Verizon Communications (VZ) reported stronger second-quarter 2026 operating performance while raising its full-year financial guidance. The company also increased its share repurchase target to $4.5 billion after delivering record adjusted EBITDA. However, Verizon stock closed at $43.82, down 1.06%, before slipping another 0.96% to $43.40 in pre-market trading.
Verizon Communications Inc., VZ
Verizon expanded its mobility and broadband business during the second quarter through steady customer additions and stronger service revenue. Mobility and broadband service revenue increased 2.8% year over year to about $23.4 billion. The company expects growth to approach 3.0% during the third quarter and about 4.0% during the fourth quarter.
The company added 184,000 postpaid phone subscribers during the quarter. That result marked its strongest second-quarter consumer postpaid phone performance in five years. Verizon also reported 73,000 core prepaid net additions, extending eight consecutive quarters of positive prepaid growth.
Broadband expansion also continued across fixed wireless and fiber services. Verizon recorded 348,000 broadband net additions, including 193,000 fixed wireless customers and 155,000 fiber broadband connections. Consequently, the company ended the quarter with about 17.1 million fixed wireless and fiber broadband connections.
Verizon generated total operating revenue of $34.3 billion during the second quarter. Revenue declined 0.7% from the previous year because equipment revenue fell nearly 20%. The decline reflected lower device upgrade activity and reduced spending on promotional subsidies.
Adjusted EBITDA increased 7.2% year over year to a record $13.7 billion. Adjusted EBITDA margin improved from 37.1% to 40.1%, reaching the highest level in company history. At the same time, adjusted earnings per share increased 6.6% to $1.30 after excluding special items.
Reported net income declined 22.9% to $3.9 billion because Verizon recognized $1.8 billion in pre-tax special charges. Those items included business disposition losses, asset rationalization costs and severance expenses. As a result, reported earnings per share declined to $0.92 from $1.18 a year earlier.
Verizon continued generating stronger cash flow during the first half of 2026. Cash flow from operations increased 9.9% to $18.4 billion, while free cash flow climbed 16.0% to $10.2 billion. During the second quarter alone, operating cash flow rose 16.3% and free cash flow advanced 24.4%.
The company also strengthened its balance sheet during the quarter. Total unsecured debt declined to $136.5 billion from $142.5 billion at the end of the first quarter. Verizon completed $1.0 billion of share repurchases during the quarter, bringing year-to-date buybacks to $3.5 billion.
Following the stronger operating results, Verizon raised several financial targets for 2026. The company now expects mobility and broadband service revenue growth between 2.5% and 3.0%. It also increased adjusted EPS guidance to $4.99-$5.04 while projecting operating cash flow growth of 2.0% to 4.0% and free cash flow growth of 9.0% to 10.0%.
Verizon also maintained expectations for capital expenditures between $16.0 billion and $16.5 billion. The company expects retail postpaid phone additions to finish within the upper half of the 750,000 to one million range. Those targets reflect continued focus on subscriber growth, network investment, and stronger operating efficiency throughout 2026.
The post Verizon Communications (VZ) Stock: Strong Q2 Results Fuel Record EBITDA and $4.5B Share Repurchase Plan appeared first on CoinCentral.
