Verizon Stock: Q3 Earnings and Investment Analysis

Verizon Communications Inc. (VZ) faces a dynamic environment as it prepares to announce its Q3 2025 earnings. Several factors are shaping investor expectations and the company’s strategic direction.

Earnings Expectations and Competitive Landscape

Analysts predict a stable EPS of $1.19 for Q3 2025, consistent with the previous year. Revenue is projected to increase by about 3% to $34.26 billion. Verizon is actively expanding its customer reach with tailored plans like the 55+ plan in Florida and Tracfone Freedom. However, it faces stiff competition from AT&T and T-Mobile, which are also targeting the 55+ demographic.

Strategic Investments and Business Segment Performance

Verizon Business is working to counter weak demand trends through strategic deployments like the advanced network services at the St. Louis Blues’ stadium. The Consumer segment is expected to generate $26.01 billion in revenue, while the Business segment is projected to bring in $7.29 billion.

Valuation Analysis

A Discounted Cash Flow (DCF) analysis suggests Verizon is undervalued by 63.0%, with an estimated intrinsic value of $105.97 per share. The company’s PE ratio of 9.1x is notably lower than the telecom industry average of 16.7x.

Stock Performance

Over the past year, VZ has declined 6.1% against the industry’s decline of 2.1%. However, Simply Wall St’s undervaluation checks give Verizon a perfect score of 6 out of 6.

The Zacks Consensus Estimate for revenues from the Consumer segment is pegged at $26.23 billion, while our model projects revenues of $26.01 billion.

Verizon’s current PE ratio is 9.1x, significantly lower than the telecom industry average of 16.7x.

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