Verizon Communications Inc.: Solid execution and addressing SPCX

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Verizon Communications Inc.: Solid execution and addressing SPCX

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Verizon Communications Inc.

Solid execution and addressing SPCX

Reiterate Rating: NEUTRAL | PO: 48.00 USD | Price: 45.52 USD

Three-pronged plan driving growth and profit 24 July 2026

Verizon continued execution of its three-pronged transformation plan in 2Q26 posting Equity

better than forecast postpaid phone additions, lower than projected churn and higher

margin and profitability. Moderating wireless cost of retention and cost of acquisition

Key Changesare also positive. Management also addressed if it’s possible for SpaceX to access one

of the company’s MVNO agreements or VZ interest in a separate MVNO with “no way” (US$) Previous Current

and “no reason”. The company pushed back on the competitive threat posed by LEO 2026E Rev (m) 142,799.1 141,254.3

noting capacity constraints and estimating the addressable market as largely rural and 2027E Rev (m) 147,303.3 147,908.9

estimated the TAM at 6-8mn homes. 2028E Rev (m) 151,436.3 151,865.3

2026E EPS 4.98 5.02

2027E EPS 5.23 5.14Better than forecast 2Q results

VZ reported lower than forecast revenue of $34.3bn vs. our estimate of $35.4bn and 2028E EPS 5.78 5.67

consensus of $35.2bn on less low margin equipment sales driven by a lower upgrade

rate. Adjusted EBITDA of $13.7bn was 0.6% higher than both our estimate and Michael J. Funk

Research Analyst

consensus and adj. EPS of $1.30 beat our forecast by 4.6% and consensus by 2.5%. Solid BofAS

2Q results and progress on its transformation initiatives led VZ to increase guidance. +1 646 855 5664 michael.j.funk@bofa.com

Increasing estimates to reflect growth reacceleration MatthewResearch AnalystGriffiths, CFA >>

We increased our estimate after a better-than-expected 2Q26.