Verizon (VZ) Earnings On Deck: Stock Underperforming Into The Print

As Verizon Communications Inc. (NYSE: VZ) prepares to release its third-quarter 2025 earnings today, markets are keenly watching for signs of stability and growth amidst a period of significant transition. The telecommunications giant is navigating a leadership change, increased competition, and evolving market dynamics, all while striving to meet analyst expectations.

Ahead of the earnings release, analysts anticipate Verizon will report earnings of $1.19 per share, matching the figure from the same quarter last year. Revenue is projected to increase by 2.82% to $34.27 billion.

The most notable recent event was the appointment of Dan Schulman, former CEO of PayPal, as Verizon's new Chief Executive Officer on October 6th, succeeding Hans Vestberg. Schulman's track record at PayPal, particularly his leadership during its separation from eBay and the surge in online transactions during the pandemic, has raised both hopes and concerns.

While his digital expertise is seen as a potential asset, the immediate market reaction was negative. The stock dropped significantly on the announcement, closing at $41.44 on October 6th, down from $43.25. This decline suggests initial market uncertainty about the strategic implications of the leadership change.

While the consensus appears cautiously optimistic, a deeper examination suggests potential headwinds that may not be fully priced in. The projected 2.82% revenue growth, while positive, is modest in the context of a rapidly evolving telecommunications landscape. Competition is fierce, and Verizon faces pressure from both traditional rivals and disruptive new entrants. The company's significant debt load also limits its financial flexibility to invest in emerging technologies like 6G and further expand its 5G infrastructure.

Furthermore, Schulman's expertise is primarily in the digital payments space, and it remains to be seen whether his skillset is directly transferable to the challenges facing a large, capital-intensive telecommunications company. The market may be underestimating the execution risk associated with this leadership transition and the potential for further strategic shifts that could disrupt existing operations. A more pessimistic outlook would suggest that Verizon needs to make some drastic changes to truly compete, and this may mean the stock price will decline before there is a recovery.

The recent performance of Verizon's stock contrasts sharply with the broader market trends. As markets have been busy setting high after high, Verizon's 2.21% drop YTD underscores the challenges it faces, independent of broader market tailwinds.

Key Takeaways

• Earnings Performance: Does the company meet or exceed analyst expectations for EPS and revenue? Any significant deviations could trigger a sharp market reaction.
• Strategic Outlook: How does the new CEO articulate his vision for the company's future? What specific initiatives will he prioritize to drive growth and improve competitiveness?
• Financial Health: How is Verizon managing its debt load? What are the company's capital expenditure plans for 5G and other infrastructure investments?
• Competitive Landscape: How is Verizon responding to increased competition in the wireless market? What strategies is it employing to retain and attract customers?

The upcoming earnings report and subsequent calls will provide critical insights into Verizon's strategic direction and its ability to navigate the challenges and opportunities ahead. The telecommunications giant is at an inflection point, and its future performance will depend on its ability to adapt, innovate, and execute effectively under its new leadership.