Verizon Aims for Growth Acceleration and Shareholder Returns
Verizon Communications is targeting faster growth in its mobility and broadband segments, expecting service revenue increases of approximately 3% in Q3 and around 4% in Q4. Improved customer retention, stronger net additions, and simplified plans are cited as key drivers behind this performance. The company remains on track with a $9 billion cost-cutting initiative while raising full-year adjusted EPS growth guidance to 6%-7% and free-cash-flow growth guidance to 9%-10%. In the first half of the year, Verizon returned $9.4 billion to shareholders through dividends and buybacks. The company is also investing in fiber expansion and its AI Connect initiative, which management views as a potential multibillion-dollar opportunity by 2027. CFO Tony Skiadas highlighted structural improvements in business performance during Q1 and Q2, including over one million net additions across mobility and broadband services. Verizon reported an adjusted EBITDA margin of 40.1% for the second quarter along with strong cash-flow growth. Verizon's Simplicity offering has performed well among single- and dual-line accounts where it previously under-indexed. The company expects to meet or exceed its net-add guidance range in Q3, despite a decline in handset upgrade volumes attributed partly to customers keeping devices longer.
Topics: AI investment cost-cutting growth strategy shareholder returns