Verizon Communications Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 24 July 2026: press release. Guidance figures: 7 raised, 1 new, 3 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Adjusted EPS rose 6.6 percent: Adjusted EPS, excluding special items, was $1.30 against $1.22. Reported EPS was $0.92, down 22.0 percent from $1.18. Source
• Operating revenue fell 0.7 percent: Total operating revenue was $34.3 billion. Service revenue rose 3.5 percent to $29.2 billion, while wireless equipment revenue fell 19.7 percent to $5.0 billion. Source
• Adjusted EBITDA reached $13.7 billion: Consolidated adjusted EBITDA rose 7.2 percent year-over-year. The company says this is the highest adjusted EBITDA it has reported. Source
• Postpaid phone net adds of 184,000: Total postpaid phone net additions were 184,000, compared with a net loss of 9,000 a year earlier. First-half postpaid phone net additions were 239,000. Source
• Special items cut net income: Pre-tax special items were $1.8 billion, including the $746 million loss on disposition, $397 million of severance and $258 million of asset rationalization charges. Source
• Free cash flow up 24.4 percent: Second-quarter free cash flow was $6.4 billion, up 24.4 percent. First-half free cash flow was $10.2 billion, up 16.0 percent. Source
• Postpaid phone churn improved: Wireless retail postpaid phone churn was 0.92 percent in the quarter, against 0.97 percent a year earlier. First-half churn was 0.94 percent, against 0.96 percent. Source

““We’re putting customers at the center of every decision we make,” said Dan Schulman, Verizon CEO.”

Dan Schulman, Verizon CEO

Guidance

What changed from last quarter

• Guidance raised: Full-year mobility and broadband service revenue growth range raised from 2.0 to 3.0 percent to 2.5 to 3.0 percent.
• Guidance raised: Adjusted EPS guidance raised from $4.95 to $4.99 to $4.99 to $5.04.
• Guidance raised: Cash flow from operations forecast raised from $37.5 billion to $38.0 billion to $37,940 million to $38,640 million.
• Guidance raised: Free cash flow forecast raised from $21.5 billion or more, growing about 7.0 percent or more, to $21,940 million to $22,140 million.
• Guidance raised: Full-year share repurchase target raised from at least $3.0 billion to up to $4.5 billion.
• New guidance: Quarterly growth path for mobility and broadband service revenue was added: approach 3.0 percent in the third quarter and about 4.0 percent in the fourth. Source
• New: International wireline connectivity and managed network services business classified as held for sale and moved to Corporate and other. Source
• New: Recent product updates cited: new Simplicity plans, Verizon One converged offerings and a loyalty program. Source

Results and growth drivers

• Adjusted EPS rose 6.6 percent: Adjusted EPS, excluding special items, was $1.30 against $1.22. Reported EPS was $0.92, down 22.0 percent from $1.18. Source
• Operating revenue fell 0.7 percent: Total operating revenue was $34.3 billion. Service revenue rose 3.5 percent to $29.2 billion, while wireless equipment revenue fell 19.7 percent to $5.0 billion. Source
• Adjusted EBITDA reached $13.7 billion: Consolidated adjusted EBITDA rose 7.2 percent year-over-year. The company says this is the highest adjusted EBITDA it has reported. Source
• Net income fell 22.9 percent: Consolidated net income was $3.9 billion, down 22.9 percent. Net income margin was 11.5 percent, against 14.8 percent a year earlier. Source
• First-half revenue rose 1.0 percent: First-half total operating revenue was $68.7 billion, up 1.0 percent from $68.0 billion, with service revenue up 2.9 percent. Source

Mobility and broadband subscribers

• Postpaid phone net adds of 184,000: Total postpaid phone net additions were 184,000, compared with a net loss of 9,000 a year earlier. First-half postpaid phone net additions were 239,000. Source
• Broadband net adds up 12.3 percent: Broadband net additions were 348,000. Fixed wireless access added 193,000 and fiber added 155,000. First-half broadband net additions were 689,000. Source
• Mobility and broadband adds above 550,000: Total mobility and broadband net additions were more than 550,000, an increase of more than 230,000 from second-quarter 2025. Source
• First-half net adds more than doubled: First-half mobility and broadband net additions passed 1 million, more than doubling the first-half 2025 figure. Source
• Connections reached 17.1 million: Fixed wireless access and fiber broadband connections totaled about 17.1 million, up from 12.7 million a year earlier. Fiber connections grew 43.3 percent. Source
• Core prepaid net adds positive eight quarters: Total core prepaid net additions were 73,000, the eighth consecutive quarter of positive net additions. First-half core prepaid net additions were 188,000. Source

“Our second-quarter results provide clear, compelling evidence that this transformation is driving a structural inflection point across our entire business.”

