Verizon Communications (NYSE: $VZ) is a major telecommunications company that offers a wide range of services that include wireline, wireless, and internet connectivity. Its services are available to both businesses and consumers. On Tuesday, April 22, 2025, before markets opened, it released its Q1 results. Let us take a deep dive into those results.
Verizon Q1 Results
For the first quarter of fiscal 2025, Verizon reported revenue of $33.5 billion, a 1.5% YoY increase, and above estimates of $33.3 billion. The company reported an adjusted EPS of $1.19 for Q1, compared to $1.15 the previous year, and above estimates of $1.15.
Other Q1 Highlights
It reported $7.8 billion in cash flow from operations compared to $7.1 billion last year. The company ended Q1 with $3.6 billion in free cash flow, compared to $2.7 billion last year. Meanwhile, consolidated net income in Q1 came in at $5 billion compared to $4.7 billion last year.
Verizon reported a consolidated adjusted EBITDA of $12.6 billion in Q1, compared to $12.1 billion last year. It ended the quarter with $117.3 billion in total unsecured debt, a huge reduction from the $128.4 billion reported last year.
Segment Performance
Verizon’s Mobility segment reported $20.8 billion in Total wireless services revenue, a 2.7% YoY increase. Wireless equipment revenue came in at $5.4 billion, a 0.7% YoY increase, while total postpaid phone net subscriber losses came in at 289K in Q1, compared to 114K last year, much bigger than the analysts’ forecast of 197,000.
The Broadband segment reported 339,000 in net subscriber additions in Q1, with total broadband connections up 13.7% YoY to 12.6 million. Verizon Consumer segment saw revenue rise 2.2% YoY to $25.6 billion, while Verizon Business saw revenue decline 1.2% YoY to $7.3 billion.
Outlook and guidance
Verizon remains committed to its full year outlook of 2% to 2.8% YoY growth in Total wireless services revenue. It expects adjusted EBITDA to grow 2% to 3.5%, and adjusted EPS to grow 0% to 3%, while cash flow from operations is forecast at $35 billion to $37 billion, and capital expenditure is forecast at $17.5 billion to $18.5 billion. Verizon expects full-year free cash flow of $17.5 billion to $18.5 billion.
Verizon (VZ) Market Performance
Despite the earnings and revenue beat, VZ stock dipped 1.61% in the early morning trading session to $42.24 as of 9:35 AM EDT, mainly due to the bigger-than-expected postpaid phone net subscriber losses.
Year to date, the stock is up 5.5%, while over the past six months, it is up 1.67%. VZ stock has risen 9.31% in the past 12 months. Its current price is below the 50-day moving average of $43.32, but above the 200-day moving average of $41.99.
Analysts give VZ stock a moderate buy rating. They forecast an average price of $46.97 per share, which is a 12.15% upside. The analysts provide a wide range of forecasts, with a high of $55 and a low of $40.
Should You Add VZ To Your Portfolio?
While Verizon faces challenges in subscriber numbers, it saw growth in other areas, with broadband up 339,000. It remains bullish on the long-term outlook and reaffirmed its full-year guidelines despite recent tariff shockwaves.
Additionally, it plans to move ahead with its $20 billion purchase of Frontier Communications (FYBR), announced in September 2024, which will help it expand its fiber footprint. Frontier currently has 2.2 million subscribers in 25 states. Consequently, adding VZ shares to your portfolio could potentially be beneficial in the long term.
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