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Telecommunications giant Verizon (NYSE:VZ) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 1.5% year on year to $33.49 billion. Its non-GAAP profit of $1.19 per share was 3.6% above analysts’ consensus estimates.

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Verizon (VZ) Q1 CY2025 Highlights:

• Revenue: $33.49 billion vs analyst estimates of $33.33 billion (1.5% year-on-year growth, in line)

• Adjusted EPS: $1.19 vs analyst estimates of $1.15 (3.6% beat)

• Adjusted EBITDA: $12.56 billion vs analyst estimates of $12.34 billion (37.5% margin, 1.7% beat)

• Operating Margin: 23.8%, up from 22.8% in the same quarter last year

• Free Cash Flow Margin: 10.9%, up from 8.2% in the same quarter last year

• Customers: 146 million, down from 146.1 million in the previous quarter

• Market Capitalization: $180 billion

StockStory’s Take

Verizon’s first quarter results reflected management’s focus on stabilizing subscriber trends and expanding its broadband footprint. On the call, CEO Hans Vestberg and Consumer Group CEO Sowmyanarayan Sampath emphasized that targeted pricing actions, new customer offers such as the three-year price lock, and the ongoing expansion of fixed wireless and fiber broadband were central to recent performance. Sampath noted, “Our Verizon Value Guarantee is resonating well, providing predictability and value that customers are seeking in the current environment.”

Looking ahead, management described a strategy anchored in further convergence of mobility and broadband services, disciplined cost control, and continued investment in network quality. While executives expressed confidence in achieving their 2025 operational and financial objectives, they acknowledged headwinds from external factors like tariffs and ongoing industry competition. As Vestberg stated, “We are well positioned to deliver sustainable growth, but remain vigilant given the evolving policy landscape.”

Key Insights from Management’s Remarks

Verizon’s leadership attributed the quarter’s financial performance to disciplined execution across consumer and business segments, progress in its multi-year transformation, and product differentiation. They highlighted several operational and strategic developments shaping both the current quarter and the path forward.

• Consumer value initiatives: Management pointed to the launch of the three-year price lock and free phone guarantee as a response to consumer demand for predictability and value. These offers were designed to retain customers, reduce churn, and attract new subscribers, particularly as price increases in late 2024 had driven some customer losses.

• Broadband expansion momentum: The company continues to prioritize growth in both fiber (Fios) and fixed wireless access (FWA). Leadership said Verizon is ahead of schedule in expanding Fios passings and expects to increase its fixed wireless subscriber base, with a long-term goal of reaching 8–9 million FWA subscribers by 2028.

• Turnaround in prepaid business: Sampath detailed a significant turnaround in the prepaid segment, with 137,000 net adds—its best result since the TracFone acquisition. This improvement followed enhancements to value propositions, distribution, and operational rigor in prepaid brands like Visible, Total Wireless, and Straight Talk.

• Business segment progress: The business unit reported continued margin improvement, aided by cost management and growth in private networks, IoT, and AI Connect offerings. Recent deals, such as those for AdventHealth and Nucor, illustrate traction in enterprise connectivity and managed services.

• Tariff and macroeconomic considerations: Management addressed potential impacts of new tariffs on equipment and handsets, stating that exposure is limited on capital expenditures, but handset tariffs could ultimately affect consumer pricing. The company remains prepared to adapt its approach as the policy environment evolves.