Dan Schulman, Verizon CEO

Consumer and Business segments

• Consumer segment EBITDA rose 5.3 percent: Consumer segment EBITDA was $11.8 billion, with segment EBITDA margin at 45.0 percent against 42.1 percent. Consumer operating revenue was $26.2 billion, down 1.5 percent. Source
• Consumer mobility and broadband revenue up: Consumer mobility and broadband service revenue was $19.6 billion, up 3.3 percent in the quarter and 2.7 percent in the first half. Source
• Consumer equipment revenue fell: Consumer wireless equipment revenue was $4.2 billion, down 22.2 percent, while Consumer other revenue rose 6.6 percent to $2.4 billion. Source
• Business segment EBITDA rose 20.9 percent: Business segment EBITDA was $2.1 billion, and segment EBITDA margin was 29.1 percent against 24.7 percent. Business operating revenue rose 2.6 percent to $7.2 billion. Source
• Business other revenue led growth: Business other revenue rose 9.6 percent to $2.6 billion, while Business mobility and broadband service revenue was $3.7 billion, down 0.1 percent. Source

Costs, margins and special items

• Special items cut net income: Pre-tax special items were $1.8 billion, including the $746 million loss on disposition, $397 million of severance and $258 million of asset rationalization charges. Source
• Selling and administrative expense up 15.0 percent: Selling, general and administrative expense rose 15.0 percent to $9.0 billion. Cost of wireless equipment fell 16.4 percent to $5.9 billion. Source
• Cost of services up 5.0 percent: Cost of services rose 5.0 percent to $7.2 billion. Depreciation and amortization rose 8.0 percent to $5.0 billion. Source
• Operating income fell 12.2 percent: Operating income was $7.2 billion, down 12.2 percent. Interest expense rose 21.1 percent to $2.0 billion. Source
• Adjusted EBITDA margin at 40.1 percent: Consolidated adjusted EBITDA margin was 40.1 percent, up from 37.1 percent a year earlier. Source

“We are accelerating across our key metrics, achieving a step-change in churn reduction while lowering our customer acquisition and retention costs.”

Dan Schulman, Verizon CEO

Cash flow and free cash flow

• Free cash flow up 24.4 percent: Second-quarter free cash flow was $6.4 billion, up 24.4 percent. First-half free cash flow was $10.2 billion, up 16.0 percent. Source
• Operating cash flow up in both periods: Second-quarter cash flow from operations was $10.4 billion, up 16.3 percent. First-half cash flow from operations was $18.4 billion, up 9.9 percent. Source
• Capital spending of $8.2 billion: Capital expenditures were $8.2 billion through June, including $4.0 billion in the second quarter. Source
• Acquisition and license spending in first half: Cash paid for acquisitions of businesses was $9.5 billion in the first half, and acquisitions of wireless licenses were $1.2 billion. Source

Debt and shareholder returns

• Net unsecured debt down to $128.7 billion: Net unsecured debt was $128.7 billion at June 30, against $130.1 billion at March 31. The ratio of net unsecured debt to adjusted EBITDA was 2.5 times. Source
• Total unsecured debt lower: Total unsecured debt was $136.5 billion, against $142.5 billion at the end of the first quarter. Unsecured debt to LTM net income was 8.2 times. Source
• Frontier debt about half repaid: Verizon had paid down about half of the Frontier debt since the acquisition closed, as stated in the first-quarter release.
• Share buybacks of $1.0 billion in quarter: Share repurchases were $1.0 billion in the second quarter, bringing the first-half total to $3.5 billion. Total capital returned in the first half was $9.4 billion. Source
• Quarterly dividend unchanged at $0.7075: Quarterly cash dividend declared was $0.7075 per common share, the same as in the first quarter. Common shares outstanding were 4,155 million at period end. Source

Strategy and transformation

• Customer focus at the center: CEO Dan Schulman said the company is putting customers at the center of decisions and earning retention on real value rather than subsidized promotions. Source
• Churn reduction and lower acquisition costs: The CEO said the company is achieving a step-change in churn reduction while lowering customer acquisition and retention costs. Source
• AI infrastructure revenue emerging: The CEO said AI infrastructure revenue is emerging and reshaping growth. The release gives no AI revenue figure. Source

Customer demand and unit economics

• Postpaid phone churn improved: Wireless retail postpaid phone churn was 0.92 percent in the quarter, against 0.97 percent a year earlier. First-half churn was 0.94 percent, against 0.96 percent. Source
• Equipment revenue fell on fewer upgrades: Wireless equipment revenue fell nearly 20 percent. The company attributed this mainly to lower upgrade volumes and a decision to reduce device subsidy spending. Source
• Postpaid upgrade rate lower: The postpaid upgrade rate was 2.6 percent, against 3.6 percent a year earlier. Source
• Postpaid accounts and ARPA declined: Postpaid accounts were 34.2 million, down 1.2 percent. Postpaid ARPA was $168.35, down 1.4 percent. Source
• Core prepaid ARPU up 2.5 percent: Core prepaid ARPU was $33.37, up 2.5 percent. Core prepaid churn was 3.59 percent, against 3.60 percent a year earlier. Source
• Fixed wireless net adds fell 30.6 percent: FWA broadband net additions were 193,000, down 30.6 percent from 278,000 a year earlier. Source

Coming up, as management said on 24 July 2026

• Fourth-quarter revenue growth forecast: Management forecasts mobility and broadband service revenue growth rising to approximately 4.0 percent in the fourth quarter of 2026. Source
• Frontier debt repayment by year-end: Verizon expects to repay substantially all of Frontier's debt by the end of 2026, as stated in the first-quarter release.

Figures management reported

Earlier plans management reported on

• On track: The first-quarter release said the company remained on track for its full-year repurchase target of at least $3.0 billion.
• On track: The first-quarter release said the network build pace across mobility and fiber remained on track.
• Not stated: Management said it continues to expect the 2026 items listed in the forecast, including capital expenditures of $16.0 billion to $16.5 billion. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.