VZ earnings analysis
What we found in VZ's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Verizon's Q1 2026 results show modest revenue growth with a 2.9% increase year-over-year, driven by the Consumer segment's performance despite a slight earnings miss versus consensus estimates. While net income rose to $5.146 billion, the decline in operating margins suggests challenges in managing service costs, particularly following the recent acquisitions. The Company reported robust performance in fiber broadband connections, which increased dramatically, indicating successful growth in this sector.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 2.9%
- Total revenue increased from $33.49 billion in Q1 2025 to $34.44 billion in Q1 2026.
- Strong EPS Beat
- EPS for Q1 2026 was reported at $1.28, compared to consensus estimates of $1.21, reflecting a 5.8% positive surprise.
- Significant Increase in Fiber Connections
- Fiber broadband connections surged by 41.9%, from 7,581 connections in Q1 2025 to 10,757 in Q1 2026.
- Improved OCF
- Operating cash flow increased to $7.984 billion, up $202 million year-over-year.
- Free Cash Flow Increase
- Free cash flow grew to $3.783 billion in Q1 2026 from $3.637 billion in Q1 2025.
- Effective Tax Rate Slightly Increased
- The effective income tax rate rose to 24.1% from 23.0% due to acquisition-related adjustments.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Debt Levels
- Total debt rose from $158.2 billion at year-end 2025 to $172.5 billion by March 31, 2026, due to the Frontier acquisition.
- Operating Margin Decline
- Operating margin decreased to 20.6% in Q1 2026 from 23.8% in Q1 2025, indicating rising operational costs.
- Higher Interest Expenses
- Interest expense increased to $1.94 billion in Q1 2026 from $1.63 billion in Q1 2025, reflecting higher debt levels.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.28
- Gross margin
- 61.0%
- Operating margin
- 20.6%
- Segment
- Consumer
- Segment
- Business
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 17, 2026
- Verizon positions itself as a scale leader in U.S. wireless and fiber broadband with a two-segment structure (Consumer and Business). In 2025 the Company continued to invest in network evolution (5G, fiber, vRAN/ORAN)…
- 10-Q · October 29, 2025
- Verizon reported Q3 operating revenues of $33,821 million (up $491 million, +1.5% YoY) and net income of $5,056 million, with diluted EPS of $1.17 versus $0.78 in the year‑ago quarter. Operating income expanded to…
- 10-Q · April 25, 2025
- Verizon reported modest revenue growth to $33,485 million (up $504 million, +1.5% year-over-year) with operating income rising to $7,978 million (up $457 million). Margins expanded (gross 61.0%, operating 23.8%),…
- 10-K · February 12, 2025
- Verizon (10-K for year ended Dec 31, 2024) emphasizes scale in wireless and fiber (Consumer revenues $102.9B, Business $29.5B) and continued network evolution (5G, fiber/PON, FWA). Management highlights network scale…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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