Verizon Communications: 2Q Inflection: Broad Guidance Raise on Churn-Led Adds and Cost Takeout; Remain Neutral

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Verizon Communications: 2Q Inflection: Broad Guidance Raise on Churn-Led Adds and Cost Takeout; Remain Neutral

J P M O R G A N North America Equity Research

27 July 2026

Verizon Communications Neutral

VZ, VZ US

2Q Inflection: Broad Guidance Raise on Churn-Led Price (24 Jul 26):$46.38

Adds and Cost Takeout; Remain Neutral Price Target (Dec-27):$52.00

We update our Verizon estimates following strong 2Q results. We are encouraged Telecom Services, Cable & Satellite

ACby CEO Dan Schulman’s turnaround efforts, which delivered 184k total postpaid Sebastiano C Petti

phone net adds on a meaningful step-down in postpaid phone churn and share gains (1-212) 622-8529

in new segments. We expect further churn improvement in 2H26 following the sebastiano.c.petti@jpmorgan.com

rollout of Verizon’s new value proposition, which management expects to drive Shayna Nguyen

positive postpaid account net adds in 3Q. Verizon also raised its 2026 mobility and (1-212) 622-0038

broadband service revenue growth guidance to 2.5–3.0% (from 2–3%), and we shayna.nguyen@jpmchase.com

now model 3.0% y/y growth to $93.61b. An improved top line and lower CoA/CoR John Stid

from Verizon’s transformation efforts drove the adj. EPS guidance increase to 6– (1-212) 272-0992

john.stid@jpmorgan.com

7% y/y growth, and we accordingly raise our estimate to the high end ($5.03, or J.P. Morgan Securities LLC

+7% y/y), with adj. EBITDA still expected to grow faster (JPMe of $54.02b, or

+8% y/y). We conservatively estimate 2026 buybacks of $5.0b (vs. $3.5b in 1H26

and expectation for “up to $4.5b” in 2026). Net-net, the turnaround has produced Key Changes (FYE Dec)

tangible progress in relatively short order, and cost transformation is translating Prev Cur Δ

into stronger financial growth.