Verizon's Q4 Earnings: A Test of Growth Amid Shifting Telecom Tides

NEW YORK, NY – December 29, 2025 – As 2025 draws to a close, all eyes in the telecommunications sector are turning to Verizon Communications Inc. The industry giant has scheduled its fourth-quarter and full-year 2025 earnings report for January 30, 2026, an announcement that is poised to be more than a routine financial update. For investors, competitors, and customers alike, the report will serve as a critical barometer of the company's health, the efficacy of its new leadership's strategy, and its position in a fiercely competitive market.

A Year of Transition and Transformation

Verizon enters this reporting period on the back of a solid, albeit mixed, performance throughout 2025. The company has demonstrated consistent strength in key areas, building on a successful 2024 that saw total operating revenues reach $134.8 billion. A major theme has been the relentless growth in wireless service revenue, which climbed 2.1% year-over-year in the third quarter to $21.0 billion, signaling healthy demand for its core mobile offerings.

This financial stability has been complemented by a disciplined approach to fiscal management. Verizon has made significant strides in reducing its substantial debt load, improving its net unsecured debt by $9.4 billion year-over-year as of the end of Q3 2025. This focus on strengthening the balance sheet, paired with robust free cash flow—which reached $15.8 billion in the first nine months of the year—has allowed the company to continue its long-standing tradition of rewarding shareholders, raising its dividend for the 19th consecutive year.

However, the year was also marked by significant change at the top. The arrival of new CEO Dan Schulman brought a fresh vision centered on a "customer-first" culture and an aggressive transformation of the company's cost structure. This upcoming earnings report will be the first to provide a comprehensive look at a full quarter under this new strategic direction, and stakeholders will be eager to see early indicators of its impact on both top-line growth and bottom-line efficiency.

The Battle for Subscribers and the FWA Juggernaut

The central drama in the US telecom landscape remains the intense battle for subscribers. While Verizon has historically been a leader in network quality, it has faced relentless pressure from rivals AT&T and T-Mobile. The third quarter of 2025 highlighted this challenge, as Verizon reported a slight net loss of 7,000 postpaid phone customers. While analysts anticipate a seasonal rebound in the fourth quarter, with estimates for net additions ranging from 50,000 to 150,000, this figure will be scrutinized as a key indicator of the company's competitive footing in the crucial mobile market.

In stark contrast to the tight competition in mobile phones, Verizon has found a powerful growth engine in its Fixed Wireless Access (FWA) broadband service. This technology, which uses its 5G network to deliver home and business internet, has been a runaway success. The company added another 261,000 FWA customers in Q3 2025, pushing its total broadband connections past 13.2 million. This rapid expansion is not only creating a significant new revenue stream but also positioning Verizon as a formidable challenger to traditional cable and fiber internet providers. The Q4 results will be expected to show continued momentum in FWA, a metric that is becoming increasingly vital to Verizon's overall growth story.

The performance of the Verizon Business segment will also be under a microscope. The unit has faced headwinds, reporting a 2.8% year-over-year revenue decline in the third quarter. While its wireless service revenue showed a slight increase, investors will be looking for signs of a broader stabilization or turnaround in this segment, which serves a critical base of enterprise and government clients.

Wall Street's Watchful Eye: Key Metrics and Expectations

When Verizon executives take to the webcast on January 30th, they will face a market with clear expectations. The analyst consensus forecast for fourth-quarter earnings per share (EPS) stands at $1.06. This represents a slight decline from the $1.10 EPS reported in the same quarter of the previous year, reflecting anticipated pressures from promotional activity and ongoing network investments. Revenue is projected to be around $36.10 billion.

Beyond the headline numbers, investors will dissect a range of key performance indicators. Average Revenue Per User (ARPU) will be a focal point, as it measures Verizon's ability to upsell customers to premium plans and value-added services. Margins will be another critical metric, offering insight into the effectiveness of CEO Dan Schulman's cost-cutting initiatives. Any commentary on the progress of these transformations will be highly influential.

Perhaps most importantly, the market will be hanging on Verizon's guidance for 2026. Projections for revenue, EPS, capital expenditures, and free cash flow will set the tone for the stock's performance throughout the coming year. The company has already signaled that it expects free cash flow in 2026 to exceed 2025 levels, a bullish indicator that investors will want to see reaffirmed with concrete figures. The capital expenditure outlook, expected to be within or below the $17.5-$18.5 billion range for 2025, will also be watched closely for clues about the pace of future 5G and fiber network buildouts.

Beyond the Numbers: Strategy, Stock, and the Future

Ultimately, Verizon's fourth-quarter report is about more than just a single three-month period. It's a referendum on the company's long-term strategy in an industry being reshaped by technology and competition. The ongoing monetization of 5G, the integration of artificial intelligence to improve network efficiency and customer service, and the expansion into new B2B opportunities are all part of the larger narrative.

For investors, Verizon's stock presents an interesting case. Trading at a valuation near 8.5 times earnings—well below its ten-year average of 12x—some analysts argue it is undervalued. This perception, combined with a hefty dividend yield approaching 7% and reports of significant institutional accumulation throughout 2025, suggests that many on Wall Street see long-term potential. Historically, the stock has tended to react positively to earnings reports, and the options market is currently implying a modest 3.6% price swing post-announcement.

The upcoming results will provide the clearest picture yet of Verizon's ability to balance disciplined financial management with the aggressive investment needed to win in the 5G era. The numbers will reveal whether the FWA juggernaut can continue its torrid pace, if the core mobile business can hold its own against fierce rivals, and if the new leadership's vision is beginning to translate into tangible financial results. On January 30th, the market will get its answers and a definitive signal for Verizon's path forward in 2026.