| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 87 | 12.5x | 17.6x | Top tier | |
Growth | 36 | 1.4% | 7.1% | Bottom tier | |
Quality | 77 | 8.3% | 4.5% | Top tier | |
Safety | 45 | 3.9x | 2.6x | Around median | |
Capital Return | 45 | 5.81% | 2.15% | Around median | |
Momentum | 65 | 11.0% | 2.3% | Around median | |
Sentiment | 42 | 15 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Verizon Communications Inc. provides connectivity services through mobile, broadband, and fiber networks, generating revenue primarily from subscriber service fees, alongside device and enterprise services revenue. In Q2 FY2026, mobility and broadband services revenue was $23.4 billion, or about 68% of total revenue, including $20.8 billion in wireless services revenue. The broadband business also expanded to more than 17.1 million subscribers, with the company relying on fiber and fixed wireless access to grow its customer base and sell mobile and broadband services together.
Verizon reported total revenue of $34.3 billion in Q2 FY2026, down 0.7% year over year, net income of $3.8 billion, and earnings per share under the financial statements of $0.92; this equates to a calculated net income margin of about 11.1%. In contrast, mobility and broadband services revenue rose 2.8%, while wireless services revenue declined 0.7% and device revenue fell by about 20%, or more than $1.2 billion, due to a roughly 27% decline in device upgrades.
On an adjusted basis, earnings before interest, taxes, depreciation, and amortization reached $13.7 billion, up 7.2%, and its margin reached a company record of 40.1%, while adjusted earnings per share rose 6.6% to $1.30. The company added 184 thousand postpaid phone lines and 348 thousand broadband subscribers, split between 193 thousand fixed wireless access additions and 155 thousand fiber additions, while free cash flow reached $6.4 billion during the quarter, up 24% year over year.
The average analyst price target is $49.64, compared with a target range of $46 to $56 and a neutral consensus. The average lies within the 52-week range of $38.39–$51.68 and is about 3.9% below its high, while the highest target exceeds that high by about 8.4%. This valuation reflects a balance between improving cash flow, margins, and guidance versus shrinking total revenue, declining wireless services revenue, and the competitive threat from Starlink Mobile.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Verizon's revenue in Q2 FY2026 was about $34.3 billion, net income was $3.8 billion, and earnings per share under the financial statements were $0.92. On an adjusted basis, earnings per share were $1.30, up 6.6%, and earnings before interest, taxes, depreciation, and amortization rose 7.2% to $13.7 billion. Its adjusted margin reached a company record of 40.1%, while free cash flow was $6.4 billion, up 24%.
Verizon raised its mobility and broadband services revenue growth outlook to 2.5%–3% after it grew 2.8% in Q2 FY2026. It also raised its adjusted earnings per share growth outlook to 6%–7%, and its free cash flow growth outlook to 9%–10%. The decision was based on the addition of 184 thousand postpaid phones and 348 thousand broadband subscribers, and a decline in consumer phone churn to 84 basis points.
Verizon launched the Simplicity and Verizon One plans in mid-June 2026 as part of a new offering that includes a loyalty program for all customers. Simplicity offers a wireless plan priced at $45 with the phone subsidy separated from service pricing, while Verizon One bundles mobility and broadband for $70 including taxes and fees. After 40 days, gross additions exceeded management's expectations by about 16% and new accounts by about 31%, and more than half of Verizon One subscribers chose higher speeds.
Automated analysis for informational purposes only — not investment advice.
Verizon signed an agreement worth more than $1 billion with Google to use its dark fiber to connect data centers. Management said additional agreements expected before the end of 2026 could raise contracted revenue to several billion dollars over multiple years. The company expects AI Connect to begin contributing meaningfully to revenue during 2027, with margins equal to or higher than those of its existing business.
SpaceX's plans to compete directly through Starlink Mobile raised industry concerns on July 29 and August 5, 2026, supported by a plan to acquire spectrum from EchoStar for $17 billion. Verizon management says satellite networks do not match the efficiency of terrestrial networks in urban and suburban areas, which generate 95%–98% of its revenue, and estimates the U.S. market suitable for satellite service at about 6–8 million rural homes. Nevertheless, direct-to-phone connectivity services remain a competitive development whose impact on market share and margins investors need to monitor.
Free cash flow reached $10.2 billion in the first half of FY2026, up 16%, and Q2 cash flow covered dividends by more than 200%. Verizon returned $9.4 billion to shareholders in the first half, including $5.9 billion in dividends and $3.5 billion in repurchases, and raised its FY2026 repurchase cap to $4.5 billion. At the same time, unsecured net debt to adjusted earnings before interest, taxes, depreciation, and amortization improved to 2.5 times, and on August 20, 2026, it announced the redemption of $1.25 billion of notes on September 21, 2026.
