Verizon (VZ) Stock Forecast & Price Target

Verizon Communications demonstrated strong financial performance, reporting a consolidated revenue increase of 5.2% year-over-year to $34.5 billion, which was 2.2% ahead of consensus estimates, primarily driven by higher wireless equipment revenue. The company's consumer revenue also saw significant growth, rising 6.9% year-over-year to $26.6 billion, outperforming consensus by 3%. Additionally, business adjusted EBITDA increased by 6% year-over-year to $1.7 billion, reflecting margin expansion due to strategic initiatives, underscoring the company's robust operational efficiency and potential for future growth.

Verizon Communications reported a year-over-year decline in business revenue of 0.3%, reflecting ongoing pressures in its legacy segments, which suggests difficulties in maintaining growth in these areas. The firm experienced significantly lower-than-expected net additions in its other postpaid and broadband segments, with key metrics such as total broadband net adds of 293K falling short of consensus expectations, indicating potential weaknesses in customer acquisition. Furthermore, the lowered expectations for service revenue growth in 2025 and 2026, driven by reduced subscriber counts in both consumer and business segments, contribute to a negative outlook on Verizon's stock.