Verizon rises after mixed third-quarter results and raised outlook

What happened

Verizon (VZ) rose 1.9% on October 27, 2026, because of its third-quarter results, which included stronger subscriber and broadband performance and a raised 2026 outlook. The company reported earnings per share of $1.31 against $1.27 expected, 3.1% above estimates, and noted 406,000 postpaid phone net additions. Management highlighted $7.8 billion in free cash flow and about $4 billion in AI contract revenue as contributors to the quarter.

The move followed the company’s October 26 earnings release, which analysts say explained the session’s price action. Trading volume was 1.0 times its 20-day average as the S&P 500 rose 0.6% and the Communication Services sector median rose 0.1% on the day. The stock closed at $43.93, a session that was 1.0 times a typical daily move for this stock.

How big was the move

The stock rose 1.9% on the session and finished at $43.93, a close 8.9% below the consensus price target of $47.83. Over the last five sessions the stock fell 1.4% while the S&P 500 rose 0.1%, showing Verizon lagged the broader market in the short run even as the earnings beat drove a one-day gain. The company’s beta of 0.04 reflects that the stock tends to move less than the market, which helps explain the modest reaction to what the company framed as an encouraging quarter.

The technical picture

The stock was 1.5% below its 20-day moving average, 7.2% below its 50-day moving average and 6.0% below its 200-day moving average. The 50-day average remained above the 200-day average, a sign of an established uptrend, while the Relative Strength Index (14 days) stood at 44, in a neutral range. The share price sat 15.0% below the 52-week high and had fallen 5.9% over one month and 7.0% over three months, yet it had risen 13.2% over one year, 0.5 percentage points behind the S&P 500 over that span. Volatility registered 32% annualized over 60 days, higher than 99% of its own readings over five years, suggesting recent swings have been unusually large for the stock.

These signals paint a mixed technical picture: the longer-term trend indicator points higher, but short-term momentum and moving averages show the stock trading under key levels. For investors focused on technicals, the gap below the 20- and 50-day averages may warrant attention until price can reclaim those marks.

Fundamentals and valuation

For the four quarters through September 30, 2026, Verizon reported revenue of $139.39 billion, which grew 1.4% from a year earlier. Diluted earnings per share were $3.92, with earnings per share growth from a year earlier that fell 16.2%. Gross margin widened to 59.1% from 46.1% a year earlier even as operating margin was 20.9% versus 23.0% a year earlier. The company delivered a free-cash-flow margin of 15.1% and return on invested capital of 5.8%.

Balance-sheet metrics show net debt of 3.8 times EBITDA and share count over one year decreased by 1.7%. On valuation, the stock trades at 11.2 times trailing earnings, which is higher than 62% of its own readings over the past five years, with a price to forward earnings of 8.8 times and a free-cash-flow yield of 11.4%. Those figures underline why investors who prize cash generation find the stock attractive, even as earnings growth has slowed.

PromtFinance scores rank Verizon with a Value score of 72 (Positive) and Stability 92 (Exceptional), while Growth and Revisions score 30 (Weak). Quality and Momentum ranked Neutral at 62 and 63 respectively, reflecting solid balance-sheet metrics amid weak near-term growth signals.

Earnings and analyst expectations

Verizon’s October 26 report delivered earnings per share of $1.31 versus $1.27 expected, marking the company’s seventh consecutive quarter beating estimates and an average surprise over the last four reports of 3.6% above estimates. Typical two-day reactions after recent reports saw the stock rose 2.9%, though the post-report move this session was smaller than that historical reaction.

Analysts covering the stock number 61; the consensus rating is Hold and 38% of analysts rate the stock Buy or Strong Buy. The consensus price target is $47.83, 8.9% above the closing price on October 27. The next report is scheduled for January 29, 2027.

Management’s commentary emphasized broadband expansion and lower promotional costs as contributors to higher free cash flow, and it highlighted about $4 billion in AI contract revenue as a growing component of revenue composition. Those elements, together with a $2 billion dark fiber contract with Amazon announced alongside the quarterly results, were cited by the company as drivers of near-term cash flow and of its decision to raise its 2026 outlook.

What to watch

• October 26, 2026: earnings per share of $1.31 against $1.27 expected, 3.1% above estimates
• The company reported 406,000 postpaid phone net additions and $7.8 billion in free cash flow for the quarter
• Management cited about $4 billion in AI contract revenue contributing to the quarter
• A $2 billion dark fiber contract with Amazon was announced alongside broadband growth
• Next earnings report scheduled for January 29, 2027