Verizon Communications Inc. (VZ) Q3 2026: Record Growth in Postpaid Additions — Strongly Positive

Verizon Communications Inc. (NYSE: VZ) reported a remarkable third quarter in 2026, showcasing significant growth across key metrics. The company delivered total operating revenue of $34.3 billion, reflecting a 1.5% increase year-over-year. Notably, mobility and broadband service revenue reached $23.5 billion, which grew 2.9% year-over-year. This performance is underscored by a substantial increase in postpaid phone net additions, which totaled 406,000, marking an impressive 820.0% increase compared to the same quarter last year.

This quarter's results are undoubtedly positive for shareholders, as they not only exceeded expectations but also demonstrated Verizon's successful transformation strategy. The company has effectively focused on operational efficiency and customer-centric offerings, leading to improved margins and reduced churn rates.

Key Financial Metrics:

• Total Operating Revenue: $34.3 billion, up 1.5% YoY
• Mobility and Broadband Service Revenue: $23.5 billion, up 2.9% YoY
• Postpaid Phone Net Additions: 406,000, up 820.0% YoY
• Postpaid Net Accounts Added: 137,000, the best performance in over a decade
• Consolidated Net Income: $5.3 billion, up 5.2% YoY
• Consolidated Adjusted EBITDA: $13.8 billion, up 8.0% YoY
• Earnings Per Share (EPS): $1.25, up 6.8% YoY
• Free Cash Flow: $7.8 billion, up 12.1% YoY

Verizon's focus on operational efficiency has resulted in a consolidated Adjusted EBITDA margin of 40.2%, the highest ever reported by the company. This margin improvement, alongside a reduction in promotional costs, indicates a disciplined approach to managing expenses while driving revenue growth.

Shareholder Returns and Guidance:

Verizon has also made significant strides in returning capital to shareholders, with $12.8 billion returned in the first nine months of 2026, which includes $8.8 billion in dividends and $4.0 billion in share repurchases. The company continues to expect to repurchase up to $4.5 billion for the full year.

In light of the strong performance, Verizon raised its full-year 2026 guidance for the third consecutive quarter:

• Postpaid Phone Net Additions: Increased to 1.1 million to 1.2 million, up from the upper half of 750,000 to 1.0 million
• Adjusted EPS: Forecasted at $5.04 to $5.06, representing 7.0% to 7.5% growth YoY
• Free Cash Flow Growth: Expected to approach 12.0% YoY, up from 9.0% to 10.0%

Forward-Looking Catalysts:

Investors should keep an eye on Verizon's continued execution of its transformation strategy, particularly its partnership with Amazon Web Services (AWS) in a $2 billion+ AI infrastructure deal. This strategic collaboration is expected to enhance Verizon's capabilities in meeting the demands of next-generation technologies, including AI workloads. Additionally, the anticipated growth in mobility and broadband service revenue, projected at approximately 4.0% for the fourth quarter, will be crucial for maintaining momentum.

In conclusion, Verizon's Q3 2026 results reflect a robust operational performance and a clear path toward sustained growth. The company's ability to adapt to market demands while enhancing shareholder value positions it favorably for the upcoming quarters.

Verizon Communications Inc.

Condensed Consolidated Statements of Income

(in millions)

	3Q 2026	3Q 2025	% Change	9M 2026	9M 2025	% Change
Operating Revenues	$ 29,860	$ 28,600	3.5	$ 87,760	$ 84,980	3.1
Other Revenues	$ 5,110	$ 5,550	-9.0	$ 15,960	$ 17,220	-7.2
Total Operating Revenues	$ 34,970	$ 34,150	2.4	$ 103,720	$ 102,200	1.5
Operating Expenses	$ 32,860	$ 32,960	-0.3	$ 97,390	$ 96,870	0.5
Operating Income	$ 2,110	$ 1,190	77.3	$ 6,330	$ 5,330	18.7
Net Income	$ 730	$ 310	134.0	$ 2,090	$ 1,400	49.2

Condensed Consolidated Balance Sheets

(dollars in millions)

	9/30/26	12/31/25	Change
Assets
Current Assets
Cash and Cash Equivalents	$ 4,495	$ 19,048	$ -14,553
Accounts Receivable	$ 27,564	$ 28,347	$ -783
Less Allowance for Credit Losses	$ 1,199	$ 1,250	$ -51
Accounts Receivable, net	$ 26,365	$ 27,097	$ -732
Inventories	$ 2,775	$ 2,441	$ 334
Prepaid Expenses and Other	$ 7,876	$ 8,336	$ -460
Total Current Assets	$ 41,511	$ 56,922	$ -15,411
Property, Plant and Equipment	$ 359,427	$ 337,991	$ 21,436
Less Accumulated Depreciation	$ 234,293	$ 228,524	$ 5,769
Property, Plant and Equipment, net	$ 125,134	$ 109,467	$ 15,667
Total Assets	$ 415,522	$ 404,258	$ 11,264
Total Liabilities and Equity	$ 415,522	$ 404,258	$ 11,264

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