Verizon Communications offers an 11.2% free cash flow yield, far above the S&P 500 median of 4.1%, yet its stock has fallen 9% over three months to around $42.12. The company’s operating margin holds at 21%, and it added 55,000 postpaid phone net adds in the first quarter, the first positive first-quarter figure in 13 years, while consumer postpaid phone churn improved to below 85 basis points in March. However, core wireless service revenue declined 1% year-over-year, and trailing twelve-month revenue growth of 2.8% trails the S&P 500 median of 7.5%. Management reaffirmed full-year guidance for mobility and broadband service revenue growth of 2% to 3%, calling the first quarter the low point of 2026.
Verizon Communications IncArticle discusses Verizon's high free cash flow yield and margin, but stock has fallen 9% and revenue growth is weak; mixed signals on turnaround.
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