New York, NY – Verizon Communications reported better-than-expected fourth-quarter adjusted earnings and revenue on Friday. The telecom giant revealed that it anticipates a 2.4% growth in wireless service revenue for the year 2025. As a result, Verizon’s stock saw a rise in morning trading.
During the period ending on Dec. 31, Verizon’s adjusted earnings came in at $1.10 per share, exceeding Wall Street estimates by two cents. Additionally, the company’s revenue increased by 1.6% to $35.7 billion, slightly surpassing analysts’ predictions of $1.09 per share and revenue of $35.3 billion.
Verizon also highlighted a 3.1% climb in wireless service revenue to $20 billion, aligning with expectations. However, its earnings before interest, taxes, depreciation, and amortization fell slightly below estimates at $11.9 billion compared to the expected $12.05 billion.
Moreover, Verizon boasted the addition of 568,000 wireless postpaid phone business and consumer subscribers, surpassing estimates of 350,000. These figures are crucial as postpaid phone subscribers represent the highest-spending wireless subscribers.
Looking ahead, Verizon announced plans for adjusted EPS growth of 1.5% and adjusted EBITDA growth ranging from 2% to 3.5% for 2025. The company also projected free cash flow between $17.5 billion to $18.5 billion.
Analyst Tim Horan from Oppenheimer noted that Verizon’s 2025 guidance aligns with expectations but falls slightly short in implied EBITDA margins and EPS as the company focuses on reducing wireless subscriber churn.
In a separate development, AT&T is scheduled to report its earnings on Monday, while Verizon’s acquisition of Frontier Communications for $20 billion in cash is pending closure in approximately 18 months. Frontier, the leading pure-play fiber provider in the U.S., is expected to reach 10 million home passings by the end of 2026 and currently serves 2.2 million fiber network subscribers across 25 states.
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