸Q4 fixed wireless net adds 319,000
- ▸Q4 wireless retail postpaid ARPA $147.36, +1.2% YoY
- ▸2026 wireless service revenue growth expected to remain flat
Realty Income increases monthly dividend to $0.2705; EPR Properties declares $0.295 dividend
- ▸Realty Income monthly dividend increased to $0.2705 per share
- ▸Realty Income 2026 AFFO guidance $4.38–$4.42 per share
- ▸Realty Income Q4 investment volume $2.4B
- ▸EPR Properties declares $0.295 dividend payable March 16, 2026
- ▸EPR Properties Q4 revenue $182.95M, +3.2% YoY
Kodiak AI Q4 revenue $1.05M, net loss $73.7M; deploys 20 driverless trucks
- ▸Q4 2025 revenue $1.05M, net loss $73.68M
- ▸FY2025 total revenue $3.8M, net loss $585.53M
- ▸Deployed 20 fully driverless, customer-owned trucks globally
- ▸Secured new U.S. Marine Corps contract for autonomous systems
- ▸Expanded strategic partnerships with Bosch and Verizon