Verizon Communications Inc. is a global telecommunications holding company providing a wide range of communications, technology, information, and streaming products and services. It serves consumers, businesses, and government entities with data, video, and voice solutions over its extensive networks, focusing on mobility, reliable connectivity, and security.
The company operates through its Verizon Consumer Group and Verizon Business Group segments.
Wall Street consensus — sourced weekly via public disclosures
Analyst coverage data sourced from public filings. Xavier analyst thesis summary available after weekly Perplexity scan completes.
Financial summary — Gemini analysis
Signal
Revenue
$138,191 million
2.5% YoY
Operating margin
21.2%
Net income
$17,608 million
Free cash flow
$20,126 million
Dividend / share
$2.735
Total debt
$158,150 million
Cash: $19,048 million
CapEx guidance
$16.0 billion and $16.5 billion
Earnings quality:HIGH
Recurring revenue:82%
Cash conversion:2.1x
Non-recurring items: Severance charges of $1,715 million, Pension and benefits mark-to-market charges of $441 million, Asset and business rationalization charges of $583 million, Acquisition and integration related charges of $110 million
VZ trades at ~10x TTM P/E and ~8x forward P/E — deeply discounted versus the broader market — but the valuation discount is well-understood and already embedded in consensus. The stock is ~18% below its 52-week high, has just passed its ex-dividend date (Jul 10), and faces a 12-day dead zone before Q2 earnings on Jul 24, removing near-term positive catalysts. Analyst sentiment is softening (Barclays cut PT to $45, Wells Fargo initiated at Equal Weight), and the stock was recently removed from the Dow Jones Industrial Average, signaling declining institutional prestige. The Q1 beat and guidance raise are priced in; the next re-rating requires Q2 execution proof on Jul 24, which is outside the 5-trading-day window.
Strongest bull case
Q1 2026 marked Verizon's first positive Q1 postpaid phone net adds in over a decade, management raised full-year adjusted EPS guidance, and the Frontier integration is providing broadband growth tailwinds — the fundamental inflection story is real, with a ~6.7% dividend yield offering a durable income floor.
Strongest bear case
VZ is in a confirmed news vacuum between the Jul 10 ex-dividend date and Jul 24 earnings; the stock will lose dividend-capture buyers, and recent analyst actions (Barclays PT cut to $45, Wells Fargo Equal Weight initiation, TipRanks 'value trap' framing) create an incremental headwind with no offsetting catalyst in the 5-day window. The SEC 8-K also discloses a $700M–$800M expected Q2 loss on the BT JV asset reclassification plus $350M–$450M in severance charges, which could weigh on GAAP optics heading into the print.
What the market may be missing
The SEC 8-K filed for Q2 2026 discloses a $700M–$800M expected loss from classifying the BT JV contributed assets as held-for-sale, plus $350M–$450M in severance charges. While these are non-cash/restructuring items, they are likely to generate negative headlines on Jul 24 and may spook retail investors unfamiliar with the adjusted-vs-GAAP distinction — creating a short-term sentiment air pocket that the buy-side consensus (focused on adjusted EPS) is currently underweighting.
Chief Executive Officer · Verizon Communications Inc.
CEO since 2025-10-04
Total compensation
$34,311,016
Prior year: 0
Pay vs performance
Aligned
Board assessment
Say-on-pay approval
—
Shareholder vote
Board independence
8/9 (89%)
Diversity: 56% (5 women)
Base salary$1,500,000
Bonus / incentive0
Stock awards$32,774,795
CEO letter to shareholders
Signal
No shareholder letter on file for VZ
Some companies file their annual report without a separate CEO letter.
When available, Xavier extracts strategic themes, tone analysis, and
forward-looking statements to help you read between the lines.
Executive compensation
Signal
Name
Title
Total compensation
Daniel Schulman
Chief Executive Officer
$34,311,016
Anthony Skiadas
Executive Vice President and Chief Financial Officer
$16,008,226
Sowmyanarayan Sampath
Former Executive Vice President and Group CEO – Verizon Consumer
$18,901,142
Kyle Malady
Executive Vice President and Group CEO – Verizon Business
$12,762,860
Vandana Venkatesh
Executive Vice President and Chief Legal Officer
$7,430,590
Hans Vestberg
Former Chairman and Chief Executive Officer
$31,175,022
Source: DEF 14A proxy statement · 2026-04-06
Governance
Pro
Dual-class shares:No
Poison pill:No
Clawback policy:Yes
Stock ownership req.:Yes
Shareholder proposals
Board oversight of material issues related to climate change
AGAINST
Pending
Independent board chair
AGAINST
Pending
Risks of non-fiduciary executive compensation metrics
Risk increasing — Cyberattacks impacting networks or systems, which have increased in frequency, s
Mgmt narrative
Management tone: Cautiously optimistic
Analyst drift
Consensus Buy — targets stable
Insider sentiment
Pattern detection — 90 days needed
Signal history
Signal
Date
Direction
Conf.
