With earnings season approaching, attention is turning to one of the largest U.S. telecom providers. The Verizon earnings outlook is drawing interest as investors weigh steady cash flows and dividends against slow growth and market underperformance. Verizon Communications Inc. (NYSE:VZ) is set to report its fiscal fourth-quarter 2025 results before the market opens on Friday, Jan. 30, and expectations are clearly defined.
Valued at roughly $167.9 billion, Verizon is a core player in wireless, broadband, and wireline communications, serving consumers, businesses, and government clients across the United States. While the company is not known for explosive growth, its consistent earnings profile and shareholder-friendly capital returns keep it firmly on income-focused investors’ radars.
What Wall Street Expects From Verizon’s Q4 Earnings
Analysts expect Verizon to post earnings of $1.06 per share for the quarter, representing a 3.6% decline from $1.10 per share in the same period last year. Despite the year-over-year dip, Verizon has a strong recent track record of beating expectations. The company has exceeded Wall Street’s bottom-line estimates in each of the last four quarters.
In the previous quarter, Verizon delivered adjusted earnings of $1.21 per share, topping forecasts by 1.7%. This pattern of modest but consistent beats has helped stabilize investor sentiment, even as revenue growth remains under pressure. As part of the current Verizon earnings outlook, investors will be watching closely to see whether management can maintain this streak.
Full-Year and Long-Term Earnings Outlook
Looking beyond the quarter, analysts project Verizon to generate earnings of $4.68 per share for the full fiscal year ending in December. That would mark a 2% increase from $4.59 per share in fiscal 2024. Growth is expected to remain gradual, with earnings projected to rise another 3% year over year to $4.82 per share in fiscal 2026.
These estimates reflect Verizon’s mature business model. Wireless penetration in the U.S. is already high, limiting subscriber growth, while pricing competition remains intense. However, cost controls, incremental price increases, and steady demand for data services continue to support predictable cash flows—an important pillar of the Verizon earnings outlook.
Stock Performance Lags the Broader Market
Over the past 52 weeks, shares of Verizon Communications Inc. (NYSE:VZ) have gained only marginally, significantly underperforming the broader market. During the same period, the S&P 500 Index delivered a return of about 16%, while the Communication Services Select Sector SPDR ETF (NYSEARCA:XLC) rose roughly 19.1%.
This divergence highlights investor preference for higher-growth technology and communication services names. Verizon’s slower pace has weighed on its valuation, but it has also pushed the stock’s dividend yield higher, making it attractive to income-oriented portfolios.
Reviewing Verizon’s Most Recent Quarter
Verizon reported mixed third-quarter results on Oct. 29. The market responded positively, with shares climbing 2.3% after the announcement. Adjusted earnings rose 1.7% year over year to $1.21 per share, exceeding analyst expectations.
Revenue, however, told a more cautious story. Operating revenue increased about 1.5% from the prior year to $33.8 billion but missed consensus estimates by roughly 1.1%. This combination of earnings resilience and revenue softness has become a familiar theme in the Verizon earnings outlook.
One notable positive was Verizon’s dividend announcement. The company raised its dividend for the 19th consecutive year, reinforcing its reputation as a reliable income stock. Dividend consistency remains one of Verizon’s strongest selling points, especially in volatile or uncertain market conditions.
Analyst Sentiment and Price Targets
Wall Street’s view on Verizon is cautiously optimistic. The stock currently carries a “Moderate Buy” consensus rating. Among the 28 analysts covering Verizon Communications Inc. (NYSE:VZ), eight rate the stock a “Strong Buy,” three recommend a “Moderate Buy,” and 17 suggest holding shares.
The average price target stands at $47.22, implying an upside potential of approximately 18.1% from current levels. This suggests analysts see room for valuation expansion, particularly if Verizon can demonstrate better revenue stability and continued earnings discipline.
Final Take on the Verizon Earnings Outlook
The upcoming earnings report is unlikely to dramatically reshape Verizon’s growth narrative, but it could reinforce the stock’s role as a steady, income-generating investment. The Verizon earnings outlook points to modest profit growth, reliable dividends, and limited downside risk, balanced against ongoing competitive and revenue challenges.
For investors seeking high growth, Verizon may remain unexciting. For those prioritizing income, stability, and predictable returns, the company’s next earnings report could further validate its place in a defensive portfolio strategy.
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