Verizon Communications reported revenue of $34.44 billion for the quarter ended March 2026, up 2.9% year on year. EPS was $1.28, compared with $1.19 a year earlier.
Revenue was 1.7% below the Zacks Consensus Estimate of $35.03 billion. EPS was 5.2% above the consensus estimate of $1.22.
Consumer operating revenues were $26.45 billion versus a five-analyst average estimate of $26.75 billion, rising 3.3% year on year. Business operating revenues were $7.42 billion versus a $7.33 billion estimate, up 1.8%.
Consumer wireless equipment revenue was $4.82 billion versus a $4.79 billion estimate, up 6.4% year on year. Consumer “other” revenue was $2.45 billion versus a $1.04 billion estimate, up 140.1%.
Service revenues and other totalled $28.76 billion versus a $29.26 billion estimate, up 2.4% year on year. Wireless equipment revenues were $5.68 billion versus a $5.93 billion estimate, up 5.2%.
Business operating income was $884 million versus an estimate of $753.86 million. Consumer operating income was $7.71 billion versus an estimate of $7.65 billion.
We are seeing a mixed picture from Verizon’s latest quarterly results as of today, April 28, 2026. While the company missed revenue forecasts by 1.7%, it surprised with a 5.2% beat on earnings per share. This suggests stronger-than-expected profitability or cost controls despite softer top-line sales.
Digging deeper, the miss in total revenue seems driven by weakness in the core consumer segment, which fell short of analyst estimates. Specifically, the crucial service revenues category also missed expectations, raising questions about subscriber growth or average revenue per user. These are the key metrics we monitor for the long-term health of the business.
This performance aligns with recent industry data showing T-Mobile gained 50,000 more postpaid phone subscribers than projected in the first quarter of 2026, intensifying market share pressure. Looking back at the competitive landscape in 2025, we saw both T-Mobile and AT&T ramp up aggressive device promotions, a trend that appears to be impacting Verizon’s ability to grow its service revenue base. This pressure on the core business is a significant concern for us.
On the other hand, the company is clearly managing its bottom line well, as shown by the outperformance in both consumer and business operating income. The massive 140.1% year-over-year jump in ‘Consumer-Other’ revenue, beating estimates by over $1.4 billion, is a significant anomaly that likely drove the EPS beat. We need to determine if this is a sustainable new revenue stream or a one-time event before it can be fully priced in.
For the coming weeks, this conflicting data suggests implied volatility may remain elevated as the market digests the news. A trader might consider strategies that benefit from a significant price move in either direction, such as a long straddle, capitalizing on the uncertainty around the core business versus the surprising new revenue. Alternatively, if we believe these opposing factors will keep the stock range-bound, an iron condor could be used to profit from sideways consolidation.
