Verizon raises broadband guidance as wireless revenue falls

Verizon Communications (VZ) raised its full-year 2026 guidance for mobility and broadband service revenue to a range of 2.5% to 3.0% on July 24, 2026, while reporting a 0.7% decline in wireless service revenue for the second quarter. The company shifted its primary performance metric from wireless service revenue to this combined measure during the fiscal Q2 2026 earnings call, a change from the specific focus on wireless service emphasized by executives during the fiscal Q2 2025 call.

The combined mobility and broadband service revenue climbed 2.8% in the latest quarter to reach $23.4 billion. This growth was driven by home internet rather than mobile service, primarily through the inclusion of Frontier Communications following its January 2026 acquisition and 348,000 organic broadband net additions during the period. Alongside the revised financial forecast, Verizon introduced Verizon One, a plan that bundles mobility and broadband services onto a single bill.

Wireless service remains the largest component of the company's income, accounting for $20.8 billion of the $34.3 billion in total revenue reported for fiscal Q2 2026. Despite this dominant share, the specific metric declined from the previous year. The divergence between the two measures highlights a strategic pivot where growth in the broadband segment is offsetting stagnation in the wireless division.

Investors face a valuation gap, with Verizon stock trading at 11.9 times earnings compared to 21.5 for the S&P 500. However, underlying financial pressures persist. Revenue increased at an average annual rate of just 1.0% over three years. Additionally, debt equals 98.3% of the company's market value, far exceeding the 20.8% level of the broader index.

During the July 2026 call, executives noted that past promotions continue to weigh on results but believe this drag has peaked. They expect pressure to ease steadily through the second half of 2026 and into 2027. Verizon forecast third-quarter growth to approach 3% for mobility and broadband service revenue, a figure it has not yet reported.

The next milestone is scheduled for on or around October 26, 2026, when Verizon is expected to report third-quarter results. Management anticipates that full-year wireless service revenue will end near zero change, with year-over-year comparisons shifting to positive territory in the latter part of 2026. A positive third-quarter print would serve as an execution test against this guidance rather than a surprise.