Verizon: A Turnaround or Just Polishing Brass?

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So, Verizon. The behemoth. A company that once moved with the grace of a grounded whale, now attempting a pirouette. Mr. Schulman, the new captain, has declared a shift – from worshipping the altar of technology to, astonishingly, paying attention to the customer. A novel concept, wouldn’t you say? One might suspect he’s recently returned from a prolonged stay amongst the peasants.

And, remarkably, it seems to be having an effect. A million new subscribers in a quarter. Not since 2019 has Verizon witnessed such a surge. One suspects a generous helping of promotional offers was involved, but let’s not spoil the illusion. After all, a good story is worth a few extra pennies.

The Numbers Tell a Tale

A million subscribers, yes. 616,000 of the postpaid variety – those who actually pay their bills, a detail often overlooked in these exuberant reports. They also managed to add a respectable 372,000 broadband connections, a mix of fixed wireless and the more traditional Fios. The revenue? A modest 2% increase to $36.4 billion. Not exactly a fireworks display, but enough to keep the shareholders from storming the barricades.

Consumer revenue climbed a respectable 3.2%, while the business unit, alas, continues to resemble a sinking ship. A 1.8% decline. One imagines a great deal of frantic cost-cutting is underway. Meanwhile, earnings per share slipped slightly – a mere 0.9% – and EBITDA, that darling of the financial world, fell by 0.6%. These are not catastrophic numbers, mind you, but they lack the triumphant fanfare the press releases suggest.

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Looking ahead, Verizon anticipates adding another 750,000 to 1 million postpaid subscribers in 2026. A bold prediction, considering the competition is not exactly napping. They foresee a 2-3% rise in mobility and broadband revenue and a 4-5% climb in adjusted EPS. Ambitious, certainly. Whether it’s realistic remains to be seen. One suspects a team of economists is currently employed to ensure these projections align with the phases of the moon.

And now, the pièce de résistance: a $25 billion buyback. A delightful spectacle, really. Essentially, Verizon is borrowing money to purchase its own shares, thereby artificially inflating the price. A magician’s trick, if you will. They claim it’s backed by strong free cash flow – a projected $21.5 billion next year. A comforting thought, though one can’t help but wonder what other, more productive uses that cash might have. They also promise to maintain a sensible level of debt. A promise, naturally, to be evaluated with a healthy dose of skepticism.

Is it Time to Buy? A Question for the Ages

Verizon seems to have decided that it’s no longer content to simply be the wireless provider from which customers flee to greener pastures. This newfound humility, combined with the acquisition of Frontier Communications, presents a cross-selling opportunity. A chance to bundle services, ensnare customers, and extract every last penny. A truly elegant strategy.

The dividend, at 6.5%, remains secure, comfortably covered by the aforementioned free cash flow. The buyback, as previously noted, provides a temporary boost to the share price. Even after the recent surge, the stock trades at a forward P/E ratio of 9.2, a bargain compared to AT&T’s 11.3. A subtle difference, perhaps, but in the world of high finance, even the smallest details can be exploited. A shrewd investor, one might say, could find some value here. Though, of course, one must always remember the cardinal rule: there are no guarantees in this life, only probabilities and carefully constructed illusions.

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2026-02-03 14:32