Financial Data and Key Metrics Changes - The company achieved over 1 million net adds across mobility and broadband in Q4 2025, the highest quarterly volumes in 6 years [16] - Consolidated adjusted EBITDA for Q4 was $11.9 billion, with full-year adjusted EBITDA at $50 billion, reflecting a 2.5% increase from the prior year [22] - Adjusted EPS for Q4 was $1.09, bringing the full year to $4.71, a growth of 2.6% from the previous year [22][29] - Free cash flow for the full year was $20.1 billion, anticipated to be industry-leading [23] Business Line Data and Key Metrics Changes - Postpaid phone net adds were 616,000 in Q4, the best quarter in 6 years, with consumer contributing 551,000 [10][16] - Fixed Wireless Access net adds were 319,000, while Fios Internet added 67,000, marking the highest fourth quarter net addition since 2020 [19][20] - The prepaid segment continued to grow, with 109,000 net adds in Q4, marking the sixth consecutive quarter of positive growth [18] Market Data and Key Metrics Changes - The company added 125,000 fiber net additions through Frontier, a 29% increase year-over-year, contributing to over 16 million broadband subscribers [20] - The company expects to achieve 2-3% growth in mobility and broadband service revenue in 2026, equating to approximately $93 billion [27] Company Strategy and Development Direction - The company is focused on a transformation strategy aimed at improving efficiency and customer satisfaction, with a goal to be the most efficient telecom company in the industry [8] - Plans include a significant fiber build-out, targeting 40-50 million fiber passings over the medium term, with at least 2 million added in 2026 [12][34] - The company aims to leverage AI to enhance customer experience and operational efficiency [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a network outage that impacted customer service, emphasizing the need for improvement in service quality [3] - The company is optimistic about its transformation, expecting significant improvements in performance metrics in 2026 compared to historical trends [32] - Management highlighted the importance of reducing churn and enhancing customer experience as key drivers for future growth [45][58] Other Important Information - The company plans to return $25 billion to shareholders through share repurchases over the next three years, with at least $3 billion in 2026 [36] - A dividend increase of 2.5% was announced, marking the 20th consecutive year of dividend increases [35] Q&A Session Summary Question: Outlook for postpaid phones in 2026 - Management discussed the investments needed to drive subscriber growth, emphasizing improvements in churn rates and customer experience rather than relying heavily on promotions [40][41] Question: Fiber passings outlook - Management confirmed an increase in the fiber passings target to 40-50 million, citing opportunities in both organic and inorganic growth [47][49] Question: Customer lifetime values and CapEx opportunities - Management addressed concerns about customer lifetime values, stating that reducing churn and improving customer experience will enhance LTV [54][56] - On CapEx, management explained that efficiencies were found by narrowing focus to growth areas and eliminating non-core investments [62][63]

