VZ
Verizon Communications Inc.
Communication Services · Telecom Services · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Solid profitability metrics including a 21.2% operating margin and consistent dividend growth supported the mid-range composite score of 52.1/100.
- Mixed growth signals — revenue up +2.5% but net income and EPS each down -1.9% — and uneven quarterly momentum kept the score from reaching the upper tier.
- The absence of any macro theme assignment meant Verizon received no theme-based score contribution, which weighed on the overall composite.
Why Not Higher
- Declining net income and EPS in FY2025 alongside a high payout ratio of 66.9% limit the growth and dividend score upside, constraining the composite.
- Quarterly earnings volatility, including the sharp 2025Q4 net income dip to $2,342,000,000, signals inconsistency that the momentum factor penalized.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew modestly from FY2024 to FY2025, rising +2.5% to $138,191,000,000, but net income declined -1.9% to $17,174,000,000 over the same period, and diluted EPS fell -1.9% from FY2024 to FY2025.
The model rewarded the modest top-line expansion but penalized the simultaneous contraction in net income and earnings per share, resulting in a below-midpoint score that reflects mixed growth signals.
In FY2025, Verizon reported an operating margin of 21.2%, a net margin of 12.4%, and a return on assets of 4.2%.
The model rewarded the solid operating and net margins as evidence of durable earnings power, while the relatively modest return on assets — reflecting the capital-intensive nature of the business — tempered the score below the top range.
In FY2025, Verizon carried a debt-to-equity ratio of 1.5 against a total asset base of $404,258,000,000.
The model recognized the very large asset base as a sign of scale and collateral depth, while the debt-to-equity ratio of 1.5 in FY2025 indicates meaningful leverage that is common in capital-intensive telecom operations but still constrains the top end of the health score.
Over the last four reported quarters, revenue ranged from $33,821,000,000 in 2025Q3 to $36,381,000,000 in 2025Q4, with 2026Q1 pulling back to $34,440,000,000. Net income showed a sharp dip to $2,342,000,000 in 2025Q4 before rebounding to $5,045,000,000 in 2026Q1, and operating income similarly dropped to $5,004,000,000 in 2025Q4 before recovering to $8,242,000,000 in 2026Q1.
The model captured an uneven quarterly pattern — a pronounced 2025Q4 trough in both earnings and operating income followed by a recovery — which signals volatility rather than consistent acceleration, supporting a near-midpoint momentum score.
Verizon has increased dividends per share every year from FY2022 ($2.585) through FY2025 ($2.735), and the dividend payout ratio in FY2025 stood at 66.9%.
The model rewarded the consistent multi-year dividend growth streak as a sign of shareholder commitment, while the elevated payout ratio of 66.9% in FY2025 signals that a substantial portion of earnings is returned to shareholders, which may limit score upside due to reduced retained earnings flexibility.
Verizon is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a macro theme assignment means the security did not receive any theme-based score contribution under the current methodology; this reflects the model's current classification state and is not an indicator of the company's business quality.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Verizon Communications posted modest top-line growth of +2.5% to $138,191,000,000 in FY2025, but net income slipped -1.9% to $17,174,000,000 and diluted EPS fell -1.9%, creating a mixed growth picture. Profitability remains solid with a 21.2% operating margin and 12.4% net margin, though a return on assets of 4.2% reflects the capital-intensive nature of the business. The balance sheet carries meaningful leverage at a debt-to-equity ratio of 1.5 against a $404,258,000,000 asset base, and quarterly earnings showed notable volatility including a sharp dip in 2025Q4. Verizon's consistent dividend growth streak from $2.585 in FY2022 to $2.735 in FY2025 is a positive, though the 66.9% payout ratio limits retained earnings flexibility, and the absence of a macro theme assignment weighed on the composite score.
Plain English
Verizon is a large, stable telecom company that brings in a lot of revenue and pays a growing dividend, but its earnings dipped slightly last year, it carries significant debt, and its quarterly profits have been uneven — making it a 'do more homework' kind of stock rather than an obvious buy or avoid.
Bull Case vs. Bear Case
Bull Case
- Verizon's operating margin of 21.2% and net margin of 12.4% in FY2025 demonstrate durable earnings power even in a capital-intensive industry.
- The company has grown dividends per share every year from $2.585 in FY2022 to $2.735 in FY2025, signaling a consistent commitment to returning cash to shareholders.
- A total asset base of $404,258,000,000 provides substantial scale and collateral depth, underpinning the company's financial stability.
Bear Case
- Net income declined -1.9% to $17,174,000,000 and diluted EPS fell -1.9% in FY2025 even as revenue grew, indicating that top-line gains are not translating into bottom-line improvement.
- The dividend payout ratio of 66.9% in FY2025 means a large share of earnings is committed to dividends, reducing flexibility to reinvest or weather downturns.
- Quarterly earnings were volatile, with net income dropping sharply to $2,342,000,000 in 2025Q4 before rebounding to $5,045,000,000 in 2026Q1, signaling inconsistent execution.
What Could Change the Picture
Bullish Triggers
- Sustained improvement in net income and EPS growth — reversing the -1.9% declines seen in FY2025 — would signal that revenue gains are finally flowing through to the bottom line.
- A reduction in the debt-to-equity ratio below 1.5 would indicate deleveraging progress and improve financial health headroom.
Bearish Triggers
- A further increase in the payout ratio beyond 66.9% without corresponding earnings growth would raise concerns about dividend sustainability and financial flexibility.
- Continued quarterly volatility in operating income — similar to the 2025Q4 trough of $5,004,000,000 — would suggest structural rather than seasonal earnings pressure.
Risk Profile
Medium RiskVerizon carries a debt-to-equity ratio of 1.5 against a $404,258,000,000 asset base, reflecting meaningful leverage typical of capital-intensive telecom operations that nonetheless constrains financial flexibility. Quarterly results have been uneven, with a pronounced trough in 2025Q4 across both net income and operating income followed by a recovery in 2026Q1, indicating the company is not immune to earnings volatility.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.