Abstract

Verizon Communications Inc. will report fourth-quarter 2025 results on January 30, 2026 Pre-Market; consensus points to stable revenue and margins with a cautious EPS trajectory as investors weigh disciplined cost actions and service revenue momentum.

Market Forecast

Consensus for the current quarter points to revenue of $36.06 billion, an EPS of $1.05, and EBIT of $7.17 billion, implying year-over-year growth of 2.09% for revenue and a 3.77% decline for EPS; EBIT is forecast to decline by 5.41% year over year. Margin expectations embedded in forecasts indicate modest pressure on profitability despite stable top-line trends, with management focus on cost epsilon and mix potentially supporting gross profit margin and net profit margin.

From its last report and business trends, Verizon’s core wireless and service businesses remain the central revenue driver, with broadband net additions offsetting phone line softness and an emphasis on cost discipline supporting outlook. The segment with the largest growth potential remains broadband and fixed wireless access within consumer and business channels, where accelerating net adds and cross-sell into bundled services are expected to sustain revenue expansion on a year-over-year basis.

Last Quarter Review

In the previous quarter, Verizon reported revenue of $33.82 billion, a gross profit margin of 60.54%, GAAP net profit attributable to shareholders of $4.95 billion with a net profit margin of 14.64%, and adjusted EPS of $1.21, with year-over-year adjusted EPS growth of 1.68%.

A key highlight was disciplined execution under the new leadership agenda focused on improving cost structure and reinforcing capital allocation, while reaffirming the full-year guide for wireless service revenue growth. Main business performance showed “Services and Other” revenue of $28.20 billion and “Wireless” revenue of $5.62 billion, underscoring the heavy mix toward service-related revenue sources and a stable wireless contribution.

Current Quarter Outlook (with major analytical insights)

Core Wireless and Services Trajectory

The core wireless and service operations anchor the quarter’s performance. Forecast revenue of $36.06 billion suggests modest sequential acceleration into the seasonally active holiday quarter, but a restrained earnings profile with EPS at $1.05 indicates elevated promotional intensity and ongoing device subsidy dynamics. Management’s emphasis on “bold and fiscally responsible” actions aligns with market expectations for tighter operating expense control, which is crucial to defend gross profit margin near recent levels. The consumer postpaid phone base remains a swing factor; modest net losses last quarter versus growth reported by competitors indicate a competitive backdrop that may pressure service ARPU and upgrade cycles. Enterprise and public sector service revenue trends should provide ballast, but elasticity to macro conditions persists, especially for discretionary communications and networking spend. Taken together, the wireless and services portfolio is positioned for stable revenue with moderate margin compression, pending the balance of pricing, promotions, and churn containment.

Broadband and Fixed Wireless Access as Growth Catalyst

Broadband and fixed wireless access represent the largest incremental growth opportunity visible in the near term. Net additions were strong into the prior quarter, reinforcing a structural shift as households embrace 5G fixed wireless for primary or backup connectivity. The economics of fixed wireless access — leveraging underutilized spectrum capacity during off-peak hours — can be attractive when customer acquisition cost and churn are contained, supporting mid-term EBITDA leverage. Cross-selling converged offerings (mobile + home internet) can improve customer lifetime value and reduce churn, while selective fiber expansion preserves premium ARPU in dense markets. For the current quarter, investors will scrutinize whether holiday promotions pulled forward demand or sustained run-rate additions; a steady cadence would support the case for revenue expansion and a favorable mix shift that cushions margin pressure in mobile. Additionally, the extension of business internet and private 5G deployments offers incremental top-line opportunities, although procurement cycles could temper near-term conversion.

Stock Price Drivers: Cost Discipline, Churn/Net Add Trends, and Margin Mix

The stock’s immediate reaction is likely to hinge on three intertwined elements: cost discipline, subscriber flows, and margin mix. First, operating expense control must visibly translate into EBIT protection to offset the EPS headwind embedded in consensus. Initiatives around network efficiencies, channel optimization, and SG&A control are expected to manifest in sequential OPEX moderation; investors will look for quantified run-rate savings to support fiscal 2026 earnings quality. Second, churn and net add trends in postpaid phones and fixed wireless are the pulse of service revenue durability; any sign of stabilization or improvement versus the prior quarter could catalyze a positive revision path. Third, margin mix will be influenced by device volumes and subsidy levels during the holiday period; a heavier premium device mix typically elevates near-term cost of service but can lift ARPU over time, compressing EPS in the short term but improving lifetime economics. Guidance discipline that emphasizes profitable growth should be rewarded, particularly if management maintains its stance on avoiding uneconomic share grabs.

Analyst Opinions

Institutional commentary over the past six months has leaned positive, with a majority framing the setup as constructive on execution and cost control. Following the last report, several analysts noted improved messaging clarity from management and reaffirmation of full-year goals, reducing fears of a high-intensity price war. Market commentary highlighted that the new CEO’s commitment to “bold and fiscally responsible” moves helps reconcile growth ambitions with financial discipline, an equilibrium that the market has favored in the recent telecommunications cycle. Analysts spotlight the resilient service revenue base and broadband net add trajectory as near-term supports to revenue stability, while cautioning that competitive intensity around postpaid phones remains an overhang for EPS.

The positive camp emphasizes that forecast revenue growth of 2.09% alongside EBIT of $7.17 billion and EPS of $1.05 is achievable if operating expense initiatives deliver as outlined and if fixed wireless momentum persists through the quarter. Commentaries further posit that the reaffirmed outlook on wireless service revenue growth and holiday seasonality could underpin a small sequential uplift in total revenue without outsized pressure on cash costs. The result is a consensus that skews optimistic: stable top-line performance combined with measured cost actions and a pragmatic promotional stance could validate the company’s margin trajectory and support the shares if subscriber trends are within guideposts.