Verizon Communications Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.49%.
Did VZ Beat Earnings? Q2 2025 Results
Verizon posted a solid second quarter, reporting adjusted earnings per share of $1.22 and total operating revenue of $34.50 billion, the latter rising 5.2% year-over-year as a sharp surge in wireless equipment activity drove results above year-ago levels. The standout driver was a 25.2% jump in wireless equipment revenue to $6.25 billion, fueled by elevated upgrade rates that climbed to 4.0% from 2.9% a year earlier, lifting the Consumer segment to $26.65 billion in revenue even as higher equipment costs compressed segment EBITDA margins. Fixed wireless access continued to contribute meaningfully, with FWA revenue growing 41.6% to $728.00 million and total broadband net additions reaching 293,000 for the period. Consolidated net income rose to $5.12 billion from $4.70 billion in Q2 2024, underscoring the broader earnings improvement. Encouraged by first-half execution and favorable tax dynamics, Verizon raised its full-year free cash flow guidance to $19.50 billion to $20.50 billion and lifted operating cash flow expectations to $37.00 billion to $39.00 billion, while guiding adjusted EPS growth of 1.0% to 3.0%.
- Wireless service revenue growth of 2.2% YoY driven by customer segmentation and ARPA increases
- Wireless equipment revenue surged 25.2% on higher upgrade rates
- Business segment operating income grew 27.6% on cost discipline
- FWA revenue grew 41.6% as subscriber base exceeded 5.1 million
- Consumer postpaid ARPA increased 2.3% to $147.50
- Favorable tax reform contributed to raised guidance
“Verizon's strong second-quarter financial performance reflects our high-quality, industry-leading customer base, our multiple growth paths, the success of our disciplined, segmented approach, and the inherent strength of our company.”
Verizon CEO, on the earnings call
Forward Guidance & Outlook
Verizon raised its full-year 2025 guidance: adjusted EBITDA growth of 2.5% to 3.5% (up from prior guidance), adjusted EPS growth of 1.0% to 3.0% (up from prior guidance), cash flow from operations of $37.0 billion to $39.0 billion (up from $35.0 billion to $37.0 billion), and free cash flow of $19.5 billion to $20.5 billion (up from $17.5 billion to $18.5 billion). The company continues to expect total wireless service revenue growth of 2.0% to 2.8% and capital expenditures of $17.5 billion to $18.5 billion. Guidance does not reflect assumptions regarding the pending Frontier acquisition. The company targets 8 to 9 million FWA subscribers by 2028 and 650,000 new Fios passings in 2025.
VZ YoY Financials
VZ Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.