Verizon Communications Inc (VZ.N): VZ Restructuring Should Deliver Solid 2Q26 Progress; Early Preview

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Verizon Communications Inc (VZ.N): VZ Restructuring Should Deliver Solid 2Q26 Progress; Early Preview

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29 Jun 2026 00:20:27 ET │ 21 pages

Verizon Communications Inc (VZ.N)

VZ Restructuring Should Deliver Solid 2Q26 Progress; Early Preview

CITI'S TAKE

Verizon is still in the early stages of restructuring its operations to improve

its PxQ mix and return to positive wireless service revenue growth. We

expect C2Q results to display forward progress on wireless postpaid net Buy

adds as churn begins to recede, while a lower than expected device upgrade Price (26 Jun 26 16:00) US$46.54

rate combined with the cost cutting may provide a positive bias for C2Q

Target price US$55.00EBITDA. With a new rate plan structure introduced and guidance

reaffirmed, Verizon is poised to stay on track for improving net add volumes Expected share price return 18.2%

in 3Q. While the Simplicity plans also offer an encouraging return to Expected dividend yield 6.0%

unsubsidized rate plans that can be neutral or accretive to annual EBITDA,

Expected total return 24.2%we do need to watch the impacts on service revenue and ARPU

performance. We maintain our Buy on VZ shares with an opportunity to stay Market Cap US$194,331M

on an improving performance track, while trading at a cheaper valuation

than its competitors.

Earnings Focus — For 2Q26 results, beyond the focus on the ongoing restructuring Price Performance

and new Simplicity and VerizonOne rate plans, we anticipate the market will focus (RIC: VZ.N, BB: VZ US)

on overall postpaid phone net adds, postpaid account growth, wireless service

revenue growth, mobile and broadband service revenue growth, EBITDA growth and

FCF. Investors may be looking for an update on how Verizon may rationalize the

assets now within the other revenue segment.