Verizon Communications (NYSE:VZ) Trading 5.7% Higher After Strong Earnings

Verizon Communications Inc. (NYSE:VZ) traded up 5.7% during trading on Friday following a better than expected earnings announcement. The company traded as high as $46.44 and last traded at $46.3350. Approximately 40,626,513 shares changed hands during mid-day trading, an increase of 39% from the average daily volume of 29,152,141 shares. The stock had previously closed at $43.82.

The cell phone carrier reported $1.30 EPS for the quarter, beating the consensus estimate of $1.27 by $0.03. Verizon Communications had a return on equity of 19.25% and a net margin of 12.46%.The business had revenue of $34.25 billion for the quarter, compared to analyst estimates of $35.16 billion. During the same quarter in the previous year, the firm earned $1.22 EPS. Verizon Communications’s quarterly revenue was down .6% on a year-over-year basis. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS.

Verizon Communications Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be issued a dividend of $0.7075 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 dividend on an annualized basis and a dividend yield of 6.1%. Verizon Communications’s dividend payout ratio (DPR) is presently 69.02%.

Key Stories Impacting Verizon Communications

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

• Positive Sentiment: Verizon beat Q2 adjusted EPS estimates at $1.30 versus $1.27 expected, helped by record EBITDA margins and stronger cash generation. Verizon earnings report
• Positive Sentiment: The company raised its full-year 2026 guidance for adjusted EPS, mobility and broadband service revenue, and free cash flow, signaling management confidence in the outlook. Reuters guidance article
• Positive Sentiment: Verizon posted better-than-expected subscriber momentum, including 184,000 postpaid phone additions and more than 550,000 total mobility and broadband net adds, showing the core business is improving. Verizon press release
• Positive Sentiment: Free cash flow rose 24.4% and Verizon expanded its full-year buyback target to as much as $4.5 billion, both supportive of shareholder returns. Verizon press release
• Positive Sentiment: Verizon also announced a more than $1 billion dark fiber deal with Google for AI data centers, suggesting potential upside from infrastructure demand and additional AI-related contracts. Reuters Google deal article
• Neutral Sentiment: Revenue came in below Wall Street expectations and was slightly lower year over year, so top-line pressure is still a concern. Verizon earnings report
• Neutral Sentiment: Options activity was unusually heavy, with traders buying more call options than normal, which may reflect speculative bullish positioning rather than fundamental news. GuruFocus earnings call highlights

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on VZ shares. Erste Group Bank reaffirmed a “hold” rating on shares of Verizon Communications in a report on Tuesday, May 5th. Scotiabank cut their price target on shares of Verizon Communications from $54.50 to $51.50 and set a “sector outperform” rating for the company in a report on Wednesday, July 15th. Weiss Ratings restated a “buy (b)” rating on shares of Verizon Communications in a research report on Friday, May 29th. Freedom Capital raised shares of Verizon Communications to a “hold” rating in a report on Friday, June 12th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Verizon Communications from $49.00 to $52.00 and gave the stock a “neutral” rating in a report on Thursday, April 30th. Nine research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $50.03.

Institutional Trading of Verizon Communications

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Strengthening Families & Communities LLC grew its holdings in Verizon Communications by 490.0% during the 4th quarter. Strengthening Families & Communities LLC now owns 649 shares of the cell phone carrier’s stock worth $26,000 after acquiring an additional 539 shares during the last quarter. Robinswood Financial LLC bought a new position in shares of Verizon Communications in the first quarter worth about $27,000. Lam Group Inc. acquired a new position in shares of Verizon Communications during the first quarter worth approximately $28,000. EQ Wealth Advisors LLC acquired a new position in shares of Verizon Communications during the fourth quarter worth approximately $29,000. Finally, Sarver Vrooman Wealth Advisors grew its stake in shares of Verizon Communications by 173.0% during the fourth quarter. Sarver Vrooman Wealth Advisors now owns 707 shares of the cell phone carrier’s stock valued at $29,000 after purchasing an additional 448 shares during the last quarter. 62.06% of the stock is currently owned by institutional investors and hedge funds.

Verizon Communications Price Performance

The company has a debt-to-equity ratio of 1.38, a current ratio of 0.64 and a quick ratio of 0.61. The firm has a market capitalization of $193.47 billion, a P/E ratio of 12.07, a PEG ratio of 1.14 and a beta of 0.26. The company’s 50 day moving average price is $45.39 and its 200 day moving average price is $46.20.

About Verizon Communications

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.