Verizon Communications Inc. (VZ) Q1 2026 Financial Results Summary

Verizon Communications Inc. (NYSE, Nasdaq: VZ) released its Q1 2026 financial results on April 27, 2026. The results signify a significant turnaround for the company as it reports growth across multiple financial metrics. Below is a summary of the key highlights from the earnings report.

Key Highlights from Q1 2026:

• Postpaid Phone Net Additions:
  • Achieved 55,000 new postpaid phone net additions, marking the first positive growth in Q1 since 2013, an improvement of over 340,000 year-over-year.
• Consolidated Financial Performance:
  • Total Operating Revenue:
    • $34.4 billion, an increase of 2.9% compared to Q1 2025.
  • Consolidated Net Income:
    • Recorded at $5.1 billion, reflecting a 3.3% increase year-over-year.
  • Adjusted EBITDA:
    • Reached $13.4 billion, growing by 6.7% year-over-year, the highest quarterly adjusted EBITDA in the company’s history.
  • Diluted EPS:
    • Increased to $1.20, showing a growth of 4.3% compared to the previous year.
  • Adjusted EPS (excluding special items):
    • Increased to $1.28, a 7.6% rise year-over-year, marking the best growth rate since 2021.
• Cash Flow:
  • Cash Flow from Operating Activities:
    • Totalled $8.0 billion, up 2.6% from $7.8 billion in Q1 2025.
  • Free Cash Flow:
    • Reported at $3.8 billion, up 4.0% from $3.6 billion in Q1 2025.
• Capital Expenditures:
  • Amounted to $4.2 billion, indicating that network build pace across mobility and fiber is aligned with targets.
• Debt Management:
  • Total Unsecured Debt: Increased to $142.5 billion from $131.1 billion at the end of Q4 2025.
  • Net Unsecured Debt was $130.1 billion, compared to $110.1 billion in Q4 2025.
• Debt Ratios:
  • Unsecured Debt to Consolidated Net Income Ratio: 8.0 times.
  • Net Unsecured Debt to Adjusted EBITDA Ratio: 2.6 times.
• Share Repurchase Program:
  • Successfully completed $2.5 billion in share repurchases in Q1 2026. The company remains on track to meet its full-year target of at least $3.0 billion in repurchases.
• Dividends:
  • The company declared a quarterly dividend of $0.7075 per common share, up from $0.6900 per share in the previous quarter.

Operational Highlights:

• Mobility and Broadband Revenue:
  • Reached approximately $22.9 billion, up 1.6% year-over-year, despite an 80 basis point impact from a January network outage.
• Wireless Equipment Revenue:
  • Reported at $5.7 billion, reflecting a growth of 5.2% year-over-year.
• Broadband Net Additions:
  • Achieved 341,000 broadband net additions, including 214,000 in fixed wireless access and 127,000 in fiber broadband connections.

Guidance for 2026:

• Verizon increased its Adjusted EPS guidance to between $4.95 to $4.99, projecting a year-over-year growth of 5.0% to 6.0%.
• Total retail postpaid phone net additions are expected to fall within the upper half of the 750,000 to 1 million range.
• The company anticipates overall mobility and broadband service revenue growth of 2.0% to 3.0%, equating to approximately $93 billion.
• Forecasting cash flow from operations between $37.5 billion to $38.0 billion, and capital expenditures between $16.0 billion to $16.5 billion.
• Estimated free cash flow will be at least $21.5 billion, representing an increase of 7.0% or more from 2025, which would mark the highest free cash flow since 2020.

Conclusion:

Verizon's Q1 2026 results demonstrate an ongoing strategic transformation that has yielded positive outcomes across several financial metrics. The company is taking proactive steps towards managing its debt and investing in future growth, all while maintaining a strong commitment to returning capital to shareholders through dividends and share repurchases.

Note: All amounts in the following tables are in millions.

Condensed Consolidated Statements of Income

(dollars in millions, except per share amounts)
Unaudited

Operating Revenues	3 Mos. Ended 3/31/26	3 Mos. Ended 3/31/25	% Change
Service revenues	$ 28,759	$ 28,087	2.4
Wireless equipment revenues	$ 5,681	$ 5,398	5.2
Total Operating Revenues	$ 34,440	$ 33,485	2.9
Operating Expenses
Cost of services	$ 7,167	$ 6,950	3.1
Cost of wireless equipment	$ 6,506	$ 6,106	6.6
Selling, general and administrative…	$ 7,633	$ 7,874	-3.1
Depreciation and amortization expense	$ 4,892	$ 4,577	6.9
Total Operating Expenses	$ 26,198	$ 25,507	2.7
Operating Income	$ 8,242	$ 7,978	3.3
Equity in earnings of unconsolidated…	$ 5	$ 6	-16.7
Other income, net	$ 477	$ 121	*
Interest expense	$(1,940)	$(1,632)	18.9
Income Before Provision For Income…	$ 6,784	$ 6,473	4.8
Provision for income taxes	$(1,638)	$(1,490)	9.9
Net Income	$ 5,146	$ 4,983	3.3
Net income attributable to noncont…	$ 101	$ 104	-2.9
Net income attributable to Verizon	$ 5,045	$ 4,879	3.4
Basic Earnings Per Common Share	$ 1.20	$ 1.16	3.4
Weighted-average shares outstanding	4,205	4,222
Diluted Earnings Per Common Share(1)	$ 1.20	$ 1.15	4.3
Weighted-average shares outstanding	4,210	4,226

Footnotes:
(1) Where applicable, Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
* Not meaningful

Condensed Consolidated Balance Sheets

(dollars in millions)
Unaudited

Assets	3/31/26	12/31/25	Change
Cash and cash equivalents	$ 8,366	$ 19,048	$ -10,682
Accounts receivable	$ 27,966	$ 28,347	$ -381
Less Allowance for credit	$ 1,311	$ 1,250	$ 61
losses
Accounts receivable net	$ 26,655	$ 27,097	$ -442