In the third quarter, Verizon added a net 406,000 postpaid phones, up 820% year over year, and 137,000 net accounts; consumer postpaid phone churn was 87 basis points, while promotional acquisition costs fell 41%. Adjusted EPS reached $1.31, up 8%, and free cash flow hit $7.8 billion, the highest since 2020; the company raised its adjusted EPS growth guidance to 7% to 7.5%. Revenue rose 1.5% to $34.3 billion while equipment revenue fell 9%, and debt totals $166.2 billion. On the Starlink threat from SpaceX, Schulman argued that in markets generating about 98% of its revenue, Verizon is 100% to a thousand times more efficient than rivals, while some commentators say the satellite threat is overblown.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
telecommunicationsVerizonearningsSpaceX
Open a keyword to see other news on the same topic.
Related news
- Does SpaceX’s $8 Billion Spectrum Deal Mean Verizon’s Q3 Earnings Don’t Really Matter?
Verizon reports third-quarter results on October 26, days after SpaceX announced a roughly $8 billion deal for nationwide 800 MHz spectrum, which the author says makes the report more important. Last quarter, Verizon beat with adjusted EPS of $1.30 against a $1.27 consensus, while revenue fell 0.7% to $34.25 billion as equipment revenue dropped nearly 20% on a deliberate pullback on subsidies. The core business improved, with 184,000 postpaid phone net adds, churn at 0.92%, and a record 40.1% adjusted EBITDA margin, and full-year adjusted EPS guidance was raised to $4.99 to $5.04. The author will watch whether service revenue growth nears 3% in Q3 and about 4% in Q4, and whether consumer postpaid phone churn of 84 basis points holds as SpaceX's service is expected to start in early 2028 after the deal closes in the first half of 2027.
- Is Elon Musk Coming for Verizon?
A Motley Fool Hidden Gems podcast discusses SpaceX's wireless ambitions after a reported spectrum acquisition sent Verizon stock down about 10%. One host says his current service was about eight times faster than SpaceX's $55 offering, and doubts many users would accept the slower speeds and higher latency of satellite connections. The guests note the spectrum suits terrestrial networks better than satellites, that building one could cost 10 billion or more, and that mobile carriers are valued at less than two times sales. With roughly 11,000 satellites in orbit and an estimated 40,000 users per newer satellite, Starlink could theoretically serve hundreds of millions, but speed and capital expenditure remain open questions.
- Why Verizon (VZ) stock is down today
Verizon (VZ) shares fell about 3.5% in the afternoon session after the company reported third-quarter revenue of $34.31 billion, up 1.5% year over year but below the $34.77 billion consensus, as wireless equipment revenue dropped 9%. Adjusted earnings were $1.31 per share, above the $1.27 consensus and up from $1.21 a year earlier. Mobility and broadband service revenue rose 2.9% to $23.5 billion, while adjusted EBITDA climbed 8% to $13.8 billion, with the margin widening to 40.2% from 37.8%. Free cash flow reached $7.8 billion, up 12%, and Verizon raised full-year guidance for a third straight quarter, including adjusted earnings of $5.04 to $5.06 per share. The company also signed an agreement worth more than $2 billion with Amazon Web Services to supply high-capacity fiber for AI data centers.
- Verizon Communications Inc. Q3 2026 Earnings Call Summary
- Verizon Raises Earnings Outlook as Quarterly Postpaid Subscribers Surge; Announces AI Infrastructure Deal With AWS
- Verizon Earnings Show Why Its Stock Is This Year's Wireless Winner
Related markets
Latest news
- Trump is using tariffs as 'tool for grift,' Raskin says in demand for donor records
House Democrat Jamie Raskin accused President Trump of using tariffs as a 'tool for grift and self-enrichment,' citing tariff carve-outs for Brazilian meat, diamonds and smartphones that he said make little sense under administration criteria, and asked for records by Nov. 11. He cited Tax Foundation data that the latest tariffs could cost an average of $820 per U.S. household this year. Raskin also argued that Section 301 tariffs on more than 80 countries, presented as a response to forced labor, may be meant to replace the 'liberation day' duties the Supreme Court struck down in February, and pointed to the lifting of forced-labor restrictions on Central Romana, whose owner reportedly hosted a $50 million fundraiser for Trump in 2024. The White House and USTR did not immediately respond to CNBC's requests for comment.
