Verizon outperforms earnings expectations — and the stock climbs
Verizon Stock Rises as Strong Q4 Earnings Beat Expectations
Verizon’s stock climbed following the release of its latest earnings report, which exceeded analysts’ projections. The company’s fourth-quarter results highlighted significant growth in both mobile and broadband subscriptions, reflecting strong consumer demand.
Postpaid phone net additions surged to 568,000, up from 449,000 in the previous year, while total broadband net additions reached 408,000, compared to 350,000 a year earlier. Consumer revenue saw a 2.2% year-over-year increase, rising to $27.6 billion, while Verizon Business revenue experienced a slight decline of 1.5%, totaling $7.5 billion.
Despite this dip in business revenue, Verizon reported a substantial increase in free cash flow, which rose to $19.8 billion from $18.7 billion in the prior year. This financial strength reassured investors and contributed to the positive market reaction.
Price adjustments for Verizon’s services played a key role in driving revenue growth, helping to offset the decline in business segment revenues. The company’s ability to leverage its robust network infrastructure and loyal customer base continues to position it well in an evolving telecommunications landscape.
Verizon’s strong Q4 performance underscores its resilience and adaptability, reinforcing its status as a leading player in the industry.
Verizon’s latest earnings report exceeded analyst expectations, driving a rise in the company’s stock price. The telecom giant reported 568,000 postpaid phone net additions, a significant jump from 449,000 in the previous year. Meanwhile, broadband net additions climbed to 408,000, up from 350,000 a year earlier, highlighting steady subscriber growth in key service areas.
The company’s consumer revenue rose 2.2% year-over-year to $27.6 billion, driven by price adjustments and strong demand for its mobile services. However, Verizon Business revenue dipped 1.5% to $7.5 billion, reflecting ongoing challenges in that segment.
A major highlight of the report was Verizon’s free cash flow, which grew to $19.8 billion from $18.7 billion in the previous year. This financial strength reinforced investor confidence, helping offset concerns over the business revenue decline.
Verizon's success in navigating market conditions reflects its strategic pricing initiatives and continued investment in network infrastructure. The company’s ability to balance revenue growth with operational efficiency underscores its resilience in an evolving telecom landscape.