# Verizon Communications (VZ.US)

Canonical: https://gigainvestors.com/s/VZ

Analysis as of: 2026-10-16T07:33:00.352Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $44.40 per share; close as of 2026-10-15.

Estimated value: low $47.46 per share, central $54.00 per share, high $62.71 per share. Buy at or below the central value $54.00 per share. Valuation as of 2026-10-16T07:33:00.352Z; scenarios are not confidence intervals.

Expected annual return: 11.6% at the stated quote. About 11.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.05×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.23×

- FY2019: 0.24×

- FY2020: 0.23×

- FY2021: 0.24×

- FY2022: 0.22×

- FY2023: 0.22×

- FY2024: 0.23×

- FY2025: 0.21×

- LTM to Jun 2026: 0.21×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.1%

- ROIC, second-lowest year: 8.6%

- Typical minus recent gross margin: 0.1 pp

- Typical gross margin (annual median): 45.8%

- Recent gross margin (lower of latest and 3-year median): 45.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 14.1%

- ROIC including acquisitions, ten-year median: 7.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.8%

- FY2017: 20.6%

- FY2018: 17.7%

- FY2019: 16.1%

- FY2020: 13.3%

- FY2021: 10.8%

- FY2022: 9.9%

- FY2023: 8.5%

- FY2024: 9.9%

- FY2025: 8.6%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.92×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $83B

- Net income, five-year total: $90B

- Return on incremental invested capital: 6.9%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.5 pp

- Working capital / revenue, final three-year average: 10.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.68×

- FY2023: 0.90×

- FY2024: 1.00×

- FY2025: 1.05×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 17.7% vs 8.6%

- Per-share earnings: 4.37 to 4.06 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.3%

- Ordinary dilution, 5-year annual growth: 0.4%

- Market cap gain: -$46B

- Cumulative retained earnings: $80B

- Diluted shares, 10-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: 0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -0.9%

- Per-share value change: -$0.31

- Per-share value, starting three-year median: $4.37

- Per-share value, ending three-year median: $4.06

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: $71B

- Cumulative net income, 10 years: $185B

- ROIC, first three-year median: 17.7%

- ROIC, last three-year median: 8.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.21

- FY2017: $7.36

- FY2018: $3.76

- FY2019: $4.65

- FY2020: $4.30

- FY2021: $5.32

- FY2022: $5.06

- FY2023: $2.76

- FY2024: $4.15

- FY2025: $4.06

### accounting: pass

- Sloan accruals: -4.9%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.16×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.32×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.5%

- FY2017: 2.2%

- FY2018: -7.1%

- FY2019: -5.6%

- FY2020: -7.6%

- FY2021: -4.8%

- FY2022: -4.2%

- FY2023: -6.8%

- FY2024: -5.0%

- FY2025: -4.9%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mark Hillman](https://gigainvestors.com/HCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Graham Kahn](https://gigainvestors.com/KB): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Miller](https://gigainvestors.com/LMM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to shrink 1.6% a year for ten years · "Consumer Postpaid Phone Net Losses: 356,000, impacted by recent pricing actions." (finance.yahoo.com, Apr 2025) · sales +0.5%

Story as of 2026-10-16T09:59:50.231Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.6% a year for ten years

- 2025-04-22: Verizon Bleeds Subscribers in Q1; Weak 2025 Outlook Hits Shares ([finance.yahoo.com](https://finance.yahoo.com/news/verizon-bleeds-subscribers-q1-weak-151731137.html))

- 2025-11-20: Verizon to slash over 13,000 jobs under new CEO's cost-cutting plan ([seekingalpha.com](https://seekingalpha.com/news/4524509-verizon-to-slash-over-13000-jobs-under-new-ceos-cost-cutting-plan?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-01-30: Verizon Earnings Beat; 2026 Profit Outlook Above Views Amid $25 Billion Buy Back ([finance.yahoo.com](https://finance.yahoo.com/m/caf3531f-04b9-3a3b-b348-055a6ec65e5f/verizon-earnings-beat%3B-2026.html))

- 2026-02-01: Verizon Resets Story With Frontier Deal Cost Cuts And $25b Buyback ([finance.yahoo.com](https://finance.yahoo.com/news/verizon-resets-story-frontier-deal-230848333.html))

- 2026-07-24: Verizon lifts annual forecasts, signs $1 billion fiber deal with Google ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/verizon-lifts-annual-forecasts-mobile-110329309.html))

- 2026-08-05: Verizon (VZ) Faces A New Threat As SpaceX Plans A Mobile Network ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/verizon-vz-faces-threat-spacex-161106332.html))

### Sales · FY2025–2026

sales +0.5%; source https://www.sec.gov/Archives/edgar/data/732712/000073271226000007/vz-20251231.htm; observed 2026-02-17.