- Why Micron Technology Stock Rallied Today
Micron shares rose about 4.8% in Wednesday trading, after SK Hynix reported record fiscal 2026 third-quarter revenue of 104.6 trillion won (roughly $78.9 billion), up 328% year over year, and operating profit of 83.3 trillion won (roughly $61.7 billion). SK Hynix said demand is expected to outpace supply through 2030 and its supply is essentially sold out for the next three years, easing fears of falling memory demand from 2028, and announced it would return 100 trillion won to shareholders. The article says Micron, one of the Big Three memory makers, stands to benefit from demand for HBM, DRAM and NAND, and has locked major customers into multi-year, non-cancelable contracts. Micron stock has gained more than 340% over the past year but trades at 13 times earnings, and the author describes that valuation as attractive.
- Jim Cramer sees buying opportunities in these 2 beaten-down stocks
Stocks were little changed ahead of the Federal Reserve's rate decision, with rates widely expected to hold steady. CME FedWatch put the odds of a December rate increase at around 78%, and Jim Cramer said oil and interest rates are in control of the market. He emphasized keeping roughly 15% in cash to take advantage of potential opportunities. Boeing fell again after a 10.7% sell-off Tuesday on worries about its multiyear free cash flow outlook, though Jim argues investors are overlooking its long-term potential. GE Vernova reported a strong third quarter with orders nearly doubling and announced a $9 billion Trench Group acquisition, but the stock fell on comments that 2027 power orders could moderate; Jim called the sell-off unwarranted and said his charitable trust bought it around $820.
- Prediction: Palantir Stock Will Skyrocket After Nov. 2
Palantir shares have risen 62% over the past three months amid renewed confidence in software stocks, ahead of third-quarter results due after the close on Nov. 2. The company has beaten earnings expectations in each of the past four quarters, with Q2 revenue up 93% year over year to $1.93 billion and adjusted operating margin of 62%, versus 46% a year earlier. Consensus expects EPS of $0.46 for the current quarter, a potential 84% increase over last year. The stock trades at 181 times earnings versus 41 for the Nasdaq Composite, but the author argues strong earnings growth could justify the valuation, citing a PEG ratio of 0.63 according to Morningstar. The author suggests a better-than-expected report and guidance could lift the stock after Nov. 2.
- Amazon Q3 preview: AWS acceleration expected to lead the way
Amazon is expected to report a 12% rise in third-quarter revenue on Wednesday, with consensus at about $202.2 billion, and investors are watching whether AWS accelerates, with consensus at $45.4 billion to $45.6 billion, up around 37% to 38% from $33 billion. Bank of America forecasts AWS growth of 40% and a stable 39% operating margin, but warns that elevated expectations are a risk if investors look for AWS growth of 42% or more. On retail, card data showed online spending growth slowing to 9%, while advertising growth is expected to moderate after 26% in the second quarter, to 15% in the third quarter. Bank of America expects fourth-quarter revenue guidance of $239 billion to $246 billion, with a midpoint of $242.5 billion versus Wall Street's $244.6 billion, while its 2027 forward price-to-earnings multiple has fallen from 29 times at the end of 2025 to 23 times.
- 2 AI Stocks Down 48% to 70% to Buy Now and Hold for 10 Years
AI stocks sold off last week on worries about AI spending, though the Nasdaq Composite is still up about 12% year to date. Ciena (CIEN) is down 70% from its recent high, yet fiscal third-quarter revenue rose 37% to $1.7 billion and it had $8.5 billion in orders awaiting fulfillment. Astera Labs (ALAB) closed Oct. 22 about 48% below its 52-week high, while Q2 revenue more than doubled to $392 million and Q3 revenue is guided to $540 million to $560 million. The author argues both companies benefit from long-term AI infrastructure demand, though competition from Broadcom is a risk. The author believes Ciena will outperform the market over the next decade.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.