Verizon's Q2 Results Surprise with 5.2% YoY Revenue Growth and Raised Guidance

Verizon reported Q2 CY2025 results, beating Wall Street's revenue expectations with a 5.2% YoY increase to $34.5 billion. Non-GAAP profit of $1.22 per share was 2.6% above analyst estimates. The company raised its full-year guidance for adjusted EBITDA growth, EPS growth, and free cash flow. Operating margin was 23.7%, in line with the same quarter last year, while free cash flow margin was 15%, down from 17.7% in the same quarter last year.

Verizon Communications Inc. (NYSE: VZ) reported its second-quarter (Q2) 2025 financial results, exceeding Wall Street's revenue expectations with a 5.2% year-over-year (YoY) increase to $34.5 billion. The company's non-GAAP profit per share of $1.22 was 2.6% above analyst estimates. Verizon also raised its full-year guidance for adjusted EBITDA growth, EPS growth, and free cash flow.

The company's operating margin remained stable at 23.7%, in line with the same quarter last year, while the free cash flow margin decreased to 15% from 17.7% in the same quarter last year. Verizon's wireless service revenue grew to $20.9 billion, up 2.2% YoY, and the company added over 300,000 net additions across mobility and broadband.

Verizon's strong performance led to an increase in net income to $5.1 billion from $4.7 billion in Q2 2024. The company's adjusted EBITDA rose to $12.8 billion from $12.3 billion in the same quarter last year. The Consumer segment, which represents the bulk of Verizon's business, saw revenue climb 6.9% to $26.6 billion, with wireless service revenue up 2.3%.

The company's wireless equipment revenue surged by 25.2% to $6.3 billion, indicating healthy device upgrade cycles. Verizon's broadband strategy continues to pay dividends with 293,000 broadband net additions in Q2, including 278,000 fixed wireless access additions. The company has now accumulated over 5.1 million fixed wireless access subscribers and is targeting 8-9 million by 2028. Total broadband connections grew 12.2% YoY to 12.9 million.

Verizon's Chairman and CEO Hans Vestberg stated, "Our strong second-quarter financial performance reflects our high-quality, industry-leading customer base, our multiple growth paths, the success of our disciplined, segmented approach, and the inherent strength of our company. Our unmatched and award-winning network combined with our financial strength enables us to continually innovate and enhance our products and services, empowering how people live, work and play."

Verizon raised its full-year 2025 guidance for adjusted EBITDA growth to 2.5-3.5%, adjusted EPS growth to 1.0-3.0%, and free cash flow to $19.5-20.5 billion. The guidance excludes any impact from the pending Frontier acquisition, which represents a significant strategic expansion into additional fiber markets.

References:
[1] https://finviz.com/news/109070/verizon-nyse-vz-surprises-with-q2-sales
[2] https://www.stocktitan.net/news/VZ/verizon-raises-financial-guidance-for-adjusted-ebitda-adjusted-eps-2i9p9ba1ksyi.html