Verizon Communications Inc (VZ.N): Updating Verizon Model for 2Q26 Results

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Verizon Communications Inc (VZ.N): Updating Verizon Model for 2Q26 Results

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27 Jul 2026 08:55:32 ET │ 23 pages

Verizon Communications Inc (VZ.N)

Updating Verizon Model for 2Q26 Results

CITI'S TAKE

We are updating our Verizon model to incorporate recent results,

management commentary, and the upward guidance revisions. Verizon is

showing forward progress on its restructuring and we believe the Buy

combination of its updated go-to-market and a potentially elongating Price (24 Jul 26 16:00) US$46.38

device replacement cycle should help Verizon improve retention and

Target price US$55.00profitability, while growing postpaid volumes and (soon) postpaid

accounts. Although customer growth is still relatively modest, Verizon is Expected share price return 18.6%

pursuing a greater PxQ balance in its approach. The company is also Expected dividend yield 6.0%

working to significantly and quickly improve efficiency, while we recognize

Expected total return 24.6%a risk that the cuts could have an unintended consequence on future

operating performance. We also recognize a risk that uncertainty over long- Market Cap US$192,709M

term industry structure and terminal value for the Telco and Cable stocks

could limit multiple expansion for at least the near-term. We maintain our

Buy on Verizon with an unchanged target.

Price Performance

Model Update — We have updated our model to reflect improvement in the pace of (RIC: VZ.N, BB: VZ US)

mobility and broadband service revenue growth to ~3% in 3Q26 and ~4% in 4Q26.

We find some of the strength is coming through consumer broadband ARPU post

FYBR acquisition, while estimate Verizon is also gaining an incremental benefit on

wholesale service revenues. We need to look further into the potential sources of