Verizon Communications Inc. (NYSE:VZ) reported stronger-than-expected second-quarter earnings for 2025, prompting the telecom giant to raise its full-year guidance.
The company posted improved profitability and continued strength in broadband, despite ongoing challenges in subscriber growth.
The results were well received by investors, with shares rising 4.14% in premarket trading to $42.53 on July 21.
Financial results exceed expectations
Verizon reported total operating revenue of $34.5 billion for Q2 2025, up 5.2% year-over-year and exceeding Bloomberg consensus estimates of $33.76 billion.
Adjusted EBITDA rose 4.1% to $12.8 billion, surpassing the expected $12.67 billion.
The adjusted EBITDA margin for the quarter stood at 37.1%.
Meanwhile, adjusted earnings per share (EPS) increased 6.1% from the prior year to $1.22, marking a sequential improvement over the $1.19 reported in Q1 2025.
Wireless service revenue, one of the company’s most closely watched metrics, rose by 2.2% year-over-year to $20.9 billion.
This growth was driven in part by customer demand for higher-tier plans offering additional features, including streaming services.
Wireless equipment revenue also showed significant strength, climbing to $6.3 billion from $5.0 billion in Q2 2024, a 26% annual increase.
In light of these results, Verizon updated its full-year adjusted EPS growth forecast to a range of 1% to 3%, up from the previous 0% to 3%.
The company also raised its projected EBITDA growth to 2.5% to 3.5%, compared to 2% to 3.5% previously.
Subscriber trends improve but remain mixed
While Verizon continues to face challenges in attracting new wireless customers, the Q2 results reflect notable improvement.
The consumer segment saw a net loss of 51,000 retail postpaid phone subscribers, a marked improvement over the 356,000 net losses in Q1 2025.
In contrast, the business segment maintained its growth trajectory, adding 42,000 postpaid phone subscribers, though this was lower than the 67,000 added in the prior quarter.
Prepaid subscriber growth remained a bright spot, with the company reporting its fourth consecutive quarter of gains.
Verizon added 50,000 core prepaid customers in Q2, building on the 137,000 added in Q1.
Broadband services also contributed to Verizon’s performance.
The company reported 293,000 total broadband net additions, continuing a strong trend despite a sequential dip from 339,000 in the previous quarter.
Notably, the company surpassed 5 million Fixed Wireless Access subscribers, highlighting the strength of its broadband strategy in an increasingly competitive market.
Strengthened financial position and updated outlook
Verizon reported improved free cash flow for the first half of 2025, reaching $8.8 billion, up 3.6% from $8.5 billion during the same period last year.
Capital expenditures remained steady at $8 billion.
The company also made progress on debt reduction, lowering total debt to $146 billion from $149.3 billion year-over-year.
The net unsecured debt to adjusted EBITDA ratio improved to 2.3x from 2.5x.
In a sign of growing confidence, Verizon revised its full-year 2025 free cash flow guidance significantly upward.
The company now expects to generate between $19.5 billion and $20.5 billion in free cash flow, up from the earlier range of $17.5 billion to $18.5 billion.
CEO Hans Vestberg characterized the Q2 results and recent acquisition of Frontier as evidence of Verizon’s “momentum and a clear path forward,” as the company continues to navigate a competitive and rapidly evolving telecom landscape.
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