Verizon makes its money from a hard-to-replace infrastructure business. Revenue is comparatively predictable, free cash flow is sufficient to support a high dividend, and the valuation appears moderate. At the same time, the group is growing only slowly, invests heavily and carries high debt. Following the share-price recovery in 2026, the market is already pricing in part of the hoped-for operational stabilisation.
1. Quick overview
Verizon is primarily an income and infrastructure stock. The investment thesis stands and falls less on strong revenue growth than on cash flow, customer retention, network quality and debt management.
For private investors, this means that the ongoing distribution matters more than a rapid share-price increase. The margin of safety comes from stable service revenue and resilient cash flow, not from lofty growth expectations.
| Metric | Value |
|---|---|
| Name | Verizon Communications Inc. |
| Ticker | VZ |
| WKN | 868402 |
| ISIN | US92343V1044 |
| Country | USA |
| Sector | Communication Services |
| Industry | Diversified Telecommunication Services |
| Market capitalisation | approx. USD 192.2bn |
| Dividend yield | approx. 6.12% |
| P/E ratio (TTM) | approx. 12.30 |
| P/S ratio (TTM) | approx. 1.41 |
The market data refer to 30 July 2026. The share price was around USD 46.26 at that time. The annualised dividend of USD 2.83 per share therefore corresponds to a yield of approximately 6.12%. The P/E ratio, P/S ratio and market capitalisation remain snapshots.
2. Company profile
2.1 History & founding
Verizon Communications was created on 30 June 2000 through the merger of Bell Atlantic and GTE. The stock has traded under the ticker VZ on the New York Stock Exchange since 3 July 2000.
The company is therefore not a young technology stock, but an established network operator with extensive infrastructure, high fixed costs and long-standing customer relationships. This history explains much about the stock. Verizon can rely on stable revenue and enormous network reach, but moves more slowly than capital-light business models.
In January 2026, Verizon also completed the acquisition of Frontier Communications. This increased the reach of its fibre network to almost 30 million so-called Fiber Passings across 31 U.S. states and Washington, D.C. The acquisition is intended to connect wireless and broadband more closely, but initially also increases integration and financing requirements.
2.2 Business model
Verizon offers wireless, broadband, fixed-line, fibre, Fixed Wireless Access and solutions for business customers. It also provides Internet of Things services, security solutions and managed networks for businesses and public institutions.
The business is divided into the Consumer and Business segments. In 2025, Consumer generated around USD 106.8bn in revenue, accounting for approximately 77% of group revenue. Business contributed around USD 29.1bn, or approximately 21%.
The economic core remains wireless. Revenue from recurring service contracts provides a relatively high degree of predictability. At the same time, the business is capital-intensive: Verizon must regularly invest in radio networks, fibre, spectrum and technical infrastructure. Device revenue is more volatile and can decline when upgrade activity falls.
The strength of the model therefore lies not in rapid growth, but in the combination of recurring revenue, broad network coverage and high recurring cash flows. Its weakness lies in the capital requirements. A significant portion of the money must remain in the company before dividends and debt repayment become possible.
2.3 Industry & segments (GICS)
Under GICS, Verizon belongs to the Communication Services sector and the Diversified Telecommunication Services industry. Financial portals sometimes list the stock more generally under Telecom Services.
Telecommunications is a defensive industry, but not a low-risk business. Demand for wireless and internet remains relatively stable. At the same time, Verizon, AT&T, T-Mobile, cable providers and increasingly satellite-based services compete for customers and prices.
The industry therefore combines predictable revenue with high capital requirements, limited growth and substantial debt. Verizon does not have to grow by double digits every year. It does, however, have to generate enough cash flow on a sustained basis to finance network expansion, interest, dividends and debt service at the same time.
3. Historical share-price performance
The Verizon stock was not a classic winner in recent years. The closing price was USD 41.44 at the end of 2020, USD 38.31 at the end of 2021 and only USD 30.64 at the end of 2022. Rising interest rates, high investment and scepticism towards highly leveraged telecom stocks weighed particularly heavily in 2022.
The price then stabilised. At the end of 2023 it stood at USD 31.47, at the end of 2024 it was USD 35.60 and at the end of 2025 around USD 38.78. The price gains from 2023 to 2025 were positive but modest. The dividend was more important to total return than the pure increase in the share price.
