Upside case
Bull case
$61+29.4%
VZ would need investors to value it at roughly 12x earnings — about 3x more generous than today's 10x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Verizon Communications Inc. (VZ) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
60
analysts
23 bullish · 3 bearish · 60 covering VZ
Strong Buy
1
Buy
22
Hold
34
Sell
3
Strong Sell
0
Consensus Target
$52
+8.7% vs today
Scenario Range
$39 – $61
Model bear to bull value window
Coverage
60
Published analyst ratings
Valuation Context
9.6x
Forward P/E · Market cap $200.1B
VZ price targets
Three scenarios for where VZ stock could go
Current
~$47
Confidence
64 / 100
Updated
May 1, 2026
Where we are now
Current · $47
Bear
$39
Base
$54
Bull
$61
Market caseClosest to today
Base case
$54+13.4%
At 11x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$39-17.0%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push VZ down roughly 17% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Verizon Communications Inc.
VZ · NYSECommunication ServicesTelecommunications ServicesDecember year-end
Verizon is a telecommunications giant providing wireless and wireline connectivity services to consumers and businesses across the United States. It generates revenue primarily from wireless service plans (~70% of total revenue) and equipment sales, supplemented by Fios broadband, video, and business solutions. The company's key advantage is its extensive nationwide network infrastructure—particularly its 5G leadership—which creates high switching costs for customers and barriers to entry for competitors.
Market Cap
$200.1B
Revenue TTM
$138.2B
Net Income TTM
$17.2B
Net Margin
12.4%
VZ Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
83%Exceptional
12 quarters tracked
Revenue Beat Rate
50%Exceptional
vs consensus estimates
Avg EPS Surprise
+2.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.22/$1.19
Revenue
$34.5B/$33.7B
Q4 2025
EPS
$1.21/$1.19
Revenue
$33.8B/$34.3B
Q1 2026
EPS
$1.09/$1.05
Revenue
$36.4B/$36.1B
Q2 2026
EPS
$1.28/$1.21
Revenue
$34.4B/$34.8B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.22/$1.19 | +2.5% | $34.5B/$33.7B | +2.3% |
| Q4 2025 | $1.21/$1.19 | +1.7% | $33.8B/$34.3B | -1.3% |
| Q1 2026 | $1.09/$1.05 | +3.8% | $36.4B/$36.1B | +0.9% |
| Q2 2026 | $1.28/$1.21 | +5.8% | $34.4B/$34.8B | -1.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$141.8B
+2.6% YoY
FY2
$143.6B
+1.3% YoY
EPS Outlook
FY1
$4.53
+11.7% YoY
FY2
$4.60
+1.5% YoY
Trailing FCF (TTM)$19.8B
FCF Margin: 14.3%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
VZ beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
VZ Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $135.9B
Product Mix
Latest annual revenue by segment or product family
Verizon Consumer Group
78.6%
+3.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Verizon Consumer Group is the largest disclosed segment at 78.6% of FY 2025 revenue, up 3.8% YoY.
VZ Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $65 — implies +35.5% from today's price.
Upside to Fair Value
35.5%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
VZ
11.7x
vs
S&P 500
25.2x
54% discount
vs Communication Services Trailing P/E
VZ
11.7x
vs
Communication Services
15.5x
25% discount
vs VZ 5Y Avg P/E
Today
11.7x
vs
5Y Average
10.2x
+15% premium
Forward PE
9.6x
S&P 500
19.1x
-50%
Communication Services
13.1x
-27%
5Y Avg
—
—
Trailing PE
11.7x
S&P 500
25.2x
-54%
Communication Services
15.5x
-25%
5Y Avg
10.2x
+15%
PEG Ratio
—
S&P 500
1.75x
—
Communication Services
0.66x
—
5Y Avg
—
—
EV/EBITDA
8.0x
S&P 500
15.3x
-47%
Communication Services
8.7x
-8%
5Y Avg
7.3x
+9%
Price/FCF
9.9x
S&P 500
21.3x
-53%
Communication Services
11.6x
-14%
5Y Avg
10.5x
-5%
Price/Sales
1.4x
S&P 500
3.1x
-54%
Communication Services
1.0x
+38%
5Y Avg
1.3x
+11%
Dividend Yield
5.72%
S&P 500
1.88%
+205%
Communication Services
3.38%
+69%
5Y Avg
6.33%
-10%
| Metric | VZ | S&P 500 | Communication Services | 5Y Avg VZ |
|---|---|---|---|---|
| Forward PE | 9.6x | 19.1x-50% | 13.1x-27% | — |
| Trailing PE | 11.7x | 25.2x-54% | 15.5x-25% | 10.2x+15% |
| PEG Ratio | — | 1.75x | 0.66x | — |
| EV/EBITDA | 8.0x | 15.3x-47% | 8.7x | 7.3x |
| Price/FCF | 9.9x | 21.3x-53% | 11.6x-14% | 10.5x |
| Price/Sales | 1.4x | 3.1x-54% | 1.0x+38% | 1.3x+11% |
| Dividend Yield | 5.72% | 1.88% | 3.38% | 6.33% |
VZ trades above S&P 500 benchmarks on 0 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolVZ Financial Health
Verdict
Exceptional
VZ earns 21.2% operating margin on regulated earnings, 5.7% dividend yield. Utilities carry higher leverage than industrials as a structural feature of the business model.
