Verizon Q3 2026: EPS $1.25 (+6.8%) on Record Postpaid Adds

Verizon Communications (NYSE, Nasdaq: VZ) reported third-quarter 2026 net income attributable of $5,198 million, or $1.25 per diluted share — up 6.8% from $1.17 a year ago. Total operating revenues grew 1.5% to $34,313 million as service revenues rose 3.5% to $29,197 million, more than offsetting a 9.0% drop in wireless equipment sales to $5,116 million. Operating income increased 6.7% to $8,650 million for a 25.2% margin. The subscriber story drove the print: 406,000 postpaid phone net additions — the strongest third quarter in five years — plus 137,000 postpaid net accounts, the best in over a decade, and nearly 1.7 million mobility and broadband subscribers added in the first nine months versus 879,000 last year. Mobility and broadband service revenue of $23.5 billion grew 2.9% and is forecast to grow approximately 4.0% in the fourth quarter.

Costs stayed disciplined while capital spending on the network showed up in depreciation: total operating expenses edged down 0.2% to $25,663 million as SG&A fell 3.5% to $7,480 million and cost of wireless equipment dropped 10.2% to $5,823 million, offset by cost of services up 5.9% to $7,265 million and depreciation and amortization up 10.3% to $5,095 million. Below the line, interest expense jumped 17.2% to $1,950 million on a heavier debt load, leaving pre-tax income up 4.4% at $6,817 million after a $1,497 million tax provision. Cash generation was the highlight alongside the adds: operating cash flow of $11.5 billion (up 2.2%) supported free cash flow of $7.8 billion (up 12.1%), Adjusted EBITDA hit a company-record $13.8 billion (up 8.0%), and Adjusted EPS reached $1.31 (up 8.3%). Management raised full-year guidance for the third consecutive quarter — postpaid adds, Adjusted EPS and free cash flow — signed a $2 billion-plus AI infrastructure deal with AWS, and held full-year capital expenditures guidance at $16.0–16.5 billion.

The Headline Numbers​

* Balance-sheet figures as of September 30, 2026 versus December 31, 2025.

Nine-month net income to Verizon of $14,078 million trails last year's $14,832 million by 5.1% — the strong third quarter only partly offsets the first half, with nine-month interest expense up 19.0% to $5,875 million even as nine-month revenue grew 1.2% to $103,006 million. Shareholders still got paid at a record pace: $12.8 billion returned in nine months, up 49%, split between $8.8 billion of dividends and $4.0 billion of repurchases, with buybacks expected to reach up to $4.5 billion for the full year. The balance sheet moved more than earnings did: cash fell $14,553 million to $4,495 million while goodwill rose $7,888 million to $30,729 million, wireless licenses added $4,378 million to $161,417 million, net property plant and equipment grew $15,667 million to $125,134 million, and total debt increased $8,083 million (short-term up $5,271 million, long-term up $2,812 million). Treasury stock deepened $3,547 million on the buybacks and the diluted share count fell to 4,161 million from 4,233 million, while retained earnings still compounded $5,251 million to $99,995 million.

Five years in the ledger: the impairment trough is fully in the rear view​

The ledger runs FY2021–FY2025 plus this quarter. Revenue compounded from $133,613 million to $138,191 million with a FY2023 dip to $133,974 million, while net income to Verizon tells the real story: $22,065 million, $21,256 million, then $11,614 million in FY2023 on the $5,841 million Verizon Business Group goodwill impairment, rebounding to $17,506 million and $17,174 million. Goodwill carries the scar — $28,603 million in FY2021, written to $22,841 million, then jumping to $30,729 million this quarter — while wireless licenses marched from $147,619 million to $161,417 million without a down year. Long-term debt troughed at $121,381 million in FY2024 before climbing back to $142,344 million, and treasury stock shows the capital-return shift: shrinking from $4,104 million to $3,255 million across FY2021–FY2025, then doubling to $6,802 million in nine months of buybacks. Every annual income statement and balance sheet, plus this quarter's 8-K statements, is modeled as examinable Beancount below.

Sources​

• Q3 2026 earnings release (Form 8-K, October 26, 2026)
• Form 10-K for fiscal year 2025
• Form 10-K for fiscal year 2024