10-QPeriod: Q2 FY2026

VERIZON COMMUNICATIONS INC Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 31, 2026For Securities:VZ

Summary

Verizon Communications Inc. reported total operating revenues of $34.25 billion for the three months ended June 30, 2026, a slight decrease of 0.7% compared to $34.50 billion in the prior year period. For the six months ended June 30, 2026, total operating revenues increased by 1.0% to $68.69 billion from $67.99 billion in the prior year period. Net income attributable to Verizon for the three months ended June 30, 2026, was $3.84 billion, or $0.92 per diluted share, a decrease from $5.00 billion, or $1.18 per diluted share, in the same period last year. The six-month period saw net income attributable to Verizon of $8.88 billion, or $2.12 per diluted share, down from $9.88 billion, or $2.34 per diluted share, in the prior year. The company completed significant acquisitions, including Frontier Communications Parent, Inc. for approximately $9.8 billion in cash and assuming $12.9 billion in debt, and acquired spectrum licenses from UScellular for $1.0 billion and in FCC Auction 113 for approximately $3.2 billion. These strategic moves are expected to shape future growth and market position. The company also announced a joint venture with BT Group plc for international wireline connectivity and managed network services. Operating expenses increased by 2.8% to $27.07 billion for the three months and by 2.8% to $53.27 billion for the six months, driven by higher costs in services, selling, general, and administrative expenses, and depreciation. Special items, including a $746 million loss on disposition of business related to the international wireline segment, severance charges, and acquisition/integration costs, impacted profitability. Despite these pressures, the company's strategic investments and ongoing operational adjustments aim to position it for future performance.

Key Highlights

  • 1Total operating revenues for Q2 2026 were $34.25 billion, a slight decrease of 0.7% year-over-year, while six-month revenues grew 1.0% to $68.69 billion.
  • 2Net income attributable to Verizon decreased to $3.84 billion ($0.92/share) for Q2 2026 from $5.00 billion ($1.18/share) in Q2 2025.
  • 3Significant investments were made in acquisitions, including Frontier Communications for approximately $9.8 billion and spectrum licenses for $1.0 billion plus $3.2 billion from an FCC auction.
  • 4The company formed a joint venture with BT Group plc for international wireline connectivity and managed network services.
  • 5Operating expenses increased by 2.8% for both the three-month and six-month periods, driven by higher costs in services, SG&A, and depreciation.
  • 6Special items included a $746 million loss on disposition of business, severance charges, and acquisition/integration costs impacting reported earnings.
  • 7Capital expenditures for the first six months of 2026 were $8.2 billion, an increase from $8.0 billion in the prior year, primarily for fiber and wireless network investments.

Frequently Asked Questions

For the three months ended June 30, 2026, total operating revenues were $34.25 billion, a slight decrease of 0.7% year-over-year, mainly due to a revenue decrease in the Consumer segment, partially offset by growth in the Business segment. For the six months ended June 30, 2026, total operating revenues increased by 1.0% to $68.69 billion, driven by revenue growth in both Consumer and Business segments. The Consumer segment saw a 1.5% revenue decrease in Q2 but a 0.8% increase for the first half, while the Business segment showed a 2.6% increase in Q2 and a 2.2% increase for the first half.

Net income attributable to Verizon for the three months ended June 30, 2026, was $3.84 billion ($0.92 per diluted share), a decrease from $5.00 billion ($1.18 per diluted share) in the same period of 2025. For the six-month period, net income attributable to Verizon was $8.88 billion ($2.12 per diluted share), down from $9.88 billion ($2.34 per diluted share) in the prior year. This decline is attributed to increased operating expenses, including higher costs for services, SG&A, and depreciation, as well as significant special items.

Verizon completed several significant strategic actions. These include the acquisition of Frontier Communications Parent, Inc. for approximately $9.8 billion in cash and assuming $12.9 billion in debt, the acquisition of UScellular spectrum licenses for $1.0 billion, and securing AWS-3 licenses for approximately $3.2 billion. Additionally, Verizon entered into a joint venture with BT Group plc to combine international wireline connectivity and managed network services businesses. These moves are aimed at expanding the company's network capabilities and market reach.

The acquisition of Frontier Communications and other businesses contributed to increased operating revenues and operating expenses, particularly in cost of services and depreciation. The company also recorded a $746 million pre-tax loss on the disposition of its international wireline connectivity and managed network services business, which was classified as held for sale and contributed to a joint venture. Acquisition and integration-related charges, primarily associated with the Frontier acquisition, also impacted operating expenses.

Verizon's total debt stood at $165.2 billion at June 30, 2026. The company's financing activities involved significant debt repayments and borrowings. Proceeds from asset-backed debt and long-term borrowings helped offset repayments. Verizon also repurchased $3.5 billion of its common stock during the first six months of 2026 under a $25 billion repurchase program. The company maintains a mix of fixed and variable rate debt and aims to manage borrowing costs and financial flexibility.