Regulated Operations
Revenue, regulated margins, and earnings
Revenue (TTM)
Trailing-twelve-month sales base
$138.2B
Revenue Growth
TTM vs prior year
+2.5%
Operating Margin
Operating income divided by revenue
21.2%
Net Margin
Net income divided by revenue
12.4%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$4.06
Operating Margin
Operating income over revenue — primary regulated earnings signal
21.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
8.0%
ROA
Return on assets, trailing twelve months
4.4%
Cash & Equivalents
Liquid assets on the balance sheet
$19.0B
Net Debt
Total debt minus cash
$181.5B
Debt Serviceability
Net debt as a multiple of annual free cash flow
9.2× FCF
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
16.4%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
5.7%
Dividend
5.7%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$2.71
Payout Ratio
Share of earnings distributed as dividends
66.9%
Shares Outstanding
Current diluted share count
4.2B
All figures from the trailing twelve months. Utilities operate with structural leverage (3–5× net debt/FCF) due to regulated, predictable cash flows.
Open full ratios pageVZ Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Cybersecurity & Operational Disruption
Verizon faces ransomware, malware, and denial‑of‑service attacks that could disrupt networks, incur significant remediation costs, and erode customer trust. A major breach could result in multi‑million dollar expenses and loss of subscribers, directly impacting revenue.
High Risk
High Debt Load & Interest Risk
Verizon carries approximately $144 billion of debt, limiting financial flexibility in a rising interest‑rate environment. Additional borrowing or failure to retire debt could increase interest expenses and constrain capital allocation for growth initiatives.
Medium
5G Capital Intensity & Monetization
Verizon’s 5G rollout requires substantial capital investment, increasing debt and operating costs. Successful monetization of the network is essential to translate infrastructure spending into sustainable competitive advantage and shareholder returns.
Medium
Valuation & Growth Outlook
Verizon’s PEG ratio of 1.9 exceeds the industry average, suggesting the stock may be overvalued relative to expected earnings growth. Analysts warn of limited upside potential after a year‑to‑date rally, which could constrain future price appreciation.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why VZ Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
5G & Broadband Expansion
Verizon is investing heavily in fiber build‑out and fixed‑wireless, expected to lift revenue per user. Analysts project that broadband and mobility service revenue will rise as the 5G rollout expands coverage.
Customer Growth Outlook
Verizon forecasts a significant increase in retail postpaid phone net additions for 2026, potentially doubling or tripling 2025 levels. Broadband and mobility revenue is also projected to rise, supporting overall top‑line growth.
Dividend Sustainability
Verizon offers a high and sustainable dividend yield of around 6.7%. The company has increased its dividend for 21 consecutive years, underscoring its commitment to shareholder returns.
Free Cash Flow Strength
Verizon generates substantial free cash flow, with a 3‑year CAGR placing it in the top 25% of its industry. This cash flow supports dividend payments and balance‑sheet improvements.
Cost Optimization & Balance‑Sheet Strength
Verizon is implementing cost‑optimization programs that are expected to lift margins and free cash flow. The company has reduced total debt and improved its net secured debt to EBITDA ratio, enhancing liquidity.