- FY2017: $126B 

- FY2018: $131B 

- FY2019: $132B 

- FY2020: $128B 

- FY2021: $134B 

- FY2022: $137B 

- FY2023: $134B 

- FY2024: $135B 

- FY2025: $138B 

- FY2026: $139B 

### Gross margin · FY2025

gross margin 45.6%; source https://www.sec.gov/Archives/edgar/data/732712/000073271226000007/vz-20251231.htm; observed 2026-02-17.

- FY2016: 46.5% 

- FY2017: 45.6% 

- FY2018: 44.5% 

- FY2019: 45.8% 

- FY2020: 47.1% 

- FY2021: 45.7% 

- FY2022: 44.3% 

- FY2023: 45.9% 

- FY2024: 46.6% 

- FY2025: 45.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are USD 138.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/732712/000073271226000007/vz-20251231.htm (filed 2026-02-17); FY2025: revenue 138191000000; grossProfit 63077000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VZ.US: Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and streaming products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements; and fixed wireless access (FWA) broadband through its wireless networks, as well as related equipment and devices, such as smartphones, tablets, smartwatches, and other wireless-enabled connected devices. The segment also offers wireline services in the Mid-Atlantic and Northeastern United States, as well as Washington D.C. through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network. The Business segment provides wireless and wireline communications services and products, including FWA and wireline broadband, advanced communication services, corporate networking, security and managed network, local and long-distance voice, and network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally. The company distributes its products and services through direct channels, company-operated stores, digital and omnichannel platforms, indirect agents, business solution resellers, and national retailers. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.

### Why customers stay

Margins ranged from 45.6% to 46.6% during 2023–25; it earns 12.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: grossProfit / revenue = 45.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: grossProfit / revenue = 46.6%.

- Source: https://www.sec.gov/Archives/edgar/data/732712/000073271226000007/vz-20251231.htm (filed 2026-02-17); FY2025: grossProfit / revenue = 45.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); 10-year return on capital observations [[2016,0.16754877284439448],[2017,0.20566930355203972],[2018,0.17664107762539802],[2019,0.1611964736991557],[2020,0.13336498903876118],[2021,0.10769070314749284],[2022,0.0992269841156748],[2023,0.08466455429754802],[2024,0.09937238561487015],[2025,0.08634785357619622]]; median 0.120527846093127. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 44% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/732712/000073271226000007/vz-20251231.htm (filed 2026-02-17); Gross margin observations: [[2021,0.457335738288939],[2022,0.4428910731903387],[2023,0.458768119187305]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2016: growth capex 0; upkeep 17593000000; owner earnings 11462000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2017: growth capex 37323720.3154068; upkeep 17792676279.684593; owner earnings 29262323720.315407. Growth capex / owner earnings = 0.0012754872330762563.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2018: growth capex 684000000; upkeep 17403000000; owner earnings 15528000000. Growth capex / owner earnings = 0.04404945904173107.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2019: growth capex 715878287.4646721; upkeep 18121121712.535328; owner earnings 17825878287.464672. Growth capex / owner earnings = 0.04015949598220271.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2020: growth capex 0; upkeep 20318000000; owner earnings 14203000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2021: growth capex 4080000000; upkeep 16206000000; owner earnings 22065000000. Growth capex / owner earnings = 0.1849082256968049.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2022: growth capex 2833529590.413162; upkeep 23906470409.586838; owner earnings 14448529590.413162. Growth capex / owner earnings = 0.1961119692271839.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2023: growth capex 0; upkeep 18767000000; owner earnings 10471000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); FY2024: growth capex 98000000; upkeep 17892000000; owner earnings 17506000000. Growth capex / owner earnings = 0.0055980806580600935.

- Source: https://www.sec.gov/Archives/edgar/data/732712/000073271226000007/vz-20251231.htm (filed 2026-02-17); FY2025: growth capex 0; upkeep 17461000000; owner earnings 18062000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Dividend observations: [[2016,9262000000],[2017,9472000000],[2018,9772000000],[2019,10016000000],[2020,10232000000],[2021,10445000000],[2022,10805000000],[2023,11025000000],[2024,11249000000],[2025,11481000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VZ.US SharesStats.PercentInsiders = 0.05 percentage points; cache date 2026-10-16.

### What could break it

"Verizon has a significant amount of debt" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/732712/000073271226000007/vz-20251231.htm (filed 2026-02-17); Verizon has a significant amount of debt

### What the price says

The price assumes cash profits shrink 1.6% yearly over ten years; actual decline was 0.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Ten-year compound average after fade. Initial solved rate -0.03473969235637381. Price 44.4; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.368189591986318 → FY2025 4.268967147246514. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $48.10 per share

