A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In Q2 FY2026, Verizon reported operating revenue of $34.25B (down 0.7% YoY) and net income of $3.84B (down 23.3% YoY), impacted by lower wireless equipment upgrades and $1.34B in combined restructuring and asset disposition charges.
Revenue
$34.25B
-0.73% YoY
EPS (Diluted)
$0.92
-22.03% YoY
Operating Income
$7.18B
-12.15% YoY
Verizon Communications (VZ) reported Q2 FY2026 revenue of $34.25B, down 0.7% year over year. The company posted net income of $3.83B, down 23.3% from a year earlier, with diluted EPS of $0.92. Operating income was $7.18B, down 12.2% year over year. VZ's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Verizon Q2 FY2026 revenue fell 0.7% YoY to $34.25B as net income dropped 23.3% to $3.84B due to lower phone upgrade volumes and elevated restructuring costs.
Last 4 quarters: 2 beats, 2 misses
Adjusted (non-GAAP) EPS of $1.30 versus the $1.30 analyst consensus — a -0.2% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.92.
Consumer segment revenues decreased 1.5% YoY to $26.24B, driven primarily by a 22.2% drop in wireless equipment revenue due to reduced upgrade activity, whereas Business segment revenues grew 2.6% YoY to $7.16B.
Source: 10-Q Item 2 MD&A
Cost of services personnel expenses increased by $199 million during Q2 FY2026, primarily driven by higher employee headcount following the acquisition of Frontier Communications Parent, Inc.
Source: 10-Q Item 2 MD&A
SG&A expense rose 15.0% YoY to $8.98B, impacted by a $746 million net loss on the classification of international wireline assets as held for sale, $397 million in workforce severance charges, and $200 million in asset rationalization charges.
Source: 10-Q Item 2 MD&A
Capital expenditures totaled $8.2B for the first six months of FY2026 to support fiber deployment and 5G network expansion, with full-year CapEx projected between $16.0B and $16.5B.
Source: 10-Q Item 2 MD&A
Verizon's current ratio stands at 0.60, with cash and cash equivalents declining 49.0% YoY to $1.75B against $62.21B in current liabilities. This shortfall creates ongoing reliance on short-term refinancing and operating cash flows.
Source: 10-Q Balance Sheet (XBRL)
Operating income declined 12.2% YoY to $7.18B, leading to an operating margin drop from 23.68% to 20.96%. The decline reflects a 15.0% surge in SG&A expenses driven by restructuring and asset impairment charges.
Source: 10-Q Income Statement (XBRL)
Net income contracted 23.3% YoY to $3.84B as total interest expense on debt balances rose 16.7% YoY to $2.14B, driven by higher average debt balances of $170.10B.
Source: 10-Q Income Statement (XBRL)
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Verizon Communications (VZ) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the VZ earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $34.25B | $34.5B | -0.73% |
Operating Income | $7.18B | $8.17B | -12.15% |
Net Income | $3.83B | $5B | -23.35% |
EPS (Basic) | $0.92 | $1.18 | -22.03% |
EPS (Diluted) | $0.92 | $1.18 | -22.03% |
SG&A Expense | $8.98B | $7.81B | +14.98% |
In Q2 FY2026, Verizon generated consolidated operating revenues of $34.25B, down 0.7% year-over-year. Operating income declined 12.2% to $7.18B, while net income fell 23.3% to $3.84B ($0.92 per diluted share).
Net income decreased primarily due to a 15.0% increase in SG&A expenses, which included a $746M loss on international wireline assets held for sale, $397M in severance charges, and $200M in asset rationalization costs. Additionally, wireless equipment revenue dropped 22.2% in the Consumer segment due to fewer device upgrades.
Verizon invested $8.2B in capital expenditures during the first six months of FY2026 for fiber expansion, spectrum, and 5G deployment. Management expects full-year FY2026 capital expenditures to be between $16.0B and $16.5B.
Verizon Communications (VZ) is next expected to report earnings on Oct 20, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
Verizon delivered steady Q1 FY2026 growth with revenue up 2.9% YoY to $34.4B and net income rising 3.4% to $5.0B, while a significant jump in cash and a large investing outflow signal a major acquisition or spectrum investment during the quarter.
Verizon delivered modest revenue growth of 2.5% to $138.2B in FY2025, but net income declined 4.3% to $17.2B, while operating cash flow remained strong at $37.1B and cash balances surged 354% to $19.0B.
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