Leadership Reinvigoration
The appointment of a new CEO has reinvigorated subscriber growth and amplified the long‑term outlook. Analysts note a renewed focus on network investments and customer experience.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
VZ Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$47.44
52W Range Position
90%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$10.60
+347.5% from the low
52-Week High
$51.68
-8.2% from the high
1 Month
-3.48%
3 Month
+2.44%
YTD
+17.1%
1 Year
+7.5%
3Y CAGR
+7.8%
5Y CAGR
-4.4%
10Y CAGR
-0.7%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
VZ vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
9.6x
vs 14.7x median
-35% below peer median
Revenue Growth
+2.6%
vs +1.4% median
+87% above peer median
Net Margin
12.4%
vs -6.2% median
+299% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
VZ VZ Verizon Communications Inc. | $200.1B | 9.6x | +2.6% | 12.4% | Hold | +8.7% |
T T AT&T Inc. | $178.4B | 11.1x | +1.4% | 16.9% | Hold | +15.1% |
TMU TMUS T-Mobile US, Inc. | $209.0B | 18.4x | +5.2% | 11.6% | Buy | +31.5% |
LUM LUMN Lumen Technologies, Inc. | $10.1B | — | -8.2% | -14.3% | Hold | -27.8% |
FYB FYBR Frontier Communications Parent, Inc. | $9.6B | — | +0.4% | -6.2% | Buy | -10.8% |
SHE SHEN Shenandoah Telecommunications Company | $897M | — | +12.8% | -13.7% | Buy | +78.8% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
VZ Dividend and Capital Return
VZ returns 5.7% total yield, led by a 5.72% dividend, raised 21 consecutive years.
Dividend WatchFCF Adequate
Total Shareholder Yield
5.7%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
5.72%
Payout Ratio
66.9%
How VZ Splits Its Return
Div 5.72%
Dividend 5.72%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.71
Growth Streak
Consecutive years of dividend increases
21Y
3Y Div CAGR
1.9%
5Y Div CAGR
1.9%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
4.2B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.40 | — | — | — |
| 2025 | $2.72 | +1.9% | 0.0% | 6.7% |
| 2024 | $2.67 | +1.9% | 0.0% | 6.7% |
| 2023 | $2.62 | +1.9% | 0.0% | 6.9% |
| 2022 | $2.57 | +2.0% | 0.0% | 6.5% |
FAQ
7 questionsVZ Investor Questions
Common questions answered from live analyst data and company financials.
01Is Verizon Communications Inc. (VZ) stock a buy or sell in 2026?
Verizon Communications Inc. (VZ) is rated Hold by Wall Street analysts as of 2026. Of 60 analysts covering the stock, 23 rate it Buy or Strong Buy, 34 rate it Hold, and 3 rate it Sell or Strong Sell. The consensus 12-month price target is $52, implying +8.7% from the current price of $47. The bear case scenario is $39 and the bull case is $61.
02What is the VZ stock price target for 2026?
The Wall Street consensus price target for VZ is $52 based on 60 analyst estimates. The high-end target is $58 (+22.3% from today), and the low-end target is $44 (-7.3%). The base case model target is $54.
03Is Verizon Communications Inc. (VZ) stock overvalued in 2026?
VZ trades at 9.6x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Verizon Communications Inc. (VZ) stock in 2026?
The primary risks for VZ in 2026 are: (1) Cybersecurity & Operational Disruption — Verizon faces ransomware, malware, and denial‑of‑service attacks that could disrupt networks, incur significant remediation costs, and erode customer trust. (2) High Debt Load & Interest Risk — Verizon carries approximately $144 billion of debt, limiting financial flexibility in a rising interest‑rate environment. (3) 5G Capital Intensity & Monetization — Verizon’s 5G rollout requires substantial capital investment, increasing debt and operating costs. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Verizon Communications Inc.'s revenue and earnings forecast?
Analyst consensus estimates VZ will report consensus revenue of $141.8B (+2.6% year-over-year) and EPS of $4.53 (+11.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $143.6B in revenue.
06When does Verizon Communications Inc. (VZ) report its next earnings?
A confirmed upcoming earnings date for VZ is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Verizon Communications Inc. generate?
Verizon Communications Inc. (VZ) generated $19.8B in free cash flow over the trailing twelve months — a free cash flow margin of 14.3%. VZ returns capital to shareholders through dividends (5.7% yield) and share repurchases ($0 TTM).