Verizon Communications (NYSE:VZ) Shares Gap Up After Earnings Beat

Verizon Communications Inc. (NYSE:VZ)’s share price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $39.81, but opened at $42.01. Verizon Communications shares last traded at $42.5880, with a volume of 21,301,481 shares changing hands.

The cell phone carrier reported $1.09 EPS for the quarter, topping the consensus estimate of $1.06 by $0.03. The business had revenue of $36.38 billion during the quarter, compared to analyst estimates of $36.20 billion. Verizon Communications had a net margin of 14.43% and a return on equity of 19.31%. Verizon Communications’s quarterly revenue was up 2.0% compared to the same quarter last year. During the same period last year, the business posted $1.10 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.900-4.950 EPS.

Verizon Communications Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, February 2nd. Investors of record on Monday, January 12th will be given a dividend of $0.69 per share. The ex-dividend date is Monday, January 12th. This represents a $2.76 annualized dividend and a dividend yield of 6.2%. Verizon Communications’s payout ratio is currently 58.97%.

Key Headlines Impacting Verizon Communications

Here are the key news stories impacting Verizon Communications this week:

• Positive Sentiment: Q4 beat on EPS and revenue — Verizon reported $1.09 EPS vs. consensus $1.06 and revenue of $36.38B, topping estimates and showing 2% year-over-year revenue growth. Read More.
• Positive Sentiment: Raised FY‑2026 EPS guidance — management set guidance of $4.90–$4.95, above consensus, improving forward earnings visibility and supporting valuation. Read More.
• Positive Sentiment: Strong subscriber momentum — Verizon logged its highest quarterly wireless net adds in years (notably large postpaid phone adds), a primary driver of the upside in revenue and service growth metrics. Read More.
• Positive Sentiment: Capital return program — management outlined a large buyback program (cited in call writeups), which supports EPS and signals confidence in cash flow. Read More.
• Positive Sentiment: Unusual options activity — heavy call buying was reported intraday, consistent with speculative/hedged bullish positioning by some investors. (Options volume report)
• Neutral Sentiment: Operational resilience highlighted — company actions to harden networks for winter storms were noted; supports customer experience but is a longer-term benefit. Read More.
• Neutral Sentiment: Positive media/analyst writeups emphasize value after the beat, framing VZ as an income + growth story for yield-seeking investors. Read More.
• Negative Sentiment: Execution and cost risks called out — deeper analysis warns that aggressive subscriber promotions, the Frontier deal and integration/unit economics could pressure margins and near-term earnings visibility. Read More.
• Negative Sentiment: Analyst target cut — Wells Fargo trimmed its target in a sector reassessment, a reminder that some shops remain cautious on wireless pricing and capital intensity. Read More.
• Negative Sentiment: Dividend-safety concerns re-surfacing — articles questioning sustainability of the ~7% yield could weigh on long-term income-focused demand if cash flow dynamics shift. Read More.
• Negative Sentiment: Minor institutional selling — a small manager reduced its position, noted in filings; not a major red flag but adds to mixed signals. Read More.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the stock. Morgan Stanley dropped their target price on shares of Verizon Communications from $48.00 to $47.00 and set an “equal weight” rating on the stock in a report on Wednesday, December 10th. Barclays assumed coverage on shares of Verizon Communications in a research report on Thursday, January 22nd. They set an “equal weight” rating and a $43.00 price target for the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Verizon Communications in a research note on Wednesday, January 21st. BNP Paribas Exane downgraded shares of Verizon Communications from an “outperform” rating to a “neutral” rating and set a $44.00 target price for the company. in a research note on Tuesday, October 21st. Finally, TD Cowen lowered their target price on shares of Verizon Communications from $56.00 to $51.00 and set a “buy” rating for the company in a report on Thursday, October 30th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, Verizon Communications presently has an average rating of “Hold” and a consensus price target of $47.43.

Hedge Funds Weigh In On Verizon Communications

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Hudock Inc. boosted its position in shares of Verizon Communications by 0.6% during the second quarter. Hudock Inc. now owns 39,842 shares of the cell phone carrier’s stock valued at $1,724,000 after buying an additional 238 shares during the last quarter. McLean Asset Management Corp lifted its stake in Verizon Communications by 2.9% during the 3rd quarter. McLean Asset Management Corp now owns 8,571 shares of the cell phone carrier’s stock valued at $355,000 after acquiring an additional 243 shares during the period. Red Spruce Capital LLC boosted its holdings in shares of Verizon Communications by 0.3% during the 3rd quarter. Red Spruce Capital LLC now owns 71,541 shares of the cell phone carrier’s stock valued at $3,144,000 after acquiring an additional 246 shares during the last quarter. Camden National Bank grew its stake in shares of Verizon Communications by 4.6% in the second quarter. Camden National Bank now owns 5,666 shares of the cell phone carrier’s stock worth $245,000 after acquiring an additional 248 shares during the period. Finally, FRG Family Wealth Advisors LLC raised its holdings in shares of Verizon Communications by 1.8% during the second quarter. FRG Family Wealth Advisors LLC now owns 14,517 shares of the cell phone carrier’s stock valued at $628,000 after purchasing an additional 250 shares during the last quarter. 62.06% of the stock is owned by institutional investors.

Verizon Communications Price Performance

The stock has a market capitalization of $187.70 billion, a PE ratio of 9.51, a PEG ratio of 3.80 and a beta of 0.34. The firm’s fifty day moving average price is $40.32 and its two-hundred day moving average price is $41.58. The company has a quick ratio of 0.69, a current ratio of 0.74 and a debt-to-equity ratio of 1.19.

Verizon Communications Company Profile

Verizon Communications Inc (NYSE: VZ) is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.

The company’s consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.