Verizon Communications Inc. (VZ) Earnings Report Shows Mixed Options Sentiment Amid Declining Shares, Analysts Predict 13.44% Upside

Verizon (VZ) shares declined 16 cents to $42.80, with options activity at 76,000 contracts, exceeding usual levels. Call options surpassed puts, and implied volatility fell to 15.76. Analysts forecast an average target price of $48.37, indicating a 13.44% upside. The average brokerage recommendation is 2.5, indicating "Outperform" status. Verizon reported Q2 wireless service revenue of $20.9 billion, up 2.2% YoY, and adjusted EBITDA of $12.8 billion, up 4.1% YoY.

Verizon Communications Inc. (VZ) reported a strong second quarter (Q2) 2025, with wireless service revenue reaching $20.9 billion, a 2.2% year-over-year (YoY) increase [1]. The company also saw adjusted EBITDA rise to $12.8 billion, up 4.1% YoY. These figures were buoyed by robust wireless and broadband performance, cost discipline, and improved customer retention, particularly in markets with advanced C-band deployment [1].

Verizon's total revenue for the quarter was $34.5 billion, up 5.2% YoY, while adjusted EBITDA increased to $12.8 billion, a 4.1% YoY rise. Free cash flow for the first half of 2025 was $8.8 billion, up 3.6% YoY, leading the company to raise its full-year free cash flow guidance to a range of $19.5 billion to $20.5 billion [1].

The wireless business saw revenue climb to $20.9 billion, with a 2.2% YoY increase. Despite a net loss of 9,000 postpaid phone subscribers, Verizon added 50,000 prepaid customers, offsetting the loss. The broadband business continued to gain momentum, with 293,000 total net additions, including 278,000 fixed wireless access (FWA) subscribers, bringing the FWA customer base to over 5 million [1].

Verizon Business revenue dipped slightly to $7.3 billion, down 0.3% YoY, but operating income grew 27.6% to $638 million, fueled by customer growth and improved profitability. The segment added 65,000 wireless retail postpaid net subscribers, including 42,000 phone net additions [1].

The company's C-band deployment is ahead of schedule, with plans to reach 80% to 90% deployment by the end of 2025. Verizon is also leveraging AI to streamline customer service and reduce churn [1].

Verizon's stock declined 16 cents to $42.80, with options activity at 76,000 contracts, exceeding usual levels. Call options surpassed puts, and implied volatility fell to 15.76. Analysts forecast an average target price of $48.37, indicating a 13.44% upside, with an average brokerage recommendation of 2.5, indicating an "Outperform" status [2].

References:
[1] https://www.rcrwireless.com/20250721/business/verizon-q2
[2] https://news.bloomberglaw.com/daily-tax-report/verizon-beats-on-revenue-ups-profit-outlook-on-tax-reform-1