Verizon Communications Inc: Verizon 2Q26: A clean print. Is it durable?

研报英文原文证据摘录

Verizon Communications Inc: Verizon 2Q26: A clean print. Is it durable?

t the full effect of the Frontier acquisition, with total broadband net additions

of 348k (+12.3% YoY), comprising 155k fiber/Fios net adds – the strongest fiber quarter on record — and 193k FWA net

adds, down 30.6% YoY. As in 1Q26, management characterized the FWA deceleration as deliberate, reflecting a continued

conscious mix-shift toward fiber as Frontier markets come online. Total broadband connections reached 17.1 million, with

58% of broadband customers also taking mobility — management continues to highlight the compounding retention benefit of

convergence, noting that converged-account churn remains materially below single-product churn.

Verizon returned approximately $9.4 billion to shareholders in the first half of 2026, up more than 60% YoY, comprising $5.9

billion in dividends and $3.5 billion in share repurchases — already ahead of the prior full-year buyback commitment of at least

$3 billion. Net unsecured leverage improved to 2.5x adjusted EBITDA, down 0.1x sequentially from 1Q26, with management

remaining on track to reach its target leverage range within the 2027 timeframe as the Frontier-related debt stack continues to

be retired.

2026 OUTLOOK & GUIDANCE

Management raised full-year adjusted EPS growth guidance to 6-7%, up from the 5-6% range given at 1Q26 (which had

already been raised from an initial 4-5% in January). Postpaid phone net add guidance of the upper half of the 750K-1M range

was reiterated.

Mobility and broadband service revenue growth guidance was raised to 2.5-3%, from the prior 2-3% range, with management

guiding Q3 to approach 3% YoY growth and Q4 to approximately 4% YoY growth, supported by continued easing of