Verizon Reports 3Q 2025 Earnings; Reiterates Full-Year Financial Guidance | News Release

Verizon Communications Inc. reported solid third-quarter 2025 results, with total operating revenue up 1.5% to $33.8 billion and wireless service revenue growing 2.1% to $21.0 billion, contributing to adjusted EPS of $1.21 and a significant increase in net income to $5.1 billion. The company also saw strong broadband growth, including 261,000 fixed wireless access net additions, and reduced its total unsecured debt. Despite a decline in Business segment revenue and 7,000 postpaid phone net losses in the Consumer segment, Verizon reiterated its full-year financial guidance, including free cash flow projections of $19.5 billion to $20.5 billion, as CEO Dan Schulman emphasized a strategic shift towards a customer-first culture and cost transformation.

Analysis

Verizon (VZ) reported strong Q3 2025 results, with total operating revenue increasing 1.5% year-over-year to $33.8 billion, driven by a 2.1% rise in wireless service revenue to $21.0 billion. Adjusted EPS grew to $1.21 from $1.19 in Q3 2024, and net income significantly improved to $5.1 billion from $3.4 billion. The company also demonstrated robust cash flow generation, with free cash flow for the nine months ended September 30, 2025, reaching $15.8 billion, up from $14.5 billion.

Broadband additions were a key highlight, with 306,000 net additions, including 261,000 fixed wireless access subscribers, bringing the total base to nearly 5.4 million. Fios internet also saw its best quarterly result in two years with 61,000 net additions, contributing to an 11.1% year-over-year increase in total broadband connections. Furthermore, Verizon reduced its total unsecured debt to $119.7 billion from $126.4 billion year-over-year, improving its net unsecured debt to consolidated adjusted EBITDA ratio to 2.2 times.

Despite overall positive results, the Consumer segment experienced 7,000 wireless retail postpaid phone net losses, contrasting with 18,000 net additions in Q3 2024, while the Business segment revenue decreased by 2.8% year-over-year. CEO Dan Schulman outlined a new vision focused on a "customer-first culture" and cost structure transformation to drive sustainable returns. Verizon reiterated its full-year 2025 guidance, projecting 2.0% to 2.8% wireless service revenue growth and $19.5 billion to $20.5 billion in free cash flow, indicating confidence in future performance.

Key Decisions for Investors

• Investors should monitor the execution of CEO Schulman's strategic transformation, particularly its impact on customer retention in the Consumer segment and the turnaround of Business segment revenue.
• The strong free cash flow generation and debt reduction efforts suggest financial stability, potentially supporting continued dividend growth, which has been raised for 19 consecutive years.
• Continued growth in broadband, especially fixed wireless access, represents a key growth vector, and investors should assess its scalability and competitive positioning against wireline alternatives.