Verizon Communications (NYSE: VZ) stock gained on Wednesday after the company reported mixed third-quarter financial results and affirmed 2025 guidance.
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The company reported quarterly revenue growth of 1.5% year-over-year (Y/Y), reaching $33.8 billion, which missed the analyst consensus estimate of $34.3 billion.
Adjusted EPS of $1.21 topped the analyst consensus estimate of $1.19.
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Broadband
Verizon reported 306,000 broadband net additions in the quarter.
Total fixed wireless access net additions were 261,000 in the quarter, bringing the base to nearly 5.4 million fixed wireless access subscribers courtesy of promotions surrounding the recent Apple Inc. (NASDAQ:AAPL) iPhone launches.
The company delivered 61,000 Fios internet net additions in the quarter.
Total broadband connections grew to over 13.2 million as of the end of the quarter, representing an 11.1% increase Y/Y.
In the third quarter of 2025, wireless service revenue reached an industry-leading $21.0 billion, representing a year-over-year increase of 2.1%.
Consumer Segment
Total quarterly Verizon Consumer revenue was $26.1 billion, up by 2.9% Y/Y, despite reporting 7,000 wireless retail postpaid phone net losses for the quarter, down from 18,000 postpaid phone net additions Y/Y.
Consumer wireless service revenue for the quarter reached $17.4 billion, up 2.4% Y/Y.
Consumer wireless retail postpaid churn was 1.12%, and wireless retail postpaid phone churn was 0.91% for the quarter. Consumer wireless postpaid average revenue per account (ARPA) stood at $147.91, representing a 2.0% year-over-year increase.
Consumer reported 47,000 wireless retail core prepaid net additions, representing the fifth consecutive quarter of positive subscriber growth.
Business Segment
Total quarterly Verizon Business revenue was $7.1 billion, a decrease of 2.8% Y/Y despite 110,000 wireless retail postpaid net additions in the quarter, including 51,000 postpaid phone net additions.
Business wireless service revenue was $3.6 billion, up by 0.7% Y/Y for the quarter.
Business wireless retail postpaid churn was 1.56% and wireless retail postpaid phone churn was 1.25% in the quarter.
The Consumer segment EBITDA margin declined by 40 bps to 43.0%, while the Business segment EBITDA margin grew by 160 bps to 23.4%.
Verizon’s quarterly adjusted EBITDA increased to $12.8 billion, up from $12.5 billion Y/Y.
Verizon’s net income stood at $5.1 billion, compared to $3.4 billion a year ago.
Verizon’s quarterly free cash flow was $6.96 billion, up from $5.96 billion Y/Y.
FY25 Outlook
Verizon reiterated a 2.0%-2.8% growth in wireless service revenue. It reaffirmed its adjusted EPS outlook of $4.64-$4.73 versus the analyst consensus estimate of $4.69.
Verizon maintained its 2025 free cash flow outlook of $19.5 billion to $20.5 billion, operating cash flow of $37.0 billion to $39.0 billion, and capital expenditure of $17.5 billion to $18.5 billion.
VZ Price Action: Verizon Communications shares were up 3.51% at $40.69 during premarket trading on Wednesday, according to Benzinga Pro data.
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