Verizon Posts Record Quarter With $5.3 Billion Net Income After a Year of Heavy Severance Charges

Verizon, AT&T, and T-Mobile are urging the FCC to remove 290 MHz of spectrum from a proposal allowing satellite companies like SpaceX to offer direct-to-phone services. The FCC will vote on the proposal on October 29. SpaceX, which plans to use the spectrum for its Starlink Mobile service, opposes the carriers' request. The carriers argue the bands are crucial for their 5G networks, while SpaceX seeks to add another band and modernize interference rules.

Verizon (VZ) reported Q3 2026 revenue of $34.3B, up 1.5% YoY, with lower equipment revenue offsetting service growth. Wireless service revenue growth remains modest. CEO Dan Schulman highlighted strong postpaid net adds and record EBITDA margins, while noting long-term investments and competitive pressures. The company expects benefits from AI Connect and cost transformation to materialize in 2027. Capital expenditures are guided at $16-$16.5B for the year.

Verizon (VZ) reported Q3 2026 revenue of $34.3B, up 1.5% YoY, with mobility and broadband service revenue growing 2.9%. Adjusted EBITDA rose 8% to $13.8B, and adjusted EPS increased 8.3% to $1.31. Free cash flow reached $7.8B, the highest quarterly since 2020. Postpaid phone net additions surged 820% YoY to 406,000. Full-year guidance for adjusted EPS and free cash flow growth was raised. Equipment revenue declined 9% due to lower upgrade volumes.

Freedom Broker upgraded Verizon (VZ) to Buy, raising its price target to $55. The move follows strong Q3 2026 results, with earnings and free cash flow beating expectations, though revenue missed due to reduced device subsidies. Verizon raised full-year guidance for the third consecutive quarter, and management cited strong free cash flow for deleveraging. InvestingPro's Fair Value for VZ is $55.30, and 8 analysts have revised earnings upwards.

Verizon (VZ) reported strong Q3 2026 results, with 406,000 postpaid phone net additions (up 820% YoY) and record adjusted EBITDA margin of 40.2%. Adjusted EPS grew 8% to $1.31, and free cash flow reached $7.8B. The company raised guidance for EPS and free cash flow growth. Verizon also announced a $2B+ deal with Amazon Web Services and $4B in AI contracts. Shares rose 14.9% from early October 2025 but fell 6.5% in the past month. Competition from Starlink is noted as a concern.

Verizon (VZ) shares dropped 4% after Q3 revenue of $34.3B missed estimates, despite record subscriber growth and raised guidance. Equipment revenue fell 9%, but adjusted EBITDA margin hit 40.2%. Free cash flow rose 12% to $7.8B. CEO Dan Schulman claims the company is 'fundamentally stronger.' Concerns about SpaceX as a potential rival also weighed on the stock.