Telecommunications giant Verizon (NYSE:VZ) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 5.2% year on year to $34.5 billion. Its non-GAAP profit of $1.22 per share was 2.6% above analysts’ consensus estimates.
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Verizon (VZ) Q2 CY2025 Highlights:
- Revenue: $34.5 billion vs analyst estimates of $33.72 billion (5.2% year-on-year growth, 2.3% beat)
- Adjusted EPS: $1.22 vs analyst estimates of $1.19 (2.6% beat)
- Adjusted EBITDA: $12.81 billion vs analyst estimates of $12.65 billion (37.1% margin, 1.3% beat)
- Full year guidance raised for Adjusted EBITDA growth, EPS growth, and free cash flow
- Operating Margin: 23.7%, in line with the same quarter last year
- Free Cash Flow Margin: 15%, down from 17.7% in the same quarter last year
- Market Capitalization: $172.2 billion
Company Overview
Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE:VZ) is a telecom giant providing a range of communications and internet services.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Verizon grew its sales at a weak 1.1% compounded annual growth rate. This fell short of our benchmarks and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Verizon’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
This quarter, Verizon reported year-on-year revenue growth of 5.2%, and its $34.5 billion of revenue exceeded Wall Street’s estimates by 2.3%.
Looking ahead, sell-side analysts expect revenue to grow 1.4% over the next 12 months, similar to its two-year rate. This projection doesn't excite us and implies its newer products and services will not accelerate its top-line performance yet.
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Operating Margin
Verizon’s operating margin has risen over the last 12 months and averaged 19.5% over the last two years. On top of that, its profitability was top-notch for a consumer discretionary business, showing it’s an well-run company with an efficient cost structure.
This quarter, Verizon generated an operating margin profit margin of 23.7%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Verizon’s flat EPS over the last five years was below its 1.1% annualized revenue growth. However, its operating margin didn’t change during this time, telling us that non-fundamental factors such as interest and taxes affected its ultimate earnings.
In Q2, Verizon reported EPS at $1.22, up from $1.15 in the same quarter last year. This print beat analysts’ estimates by 2.6%. Over the next 12 months, Wall Street expects Verizon’s full-year EPS of $4.70 to stay about the same.
Key Takeaways from Verizon’s Q2 Results
It was encouraging to see Verizon beat analysts’ revenue and free cash flow expectations this quarter. As a result, the company raised full-year guidance for adjusted EBITDA growth, EPS growth, and free cash flow. Overall, this print was quite encouraging. The stock traded up 4.7% to $42.72 immediately after reporting.
Should you buy the stock or not? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.