Verizon (VZ) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 2025 results with total revenue of $34.5B, up 5.2% year-over-year, and net income of $5.1B, up 8.9%, driven by Consumer segment growth and strategic execution.

• Adjusted EBITDA reached a record $12.8B, up 4.1% year-over-year, with margin expansion supported by cost discipline and operational efficiencies.

• Free cash flow for the first half of 2025 was $8.8B, up over $300M year-over-year, supporting capital expenditures and dividends.

• Surpassed 5 million Fixed Wireless Access subscribers and posted four consecutive quarters of core prepaid growth.

• Raised full-year guidance for Adjusted EBITDA, Adjusted EPS, and free cash flow, citing strong operational execution and tax reform benefits.

Financial highlights

• Wireless service revenue was $20.9B, up 2.2% year-over-year; wireless equipment revenue grew 25.2% to $6.3B.

• Adjusted EPS was $1.22, up 6.1% year-over-year; reported EPS was $1.18, up from $1.09.

• CapEx for 1H 2025 was $8.0B, slightly down from $8.1B in the prior year.

• Net unsecured debt at quarter-end was $116B, a $6.9B improvement year-over-year; total debt at $146.0B.

• Cash and cash equivalents at Q2 2025 were $3.4B.

Outlook and guidance

• Increased full-year Adjusted EBITDA growth guidance to 2.5%-3.5%, Adjusted EPS growth to 1%-3%, and free cash flow to $19.5B-$20.5B.

• Wireless service revenue growth expected at 2.0%-3.5%; CapEx guidance unchanged at $17.5B-$18.5B.

• OBBBA tax law changes expected to decrease 2025 cash tax liability and increase deferred tax liability by $1.5B–$2.0B.

• No required pension funding expected through year-end 2025.