📊 VZ Key Takeaways
Is Verizon Communications Inc. (VZ) a Good Investment?
Verizon demonstrates solid fundamental health with strong operating margins (21.2%) and robust free cash flow generation ($24.8B), supporting its mature telecom operations. However, declining net income (-2.5% YoY) and elevated leverage (1.32x D/E) constrain upside potential, while modest revenue growth (+2.5% YoY) reflects industry maturity.
Verizon shows strong underlying cash generation and solid operating profitability, with a 21.2% operating margin and $24.80B of free cash flow on $138.19B of revenue. However, growth quality is modest as revenue rose 2.5% while net income and diluted EPS declined, and the balance sheet remains heavily leveraged with $139.53B of long-term debt and sub-1.0 liquidity ratios. The fundamentals support resilience rather than clear acceleration.
Why Buy Verizon Communications Inc. Stock? VZ Key Strengths
- Strong operating margins at 21.2% indicating efficient operational execution
- Robust free cash flow of $24.8B with 17.9% FCF margin providing capital flexibility
- Solid interest coverage ratio of 8.8x demonstrating adequate debt servicing capability
- Healthy ROE of 16.2% generating reasonable shareholder returns
- Strong free cash flow generation with $24.80B in FCF and a 17.9% FCF margin
- Healthy operating profitability, including a 21.2% operating margin and 8.8x interest coverage
- Large asset and equity base with ROE of 16.2%, indicating decent capital productivity
VZ Stock Risks: Verizon Communications Inc. Investment Risks
- Deteriorating profitability with net income declining 2.5% YoY despite revenue growth
- Elevated leverage at 1.32x debt-to-equity ratio constraining financial flexibility
- Weak liquidity position with current ratio of 0.91x below ideal threshold
- Sluggish revenue growth of 2.5% YoY reflecting mature, saturated market conditions
- Earnings quality is mixed as revenue growth did not translate into net income or EPS growth
- High leverage remains a constraint, with long-term debt of $139.53B and debt-to-equity of 1.32x
- Liquidity is tight, with current ratio of 0.91x and quick ratio of 0.87x
Key Metrics to Watch
- Net income trend reversal and margin expansion trajectory
- Debt reduction pathway and leverage ratio improvement
- Free cash flow sustainability and capital expenditure efficiency
- Revenue growth acceleration potential in core segments
- Free cash flow after capital expenditures
- Net income and diluted EPS trend versus revenue growth
Verizon Communications Inc. (VZ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
VZ Profit Margin, ROE & Profitability Analysis
VZ vs Telecom Sector: How Verizon Communications Inc. Compares
How Verizon Communications Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Verizon Communications Inc. Stock Overvalued? VZ Valuation Analysis 2026
Based on fundamental analysis, Verizon Communications Inc. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Verizon Communications Inc. Balance Sheet: VZ Debt, Cash & Liquidity
VZ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Verizon Communications Inc.'s revenue has shown modest growth of 3% over the 5-year period. The most recent EPS of $2.75 reflects profitable operations.
VZ Revenue Growth, EPS Growth & YoY Performance
VZ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $33.3B | $3.3B | $0.78 |
| Q2 2025 | $32.8B | $4.6B | $1.09 |
| Q1 2025 | $33.0B | $4.6B | $1.09 |
| Q3 2024 | $33.3B | $3.3B | $0.78 |
| Q2 2024 | $32.6B | $4.6B | $1.09 |
| Q1 2024 | $32.9B | $4.6B | $1.09 |
| Q3 2023 | $33.3B | $4.8B | $1.13 |
| Q2 2023 | $32.6B | $4.6B | $1.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Verizon Communications Inc. Dividends, Buybacks & Capital Allocation
VZ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Verizon Communications Inc. (CIK: 0000732712)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775849000.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775848960.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775848922.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775848867.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775848824.xml | View → |
❓ Frequently Asked Questions about VZ
What is the AI rating for VZ?
Verizon Communications Inc. (VZ) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are VZ's key strengths?
Claude: Strong operating margins at 21.2% indicating efficient operational execution. Robust free cash flow of $24.8B with 17.9% FCF margin providing capital flexibility. ChatGPT: Strong free cash flow generation with $24.80B in FCF and a 17.9% FCF margin. Healthy operating profitability, including a 21.2% operating margin and 8.8x interest coverage.
What are the risks of investing in VZ?
Claude: Deteriorating profitability with net income declining 2.5% YoY despite revenue growth. Elevated leverage at 1.32x debt-to-equity ratio constraining financial flexibility. ChatGPT: Earnings quality is mixed as revenue growth did not translate into net income or EPS growth. High leverage remains a constraint, with long-term debt of $139.53B and debt-to-equity of 1.32x.
What is VZ's revenue and growth?
Verizon Communications Inc. reported revenue of $138.2B.
Does VZ pay dividends?
Verizon Communications Inc. pays dividends, with $11,481.0M distributed to shareholders in the trailing twelve months.
Where can I find VZ SEC filings?
Official SEC filings for Verizon Communications Inc. (CIK: 0000732712) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VZ's EPS?
Verizon Communications Inc. has a diluted EPS of $4.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is VZ a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Verizon Communications Inc. has a HOLD rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is VZ stock overvalued or undervalued?
Valuation metrics for VZ: ROE of 16.2% (sector avg: 15%), net margin of 12.4% (sector avg: 14%). Higher ROE suggests strong returns relative to peers.
Should I buy VZ stock in 2026?
Our dual AI analysis gives Verizon Communications Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VZ's free cash flow?
Verizon Communications Inc.'s operating cash flow is $37.1B, with capital expenditures of $12.3B. FCF margin is 17.9%.
How does VZ compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 12.4% (avg: 14%), ROE 16.2% (avg: 15%), current ratio 0.91 (avg: 1).