Agree.
Thesis
Price
Type
Jul 12, 2026
NEUTRAL
6.1/10
100%
VZ trades at ~10x TTM P/E and ~8x forward P/E — deeply discounted versus the broader market — but th...
$42.12
Sched.
Jul 11, 2026
NEUTRAL
5.7/10
100%
VZ screens cheap on earnings at roughly 10x trailing and 8x forward P/E, with a defensive low-beta p...
$42.12
Sched.
Jun 07, 2026
NEUTRAL
6.2/10
100%
VZ trades at a compelling 11x TTM P/E (forward 8.6x) with a ~6.2% dividend yield just reaffirmed at ...
$45.37
Sched.
May 31, 2026
NEUTRAL
5.8/10
100%
VZ is a value-priced, low-beta defensive name with a credible operational turnaround story — Q1 2026...
$47.81
Sched.
May 24, 2026
NEUTRAL
6.0/10
100%
VZ screens as reasonably valued on earnings and offers modest upside to consensus target, but the ne...
$48.35
Sched.
May 17, 2026
NEUTRAL
5.9/10
100%
VZ is attractively valued on an absolute basis (11.3x TTM P/E, 8.8x forward P/E) with a ~6% dividend...
$46.37
Sched.
May 10, 2026
BULLISH
7.0/10
67%
VZ screens as reasonably cheap on earnings and still trades below analyst consensus target, but the ...
$47.22
Sched.
May 03, 2026
BULLISH
7.2/10
67%
VZ screens inexpensive on earnings and sits below analyst target, but the low multiple largely refle...
$48.11
Sched.
Apr 12, 2026
BULLISH
6.5/10
50%
VZ has pulled back ~11% from its 52-week high and now trades at a forward P/E of just 8.76, well bel...
$46.04
Sched.
Showing last 9 signals
VZVerizon Communications Inc.
Signal
FY2026 annual report (10-K filed 2026-02-17)
INCOME STATEMENT
?Revenue
$138,191 million2.5% YoY
Total sales from advertising, subscriptions, wireless service, streaming, and content. Up 2.5% from last year. Management has guided capital spending of $16.0 billion and $16.5 billion.
?Operating income
$29,259 million
What remains after subtracting all operating costs — salaries, materials, rent, R&D — from revenue. This is the profit from actually running the business, before interest and taxes. Operating margin is 21.2%, meaning 21 cents of every dollar of revenue becomes operating profit.
?Net income
$17,608 million
The bottom line — what the company actually earned after all expenses, interest, and taxes. This is the number that gets divided by shares outstanding to calculate earnings per share (EPS), which directly affects the stock price. Net margin is 14.7%. Note: results include non-recurring items (severance charges of $1,715 million, pension and benefits mark-to-market charges of $441 million) that may not repeat.
?Free cash flow
$20,126 million
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of financial health.
?EPS (diluted)
$1.20
Earnings per share — net income divided by total shares outstanding (including stock options and convertible bonds that could become shares). This is the single number most investors watch because it directly connects company profits to your ownership stake.
?Dividend per share
$2.735
Cash paid to shareholders each year for every share they own. Telecom companies pay steady dividends from subscription revenue; media/tech companies vary based on growth strategy.
BALANCE SHEET
?Total assets
$417.9B
Everything the company owns — cash, factories, equipment, patents, inventory, investments. Includes wireless spectrum, content libraries, subscriber bases, and network infrastructure.
?Cash & equivalents
$19,048 million
Money available right now — bank accounts, money market funds, short-term government bonds. This is the company's financial cushion. More cash means more flexibility to invest, acquire, or survive a downturn without borrowing.
?Total debt
$158,150 million
All money the company owes — bonds, bank loans, credit facilities. Compare this to cash to understand the net debt position. The company holds $19,048 million in cash against this debt.
?Shares outstanding
4,231 million
Total number of shares that exist — owned by all investors, insiders, and institutions combined. When the company reports EPS, this is the denominator. Share buybacks reduce this number, which increases EPS even without earnings growth.
