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Earnings analysis · 10-Q

VZ earnings analysis

Filed May 1, 2026 · Our reading of the company's report

The latest report

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…

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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.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

62% Gross margin Operating margin Jul 2024 May 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $39 Operating expenses $40 Left as operating profit $21

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Feb 2024 May 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$1.28
Segment
Consumer
Segment
Business

What stood out

  • 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.

What to watch

  • 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.

Management's outlook

Outlook deferred to earnings press release / call.

Earlier filings 4

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 itself. Analysis can contain errors; check the source document for full context.