Telecommunications giant Verizon (NYSE: VZ) fell short of the market’s revenue expectations in Q3 2026 as revenue rose only 1.5% year on year to $34.31 billion. Its non-GAAP profit of $1.31 per share was 2.8% above analysts’ consensus estimates.
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Verizon (VZ) Q3 2026 highlights:
- Revenue: $34.31 billion vs analysts’ consensus estimates of $34.77 billion (1.5% year-on-year growth, 1.3% miss)
- Adjusted EPS: $1.31 vs analysts’ consensus estimates of $1.27 (2.8% beat)
- Adjusted EBITDA: $13.8 billion vs analysts’ consensus estimates of $13.73 billion (40.2% margin, 0.5% beat)
- Operating margin: 25.2%, up from 24% in the same quarter last year
- Free cash flow margin: 22.7%, up from 20.6% in the same quarter last year
- Market capitalization: $185.6 billion
Revenue growth
A company’s long-term revenue performance can indicate its overall quality. Any business can post a good quarter or two, but many enduring ones grow for years. Unfortunately, Verizon struggled to consistently increase demand as its $139.4 billion of revenue for the trailing 12 months was close to its revenue five years ago. That underwhelming result points to poor business quality.
Long-term growth matters most, but within consumer discretionary, a longer historical view may miss a company riding a successful new product or trend. Verizon’s annualized revenue growth of 1.9% over the last two years is above its five-year trend, a positive sign. 
This quarter, Verizon’s revenue grew by 1.5% year on year to $34.31 billion, falling short of Wall Street’s consensus estimates.
Looking ahead, sell-side analysts expect revenue to grow 2.5% over the next 12 months according to S&P, similar to its two-year rate. This lackluster projection suggests its newer products and services will not accelerate its revenue growth yet.
Operating margin
Verizon’s operating margin has been trending down over the last 12 months and averaged 21.9% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.
This quarter, Verizon generated an operating margin of 25.2%, up 1.2 percentage points year on year. This increase was a positive development and shows it was more efficient.
Earnings per share
Long-term changes in earnings per share (EPS) matter for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
On the negative side, Verizon’s EPS declined by 1.2% annually over the last five years. Companies with falling revenue and EPS warrant caution, as diminishing earnings could imply changing secular trends and preferences. Consumer Discretionary companies are particularly exposed to this, and if trends shift unexpectedly, Verizon’s low margin of safety could leave its stock price susceptible to large declines.
In Q3, Verizon reported adjusted EPS of $1.31, up from $1.21 in the same quarter last year. This result beat analysts’ consensus estimates by 2.8%. Over the next 12 months, Wall Street expects Verizon’s full-year EPS to grow 4.2% from $4.98 to $5.19 according to S&P.
Key takeaways from Verizon’s Q3 results
Verizon’s Q3 results offered few positives, adding up to a softer quarter overall. Shares edged higher 1.4% to $45.25 immediately after the release.
Assessing whether to invest in Verizon now means considering its valuation, business quality and latest quarterly results. Read the full research report here (it’s free).
