Verizon Posts Strong Q4 Results and Sets 2025 Outlook; Dividend Hike Announced

Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported robust fourth-quarter 2024 earnings on Friday, January 24, 2025, showcasing its continued leadership in the telecommunications sector. The company's strong performance was driven by significant growth in wireless service revenue, expansion of customer relationships, and strategic initiatives that position it well for future growth.

Key Financial Metrics

* Reported EPS of $1.18, surpassing the estimated EPS of $1.06
* Revenue of $35.7 billion, exceeding the estimated revenue of $35.3 billion
* Net income of $5.1 billion, a significant turnaround from a net loss of $2.6 billion in Q4 2023
* Free cash flow of $19.8 billion for the full year 2024, up from $18.7 billion in 2023
* Wireless service revenue of $20.0 billion, marking a 3.1% year-over-year increase
* Postpaid phone net additions of 568,000, up from 449,000 in Q4 2023
* Debt reduction of $10.6 billion year-over-year, ending Q4 2024 at $117.9 billion

Strategic Initiatives and Outlook

Verizon's strong Q4 2024 results reflect its successful execution of strategic priorities, including growing wireless service revenue and expanding customer relationships. The company's focus on innovation and customer-centric offerings positions it well for future growth. Verizon expects continued growth in wireless service revenue and adjusted EBITDA in 2025, supported by its robust network infrastructure and strategic initiatives.

The company's pending acquisition of Frontier Communications and new satellite partnerships further enhance its growth prospects. Verizon's acquisition of Frontier is expected to expand its fiber network, providing additional cash flow to support future dividend increases. The company maintains its capital allocation priorities, characterized by prudent investment in the business, a commitment to maintaining an industry-leading dividend, continued debt reduction, and efficient return of cash to shareholders.

Dividend Hike

Verizon's Board of Directors declared a quarterly dividend of 67.75 cents per outstanding share, an increase of 1.25 cents per share from the previous quarter. This is the 18th consecutive year Verizon's Board has approved a quarterly dividend increase, reflecting the company's strong financial performance and commitment to returning value to shareholders.



Verizon's strong Q4 2024 performance and 2025 outlook demonstrate the company's continued leadership in the telecommunications sector. The company's focus on strategic priorities, innovation, and customer-centric offerings positions it well for future growth. With a strong balance sheet and a commitment to returning value to shareholders, Verizon is well-positioned to capitalize on opportunities in the market.