Verizon, AT&T Q2 Preview: Subscribers growth, capex in focus

Verizon is set to report Q2 earnings on Monday, with investors focused on subscriber growth and capital expenditures. Wall Street expects EPS of $1.19 on revenue of $33.71 billion. The telecom giant's quarterly results will be closely watched, as subscriber numbers are a key indicator of its performance.

Verizon Communications Inc. (NYSE: VZ) is set to report its second-quarter earnings on Monday, July 21, 2025, with investors closely monitoring the company's subscriber growth and capital expenditures. Wall Street analysts are expecting Verizon to report earnings per share (EPS) of $1.19 on revenue of $33.71 billion [1].

Verizon's quarterly results will be closely scrutinized, as subscriber numbers are a key indicator of the company's performance in the competitive telecommunications sector. Despite facing challenges such as subscriber losses and fierce industry competition, Verizon continues to invest heavily in its long-term wireless strategy, which includes the expansion of its 5G network and the launch of innovative services like the Verizon Frontline Network Slice for first responders [2].

The company's average brokerage recommendation is "Outperform," with 28 brokerage firms rating it as such [1]. Analysts project a potential upside of 16.93% from the current stock price, with the average price target at $47.81 [1]. Additionally, Verizon has a solid history of earnings surprises, with an average four-quarter earnings surprise of 1.53% [2].

Verizon's Q2 earnings report will provide insights into its ongoing initiatives, such as the multibillion-dollar contract for a Private 5G Network along the River Thames Estuary in the UK and the introduction of the Edge Transportation Exchange [2]. These initiatives aim to enhance the company's connectivity offerings and drive growth in both the consumer and business segments.

However, Verizon faces challenges such as high capital expenditures for 5G deployments, competitive pressure from VoIP service providers, and the ongoing shift from traditional linear video to over-the-top offerings [2]. These factors could impact the company's margins and future revenue growth.

Investors should closely watch Verizon's Q2 earnings report to assess the company's performance and the effectiveness of its strategic initiatives. While the stock has experienced a modest gain this year, its valuation appears attractive relative to the industry, trading below its mean price/earnings ratio [2].

References:
[1] https://www.gurufocus.com/news/2987988/verizon-vz-faces-subscriber-challenges-amid-competitive-pressures
[2] https://finance.yahoo.com/news/buy-sell-hold-vz-stock-135300496.html
[3] https://www.quiverquant.com/news/Verizon+Communications+Inc.+to+Release+Second-Quarter+2025+Earnings+on+July+21