- 2016-11: $49.90 per share

- 2016-12: $53.38 per share

- 2017-01: $49.01 per share

- 2017-02: $49.63 per share

- 2017-03: $48.75 per share

- 2017-04: $45.91 per share

- 2017-05: $46.64 per share

- 2017-06: $44.66 per share

- 2017-07: $48.40 per share

- 2017-08: $47.97 per share

- 2017-09: $49.49 per share

- 2017-10: $47.87 per share

- 2017-11: $50.89 per share

- 2017-12: $52.93 per share

- 2018-01: $54.07 per share

- 2018-02: $47.74 per share

- 2018-03: $47.82 per share

- 2018-04: $49.35 per share

- 2018-05: $47.67 per share

- 2018-06: $50.31 per share

- 2018-07: $51.64 per share

- 2018-08: $54.37 per share

- 2018-09: $53.39 per share

- 2018-10: $57.09 per share

- 2018-11: $60.30 per share

- 2018-12: $56.22 per share

- 2019-01: $55.06 per share

- 2019-02: $56.92 per share

- 2019-03: $59.13 per share

- 2019-04: $57.19 per share

- 2019-05: $54.35 per share

- 2019-06: $57.13 per share

- 2019-07: $55.27 per share

- 2019-08: $58.16 per share

- 2019-09: $60.36 per share

- 2019-10: $60.47 per share

- 2019-11: $60.24 per share

- 2019-12: $61.40 per share

- 2020-01: $59.44 per share

- 2020-02: $54.16 per share

- 2020-03: $53.73 per share

- 2020-04: $57.45 per share

- 2020-05: $57.38 per share

- 2020-06: $55.13 per share

- 2020-07: $57.48 per share

- 2020-08: $59.27 per share

- 2020-09: $59.49 per share

- 2020-10: $56.99 per share

- 2020-11: $60.41 per share

- 2020-12: $58.75 per share

- 2021-01: $54.75 per share

- 2021-02: $55.30 per share

- 2021-03: $58.15 per share

- 2021-04: $57.79 per share

- 2021-05: $56.49 per share

- 2021-06: $56.03 per share

- 2021-07: $55.78 per share

- 2021-08: $55.00 per share

- 2021-09: $54.01 per share

- 2021-10: $52.99 per share

- 2021-11: $50.27 per share

- 2021-12: $51.96 per share

- 2022-01: $53.23 per share

- 2022-02: $53.67 per share

- 2022-03: $50.94 per share

- 2022-04: $46.30 per share

- 2022-05: $51.29 per share

- 2022-06: $50.75 per share

- 2022-07: $46.19 per share

- 2022-08: $41.81 per share

- 2022-09: $37.97 per share

- 2022-10: $37.37 per share

- 2022-11: $38.98 per share

- 2022-12: $39.40 per share

- 2023-01: $41.57 per share

- 2023-02: $38.81 per share

- 2023-03: $38.89 per share

- 2023-04: $38.83 per share

- 2023-05: $35.63 per share

- 2023-06: $37.19 per share

- 2023-07: $34.08 per share

- 2023-08: $34.98 per share

- 2023-09: $32.41 per share

- 2023-10: $35.13 per share

- 2023-11: $38.33 per share

- 2023-12: $37.70 per share

- 2024-01: $42.35 per share

- 2024-02: $40.02 per share

- 2024-03: $41.96 per share

- 2024-04: $39.49 per share

- 2024-05: $41.15 per share

- 2024-06: $41.24 per share

- 2024-07: $40.52 per share

- 2024-08: $41.78 per share

- 2024-09: $44.91 per share

- 2024-10: $42.13 per share

- 2024-11: $44.34 per share

- 2024-12: $39.99 per share

- 2025-01: $39.39 per share

- 2025-02: $43.10 per share

- 2025-03: $45.36 per share

- 2025-04: $44.06 per share

- 2025-05: $43.96 per share

- 2025-06: $43.27 per share

- 2025-07: $42.76 per share

- 2025-08: $44.23 per share

- 2025-09: $43.95 per share

- 2025-10: $39.74 per share

- 2025-11: $41.11 per share

- 2025-12: $40.73 per share

- 2026-01: $44.52 per share

- 2026-02: $50.14 per share

- 2026-03: $50.20 per share

- 2026-04: $48.03 per share

- 2026-05: $47.81 per share

- 2026-06: $42.34 per share

- 2026-07: $46.81 per share

- 2026-08: $50.02 per share

- 2026-09: $45.87 per share

- 2026-10: $43.53 per share

## Annual estimated value (USD per share)

- FY2016: low $30.81 per share, central $35.12 per share, high $40.78 per share

- FY2017: low $32.13 per share, central $36.56 per share, high $42.46 per share

- FY2018: low $41.11 per share, central $46.77 per share, high $54.31 per share

- FY2019: low $47.06 per share, central $53.55 per share, high $62.19 per share

- FY2020: low $44.90 per share, central $50.44 per share, high $57.82 per share

- FY2021: low $47.63 per share, central $54.19 per share, high $62.92 per share

- FY2022: low $42.21 per share, central $48.04 per share, high $55.78 per share

- FY2023: low $38.46 per share, central $43.77 per share, high $50.82 per share

- FY2024: low $38.98 per share, central $44.30 per share, high $51.39 per share

- FY2025: low $50.22 per share, central $56.61 per share, high $65.12 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:46.306Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/732712/000073271226000007/vz-20251231.htm); period 2025-12-31, filed 2026-02-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.