Verizon Communications Inc. (VZ) is a powerhouse in the U.S. telecommunications industry, boasting an impressive market capitalization of $165.8 billion. Known for its robust wireless network and expanding 5G and fiber-optic infrastructure, the New York-based company offers a wide range of services including mobile, high-speed home internet through Fios, and advanced enterprise solutions like cloud, IoT, and cybersecurity services.
Despite its significant market presence, Verizon has struggled to keep up with broader benchmarks in terms of stock performance. Over the past 52 weeks, VZ stock has dipped 2.7%, while the S&P 500 Index has surged 18.1%. Year-to-date, the stock has only seen marginal gains compared to the S&P 500’s 17.2% climb in 2025. Additionally, Verizon has lagged behind the SPDR S&P Telecom ETF with a 48.9% rise over the past 52 weeks and a 42.8% gain on a year-to-date basis.
However, on October 29, Verizon reported its Q3 2025 earnings, which showcased solid subscriber momentum leading to a 2.3% increase in its shares. The company posted adjusted earnings of $1.21 per share, exceeding expectations, while revenue rose about 1.5% year over year to approximately $33.8 billion. Subscriber trends strengthened with around 44,000 postpaid wireless net additions, supported by continued growth in fixed-wireless broadband. Verizon also raised its dividend for the 19th consecutive year and reaffirmed its full-year guidance.
Looking ahead to fiscal 2025, analysts are anticipating steady but moderate earnings growth for Verizon. The consensus estimate expects diluted EPS to rise 2.2% year over year to $4.69. The company has consistently outperformed Street estimates in the past four quarters, indicating a positive trend in its financial performance.
With a “Moderate Buy” consensus rating from analysts, there is a sense of confidence in Verizon’s fundamentals, albeit with some hesitation. Of the 30 analysts covering the stock, eight rate it a “Strong Buy,” three recommend a “Moderate Buy,” and 19 suggest to “Hold” the stock.
Recent reports indicate that the sentiment towards Verizon may be slightly bearish compared to a month ago when nine analysts recommended a “Strong Buy” rating. Despite recent market underperformance, Citigroup Inc. analyst Michael Rollins reiterated a “Buy” rating on Verizon on October 11, showcasing continued positive sentiment towards the company’s future prospects.
