$VZ · VERIZON COMMUNICATIONS INC
Verizon filed its Q3 2026 10-Q, reporting revenue of $34.313B (+1.5% YoY) and GAAP EPS of $1.25 versus $1.17 in Q3 2025. Operating income rose to $8.650B from $8.105B, aided by a 10.2% drop in wireless equipment costs. The quarter reflects the first full period incorporating Frontier Communications, which drove personnel cost increases of $292M and contributed to higher depreciation and interest expense.
- Q3 revenue $34.313B (+1.5% YoY), net income attributable to Verizon $5.198B vs $4.950B a year ago.
- GAAP EPS $1.25 vs $1.17 in Q3 2025; nine-month EPS $3.37 vs $3.51 — down 4.0% YoY.
- Operating income margin 25.2% in Q3, up from 24.0% a year ago on lower wireless equipment costs.
- Interest expense surged to $1.950B in Q3 from $1.664B (+17.2%), reflecting higher debt load.
- Cash and equivalents dropped to $4.495B from $19.048B at year-end 2025; $9.48B spent on acquisitions including Frontier.
Stock up 1.81% to $43.96 in regular trading, essentially flat since filing (-0.01%). The modest revenue growth and margin improvement appear priced in for this $182.64B mega-cap.
Verizon's Q3 shows the early financial imprint of the Frontier acquisition — revenue up modestly but nine-month EPS declining 4% as integration costs and higher debt service compress bottom-line growth.
Verizon's 1.5% revenue growth reflects the slow-but-steady trajectory of mature telecoms. The Frontier acquisition closed during the period, adding headcount and fiber assets while pressuring near-term costs.
Interest expense rose 17.2% YoY to $1.950B in Q3 as long-term debt climbed to $142.3B. Cash reserves fell $14.6B from year-end, largely due to the Frontier acquisition and $4.0B in share buybacks, tightening liquidity.