Key Stats for Verizon Stock
- Price change for Verizon stock in the last 6 months: -8%
- $VZ Stock Price as of Oct. 26: $43
- 52-Week High: $52
- $VZ Stock Price Target: $51
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What Happened?
Verizon (VZ) reported Q3 results on Monday, raised its full-year outlook, and signed a big AI deal with Amazon Web Services. Verizon stock still fell more than 3% during the day.
The best news was subscriber growth. Verizon added 406,000 postpaid phone customers, while analysts expected about 209,000.
Management credited its simpler plans, which have no subsidies, and also said every new line brought in revenue.
Verizon raised its full-year target for postpaid phone additions to 1.1 million to 1.2 million. The previous range was 750,000 to 1 million.
It also lifted its adjusted EPS forecast to $5.04 to $5.06, up from $4.99 to $5.04.
Revenue was the weak spot, which came in at $34.31 billion, below the $34.85 billion analysts expected. The company cut device subsidies, so fewer customers upgraded their phones, which hurt equipment sales.
Verizon expects the same trend in Q4.
The AWS deal is worth over $2 billion, and Verizon will provide fiber connectivity for AWS data centers.
The CEO said it is also in talks with other cloud and AI companies.
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What the Market Is Telling Us About Verizon Stock
Investors seem to be focused on the revenue miss. Verizon stock is trading lower even though subscriber growth and guidance were strong.
Some of the weak revenue is a choice, since Verizon is spending less to win customers.
The company’s own numbers support that, as the cost to acquire customers fell 41% from a year ago. Adjusted EPS was $1.31, up 8.3%.
Free cash flow was $7.8 billion, its highest quarter since 2020.
The CEO also addressed SpaceX’s plans to enter mobile. He said building a rival terrestrial network would take four to six years and estimated the cost at $300 billion to $500 billion.
He added that Verizon would be “ferociously competitive” once SpaceX arrives.
Management says its AI fiber and edge computing deals now total about $4 billion and revenue should start to show up in 2027.
For Verizon stock, the question is whether that new growth can offset slower device sales. Anyone following Verizon stock should watch the 2027 outlook, which the company plans to share on its next call.
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So what is Verizon stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
