Verizon (VZ) Stock Pops After Posting Strong Q2 Earnings, Raised Guidance

July 21 - Shares of Verizon Communications VZ rose about 3% on Monday after the company raised its full-year profit outlook and posted better-than-expected second-quarter results, driven by stronger demand for higher-tier wireless plans and broadband growth.

Wireless service revenue rose 2% in the April-June period as more customers opted for premium packages that include streaming add-ons like Netflix. Verizon has leaned on bundled offerings and price-lock deals to compete with rivals including AT&T T, T-Mobile US TMUS, Comcast CMCSA, and Charter Communications CHTR.

Still, the company reported a net loss of 9,000 monthly phone subscribers, compared with analyst expectations for a 13,000 gain. Verizon attributed the churn to customer pushback after price increases earlier this year.

It continued to be a positive in the broadband performance as it recorded 293,000 net additions during the quarter. It is furthering its fibre infrastructure expansion after the U.S. regulatory green light in May on its $20 billion purchase of Frontier's fibre-optic business in the country. In the agreement, Verizon agreed to scale down on its diversity initiatives.

Its quarterly revenue rose to $34.5 billion compared to the $33.74 billion estimate and the adjusted earnings per share stood at $1.22. Verizon has raised its 2025 earnings to an increase of 1-3% and forecasted to increase its free cash from a previous estimate of $19.5 billion to $20.5 billion.