Verizon Delivers Solid Q3 EPS Beat Despite Revenue Miss, Reaffirms Guidance

Verizon Communications Inc. (VZ) recently released its third-quarter 2025 earnings report, showcasing a steady performance amidst evolving market dynamics. The results highlight how the company’s operational resilience and customer-focused strategies are shaping its outlook for the remainder of the year.

Q3 Revenue Misses Slightly, but Adjusted EPS Tops Expectations

Verizon reported an EPS of $1.17 for the third quarter of 2025, slightly below the expected $1.19. However, the adjusted EPS, excluding special items, was $1.21, surpassing expectations. This indicates a robust operational performance despite challenging economic conditions. Total operating revenue for the quarter was $33.8 billion, falling short of the anticipated $34.18 billion. This 1.5% year-over-year increase highlights a modest growth trajectory, yet it reflects the competitive pressures and market challenges Verizon faces.

Wireless service revenue reached $21.0 billion, marking a 2.1% increase year-over-year, underscoring Verizon’s stronghold in the wireless sector. The company also noted a 5.2% rise in wireless equipment revenue, totaling $5.6 billion. These figures demonstrate Verizon’s continued leadership in the wireless market, despite the revenue shortfall.

In terms of consumer metrics, Verizon experienced a slight decline in wireless retail postpaid phone net additions, reporting a loss of 7,000 compared to 18,000 additions in the same quarter of the previous year. Nevertheless, consumer wireless service revenue grew by 2.4%, reaching $17.4 billion. The segment’s operating income rose by 0.8% to $7.7 billion, reflecting a stable financial position.

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Verizon Targets 2–3% EPS Growth and Continued Cost Discipline

Looking ahead, Verizon remains confident in its full-year financial guidance. The company projects total wireless service revenue growth between 2.0% and 2.8%, with adjusted EBITDA expected to increase by 2.5% to 3.5%. Adjusted EPS is forecasted to grow by 1.0% to 3.0%, indicating a cautiously optimistic outlook amid economic uncertainties.

Verizon’s strategic focus on a customer-first approach is at the core of its future plans. CEO Dan Schulman emphasized the need for bold actions to redefine the company’s trajectory. This involves transforming Verizon’s culture, cost structure, and financial profile to prioritize customer satisfaction and shareholder returns.

Capital expenditures for 2025 are expected to remain within or below the previously guided range of $17.5 billion to $18.5 billion. Additionally, Verizon anticipates cash flow from operations to range between $37.0 billion and $39.0 billion, with free cash flow projected at $19.5 billion to $20.5 billion. These financial targets underscore Verizon’s commitment to maintaining a strong financial foundation while investing in growth and innovation.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.