Verizon Stock Outlook 2026: Restructuring, Job Cuts, and Earnings Watch

Verizon's stock has lost around 35% of its value since 2020, trading at a low price-to-earnings ratio of 8, much lower than the S&P 500 average of 26. The company recently appointed Dan Schulman as CEO, and is undergoing a restructuring that includes over 13,000 job cuts to stabilize performance. Despite a major network outage in January 2026, Verizon's stock rose by 1.8% as investors focused on upcoming earnings and dividend stability. Institutional investors own 68% of Verizon shares, with The Vanguard Group as the largest stakeholder, holding 8.9% of the stock. Verizon continues to expand its market reach and has partnered with over 50 mobile network operators globally, including a planned satellite-based 4G/5G service via AST SpaceMobile to provide connectivity in areas without terrestrial coverage.

Verizon stock has long been a staple for income-focused investors, thanks to its high dividend yield and stable cash flow. But in recent years, the stock has underperformed relative to the broader market, losing roughly 35% of its value since 2020. The telecom giant's struggles have led to a restructuring plan, including major job cuts and a leadership change, as it seeks to regain momentum. With Dan Schulman now at the helm, investors are watching to see if the new CEO can steer the company toward more consistent growth and improved financial performance.

Is Verizon Stock a Buy in 2026 After Leadership Changes?

Verizon's stock valuation remains attractive in some respects. It currently trades at a price-to-earnings ratio of just eight times trailing earnings, significantly below the S&P 500's 26. This suggests the market is pricing in a future of low or negative earnings growth, despite the company's solid cash flow and dividend payments. The company's payout ratio is under 60%, meaning its $2.50 annual dividend is secure, offering a 6.8% yield — one of the highest in the market. However, this high yield comes with risks: investors have to weigh the long-term growth potential against a telecom industry that is facing increasing competition and capital expenditures. The recent leadership change is an important signal for the market, but it's too early to tell if the new CEO can reverse the company's fortunes.

Verizon also announced a major restructuring plan in 2025 that included over 13,000 job cuts. This was part of a broader strategy to reduce costs and redirect resources toward more strategic investments, including its acquisition of Frontier Communications and its expansion into satellite-based broadband via AST SpaceMobile. While job cuts are often seen as a negative, in this case, they reflect a necessary step to maintain long-term profitability. The telecom sector is capital-intensive, and with interest rates still elevated, companies must be efficient to maintain healthy margins. Investors are now watching to see how well these changes translate into improved financial performance.

Why Is Verizon Stock Rising Despite a Major Network Outage?

In early 2026, Verizon experienced a significant network outage that affected millions of users across the U.S., with many devices displaying "SOS" mode and losing voice, text, and data services. Despite this, the stock price rose by over 1.8% in New York trading. This counterintuitive market reaction highlights how investors are focusing on longer-term fundamentals rather than short-term hiccups. The company confirmed the issue but did not provide an immediate cause or timeline for resolution. Still, investors remained optimistic, particularly with the upcoming earnings report on the horizon. In fact, other telecom stocks like AT&T and T-Mobile also saw gains during the same period, suggesting that the broader sector was gaining confidence.

Verizon's business model is built on consistent cash flow and stable network performance. While outages are concerning, they are not uncommon in the telecom industry, and one-time events are unlikely to significantly impact long-term stock performance unless they become recurring issues. Analysts suggest that the market is more focused on the company's upcoming earnings, dividend outlook, and broader restructuring efforts, which are seen as more indicative of the company's future trajectory. As such, the outage appears to have been a short-term distraction rather than a long-term red flag.

Looking ahead, the key for investors will be whether the new leadership can demonstrate tangible improvements in profitability and growth. With institutional investors holding 68% of the stock, market sentiment is heavily influenced by the decisions of these large investors. The Vanguard Group, the largest single shareholder with an 8.9% stake, will be watching closely to see if the restructuring pays off. If the company can show consistent progress in reducing costs, improving network performance, and expanding its customer base, it could attract more institutional support and drive the stock higher.

In the meantime, the company is also expanding its reach through strategic partnerships and new technologies. Its acquisition of Frontier Communications and its partnership with AST SpaceMobile to launch a satellite-based 4G/5G network highlight its efforts to innovate in a rapidly changing telecom landscape. These moves could help Verizon maintain its competitive edge and open new revenue streams in the future.

According to market analysis, Verizon's stock has been rising despite a major network outage. Market reports indicate that the outage did not significantly impact investor sentiment. Verizon's stock performance has been a key focus for investors. Industry analysis suggests that the company's strategic initiatives could drive future growth.