01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Verizon Communications Inc. (VZ) reported solid financial results for the first quarter of 2026, with total operating revenues reaching $34.44 billiona, a 2.9% increase year-over-year.
This growth was primarily driven by a 3.3% increase in the Consumer segment's revenues, which benefited from the inclusion of Frontier Communications results and higher wireless equipment sales. The Business segment also showed growth, with revenues up 1.8%, aided by an increase in 'Other' revenue categories, though mobility and broadband services saw a slight decline. Net income attributable to Verizon was $5.045 billionb, or $1.20 per diluted share, representing a modest increase from the prior year.
The company successfully managed its operating expenses, which grew at a slower pace than revenues, leading to improved operating income and segment operating income margins. A significant event during the quarter was the completion of the acquisition of Frontier Communications, which contributed to increased assets, liabilities, and operating revenues, along with associated integration costs. The company also continued its share repurchase program and maintained a strong free cash flow generation of $3.78 billionc.
02—Key points
Key Highlights
- Total operating revenues increased by 2.9% year-over-year to $34.44 billion, driven by growth in both Consumer and Business segments.
- Net income attributable to Verizon rose to $5.045 billion, or $1.20 per diluted share, up from $4.879 billion ($1.15 per diluted share) in the prior year's quarter.
- The acquisition of Frontier Communications was completed, contributing to increased revenues and assets, alongside $261 million in acquisition and integration related charges.
- The Consumer segment saw a 3.3% revenue increase, largely due to the inclusion of Frontier and higher wireless equipment sales.
- The Business segment's revenue grew by 1.8%, primarily driven by 'Other' revenue categories, despite a slight decline in mobility and broadband services.
- Free cash flow increased by $146 million year-over-year to $3.78 billion, demonstrating strong operational cash generation.
- Verizon continued its share repurchase program, repurchasing approximately 50.8 million shares for $2.5 billion during the quarter.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $34.44B$33.48B | +2.9% |
| SG&A Expenses | $7.63B$7.87B | −3.1% |
| Operating Expenses | $26.20B$25.51B | +2.7% |
| Operating Income | $8.24B$7.98B | +3.3% |
| Net Income | $5.04B$4.88B | +3.4% |
| EPS (Basic) | $1.20$1.16 | +3.4% |
| EPS (Diluted) | $1.20$1.15 | +4.3% |
| Shares Outstanding (Basic) | 4.21B4.22B | −0.4% |
| Shares Outstanding (Diluted) | 4.21B4.23B | −0.4% |
05—Questions
Frequently Asked Questions
What was Verizon's revenue performance in the first quarter of 2026?
Verizon reported a 2.9% increase in total operating revenues, reaching $34.44 billion for the first quarter of 2026 compared to the same period in 2025. This growth was primarily driven by the Consumer segment, which saw a 3.3% increase, and the Business segment, which grew by 1.8%.
How did the acquisition of Frontier Communications impact the financial results?
The acquisition of Frontier Communications, completed in January 2026, contributed to the consolidated results from that point forward, increasing revenues and assets. However, it also resulted in $261 million in acquisition and integration-related charges recognized during the quarter. Additionally, $6.4 billion of the assumed debt from Frontier was repaid during the quarter.
What is Verizon's profitability and earnings per share for the quarter?
Net income attributable to Verizon for the first quarter of 2026 was $5.045 billion, an increase from $4.879 billion in the prior year. Diluted Earnings Per Common Share was $1.20, up from $1.15 in the first quarter of 2025.
How is Verizon managing its debt and cash flow?
Verizon generated $7.984 billion in cash from operating activities and reported free cash flow of $3.783 billion for the quarter, an increase from the prior year. The company also actively managed its debt, with proceeds from new borrowings partially offsetting significant repayments, including those related to the Frontier acquisition. During the quarter, Verizon also repurchased approximately $2.5 billion of its common stock.
06—Continue