NYSE (VZ) Verizon raises annual profit forecast following strong demand for premium plans and tax benefits.

NYSE (VZ) Verizon raises annual profit forecast following strong demand for premium plans and tax benefits.

Verizon Communications (VZ) has raised its annual profit forecast following robust demand for its premium plans and the benefits of the Trump administration's new tax law. The U.S. telecom giant reported a 2.2% rise in wireless service revenue during the second quarter, driven by the popularity of add-ons such as access to streaming services like Netflix [1].

The company's adjusted earnings per share of $1.22 for the quarter exceeded Wall Street estimates, and overall revenue reached $34.5 billion, surpassing the expected $33.74 billion [2]. Verizon's improved performance is attributed to its price-lock promotions and broadband-wireless bundles, which are designed to retain users amid intensifying competition from AT&T, T-Mobile, Comcast, and Charter [3].

Verizon's finance chief, Tony Skiadas, noted that the new tax law allows companies to immediately write off the full cost of certain new equipment, which is expected to boost free cash flow by $1.5 billion to $2 billion this year. This has prompted Verizon to raise its annual free cash flow forecast to between $19.5 billion and $20.5 billion, up from $17.5 billion to $18.5 billion previously [2].

Despite the positive trends, Verizon experienced a surprise drop of 9,000 monthly bill-paying wireless subscribers in the April-June period, largely due to user churn following price hikes in January. Analysts had anticipated an increase of 13,000 subscribers [1].

To drive growth in the mature U.S. telecom market, Verizon and its rivals have been investing in fiber-optic assets that can tap into growing consumer data use. In May, Verizon won approval from the U.S. telecom regulator for its $20 billion acquisition of fiber-optic internet provider Frontier, following an agreement to end its diversity programs [1].

Verizon's sharper focus on internet services helped it post 293,000 broadband net additions in the second quarter [3]. The company now expects 2025 adjusted profit to grow between 1% and 3%, compared to the previous forecast of 0% to 3% [2].

References:
[1] https://www.cnbc.com/2025/07/21/verizon-vz-q2-earnings.html
[2] https://finance.yahoo.com/news/verizon-boosts-annual-profit-forecast-105831897.html
[3] https://www.reuters.com/business/media-telecom/verizon-boosts-annual-forecast-demand-premium-plans-tax-law-benefit-2025-07-21/