Verizon’s third quarter saw a positive market reaction despite missing Wall Street’s revenue expectations, reflecting investor confidence in the company’s evolving strategy under new CEO Dan Schulman. Management attributed steady performance to increased upgrades in its consumer base, the expansion of converged offerings, and ongoing cost discipline. Schulman acknowledged that while Verizon’s network investments have built a strong foundation, customer growth has lagged. CFO Anthony Skiadas credited a “combination of pricing actions and cost reduction” for supporting earnings and cash flow, while also highlighting the company’s continued focus on broadband and prepaid subscriber growth.
Is now the time to buy VZ? Find out in our full research report (it’s free for active Edge members).
Verizon (VZ) Q3 CY2025 Highlights:
- Revenue: $33.82 billion vs analyst estimates of $34.23 billion (1.5% year-on-year growth, 1.2% miss)
- Adjusted EPS: $1.21 vs analyst estimates of $1.19 (1.5% beat)
- Adjusted EBITDA: $12.78 billion vs analyst estimates of $12.73 billion (37.8% margin, in line)
- Operating Margin: 24%, up from 17.8% in the same quarter last year
- Customers: 146.1 million, down from 146.1 million in the previous quarter
- Market Capitalization: $165.8 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Verizon’s Q3 Earnings Call
- John Hodulik (UBS) asked how CEO Dan Schulman plans to drive consumer volume growth and shift Verizon’s strategy. Schulman emphasized a pivot to a customer-centric model focused on retention and smarter value propositions, rather than promotional activity.
- Benjamin Swinburne (Morgan Stanley) questioned Verizon’s reliance on price increases and the sustainability of its pricing model. Schulman responded that the plan is to address customer pain points through improved value perception, not aggressive back book repricing, and to win new postpaid customers responsibly.
- Michael Ng (Goldman Sachs) explored parallels between Schulman’s experience at PayPal and Verizon’s turnaround. Schulman cited the need for a cultural shift toward being a “customer champion,” with efficiency gains funding improved customer offerings.
- Mike Rollins (Citigroup) inquired about the future of convergence and the proportion of legacy versus growth businesses. Schulman and Skiadas outlined continued investment in fiber and wireless convergence, portfolio optimization, and potential exits from underperforming legacy segments.
- Peter Supino (Wolfe Research) probed the logic behind organic versus acquired fiber buildout and the scope of cost reduction opportunities. Skiadas explained the capital-light Tillman partnership, while Schulman described cost reduction as a core, ongoing focus to support investment in growth areas.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will closely track (1) progress on integrating the Frontier acquisition and expanding converged fiber and wireless offerings, (2) evidence of sustained improvements in customer retention and lower churn rates as new customer-centric initiatives take hold, and (3) the pace and impact of cost transformation initiatives, including portfolio optimization and exits from legacy businesses. The evolution of AI-driven customer experiences and continued broadband subscriber growth will also be crucial markers of success.
Verizon currently trades at $39.40, in line with $39.32 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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