The picture initially changed significantly in 2026. The closing price on 29 July was USD 47.22. According to Macrotrends, this corresponds to a price increase of around 21.8% compared with the end of 2025. After the strong second-quarter figures, the stock then rose sharply again.
The market therefore no longer values Verizon merely as a sluggish dividend stock. Expectations of operational stabilisation have risen. In the second quarter of 2026, adjusted EBITDA grew by 7.2% to USD 13.7bn, free cash flow was USD 6.4bn and the full-year guidance was raised. At the same time, however, the group reported a 0.7% decline in revenue because device revenue fell significantly.
The current share-price phase has therefore already priced in part of the turnaround. For further gains, Verizon must show that better margins, broadband growth and lower debt can fit together on a sustained basis.
Verizon USD
Interactive price history chart for Verizon USD (USD).
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4. Fundamental analysis
4.1 Earnings development – last five financial years
The earnings development shows a mature group with high operational stability but little growth. Revenue in 2025 was only around 3.4% above the 2021 figure.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | USD 133.61bn | USD 136.84bn | USD 133.97bn | USD 134.79bn | USD 138.19bn |
| Revenue growth | 4.1% | 2.4% | -2.1% | 0.6% | 2.5% |
| EBIT | USD 32.45bn | USD 30.47bn | USD 28.72bn | USD 28.69bn | USD 29.26bn |
| EBIT margin | 24.3% | 22.3% | 21.4% | 21.3% | 21.2% |
| Net income | USD 22.07bn | USD 21.26bn | USD 11.61bn | USD 17.51bn | USD 17.17bn |
| Net margin | 16.5% | 15.5% | 8.7% | 13.0% | 12.4% |
| Diluted EPS | USD 5.29 | USD 5.12 | USD 2.76 | USD 4.15 | USD 4.06 |
| Free cash flow | USD 19.3bn | USD 14.1bn | USD 18.7bn | USD 19.8bn | USD 20.1bn |
| Dividend yield | 6.5% | 8.5% | 8.3% | 7.5% | 7.0% |
Revenue has moved within a narrow range for years. 2025 did bring growth of 2.5%, but most of it came from the Consumer segment. The Business division shrank by 1.6%. For a telecommunications group, this stability is useful, but it is not enough for a classic growth valuation.
For private investors, the table therefore mainly means one thing: Verizon offers predictability, but little operational leverage for significantly rising earnings. The return must come primarily from cash flow and the dividend.
The operating margin fell from 24.3% in 2021 to 21.2% in 2025. Verizon still earns a great deal of money, but the business is no longer quite as profitable as it was at the beginning of the period under review. The earnings decline in 2023 was also affected by one-off items. Results normalised in 2024 and 2025 without returning to the 2021 or 2022 level.
Free cash flow is more important to the stock than accounting net income. It fell to USD 14.1bn in 2022 because of high investment. It then recovered to USD 20.1bn in 2025. Verizon paid around USD 11.5bn in dividends in 2025. FCF therefore covered the distribution by approximately 1.75 times. That is useful coverage, but not a sign of an entirely relaxed capital position.
The imported DERIVED free-cash-flow series was not used for this table because it cannot be reconciled with operating cash flow minus CapEx. The official Verizon figures are more reliable on this point.
Revenue and Net Income
Show data table
| Zeitraum | Revenue (Bn USD) | Net Income (Bn USD) |
|---|---|---|
| FY 2019 | 131.87 | 19.27 |
| FY 2020 | 128.29 | 17.80 |
| FY 2021 | 133.61 | 22.07 |
| FY 2022 | 136.84 | 21.26 |
| FY 2023 | 133.97 | 11.61 |
| FY 2024 | 134.79 | 17.51 |
| FY 2025 | 138.19 | 17.17 |
4.2 Balance-sheet quality and returns on capital – last five financial years
Verizon’s balance sheet is sound but heavy. The company owns a large asset base and finances a significant portion of it with debt.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Total assets | USD 366.60bn | USD 379.68bn | USD 380.26bn | USD 384.71bn | USD 404.26bn |
| Cash and cash equivalents | USD 2.92bn | USD 2.61bn | USD 2.07bn | USD 4.19bn | USD 19.05bn |
| Total Current Assets | USD 36.73bn | USD 37.86bn | USD 36.81bn | USD 39.37bn | USD 56.92bn |
| Long-term debt | USD 143.43bn | USD 140.68bn | USD 137.70bn | USD 121.38bn | USD 139.53bn |
| Total equity | USD 83.20bn | USD 92.46bn | USD 93.80bn | USD 100.58bn | USD 105.74bn |
The asset base grew by around 10% between 2021 and 2025. Equity grew more strongly, rising from USD 83.2bn to USD 105.7bn. The marked increase in cash in 2025 is a positive feature. The balance sheet therefore offers more short-term protection than in previous years.