Financial Data and Key Metrics Changes - The company achieved over 1 million net adds across mobility and broadband in Q4 2025, the highest quarterly volume in six years [16] - Consolidated adjusted EBITDA for Q4 was $11.9 billion, with full-year adjusted EBITDA at $50 billion, reflecting a 2.5% increase from the prior year [22] - Adjusted EPS for Q4 was $1.09, bringing the full-year total to $4.71, a growth of 2.6% from the previous year [22] - Free cash flow for the full year was $20.1 billion, anticipated to be industry-leading [23] Business Line Data and Key Metrics Changes - Postpaid phone net adds were 616,000 in Q4, the best performance in six years, with consumer postpaid phone net adds at 551,000 [16][17] - Fixed Wireless Access (FWA) net adds were 319,000, while Fios Internet delivered 67,000 net adds, the highest since 2020 [18] - The company continued to gain share in the prepaid segment, with 109,000 net adds in Q4, marking six consecutive quarters of positive growth [18] Market Data and Key Metrics Changes - The company added 125,000 fiber net additions through Frontier, representing a 29% increase year-over-year [19] - The total broadband subscriber base exceeded 16 million, including over 10.5 million fiber customers [71] Company Strategy and Development Direction - The company is focused on a transformation strategy aimed at improving operational efficiency and customer experience, with a goal of achieving $5 billion in operating expense savings [7][27] - Plans to expand fiber build-out to reach 40-50 million fiber passings over the medium term, with at least 2 million new passings in 2026 [11][34] - The company aims to leverage AI to enhance customer experience and operational efficiency [13][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a critical inflection point for the company, emphasizing the need to shift culture towards customer satisfaction and brand trust [6] - The outlook for 2026 includes a target of 750,000 to 1 million postpaid phone net adds, which is 2-3 times the total from 2025 [26] - The company expects 2%-3% growth in mobility and broadband service revenue, equating to approximately $93 billion [26] Other Important Information - The company has authorized up to $25 billion in share repurchases over the next three years, with at least $3 billion planned for 2026 [36] - The board declared a dividend increase of 2.5% per share, marking the 20th consecutive year of dividend increases [35] Q&A Session Summary Question: Outlook for postpaid phones and investments needed for subscriber growth - Management highlighted that the strong outlook for postpaid phones in 2026 will be driven by improved churn rates and investments in customer experience rather than aggressive promotions [40][41] Question: Fiber passings outlook and opportunities - Management confirmed the raised target for fiber passings to 40-50 million, citing opportunities from the Frontier acquisition and partnerships [46][49] Question: Customer lifetime values and strategies to attract high-value customers - Management emphasized the importance of reducing churn and improving customer experience to enhance customer lifetime values, while avoiding price increases without corresponding value [53][56] Question: Flat service revenue growth and organic EBITDA growth - Management explained that flat service revenue growth is expected due to prior year price increases and ongoing promotional amortization, while EBITDA growth is anticipated to accelerate due to cost transformation efforts [68][72]

4Q 2025 Earnings January 30, 2026 VZQTR20FIN "Safe Harbor" Statement In this presentation we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words "anticipates," "assumes," "believes," "estimates," "expects," "forecasts," "hopes ...

Core Insights - The wireless carrier reported better-than-expected earnings for the fourth quarter, indicating strong financial performance [1] - The company added more postpaid customers than anticipated during the same period, reflecting positive customer acquisition trends [1] Financial Performance - The earnings exceeded market expectations, showcasing the company's robust financial health [1] - Specific financial figures were not provided in the document, but the overall performance suggests a strong quarter for the company [1] Customer Growth - The addition of postpaid customers surpassed forecasts, indicating effective marketing and customer retention strategies [1] - This growth in customer base is a positive sign for future revenue generation and market position [1]

Core Insights - Verizon Communications experienced a significant increase in subscriber gains during the recent quarter, indicating strong performance in customer acquisition [1] - CEO Dan Schulman emphasized that the company will no longer act as a "hunting ground" for competitors, suggesting a strategic shift towards retaining customers and enhancing competitive positioning [1] Subscriber Growth - The article highlights the impressive subscriber growth achieved by Verizon, which is a key indicator of the company's market strength and operational success [1] Strategic Direction - The statement from CEO Dan Schulman reflects a commitment to focus on internal growth and customer retention rather than allowing competitors to benefit from Verizon's subscriber base [1]

Core Viewpoint - Verizon's annual profit and free cash flow forecasts exceed market expectations, driven by aggressive promotions during the peak holiday period, resulting in the highest quarterly wireless subscriber growth for the company [1] Group 1: Financial Performance - Verizon reported a significant increase in quarterly wireless subscriber growth, attributed to effective promotional strategies [1] - The company anticipates annual profit and free cash flow to surpass market expectations, indicating strong financial health [1] Group 2: Market Strategy - Aggressive promotions during the holiday season played a crucial role in enhancing Verizon's market position and subscriber acquisition [1]

