NEW YORK, July 28, 2026, 9:05 a.m. EDT
- Verizon was at $47.89 in early premarket trading, rising 1.2%, according to preliminary data.
- Verizon reported 239,000 phone additions in the first half, making the remaining second-half target challenging.
- Verizon reported a 24.4% increase in second-quarter free cash flow to $6.4 billion.
Verizon Communications Inc. NYSE:VZ gained 1.2% to reach $47.89 in early premarket action Tuesday. The move followed an 8.0% increase recorded over Friday and Monday sessions. U.S. cash markets had yet to open.
At this level, Verizon was up 9.3% from Thursday’s closing price before results. This is notable since wireless growth continues to lag behind the leading rival. Investors, however, are favouring improved cash flow and decreased customer expenses.
The main challenge lies in second-half calculations. Verizon saw an increase of 55,000 postpaid phone additions in the first quarter, followed by another 184,000 in the second quarter. This brought the total for the first half to 239,000.
The company projects full-year net additions to reach the upper range of its 750,000–1 million outlook, suggesting guidance between 875,000 and 1 million. As a result, Verizon will require 636,000–761,000 new additions in the second half.
| Investor test | Reported result | Implied requirement or comparison |
|---|---|---|
| First-half postpaid phone net adds | 239,000 | 636,000–761,000 required in H2 |
| Phone net adds, quarterly | 184,000 for Q2 | Average of 318,000–381,000 needed in Q3 and Q4 |
| Free cash flow, Q2 | $6.4 billion | Increase of 24.4% from prior year |
| Capital returned, first half | $9.4 billion | Represents 92% of $10.2 billion free cash flow |
The second-half numbers and 92% proportion are derived from company disclosures. The required quarterly subscriber growth rate is between 73% and 107% higher than in the previous quarter. Cash flow has given executives additional breathing room but has not eliminated the challenge in reaching required volumes.
Chief Executive Dan Schulman said, “We are accelerating across our key metrics.” He attributed the progress to simpler plans, loyalty programs and bundled offerings. Verizon
Verizon reported a stronger financial profile despite a 0.7% decrease in overall revenue. Service revenue from mobility and broadband increased by 2.8% to $23.4 billion. Adjusted EBITDA rose 7.2% to $13.7 billion, pushing the margin to a record 40.1% for the company.
Equipment sales declined by almost 20%, amounting to a drop of over $1.2 billion. Fewer customers upgraded their phones, and Verizon cut back on device subsidies. As a result, the smaller sales figure had a more favorable economic profile.
Free cash flow totaled $6.4 billion, a 24.4% increase. For the first half, free cash flow amounted to $10.2 billion. Verizon distributed $9.4 billion via dividends and share repurchases, which featured $3.5 billion in buybacks.
Management increased its adjusted earnings outlook to a range of $4.99 to $5.04 per share. The company forecasts free-cash-flow growth between 9% and 10%. Mobility and broadband service revenues are projected to rise by 2.5% to 3.0%.
Rival activity is still higher. AT&T Inc. NYSE:T reported 432,000 net postpaid phone adds for the quarter. T-Mobile US Inc. NASDAQ:TMUS posted 277,000 postpaid account adds. T-Mobile has stopped disclosing specific phone net adds, so direct comparisons are not exact.
Verizon reached a fiber deal valued at over $1 billion with Alphabet Inc.’s NASDAQ:GOOGL Google. Schulman stated that additional deals could bring in billions more in the coming years. While this offers a new route for growth, it does not deliver short-term wireless support.
Risks: Shares have risen 9.3% since Thursday’s close. Verizon continues to hold $128.7 billion in net unsecured debt. Failing to reach the anticipated subscriber increase may challenge the revised valuation.
The third quarter marks the next milestone. Management anticipates service growth of close to 3%, followed by a rise to around 4% in the fourth quarter. Investors are also monitoring whether phone additions are tracking close to the necessary rate.
Related articles: NYSE:VZ
