Telecommunications giant Verizon (NYSE: VZ) fell short of the markets revenue expectations in Q3 CY2025 as sales only rose 1.5% year on year to $33.82 billion. Its non-GAAP profit of $1.21 per share was 1.5% above analysts’ consensus estimates.

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Company Overview

Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE: VZ) is a telecom giant providing a range of communications and internet services.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, Verizon’s sales grew at a weak 1.4% compounded annual growth rate over the last five years. This was below our standards and is a rough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Verizon’s annualized revenue growth of 1.3% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.

This quarter, Verizon’s revenue grew by 1.5% year on year to $33.82 billion, falling short of Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 2.3% over the next 12 months, similar to its two-year rate. While this projection suggests its newer products and services will catalyze better top-line performance, it is still below average for the sector.

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Operating Margin

Verizon’s operating margin has been trending up over the last 12 months and averaged 19.7% over the last two years. On top of that, its profitability was top-notch for a consumer discretionary business, showing it’s an well-run company with an efficient cost structure.

In Q3, Verizon generated an operating margin profit margin of 24%, up 6.2 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Verizon’s flat EPS over the last five years was below its 1.4% annualized revenue growth. However, its operating margin didn’t change during this time, telling us that non-fundamental factors such as interest and taxes affected its ultimate earnings.

In Q3, Verizon reported adjusted EPS of $1.21, up from $1.19 in the same quarter last year. This print beat analysts’ estimates by 1.5%. Over the next 12 months, Wall Street expects Verizon’s full-year EPS of $4.72 to grow 1.8%.

Key Takeaways from Verizon’s Q3 Results

Revenue missed, but EPS managed to beat as the company lifted operating margin year on year. Overall, this was a mixed quarter. The stock traded up 2.8% to $40.41 immediately following the results.

Is Verizon an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.