Verizon’s second-quarter results were received positively by the market, reflecting effective execution across its mobility and broadband businesses. Management attributed the performance to disciplined cost controls, successful rollout of segmented wireless offerings, and continued momentum in broadband, especially fixed wireless access. CEO Hans Vestberg highlighted that the company’s customer-centric strategy—combining new plans like My Plan and My Home with improvements to customer support—helped offset competitive pressures and elevated churn. The ongoing expansion of C-band spectrum and fiber infrastructure also contributed to robust operational results, as did targeted investments in digital and AI-powered services.
Is now the time to buy VZ? Find out in our full research report (it’s free).
Verizon (VZ) Q2 CY2025 Highlights:
- Revenue: $34.5 billion vs analyst estimates of $33.72 billion (5.2% year-on-year growth, 2.3% beat)
- Adjusted EPS: $1.22 vs analyst estimates of $1.19 (2.6% beat)
- Adjusted EBITDA: $12.81 billion vs analyst estimates of $12.65 billion (37.1% margin, 1.3% beat)
- Operating Margin: 23.7%, in line with the same quarter last year
- Customers: 146.1 million, up from 146 million in the previous quarter
- Market Capitalization: $181.6 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Verizon’s Q2 Earnings Call
- Ben Swinburne (Morgan Stanley): Asked about capital allocation priorities given increased free cash flow and the timeline for share buybacks. CEO Hans Vestberg reiterated that business investment, dividends, and debt reduction remain the top priorities, with buybacks considered after closing the Frontier deal.
- John Hodulik (UBS): Inquired about postpaid ARPU growth deceleration and upgrade rate trends. Vestberg cited continued ARPU growth drivers such as My Plan adoption and perks, while CFO Tony Skiadas noted that higher upgrades were absorbed without hurting EBITDA.
- Sebastiano Petti (JPMorgan): Sought details on consumer net adds, prepaid-to-postpaid migration, and the Frontier acquisition timeline. Management clarified that net adds were driven by strong sales execution rather than promotional offers, and that prepaid migration impact was not significant.
- Jim Schneider (Goldman Sachs): Asked about broadband market trends and fixed wireless growth outlook. Vestberg explained that while a softer move environment affected Fios, he expects stronger broadband additions in the second half and highlighted growing opportunities in multi-dwelling unit (MDU) deployments.
- Mike Rollins (Citigroup): Questioned the pace of convergence bundle adoption and EBITDA margin drivers. Vestberg pointed to the Frontier deal’s potential for further convergence, and Skiadas detailed ongoing cost savings from network and operational efficiencies.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will monitor (1) progress on the Frontier acquisition and the impact on fiber and broadband subscriber growth, (2) the pace and effectiveness of AI-powered customer retention tools in reducing churn, and (3) the execution of cost-saving initiatives and their contribution to margin expansion. Additionally, we will watch for regulatory approvals and updates on capital allocation priorities post-acquisition.
Verizon currently trades at $43.07, up from $40.80 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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