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VZ · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
A messy but operationally solid quarter—segment operating income actually grew 8% as Business turned a corner and Consumer margins expanded—but $1.8B of one-off charges (BT held-for-sale loss, severance, Frontier integration, asset rationalization) and higher interest expense from Frontier-related debt dragged reported operating income down 12% and net income down 23%.
Net Income (Verizon)
$3,835M
down 23.3% y/y
Revenue
$34,253M
down 0.7% y/y
Operating Income
$7,179M
down 12.2% y/y
Gross Profit
$21,169M
up 4.7% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Consumer | $26,242 · −1.5% |
| Business | $7,155 · +2.6% |
| Corporate & other | $936 · −3.0% |
| Revenue | $34,253 · −0.7% |
| Cost of Services & Equipment | $13,084 · −7.7% |
| Gross Profit | $21,169 · +4.7% |
| SG&A (incl. one-offs)* | $8,982 · +15.0% |
| D&A | $5,008 · +8.0% |
| Operating Income | $7,179 · −12.2% |
| Other Income & Equity Earnings | $80 · −13.0% |
| Interest Expense | $1,985 · +21.1% |
| Pre-Tax Income | $5,274 · −20.2% |
| Income Tax | $1,325 · −11.0% |
| Noncontrolling Interests | $114 · −3.4% |
| Net Income (Verizon) | $3,835 · −23.3% · EPS diluted $0.92 vs $1.18 |
Verdict: a messy but operationally solid quarter—segment operating income actually grew 8% as Business turned a corner and Consumer margins expanded—but $1.8B of one-off charges (BT held-for-sale loss, severance, Frontier integration, asset rationalization) and higher interest expense from Frontier-related debt dragged reported operating income down 12% and net income down 23%.
OCF $18,419M (6mo, +10%) · buybacks $3,500M in Q2 · dividends $2,931M declared in quarter ($0.7075/sh) · capex guidance $16.0–16.5B FY26 · share repurchase target raised to $4.5B FY26
Source and notation
* marks non-cash / ≈ estimated. Source: Verizon Communications Inc. press release / 10-Q (SEC EDGAR).
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<figure> <a href="https://whoreportstoday.com/t/vz/q2-2026"><img src="https://whoreportstoday.com/t/vz/q2-2026/sankey.png" alt="VZ Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/vz/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
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<a href="https://whoreportstoday.com/t/vz/q2-2026">VZ Q2 2026 earnings chart (Who Reports Today)</a>
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- Reported operating income fell 12% mainly due to $1.81B of special items: $746M loss on classifying the international wireline JV business (BT deal) as held-for-sale, $397M severance, $258M asset rationalization, $135M Frontier acquisition/integration costs.
- Excluding special items, Consolidated Adjusted EBITDA rose to $13,723M (+7.2% y/y) and both segments' operating income grew — Consumer +5.1%, Business +36.9% — showing underlying operating momentum.
- Frontier acquisition (closed Jan 20, 2026, ~$9.8B cash) drove higher D&A, interest expense (avg debt +$25B) and SG&A integration costs, weighing on GAAP net income despite adding fiber revenue.
- Wireless equipment revenue fell 20% y/y on a strategic pullback in device upgrades, while Mobility and broadband service revenue rose 3% on fiber/FWA growth.
- Effective tax rate jumped to 25.1% from 22.5%, largely because the BT-related held-for-sale loss is nondeductible, further compressing net income beyond the operating decline.
- Free cash flow (6mo) rose to $10.2B (+16%) on working-capital benefits and tax payment timing, even as investing cash outflows surged on the Frontier deal and heavy capex.
What distorts the picture in this report and what to watch beyond the headlines.
VZ — Verizon Communications is a telecommunications company providing wireless services, broadband, and network solutions across the United States.
It is headquartered in New York City and operates one of the nation's largest wireless networks.
Heads-up
- net income fell 23% y/y in Q2 2026
Net income for Q2 2026: $3,835M, −23% y/y. In the report's figures: revenue −1% y/y; costs grew faster than revenue: sg&a (incl. one-offs)* +15% y/y, interest expense +21% y/y. Based on the Q2 2026 report.
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