In practical terms, Verizon has built up more liquidity, but its high debt means that it remains dependent on continuous cash inflows and functioning refinancing.
However, the imported balance sheet contains an obvious error for 2024: The line for net property, plant and equipment shows USD 554.29bn. This produces total assets of USD 829.33bn, while “Total Liabilities & Equity” produces a consistent total of USD 384.71bn. The analysis therefore used the balance-sheet identity.
Debt remains the more difficult part of the balance sheet. In 2025, short- and long-term debt together amounted to around USD 158.2bn. That is more than 1.5 times equity. The Frontier acquisition is also not included in the historical annual table and increases the focus on financing in 2026.
Returns on capital show how heavily Verizon depends on high recurring cash flows.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| ROE (adj.) | 26.5% | 23.0% | 6.2% | 17.4% | 16.2% |
| ROA (adj.) | 6.0% | 5.6% | 1.5% | 4.6% | 4.2% |
| ROIC | 9.9% | 9.4% | 4.9% | 5.2% | 7.9% |
| Current Ratio | 0.78 | 0.75 | 0.69 | 0.61 | 0.91 |
| Net Debt/EBITDA | 3.04 | 3.11 | 3.21 | 3.00 | 2.92 |
Returns on capital recovered after the weak year 2023. However, ROA remains low at 4.2% in 2025. This is due to the large asset base Verizon needs for its network, spectrum and infrastructure. ROE appears higher, but is partly supported by financial leverage.
The Current Ratio was below 1.0 in every year. This does not automatically mean an acute liquidity crisis, but it shows that Verizon remains dependent on ongoing cash inflows and functioning refinancing. Net Debt/EBITDA is close to 3. For a stable telecommunications business, this is sustainable, but it leaves little room for prolonged operational setbacks.
In the second quarter of 2026, Verizon reported net debt to adjusted EBITDA of 2.5. The ratio has therefore improved. Deleveraging must, however, withstand the costs of integrating Frontier, further network investment and the dividend policy.
4.3 Dividend and distribution policy – last five financial years
Verizon raises its dividend regularly, although only in small increments. This fits a mature telecommunications group with limited revenue growth.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Dividend per share | USD 2.507 | USD 2.605 | USD 2.618 | USD 2.667 | USD 2.717 |
| Payout ratio | 47.3% | 50.8% | 94.9% | 64.3% | 66.9% |
Dividend per share rose by around 8% between 2021 and 2025. In 2023, the payout ratio jumped to almost 95% because of weak net income. Free cash flow painted a less strained picture at the time because the dividend continued to be covered by operating cash inflows.
For 2025, around USD 20.1bn in FCF and USD 11.5bn in dividend payments imply solid, but not generous, coverage. The annualised dividend is now USD 2.83 per share. The yield of around 6% is attractive, but also compensates for weak growth, high debt and the capital requirements of the business.
5. Valuation analysis
Verizon is moderately valued on the basis of classic earnings and revenue multiples. The low valuation is, however, closely linked to slow growth and high debt.
| Metric | Value |
|---|---|
| P/E ratio (TTM) | 12.30 |
| Forward P/E ratio | 9.30 |
| P/S ratio (TTM) | 1.41 |
| EV/Sales | 2.76 |
| ROE (current) | 15.84% |
| Dividend per share (last completed FY) | USD 2.72 |
A P/E ratio of 12.3 does not appear high for an established group. The forward P/E ratio of 9.3, however, assumes that earnings and cash flows will actually improve. Among other things, Verizon expects adjusted EPS growth of 6% to 7% and FCF growth of 9% to 10% in 2026.
