Verizon posts modest revenue growth but raises full‑year adjusted EPS and free‑cash‑flow guidance
Verizon Communications reported third‑quarter 2026 revenue of $34.3 billion, up 1.5% year‑over‑year, while equipment revenue fell 9%. Adjusted EBITDA rose 8% to $13.8 billion and adjusted EPS increased 8.3% to $1.31. The company lifted its full‑year 2026 adjusted EPS growth outlook to 7%–7.5% and its free‑cash‑flow growth target to near 12%, citing strong postpaid net additions and record EBITDA margins.
Why it matters
The raised guidance signals higher profitability and cash generation for the remainder of 2026, which could support dividend and share‑repurchase plans (the company said it expects up to $4.5 billion in buybacks for the year). Higher free‑cash‑flow expectations also improve the outlook for funding capital‑expenditure and debt‑reduction initiatives.
Key facts
- 1Total revenue was $34.3 billion, up 1.5% year‑over‑year in Q3 2026. gurufocus.com
- 2Equipment revenue declined 9% year‑over‑year, driven by over 20% lower upgrade volumes. gurufocus.com
- 3Adjusted EBITDA reached $13.8 billion, an 8% increase year‑over‑year. gurufocus.com
- 4Adjusted EPS was $1.31, up 8.3% year‑over‑year; full‑year 2026 adjusted EPS growth guidance was raised to 7%–7.5%. gurufocus.com
- 5Free cash flow for the quarter was $7.8 billion, the highest quarterly amount since 2020 and up more than 12% year‑over‑year; full‑year growth guidance was raised to approach 12%. gurufocus.com
- 6Capital expenditures are guided at $16 billion–$16.5 billion for the full year 2026. finance.yahoo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.