Financial Performance - Total operating revenue for 2025 was $138.2 billion, up from $134.8 billion in 2024, with Q4 2025 revenue at $36.4 billion[7]. - Adjusted EPS for 2025 was $4.71, with Q4 2025 adjusted EPS at $1.09, reflecting strong performance[7]. - Net income attributable to Verizon for the twelve months ended December 31, 2025, was $17,174 million, a decrease of 1.9% from $17,506 million in 2024[20]. - Consolidated net income for the quarter was $2,448 million, reflecting a decrease from $5,114 million in the same quarter last year[47]. - Adjusted EPS for the 12 months ended December 31, 2025, was $4.71, compared to $4.59 for the same period in 2024, reflecting a year-over-year increase of 2.6%[53]. Cash Flow and Debt - Cash flow from operating activities was $37.1 billion in 2025, compared to $36.9 billion in 2024, with free cash flow at $20.1 billion[7]. - Free Cash Flow for the 12 months ended December 31, 2025, was $20,126 million, compared to $19,822 million in 2024, indicating a growth of 1.5% year-over-year[54]. - Total debt rose to $158,150 million as of December 31, 2025, up from $144,014 million in the previous year[23]. - Net Unsecured Debt decreased to $110,053 million as of December 31, 2025, compared to $113,682 million in 2024, resulting in a Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio of 2.2x, down from 2.3x[51]. Capital Expenditures - Capital expenditures for 2026 are projected to be between $16.0 billion and $16.5 billion, including a fiber build pace of at least 2.0 million passings[15]. - Capital expenditures for the twelve months ended December 31, 2025, were $17,011 million, slightly lower than $17,090 million in 2024[25]. Customer Growth and Service Revenue - Verizon reported over 1 million total net additions across mobility and broadband in Q4 2025, the highest since 2019, including 616,000 postpaid phone net additions[3]. - For 2026, Verizon expects retail postpaid phone net additions of 750,000 to 1.0 million, and mobility and broadband service revenue growth of 2.0% to 3.0%[15]. - Wireless retail postpaid connections reached 95,678, a 0.6% increase from 95,118 in the previous year[30]. - Fixed wireless access (FWA) broadband connections grew by 25.5% to 3,407 from 2,714 year-over-year[30]. - Wireless service revenue for the quarter reached $3,589 million, a 0.5% increase from $3,572 million[38]. Operating Income and Expenses - Operating income decreased by 32.6% to $5,004 million for the three months ended December 31, 2025, down from $7,421 million in the same period last year[20]. - Total operating expenses increased by 4.3% to $21,539 million for the three months ended December 31, 2025, from $20,656 million in the same period of 2024[27]. - Operating Income for the Business segment for the 12 months ended December 31, 2025, increased to $2,532 million from $2,058 million in 2024, marking a significant growth[57]. Employee and Asset Changes - The number of employees decreased to 89.9 thousand as of December 31, 2025, down from 99.6 thousand in the previous year[23]. - Total assets increased by $19,547 million to $404,258 million as of December 31, 2025, compared to $384,711 million as of December 31, 2024[22]. - Cash and cash equivalents increased significantly by $14,854 million to $19,048 million as of December 31, 2025, compared to $4,194 million in 2024[22]. Business Segment Performance - Total operating revenues for the Business segment decreased by 1.8% to $7,366 million for the three months ended December 31, 2025, compared to $7,504 million in the same period of 2024[36]. - Operating income for the Business segment increased by 23.0% to $2,532 million for the twelve months ended December 31, 2025, compared to $2,058 million in the previous year[36]. - Segment EBITDA margin for the Business segment improved to 22.9% for the twelve months ended December 31, 2025, up from 21.6% in the prior year[36]. Future Projections - Verizon anticipates adjusted EPS of $4.90 to $4.95 for 2026, representing a year-over-year growth of 4.0% to 5.0%[15]. - Free cash flow for 2026 is expected to be $21.5 billion or more, marking a growth of approximately 7.0% from 2025[15]. - The forecast for Free Cash Flow for the 12 months ending December 31, 2026, is projected to be $21,500 million, representing a growth forecast of 6.8%[55].