CASH FLOW
?Operating cash flow
$8.0B
Actual cash generated from running the business — not accounting profits, real money coming in the door. This is more trustworthy than net income because it's harder to manipulate. A company can report profits but still run out of cash.
?Depreciation & amortization
$4.9B
A non-cash expense that spreads the cost of network infrastructure, content libraries, and wireless spectrum over their useful life. This reduces reported income but no cash actually leaves the company — that's why it gets added back to calculate EBITDA and operating cash flow.
EARNINGS QUALITY
?Accrual quality
HIGH
Measures how well reported earnings match actual cash generation. HIGH means earnings are backed by real cash. LOW means the company may be using accounting techniques to inflate reported numbers. Professional investors check this before trusting EPS.
?Recurring revenue
82%
82% of revenue comes from repeat sources — ongoing contracts, subscriptions, or regular customer purchasing patterns rather than one-time sales. Higher recurring revenue means more predictable future earnings.
?Cash conversion
2.1x
Operating cash flow divided by net income. Above 1.0x means the company generates more cash than it reports in profits — a sign of high-quality earnings. At 2.1x, the company is generating significantly more cash than reported profits — very healthy.
?Non-recurring items
5 identified
One-time items that affect the bottom line but won't repeat: severance charges of $1,715 million, pension and benefits mark-to-market charges of $441 million, asset and business rationalization charges of $583 million, acquisition and integration related charges of $110 million. When evaluating the company's true earning power, investors strip these out to see what the business earns on a normal basis.
?Management tone
Cautious Optimistic
How management sounds in their SEC filings — are they confident, cautious, or defensive? This is analyzed from the actual language used in the 10-K annual report. A shift in tone from prior years can signal changing conditions before the numbers reflect it.
?Top risk factor
Increasing
Cyberattacks impacting networks or systems, which have increased in frequency, scope, and potential harm in recent years. Risk trend: increasing. This is the single biggest threat to the company's future earnings as identified in their SEC filing.
Click any row to expand the plain-English explanation. Source: SEC EDGAR XBRL filings.
Capital intelligence
Signal
Weighted Average Cost of Capital · Return on Invested Capital · Economic Value Added
ROIC
8.63%
WACC
3.26%
🟢 VALUE CREATOR — EVA Spread: 5.37%
?WACC
3.26%
Weighted Average Cost of Capital — the minimum return Verizon Communications Inc. must earn on its investments to satisfy both debt holders and shareholders. Computed from a 52.86% equity / 47.14% debt capital structure. If the company earns less than 3.26% on its invested capital, it is destroying shareholder value.
?Cost of equity
5.56%
The return shareholders demand for holding VZ stock instead of a risk-free Treasury bond. Computed using the Capital Asset Pricing Model: Risk-Free Rate (4.25%) + Beta (0.24) × Equity Risk Premium (5.50%). A beta of 0.24 means VZ is less volatile than the overall market.
?Cost of debt (after-tax)
0.69%
What Verizon Communications Inc. effectively pays on its borrowed money after the tax deduction on interest. Interest is tax-deductible, so the true cost is lower than the stated rate. Effective tax rate used: 25.63%.
?Capital structure
E: 52.86% / D: 47.14%
How Verizon Communications Inc. finances its operations — the split between equity (stock market value: $177.3B) and debt (total borrowings: $158.2B). More debt means more leverage — higher potential returns but higher risk.
?ROIC
8.63%
Return on Invested Capital — how efficiently Verizon Communications Inc. turns its total invested capital into after-tax operating profit. NOPAT ($22.0B) ÷ Invested Capital ($254.4B). This exceeds WACC, meaning the company creates value for shareholders.
?EVA
$13.7B
Economic Value Added — the dollar amount of value Verizon Communications Inc. created (or destroyed) above its cost of capital. NOPAT ($22.0B) minus the capital charge (Invested Capital × WACC = $8.3B). Positive EVA means every dollar of capital is earning more than it costs.
?NOPAT
$22.0B
Net Operating Profit After Tax — operating income adjusted for taxes, ignoring how the company is financed. Operating Income ($29.5B) × (1 - Tax Rate 25.63%). This isolates the company's core business profitability from its financing decisions.
Xavier consensus signals are intelligence outputs, not investment advice. All signals are generated by a multi-model AI system and reflect public information at time of generation. Past signal accuracy does not guarantee future performance. Wall Street analyst consensus sourced from public disclosures, summarized weekly. Financial data sourced from SEC EDGAR and yfinance. Insider transactions sourced from SEC EDGAR Form 4 filings. Updated Jul 12, 2026.