📊 VZ Key Takeaways
Is Verizon Communications Inc. (VZ) a Good Investment?
Verizon exhibits concerning fundamental weakness despite stable operations, with negative free cash flow of -$4.3B indicating capital expenditure significantly exceeds operating cash generation. High leverage (1.38x debt-to-equity) combined with modest interest coverage (2.5x) and deteriorating profitability (net income down 1.9% YoY) leaves limited financial flexibility, while poor returns on equity (4.8%) and assets (1.2%) suggest shareholder value is being destroyed despite positive operating margins.
Verizon shows strong underlying cash generation and solid operating profitability, with a 21.2% operating margin and $24.80B of free cash flow on $138.19B of revenue. However, growth quality is modest as revenue rose 2.5% while net income and diluted EPS declined, and the balance sheet remains heavily leveraged with $139.53B of long-term debt and sub-1.0 liquidity ratios. The fundamentals support resilience rather than clear acceleration.
Verizon Communications Inc. Key Strengths (VZ)
- Strong operating margin of 23.9% demonstrates operational efficiency
- Positive operating cash flow of $8.0B provides baseline liquidity
- Stable revenue base with modest growth of 2.5% YoY in mature telecom market
- Large established enterprise with $417.9B in assets and market position
- Strong free cash flow generation with $24.80B in FCF and a 17.9% FCF margin
- Healthy operating profitability, including a 21.2% operating margin and 8.8x interest coverage
- Large asset and equity base with ROE of 16.2%, indicating decent capital productivity
VZ Stock Risks: Verizon Communications Inc. Investment Risks
- Critical negative free cash flow of -$4.3B indicating capex expenditure ($12.3B) far exceeds operating generation
- High leverage with $144.2B long-term debt and debt-to-equity of 1.38x limits financial flexibility
- Interest coverage of 2.5x provides insufficient cushion for debt obligations
- Deteriorating profitability with net income declining 1.9% YoY despite revenue growth
- Poor returns on equity (4.8%) and assets (1.2%) destroying shareholder value
- Liquidity constraints with current ratio of 0.64x below safe operating threshold
- Earnings quality is mixed as revenue growth did not translate into net income or EPS growth
- High leverage remains a constraint, with long-term debt of $139.53B and debt-to-equity of 1.32x
- Liquidity is tight, with current ratio of 0.91x and quick ratio of 0.87x
Key Metrics to Watch
- Free cash flow trend and capex efficiency - must return to positive FCF
- Debt reduction progress and debt-to-EBITDA ratio movement
- Interest coverage ratio improvement - currently too tight
- Net income margin recovery - earnings declining despite revenue growth
- Return on equity trajectory - currently inadequate at 4.8%
- Free cash flow after capital expenditures
- Net income and diluted EPS trend versus revenue growth
Verizon Communications Inc. (VZ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
VZ Profit Margin, ROE & Profitability Analysis
VZ vs Telecom Sector: How Verizon Communications Inc. Compares
How Verizon Communications Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Verizon Communications Inc. Stock Overvalued? VZ Valuation Analysis 2026
Based on fundamental analysis, Verizon Communications Inc. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Verizon Communications Inc. Balance Sheet: VZ Debt, Cash & Liquidity
VZ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Verizon Communications Inc.'s revenue has shown modest growth of 3% over the 5-year period. The most recent EPS of $2.75 reflects profitable operations.
VZ Revenue Growth, EPS Growth & YoY Performance
VZ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $33.5B | $4.9B | $1.15 |
| Q3 2025 | $33.3B | $3.3B | $0.78 |
| Q2 2025 | $32.8B | $4.6B | $1.09 |
| Q1 2025 | $33.0B | $4.6B | $1.09 |
| Q3 2024 | $33.3B | $3.3B | $0.78 |
| Q2 2024 | $32.6B | $4.6B | $1.09 |
| Q1 2024 | $32.9B | $4.6B | $1.09 |
| Q3 2023 | $33.3B | $4.8B | $1.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Verizon Communications Inc. Dividends, Buybacks & Capital Allocation
VZ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Verizon Communications Inc. (CIK: 0000732712)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 5, 2026 | 4 | xslF345X06/wk-form4_1780683259.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/wk-form4_1780683217.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/wk-form4_1780683174.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/wk-form4_1780683138.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/wk-form4_1780683095.xml | View → |
❓ Frequently Asked Questions about VZ
What is the AI rating for VZ?
Verizon Communications Inc. (VZ) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are VZ's key strengths?
Claude: Strong operating margin of 23.9% demonstrates operational efficiency. Positive operating cash flow of $8.0B provides baseline liquidity. ChatGPT: Strong free cash flow generation with $24.80B in FCF and a 17.9% FCF margin. Healthy operating profitability, including a 21.2% operating margin and 8.8x interest coverage.
What are the risks of investing in VZ?
Claude: Critical negative free cash flow of -$4.3B indicating capex expenditure ($12.3B) far exceeds operating generation. High leverage with $144.2B long-term debt and debt-to-equity of 1.38x limits financial flexibility. ChatGPT: Earnings quality is mixed as revenue growth did not translate into net income or EPS growth. High leverage remains a constraint, with long-term debt of $139.53B and debt-to-equity of 1.32x.
What is VZ's revenue and growth?
Verizon Communications Inc. reported revenue of $34.4B.
Does VZ pay dividends?
Verizon Communications Inc. pays dividends, with $2,910.0M distributed to shareholders in the trailing twelve months.
Where can I find VZ SEC filings?
Official SEC filings for Verizon Communications Inc. (CIK: 0000732712) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VZ's EPS?
Verizon Communications Inc. has a diluted EPS of $1.20.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is VZ's fundamental grade?
Based on our AI fundamental analysis in June 2026, Verizon Communications Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is VZ stock overvalued or undervalued?
Valuation metrics for VZ: ROE of 4.8% (sector avg: 15%), net margin of 14.6% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
What is VZ's AI grade for 2026?
Our dual AI analysis gives Verizon Communications Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is VZ's free cash flow?
Verizon Communications Inc.'s operating cash flow is $8.0B, with capital expenditures of $12.3B. FCF margin is -12.6%.
How does VZ compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 14.6% (avg: 14%), ROE 4.8% (avg: 15%), current ratio 0.64 (avg: 1).