NYSECommunication ServicesTelecommunications ServicesSnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — Free cash flow growth and capital discipline: FCF growth 9.0% vs $21.5B target; Capex $16.0B vs $16.5B target.
Verizon grows wireless and broadband revenue about 3% yearly. Adjusted EPS rises to about $5.0 in 2026. Free cash flow grows to $21.5 billion. The company keeps capital spending disciplined near $16 billion.
Service revenue growth could slow due to outages and Starlink MVNO. Legal costs may rise from FCC penalties. Debt levels remain high after Frontier deal.
The price is about 31% below our fair value near $62. Analysts expect about 3% revenue growth. Our fair value is 14% above the Street median.
Breaks if: EPS falls below $4.95 in 2026
Continue to increase adjusted earnings per share with raised guidance reflecting improved profitability and operational efficiency.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on steady revenue growth and free cash flow generation. The current thesis state is intact, supported by strong recent financial performance and management priorities.
Valuation is considered cheap compared to peers, with the market pricing in a slight expectations gap. This suggests that while the stock is undervalued, the market is not overly optimistic about future growth.
Fundamentals are likely to show continued revenue growth in wireless services and broadband connections, as management has consistently prioritized these areas. Recent financial results have been strong, although there is some volatility in earnings per share (EPS).
The thesis hinges on the performance of sector peers like TMUS, T, and CMCSA. If these companies continue to perform well, it could provide a favorable backdrop for Verizon. Conversely, any negative guidance from these peers could impact Verizon's momentum.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read on VZ. However, legal challenges could hinder 5G expansion efforts, which poses a threat.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 6 of last 6 quarters. Adjusted EPS guidance was raised from $4.90-$4.95 in 2025-Q4 to $4.99-$5.04 in 2026-Q2, reflecting expected 6.0 to 7.0 percent growth. Actual diluted EPS was $1.20 in 2026-Q1 but declined to $0.92 in 2026-Q2, indicating some volatility but management maintains growth guidance. The trajectory shows raised guidance with mixed quarterly EPS results.
“Raised full-year adjusted EPS guidance to $4.99 to $5.04, or year-over-year growth of 6.0 to 7.0 percent”
“Raised 2026 Adjusted EPS guidance to year-over-year growth of 5.0 to 6.0 percent”
“Adjusted EPS was $4.71 in 2025; guidance for 2026 adjusted EPS growth of 4.0 to 5.0 percent”
“EPS of $1.17 in 3Q25; adjusted EPS growth guidance of 1.0 to 3.0 percent for 2025”
“Adjusted EPS of $1.22 in 2Q25, up 6.1 percent year-over-year”
“Adjusted EPS of $1.19 in 1Q25, up 3.5 percent year-over-year”
Breaks if: Free cash flow falls below $21.5B or capex rises above $16.5B in 2026
Focus on growing free cash flow with disciplined capital expenditures and returning capital to shareholders through dividends and share repurchases.
Stated as a priority in 6 of last 6 quarters. Free cash flow grew from $8.8 billion in first-half 2025 to $10.2 billion in first-half 2026, a 16.0% increase. Capital expenditures are guided to $16.0-$16.5 billion for 2026. Management has consistently emphasized free cash flow growth and capital discipline, and the financials show delivering progress on these priorities.
“Free cash flow grew by 24.4 percent year-over-year in second-quarter 2026”
“Free cash flow was $3.8 billion in first-quarter 2026, up 4.0 percent year-over-year”
“Free cash flow was $20.1 billion in 2025, up from $19.8 billion in 2024”
“Free cash flow for nine months ended September 2025 was $15.8 billion, up from $14.5 billion in 2024”
“Free cash flow was $8.8 billion in first-half 2025, up from $8.5 billion in first-half 2024”
“Free cash flow was $3.6 billion in first-quarter 2025, up from $2.7 billion in first-quarter 2024”
Breaks if: Frontier debt repayment not substantially complete by end 2026
Focus on integrating Frontier acquisition and repaying substantially all Frontier debt by year-end 2026.
Stated as a priority in 3 of last 6 quarters. Verizon included Frontier results starting 2026-Q1, paid down about half of Frontier debt by 2026-Q1, and expects to repay substantially all Frontier debt by end of 2026. Integration and debt reduction are ongoing with visible progress.
“Frontier results are included in Verizon's financials beginning January 20, 2026, the date of closing”
“Verizon paid down approximately half of the Frontier debt since acquisition closed”
“Frontier acquisition expands fiber access to over 30 million homes and businesses”
Breaks if: YoY revenue growth falls below 2.0% in 2026
Continue to increase mobility and broadband service revenue and expand broadband connections including fixed wireless access and fiber.
Stated as a priority in 6 of last 6 quarters. Mobility and broadband service revenue grew from approximately $22.9 billion in 2026-Q1 to 2.8% growth in 2026-Q2, broadband net additions increased 12.3% in 2026-Q2, and total broadband connections expanded to about 17.1 million. The trajectory is delivering with consistent revenue growth and expanding broadband connections.
“Mobility and broadband service revenue grew by 2.8 percent in second-quarter 2026”
“Mobility and broadband service revenue reached approximately $22.9 billion, representing a 1.6 percent increase year-over-year”
“More than 1 million total net additions across mobility and broadband, highest reported quarterly net additions since 2019”
“Grew wireless service revenue to $21.0 billion and broadband connections grew 11.1 percent year-over-year”
“Wireless service revenue grew 2.2 percent year-over-year; broadband connections grew 12.2 percent”
“Industry-leading total wireless service revenue of $20.8 billion; broadband connections grew 13.7 percent year over year”
Overall, Verizon's long-term outlook remains solid, supported by strong management execution and sector dynamics. Not investment advice.
