Verizon Stock Falls Despite Strong Earnings Beat And Raised Guidance

TD Cowen kept a Buy rating on Verizon Communications with a $55 price target, implying 27.6% upside from the Oct 26 close. The company reported 406,000 postpaid phone customer additions, exceeding expectations, and raised financial guidance, including free cash flow and adjusted EPS growth.

Verizon reported 3Q 2026 results with record postpaid phone net adds (406k) and broadband net additions (314k). Revenue grew 1.5% YoY to $34.3B, with mobility and broadband up 2.9%. The company raised full-year guidance, including EPS to $5.04-$5.06 and free cash flow growth to ~12%.

Verizon (VZ) reported Q3 adj. EPS of $1.31, up 8.3% YoY, with revenue of $34.3B and net income of ~$5.25B. The company secured over $2B in AI deals with AWS and Google, and plans $9B in cost cuts. It added 406K postpaid phones and 314K broadband subscribers. Verizon raised its FY adj. EPS guidance to $5.04–5.06 and plans up to $4.5B in buybacks.

Verizon CEO Dan Schulman expressed interest in collaborating with satellite providers like Starlink but ruled out MVNO deals. He estimated SpaceX would need $300B-$500B to compete. Verizon shares fell 3.49% despite Q3 earnings beat and subscriber growth, with revenue at $34.31B missing estimates.

Verizon (VZ) reported Q3 2026 revenue of $34.31B, up 1.5% YoY, missing expectations. Non-GAAP EPS of $1.31 beat estimates. Management highlighted strong postpaid growth, cost efficiency, and AI infrastructure deals, including $4B in signed contracts. The stock fell post-earnings.

AT&T, T-Mobile, and Verizon petitioned the FCC to remove 290 MHz from a vote on expanding satellite spectrum, citing technical incompatibility with their TDD-based networks. SpaceX, which has acquired significant spectrum and FCC approval for 15,000 Starlink satellites, aims to offer direct-to-device satellite services, potentially competing with these carriers. The FCC is set to vote on the proposal on October 29.