2Q26 First Glance: Operational and Financial Momentum Building; 2026 Guidance Ra

研报英文原文证据摘录

2Q26 First Glance: Operational and Financial Momentum Building; 2026 Guidance Ra

Flash Note Communications | Cable, Satellite & Telecom Services

July 24, 2026

Verizon Communications Inc. Kutgun Maral, CFA Amir Razban 212-497-0804 212-812-2923

VZ | $43.59 kutgun.maral@evercoreisi.com amir.razban@evercoreisi.com

Outperform | Target Price/Base Case: $50.00 Erica Nie

Company Update 212-812-2906

erica.nie@evercoreisi.com

2Q26 First Glance: Operational and Financial Momentum Building; 2026

Guidance Raised

Verizon reported generally strong 2Q results, with highlights including upside relative to consensus across postpaid phone net

adds (beat by ~80k on higher gross adds and, to a lesser extent, better churn – best 2Q consumer net adds in the past 5 years),

adj. EBITDA (beat by 0.6%), FCF (beat by $1.1bn at $6.4bn), and adj. EPS (beat by $0.04/3.6%) while broadband net adds were

in line (fiber ahead, FWA below). Consolidated revenue missed by 2.9% but that was all due to lower wireless equipment revenue

in part from upgrade rates coming in 50 bps below the Street at 2.6%, with management flagging that the average time customers

keep their mobile devices continues to increase and it is focused on reducing spending on device subsidies. More importantly

though, mobility and broadband service revenue growth grew 2.8% y/y and was essentially in line, with VZ forecasting it to rise

3.0% in 3Q and 4.0% in 4Q26.

Operational and financial momentum seemed to have carried into the back-half, with management commenting that it is achieving

new postpaid account growth over the past 60 days and raising its full-year outlook. On 2026 guidance more specifically,

management reiterated total retail postpaid phone net adds to be in the upper half of the 750k-1.0mm range. It raised mobility