Verizon Lifts FY26 View Despite Weak Q2, Expands Buyback To Up To $4.5 Bln; Shares Up

(RTTNews) - Shares of Verizon Communications Inc. were gaining around 3 percent in the morning trading on the NYSE, after the telecom major on Friday lifted its fiscal 2026 outlook for adjusted earnings and mobility and broadband service revenue growth view. This was despite reporting weak profit in the second quarter with slightly lower revenues. The firm also expanded its full-year share buyback target to up to $4.5 billion.

According to the company, "Intense operational discipline and improved unit economics translated directly into subscriber growth, lower churn, strong operating cash flow and industry-leading free cash flow generation."

For fiscal 2026, the company now expects adjusted earnigs per share of $4.99 to $5.04, or year-over-year growth of 6.0 to 7.0 percent. Previously, the company expected adjusted earnings per share of $4.95 to $4.99, or year-over-year growth of 5.0 to 6.0 percent.

Total retail postpaid phone net additions are now expected to be in the upper half of the 750,000 to 1.0 million range, which is approximately 2 to 3 times the 2025 reported result.

Mobility and broadband service revenue growth for 2026 is now expected to be 2.5 percent to 3.0 percent, with wireless service revenue growth approximately flat in 2026 as the company transitions to sustainable volume-based growth.

Verizon previously projected total mobility and broadband service revenue growth of 2.0 percent to 3.0 percent.

Total mobility and broadband service revenue growth is expected to approach 3.0 percent in third quarter and approximately 4.0 percent in fourth quarter of fiscal 2026.

In the second quarter, consolidated net earnings attributable to Verizon fell 23.3 percent to $3.835 billion from $5.003 billion last year.

Earnings per share declined 22 percent to $0.92 from $1.18 a year ago.

This decrease was primarily driven by $1.8 billion in pre-tax special items

Adjusted earnings of $1.30 per share for the period, compared to $1.22 in second-quarter 2025.

The company's total operating revenues for the period fell 0.7 percent to $34.253 billion from $34.504 billion last year.

On the NYSE, the shares were trading at $45.06, up 2.82 percent.

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