Verizon Earnings Show Record EBITDA And Raise Guidance
Verizon earnings showed record adjusted EBITDA and strong free cash flow growth, plus subscriber gains and bigger buybacks that should underpin shares.
KEY TAKEAWAYS
- Following the release, adjusted EBITDA and margin reached company records and Q2 free cash flow rose 24.4%
- Postpaid phone net additions totaled 184,000 and total mobility plus broadband net adds topped 550,000
- Management raised full-year 2026 guidance and expanded share repurchases to up to $4.5B
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Verizon Communications Inc. reported Q2 results on July 24, 2026, showing record adjusted EBITDA and stronger-than-expected subscriber gains. The company raised full-year 2026 guidance and expanded its share-repurchase plan.
Record Profitability and Cash Flow
Verizon said in a press release on July 24 that adjusted EBITDA and adjusted EBITDA margin reached the highest levels in company history. Consolidated operating revenue for the quarter was about $34.5 billion, and adjusted earnings per share were $1.22. Cash flow from operations rose 16.3% year over year in the quarter and 9.9% for the first half of 2026. Free cash flow growth accelerated 24.4% in the quarter and 16.0% for the first half.
The company attributed the results to a customer-first strategic transformation combined with strict operational discipline, which drove margin expansion. Despite strong adjusted results, reported net income declined partly due to joint-venture costs, reflecting ongoing pressure from legacy revenue lines.
Subscriber Momentum and Capital Returns
Postpaid phone net additions totaled 184,000 in Q2, marking Verizon’s best Consumer second-quarter phone performance in five years. Total mobility and broadband net additions exceeded 550,000 in the quarter and topped 1 million in the first half, more than double the year-ago period. These gains accompanied modest overall revenue growth, primarily driven by mobility and broadband service revenue.
Mobility and broadband service revenue rose 2.8% year over year in Q2. Management targets roughly 4.0% year-over-year growth in that line by the fourth quarter, citing improved pricing and product mix. Verizon credited new unlimited 5G plans and rewards programs for supporting subscriber gains and said promotional intensity has eased, which it said strengthens unit economics.
Verizon returned $9.4 billion in total capital to shareholders in the first half of 2026 and expanded its full-year share-repurchase target to up to $4.5 billion. Management linked the larger buyback capacity to the stronger free-cash-flow profile, aligning capital allocation with improved operating cash generation.
The quarter combined accelerating subscriber growth and record adjusted margins with an expanded program of cash returns, even as the durability of service-revenue acceleration remains a key consideration for investors.