The gap between P/S and EV/Sales shows the importance of debt. On the basis of equity value, Verizon costs around 1.4 times revenue. Once net debt is included through enterprise value, the ratio rises to approximately 2.8. The stock must therefore be assessed not only by its earnings, but also by how the business is financed.
The 2026 share-price recovery has already anticipated part of the turnaround expectations. The dividend and moderate P/E ratio still provide a certain buffer. For a significant re-rating, however, Verizon needs more than stable figures: The group must show growth, deleveraging and better returns on capital at the same time.
For private investors, the valuation is therefore not an isolated P/E issue. The room for a higher valuation depends on whether the expected increase in cash flow after investment, interest and dividends actually contributes to deleveraging.
6. Opportunities and risks
6.1 Opportunities
- Recurring wireless and broadband revenue gives Verizon a comparatively stable cash-flow base.
- The Frontier acquisition expands fibre reach to almost 30 million Fiber Passings and creates cross-selling opportunities between wireless and broadband.
- The second quarter of 2026 showed better operational momentum: Adjusted EBITDA rose by 7.2% and FCF by 24.4%.
- Further improvement in the Net Debt/EBITDA ratio could ease the balance sheet and increase the room for distributions.
- The moderate valuation and dividend yield of around 6% limit expectations more than they do for highly valued growth stocks.
6.2 Risks
- Revenue growth remains low. In the second quarter of 2026, group revenue fell by 0.7% despite better service revenue because device revenue declined significantly.
- Debt remains high. Rising interest rates or weaker cash flows would quickly reduce financial headroom.
- Telecommunications is capital-intensive. Network expansion, spectrum, fibre and technical modernisation require high ongoing investment.
- The Frontier integration must generate additional revenue and efficiency gains without permanently burdening the balance sheet.
- Competition from T-Mobile, AT&T, cable providers and satellite-based networks can put pressure on customer retention, prices and margins.
7. Conclusion and assessment
Verizon is a robust but sluggish infrastructure group. Revenue fluctuates comparatively little, free cash flow is high and the dividend has been raised for years. The business model therefore provides real substance, but only limited growth momentum.
The valuation appears moderate, but the low multiple is not without reason. Verizon carries substantial debt, requires high investment and must first translate the Frontier expansion into sustainably higher earnings. The current share-price recovery has already priced in some of this hope.
Editorially, Verizon therefore remains primarily a cash-flow and dividend stock with potential for operational improvement. A convincing re-rating requires more than stable revenue: The group needs to show visible progress in service growth, returns on capital and debt. The stock is more a bet on ongoing income and gradual stabilisation than on strong structural growth.
This analysis is intended solely for editorial information purposes and does not constitute investment advice, a recommendation to buy or an invitation to trade securities. Despite careful preparation, no guarantee can be given regarding the timeliness, completeness or accuracy of the information. In particular, market-related metrics such as market capitalisation, dividend yield, P/E ratio, P/S ratio or EV/Sales should be verified again with up-to-date data before publication or an investment decision.
What exactly does Verizon do?
Verizon is a U.S. telecommunications company offering mobile services, broadband, fiber-optic connections, Fixed Wireless Access, and business solutions.
Is Verizon more of a growth stock or a dividend stock?
Verizon is primarily a dividend and cash flow stock. Revenue growth is usually in the low single-digit range.
What is the current dividend yield?
At a share price of around $46.26 and an annualized dividend of $2.83, the yield is approximately 6.12%.
What is Verizon’s biggest strength?
Its key strength is recurring service revenue from mobile and broadband services. This provides a relatively stable foundation for cash flow and dividends.
What is the company’s biggest problem?
Verizon is growing only slowly while carrying a high level of debt. This makes the company sensitive to interest rates, competition, and weaker cash flows.
Is Verizon stock attractively valued?
With a TTM P/E ratio of around 12.3 and a forward P/E ratio of approximately 9.3, the stock appears moderately valued. However, the low valuation also reflects its limited growth prospects.
How sustainable is the dividend?
The dividend was covered by free cash flow in 2025. However, due to the high level of debt and ongoing capital requirements, its long-term sustainability remains dependent on stable cash flows and continued balance sheet discipline.
Note: This analysis is for informational purposes only and does not constitute investment advice. Investing in stocks involves risks.
