Verizon Posts Strong Q1 Results Amidst Market Challenges

With a market cap of $182.6 billion, Verizon Communications Inc. (VZ) stands as a major player in global communications, technology, and entertainment. The company operates through its Consumer and Business segments, providing wireless, broadband, and fiber-optic solutions. Its growth has been bolstered by strategic mergers, technological advancements, and a diverse service offering.

Recent Performance vs. Market Trends

Over the past 52 weeks, Verizon shares have shown solid performance, rising 12.5%, slightly ahead of the S&P 500 Index ($SPX), which has climbed 12%. Year-to-date, VZ stock is up 9.5%, outperforming the SPX, which has recorded a 3.5% decline.

However, it’s important to note that Verizon has not kept pace with the Communication Services Select Sector SPDR ETF Fund’s (XLC) impressive 22.3% gain during the same period.

Q1 Results and Analyst Outlook

Shares of Verizon experienced a slight recovery on April 22, fueled by positive investor sentiment following the company’s reaffirmation of its annual adjusted profit and free cash flow outlook. For Q1 2025, Verizon reported adjusted EPS of $1.19 and revenue of $33.5 billion, both exceeding analyst forecasts. Wireless service revenue also saw a 2.7% increase to $20.8 billion, spurred by previous price hikes. Despite losing 289,000 postpaid wireless subscribers, Verizon noted a surge in customer activity around late March and April, including nearly double-digit growth following its new three-year price guarantee.

For the fiscal year ending in December 2025, analysts project a 2.2% year-over-year growth in adjusted EPS to $4.69. Verizon’s earnings surprise record has been favorable, consistently exceeding consensus estimates for the past four quarters.

Analyst Ratings and Price Target

Among the 25 analysts evaluating the stock, the consensus rating is “Moderate Buy,” consisting of eight “Strong Buy” ratings, two “Moderate Buys,” and 15 “Holds.”

On April 8, Scotiabank analysts reiterated their “Sector Perform” rating on Verizon and slightly adjusted the stock‘s price target to $48.50.

As of this writing, VZ shares are trading below the average price target of $46.99. The highest price target in the market, set at $56, suggests a potential upside of 28.2% from current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.