# Verizon (VZ) Q2 2026 earnings

Results filed 2026-07-24 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/vz/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/732712/000073271226000040/0000732712-26-000040-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Verizon reported second-quarter 2026 total operating revenue of $34.3 billion, down 0.7 percent, consolidated net income of $3.9 billion, adjusted EPS of $1.30 and free cash flow of $6.4 billion, up 24.4 percent.

Verizon's revenue slipped 0.7 percent to $34.3 billion because equipment revenue fell nearly 20 percent as customers upgraded phones less often and the company cut device subsidies. Mobility and broadband service revenue grew 2.8 percent, and the company added 184,000 postpaid phone customers. Net income fell 22.9 percent to $3.9 billion on $1.8 billion of pre-tax special items. Adjusted EPS rose 6.6 percent to $1.30, and adjusted EBITDA was the highest the company has reported.
Management raised full-year guidance for the second quarter in a row. It now expects mobility and broadband service revenue growth of 2.5 to 3.0 percent, adjusted EPS of $4.99 to $5.04, and free cash flow growth of 9.0 to 10.0 percent. It also expects growth to speed up to approximately 4.0 percent in the fourth quarter. The tension is that growth depends on subscriber gains without heavy promotions, while debt remains high and wireless service revenue is expected to be approximately flat for the year.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total operating revenue | $34.3 billion | down 0.7 percent year-over-year | GAAP |
| Consolidated net income | $3.9 billion | a 22.9 percent decrease year-over-year | GAAP |
| Diluted EPS | $0.92 | a 22.0 percent decrease compared to $1.18 in second-quarter 2025 | GAAP |
| Adjusted EPS | $1.30 | a 6.6 percent increase compared to $1.22 in second-quarter 2025 | non-GAAP |
| Operating income (millions) | 7,179 | down 12.2% from 8,172 | GAAP |
| Cash flow from operations | $10.4 billion | up 16.3 percent year-over-year | GAAP |
| Free cash flow | $6.4 billion | up 24.4 percent year-over-year | non-GAAP |
| Consolidated adjusted EBITDA | $13.7 billion | grew 7.2 percent year-over-year | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Mobility and broadband service revenue | $23.4 billion | a 2.8 percent increase year-over-year |
| Postpaid phone net additions | 184,000 |  |
| Broadband net additions | 348,000 | a year-over-year increase of 12.3 percent |
| Fixed wireless access net additions | 193,000 |  |
| Fiber broadband net additions | 155,000 |  |
| Core prepaid net additions | 73,000 | eight consecutive quarters of positive net additions |
| Fixed wireless access and fiber broadband connections | approximately 17.1 million |  |
| Consumer segment EBITDA (millions) | $11,819 | up 5.3% |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Mobility and broadband service revenue growth | 2026 | 2.5 to 3.0 percent |
| Total mobility and broadband service revenue growth | third-quarter 2026 | approach 3.0 percent |
| Total mobility and broadband service revenue growth | fourth-quarter 2026 | approximately 4.0 percent |
| Adjusted EPS | 2026 | $4.99 to $5.04 |
| Cash flow from operations growth | 2026 | approximately 2.0 to 4.0 percent |
| Free cash flow growth | 2026 | 9.0 to 10.0 percent |
| Total retail postpaid phone net additions | 2026 | upper half of the 750,000 to 1.0 million range |
| Capital expenditures | 2026 | $16.0 billion to $16.5 billion |
| Share repurchase target | 2026 | up to $4.5 billion |

## Key takeaways

1. **Equipment revenue drop pulled total revenue down** Total operating revenue was $34.3 billion, down 0.7 percent, as equipment revenue fell nearly 20 percent. Verizon cited lower upgrade volumes and reduced device subsidies.
2. **Special items cut net income, not adjusted EPS** Net income fell 22.9 percent to $3.9 billion on $1.8 billion in pre-tax special items, including a $746 million loss on disposition of business. Adjusted EPS rose 6.6 percent to $1.30.
3. **Subscriber momentum improved with lower churn** Verizon added 184,000 postpaid phone customers, versus a loss of 9 thousand a year earlier. Postpaid phone churn was 0.92% compared with 0.97%.
4. **Cash generation and margins hit strong levels** Free cash flow was $6.4 billion, up 24.4 percent, and adjusted EBITDA margin grew from 37.1 to 40.1 percent. Adjusted EBITDA was $13.7 billion.
5. **Guidance raised again, with leverage still elevated** Verizon raised 2026 adjusted EPS guidance to $4.99 to $5.04 and expanded the buyback target to up to $4.5 billion. Net unsecured debt to adjusted EBITDA was 2.5 times, up from 2.2 times at year-end.

## Questions

**What were Verizon's main Q2 2026 results?** Total operating revenue was $34.3 billion, down 0.7 percent, and net income was $3.9 billion, down 22.9 percent. Adjusted EPS was $1.30, up 6.6 percent from $1.22.
**Why did Verizon's revenue decline?** Equipment revenue fell nearly 20 percent, or over $1.2 billion, on lower upgrade volumes and the decision to reduce device subsidies. Mobility and broadband service revenue grew 2.8 percent.
**What is Verizon's updated 2026 guidance?** It expects mobility and broadband service revenue growth of 2.5 to 3.0 percent, adjusted EPS of $4.99 to $5.04, and free cash flow growth of 9.0 to 10.0 percent. Cash flow from operations growth is expected at approximately 2.0 to 4.0 percent, with capital expenditures of $16.0 billion to $16.5 billion.
**How did Verizon's subscriber and cash flow metrics look?** It added 184,000 postpaid phone customers and 348,000 broadband customers, with postpaid phone churn at 0.92%. Free cash flow was $6.4 billion, up 24.4 percent.
**What is Verizon's debt and capital return position?** Total unsecured debt was $136.5 billion and net unsecured debt to adjusted EBITDA was 2.5 times. Verizon repurchased $1.0 billion of shares in the quarter, $3.5 billion year to date, and raised its full-year buyback target to up to $4.5 billion.