A $1 Billion Reason to Buy Verizon Stock Now After Earnings

After a blockbuster second-quarter earnings report that raised investor optimism surrounding the stock, Verizon Communications (VZ) has given investors another reason to hold on to it. The company signed a $1 billion agreement with Alphabet (GOOG)  (GOOGL) under which Verizon’s dark fiber network will be used to connect Google’s data centers. 

This could prove a crucial step in Verizon’s path toward building and popularizing a standalone connectivity business that supports MNCs. The company also believes more deals are to come this year, which would mean significant revenue generation over the years. 

Going through a transformation, Verizon is finding strength in its customer base and expects lower costs to acquire and retain them. For this year, the company expects retail postpaid phone net additions to be in the upper half of the 750,000-1 million range, indicating a doubling or tripling compared to 2025 numbers. 

Therefore, Verizon might be the stock to watch.

About Verizon Stock

Verizon is one of the biggest U.S. telecom companies, providing wireless, broadband, and business communication services. It is known for its extensive 5G network and fiber infrastructure, which help connect millions of people and businesses across the country. The company is based in New York and has a market capitalization of $193.66 billion. 

Verizon’s stock has been holding up well on Wall Street as the company shows signs of stronger growth. Broadband expansion and customer gains have also aided in this. Investors are optimistic about the company’s future growth, driven by AI-related fiber deals. Over the past 52 weeks, Verizon’s stock has gained 9.83%, while it is up 16.17% year-to-date (YTD). The stock last reached a 52-week high of $51.68 on March 24, but is down 8.4% from that level. 

Verizon has a 14-day RSI of 66.14, which shows that the stock is close to the overbought territory. However, it is trading at a discount to its peers. On a forward-adjusted basis, its price-to-earnings (non-GAAP) ratio of 9.26 times is lower than the industry average of 12.68 times.

Verizon’s Restructuring Measures

Verizon has been scaling back its business to sharpen its focus. The major cutbacks have been aimed at reducing its physical footprint in a challenging retail environment. Recently, the company announced it would close 274 corporate-owned stores and lay off 500 office staff. Under CEO Dan Schulman, this follows an historic layoff of 13,000 employees in November 2025. This trend is expected to continue, with Verizon relying on its stores as anchors. 

On top of that, after a massive acquisition of Frontier Communications, the company is eyeing a $4 billion, equal-ownership joint venture with BT International. The platform would serve customers with a unified, AI-ready, and secure offering. However, the focus is on increased scale efficiency. While international enterprise connectivity has been a tough business for traditional telecom providers, it gives the company an opportunity to defend a part of its business. 

The multi-year transformation also includes improving customer engagement through loyalty programs and launching its “Verizon Simplicity,” the industry’s simplest and most cost-effective plan. 

Verizon’s Second-Quarter Results Showed Profit Surge

The restructuring efforts are seemingly paying off as Verizon reported strong results for the second quarter of fiscal 2026. While its total operating revenue was down marginally year-over-year (YOY), its mobility and broadband service revenue increased by 2.8% to about $23.40 billion. The financial results were driven by growth in its customer base, with total postpaid phone net additions of 184,000 and broadband net additions of 348,000. 

The most notable part of the results was its profit surge. Verizon’s consolidated adjusted EBITDA margin grew to a record 40.1%, while adjusted EPS climbed by 6.6% YOY to $1.30. The results also sparked a fresh wave of optimism around the stock, which surged 5.8% intraday on July 24. 

After topping consensus estimates in all of the four trailing quarters, Street analysts remain positive about the company’s earnings trajectory. For the current year, its EPS is expected to climb 6.2% YOY to $5.00, followed by a 5.4% increase to $5.27 in the next year. 

What Analysts Think About Verizon Stock

Wall Street analysts are not entirely convinced by Verizon at the moment, judging by recent ratings reaffirmations. This month, RBC Capital analyst Jonathan Atkin maintained a “Sector Perform” rating on the stock, while reducing the price target from $48 to $46. Barclays analysts also kept an “Equal-Weight” rating and cut the price target from $47 to $45. This indicates that given the market conditions, analysts have moderated their expectations. 

Analysts from Wells Fargo initiated coverage of Verizon this month with an “Equal Weight” rating and a $43 price target. Analysts attached a 40% probability to Starlink forming a mobile virtual network operator partnership, with Verizon as its preferred telecom partner. 

Wall Street analysts are taking a positive stance on Verizon’s stock now, with a consensus “Moderate Buy” rating overall. Of the 30 analysts rating the stock, nine analysts gave a “Strong Buy” rating, two analysts gave a “Moderate Buy” rating, while 19 analysts are playing it safe with a “Hold” rating. The consensus price target of $50.93 represents a 7.6% upside from current levels. Moreover, the Street-high price target of $71 indicates a 50% upside from current levels.