Core Insights - The mobile carrier exceeded Wall Street's revenue expectations and is projecting aggressive growth [1] Group 1 - The company reported better-than-expected revenue figures, indicating strong performance in the market [1] - The aggressive growth forecast suggests confidence in future business expansion and market demand [1]

Core Insights - Verizon Communications Inc. reported strong fourth-quarter and full-year 2025 results, indicating a significant turnaround for the company driven by strategic initiatives under CEO Dan Schulman [1][2] Financial Performance - In 2025, Verizon's total operating revenue reached $138.2 billion, up from $134.8 billion in 2024, with consolidated net income of $17.6 billion and adjusted EBITDA of $50.0 billion [7] - For the fourth quarter of 2025, Verizon reported total operating revenue of $36.4 billion, with consolidated net income of $2.4 billion and adjusted EBITDA of $11.9 billion [7] - Earnings per share (EPS) for 2025 was $4.06, while adjusted EPS, excluding special items, was $4.71 [7][24] Customer Growth and Market Strategy - Verizon achieved over 1 million total net additions across mobility and broadband in the fourth quarter, the highest since 2019, including 616,000 postpaid phone net additions [6][7] - The acquisition of Frontier, completed on January 20, 2026, expanded Verizon's fiber footprint to over 30 million homes and businesses, enhancing its mobility and broadband convergence strategy [2][6] Future Outlook - For 2026, Verizon anticipates total retail postpaid phone net additions of 750,000 to 1 million, with mobility and broadband service revenue growth projected at 2.0% to 3.0% [16] - The company expects adjusted EPS to be between $4.90 and $4.95, representing a year-over-year growth of 4.0% to 5.0% [16] - Free cash flow is forecasted to exceed $21.5 billion, marking a growth of approximately 7.0% from 2025 [16][28]

Core Viewpoint - The market is shifting as rate pressures ease and earnings visibility improves, creating opportunities for fundamentally sound investments that were previously overlooked [1][14]. Group 1: Market Dynamics - A narrow group of mega-cap companies dominated the market in the past two years, particularly in AI and cloud sectors, while other sectors were neglected [1]. - As 2026 begins, sectors that faced challenges in 2025 are gaining renewed interest from investors [1][14]. Group 2: Investment Opportunities - The article highlights three companies that are undervalued and poised for recovery: Verizon Communications Inc., Crown Castle Inc., and ServiceNow Inc. [3][14]. Verizon Communications Inc. - Verizon is seen as a dividend giant that has been overlooked due to its perceived slow growth and sensitivity to rising rates [4]. - The company is stabilizing subscriber growth, increasing free cash flow, and improving its dividend outlook as rate pressures ease [4][6]. - Verizon has focused on tightening its balance sheet and reducing unnecessary spending, which positions it well for a market that rewards discipline [5][6]. Crown Castle Inc. - Crown Castle, a major player in wireless towers and fiber infrastructure, suffered in 2025 due to rising interest rates and a slowdown in 5G buildouts [7][8]. - The sell-off was excessive, as Crown Castle owns critical infrastructure that supports the wireless system, which is expected to see increased demand due to AI applications [8][9]. - The company is streamlining operations and focusing on high-return segments, setting the stage for improved margins and cash flow visibility [10]. ServiceNow Inc. - ServiceNow faced a slump in 2025 as it was overshadowed by the AI hype, despite having strong fundamentals and a focus on automation [11][12]. - The company is well-positioned for growth in 2026, with recurring revenue and expanding product offerings, making it a candidate for a significant breakout [13]. Group 3: Broader Market Trends - The current market reset is characterized by cooling inflation and the end of aggressive rate hikes, allowing for a broader range of companies to gain attention beyond the mega-cap tech giants [14][15]. - Companies like Verizon, Crown Castle, and ServiceNow are not merely rebound plays but represent a shift back to fundamental investing, as they were mispriced rather than fundamentally broken [15].