Verizon’s 40.1% margin and cash-flow inflection make its 6.46% yield and 6.8x forward EV/EBITDA unusually attractive despite modest top-line growth.
Overview
Verizon is the largest U.S. wireless carrier, with approximately 146 million connections, generating predominantly recurring subscription revenue from postpaid and prepaid mobility, FWA, Fios fiber and enterprise connectivity. FY2025 operating revenue was $138.2 billion, with Consumer contributing $106.8 billion and Business $29.1 billion. The company is undergoing a customer-first turnaround under CEO Dan Schulman, using simpler pricing, the $45 “Simplicity” plan and $70 “Verizon One” bundle to improve adds and reduce churn. **The financial inflection is already visible:** Q2 2026 adjusted EBITDA rose 7.2% to $13.72 billion, while the margin reached a record 40.1%. First-half free cash flow increased 16.0% to $10.2 billion, supporting $5.9 billion of dividends and $3.5 billion of repurchases. Verizon raised 2026 adjusted EPS growth guidance to 6.0%–7.0%, FCF growth to 9.0%–10.0% and buybacks to up to $4.5 billion. At $45.06, valuation is supported by an 11% annualized FCF yield, 6.8x forward EV/EBITDA, 8.8x forward P/E and a 6.46% dividend yield, although Wall Street remains at Hold with a $50.03 median target.