Verizon Q2 Revenue Misses at $34.3B, But Cost Cuts Drive EPS Beat; Edge Data Center Push Revealed
VZ sits 20% above its 52-week low of $38.39.
Summary
Verizon's Q2 revenue of $34.3B missed estimates, dragged down by a ~20% drop in equipment sales as customers hold onto phones longer and the company cut device promotions. Adjusted EPS of $1.30 beat expectations, however, thanks to aggressive cost cuts and lower subsidy spending. The company added over 1M total mobility and broadband net adds in H1, with 184K postpaid phone adds and 348K broadband adds (193K fixed wireless, 155K fiber). New details include a plan to convert central offices into edge data centers, leveraging its fiber network to serve AI hyperscalers—revenue contribution expected next year. The BT Group JV targets ~3,000 enterprise customers, ~$4B in revenue at close in H2 2027, and ~$200M in annual cost savings. CEO Dan Schulman's contract was extended to 2028 with a long-term incentive award of at least $25M. This follows yesterday's subscriber beat headlines and the recent $5B cost-cut target and layoff announcements, painting a picture of a company aggressively restructuring while investing in future growth.
At the time of this announcement, VZ was trading at $46.20 on NYSE in the Technology sector, with a market capitalization of approximately $193.7B. The 52-week trading range was $38.39 to $51.68. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Wiseek News.