Verizon Communications on Friday reported fourth-quarter adjusted earnings and revenue that edged by Wall Street targets. In 2025, the Dow Jones telecom giant said it expects wireless service revenue growth of 2.4% at the midpoint of guidance, roughly in line with views. Verizon stock rose in morning trading.
For the period ended Dec. 31, Verizon earnings came in at $1.10 per share on an adjusted basis, excluding one-time items, up two cents from a year earlier. Revenue rose 1.6% to $35.7 billion.
Analysts had predicted Verizon earnings of $1.09 per share, with revenue at $35.3 billion.
Also, wireless service revenue climbed 3.1% to $20 billion, in-line with estimates.
Earnings before interest, taxes, depreciation and amortization came in at $11.9 billion, just below estimates of $12.05 billion.
The company said it added 568,000 wireless postpaid phone business and consumer subscribers, topping estimates of 479,000. Billed monthly, postpaid phone subscribers are the highest spending wireless subscribers.
Craig Moffett, analyst at MoffettNathanson, said in a report: "Throughout 2024, Verizon grew (slowly) by raising prices, but the company treaded water, or worse, on most subscriber trends. They promised that things would get better, however, particularly in their consumer wireless segment, and lo and behold, they ended the year on a high note."
On the stock market today, Verizon stock rose 0.9% to 39.56 in midday trading.
Verizon Stock: Technical Ratings
In Q4, Verizon said it added 373,000 fixed wireless broadband customers.
In 2025, Verizon also said it expects adjusted EPS growth of 1.5% at the midpoint of guidance, slightly below estimates, and adjusted EBITDA growth in a range of 2% to 3.5%.
It projected free cash flow in a range of $17.5 billion to $18.5 billion, slightly below views.
"Management issued 2025 guidance which was generally in line with expectations, but a touch weak on implied EBITDA margins/EPS as they invest to reduce churn (wireless subscriber disconnects)," said Oppenheimer analyst Tim Horan in a report..
Heading into the Verizon earnings report, Verizon shares had retreated 2% in 2025. Verizon stock holds a Relative Strength Rating of 26 out of a possible 99, according to IBD Stock Checkup.
Further, AT&T reports earnings on Monday.
In September, Verizon announced plans to acquire Frontier Communications for $20 billion in cash. The deal is expected to close in approximately 18 months, the company said.
Meanwhile, Frontier is the largest pure play fiber provider in the U.S. with 10 million home passings expected by the end of 2026. The company has 2.2 million fiber network subscribers currently across 25 states.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
