Published on: 2026-07-24
Updated on: 2026-07-24
Verizon’s Q2 report must prove that better retention is turning into faster subscriber growth. Results arrive before the US market opens on 24 July, with revenue expected near $35.2 billion and adjusted EPS around $1.28. Q1 produced only 55,000 postpaid phone additions, so Q2 needs a clear acceleration while total phone churn stays near 0.97%.
Verizon needs another 820,000 postpaid phone additions across Q2 to Q4 to reach the lower end of its raised annual target.
Total postpaid phone churn fell from 1.02% in Q4 to 0.97% in Q1, setting a clear retention benchmark for the quarter.
Frontier will contribute a full quarter of revenue, making service growth and customer additions more revealing than headline sales alone.
Free cash flow guidance of at least $21.5 billion must hold as Verizon repays debt following the Frontier acquisition.
| Metric | Q2 estimate |
|---|---|
| Revenue consensus | About $35.2B |
| Adjusted EPS consensus | About $1.28 |
| Implied earnings move | Roughly 4.6%-6.3% |
| Implied VZ range | About $41-$47 |
FactSet-based reporting places consensus at $35.2 billion of revenue and $1.28 of adjusted EPS. Recent options estimates range from 4.6% to 6.3%, reflecting differences in timing and calculation methods. The price range applies those moves to Verizon’s 23 July closing price of $43.82 and is not a directional forecast.
Verizon needs another 820,000 postpaid phone additions across Q2 to Q4 to reach the lower end of its raised annual target. The company added 55,000 in Q1 and now expects full-year additions in the upper half of its previous 750,000 to 1 million range, equivalent to 875,000 to 1 million.
A weak Q2 would leave more of the target for the holiday quarter. Faster additions would show that Verizon’s offers are attracting more customers rather than merely stabilising earlier losses.
Total wireless retail postpaid phone churn fell from 1.02% in Q4 to 0.97% in Q1. Faster additions with churn near or below 0.97% would confirm that retention remains controlled. Rising churn or heavier discounts would indicate that Verizon is spending more to replace departing customers.
Verizon completed the Frontier acquisition on 20 January, leaving Q1 with only a partial contribution. Q2 will include a full quarter of acquired fibre revenue, allowing reported sales to rise even if Verizon’s existing operations grow more slowly.
Mobility and broadband service revenue reached $22.9 billion in Q1, up 1.6% from a year earlier. Verizon expects that measure to grow 2%-3% to approximately $93 billion in 2026. Service revenue, broadband additions and postpaid phone growth will reveal whether the existing business also improved.
Verizon still expects at least $21.5 billion of free cash flow in 2026. Net unsecured debt reached $130.1 billion after Frontier, while leverage rose to 2.6 times adjusted EBITDA. Lower cash-flow guidance would weaken the value of a revenue beat and slow debt repayment.
VZ has gained more than 9% in 2026. Weak subscriber growth or softer guidance would put part of that advance at risk.
| Outcome | Earnings signals |
|---|---|
| Bullish | Additions accelerate, churn stays at or below 0.97%, guidance rises |
| Neutral | Estimates are met, churn stays near 0.97%, guidance holds |
| Bearish | Additions remain weak, churn rises above 0.97%, guidance falls |
Verizon reports on Friday, 24 July. Its earnings webcast begins at 8:30 a.m. Eastern Time before the US market opens.
Verizon expects at least $21.5 billion of free cash flow in 2026. Based on its Q1 share count and quarterly dividend of $0.7075 per share, the annualised dividend obligation is approximately $11.8 billion. Debt repayment remains the larger balance-sheet test.
Cost-led EPS growth may carry little weight if phone additions remain weak, service revenue slows or management lowers its outlook. A beat driven by expense reductions would not resolve the customer-growth question.
Verizon has already improved retention and reduced costs. Q2 must show that customer growth can carry more of the recovery. Faster additions with controlled churn would give VZ a firmer foundation than another quarter driven mainly by expense reductions.
