The Quick Take
Verizon delivered its best subscriber quarter in years and raised full-year guidance, but a small revenue miss and weak equipment sales sent the stock down 3.3% to $43.18. Adjusted EPS of $1.31 beat the $1.27 consensus, adjusted EBITDA reached a 40.2% margin, and free cash flow of $7.8B was the strongest since 2020. Revenue of $34.31B rose 1.5% but missed about $34.77B expected.
Results
| Metric | Q3 2026 | Comparison |
|---|---|---|
| Revenue | $34.31B | up 1.5%; consensus about $34.77B |
| Adjusted EPS | $1.31 | up about 8%; consensus $1.27 |
| Postpaid phone net adds | 406,000 | up about 820% YoY |
| Postpaid phone churn | 0.94% | down 4 bps |
| Free cash flow | $7.8B | highest quarterly figure since 2020 |
Outlook (full year 2026, raised)
- Adjusted EPS growth 7% to 7.5%; free cash flow growth approaching 12%.
- Capex $16B to $16.5B; share repurchases of up to $4.5B still planned.
Risks
- Competitive promotions could raise churn.
- Weak upgrade volumes may mean customers hold phones longer.
- Service revenue growth of only 2.5% to 3%.
Recommendation: BUY / accumulate on weakness
Fundamentals improved on most operating measures, and guidance went up. The report sees the dip as driven by a low-quality revenue line.
Educational purposes only, not investment advice. Do your own research before investing.
Sources: Verizon Q3 2026 earnings release and MarketBeat summary; Stocktitan (as cited in the report).
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