Verizon Communications Inc. Q2 2026 Earnings Recap

Verizon’s stock rose 5.8% following Q2 results that showed accelerating subscriber growth, improving customer economics, and strong free cash flow, prompting the company to raise its full-year revenue, EPS, and cash flow guidance.

Key Takeaways

• Postpaid phone net adds reached 184,000 in Q2, the best consumer postpaid phone growth in five years and the highest gross adds in eight years.
• Mobility and broadband service revenue grew 2.8% year-over-year, up from 1.6% in Q1, with Q3 and Q4 guidance now targeting near 3% and approximately 4% growth, respectively.
• Adjusted EPS increased 6.6% year-over-year to $1.30, leading to raised full-year EPS growth guidance of 6% to 7%.
• Free cash flow surged 24% year-over-year to $6.4 billion, pushing full-year free cash flow growth guidance to 9% to 10%.
• Churn improved meaningfully, with consumer postpaid phone churn declining to 84 basis points, and customer acquisition and retention costs falling 15% to 17%, reflecting enhanced operating leverage and a structural shift in the business model.