Verizon hit a new high with $13.7 billion in adjusted EBITDA for the second quarter, pushing its operating results to levels not seen before. This strong performance fueled an increase in the company's share repurchase target to $4.5 billion, reflecting confidence in its financial health despite a slight stock price dip on the day of the report.

Momentum in Mobility and Broadband Driving Revenue Growth

The telecom giant added a total of 605,000 new customers in mobility and broadband across its services during Q2, a boost that propelled service revenue up by 2.8 percent year over year to around $23.4 billion. The company expects this growth to accelerate, targeting close to 3 percent in Q3 and reaching about 4 percent in Q4 as the demand for mobile and fiber broadband connectivity remains solid.

Verizon added 184,000 postpaid phone subscribers, the strongest second-quarter gain in half a decade. Prepaid customers also grew steadily with 73,000 net additions, marking the eighth consecutive quarter of positive growth. Broadband expansions included 193,000 fixed wireless customers and 155,000 new fiber broadband connections, taking total broadband connections to roughly 17.1 million.

EBITDA Records Offset Revenue Dip, Cash Flow Bolsters Buybacks

While total revenue slipped by 0.7 percent to $34.3 billion, mainly due to a nearly 20 percent fall in equipment sales caused by slower device upgrades and less promotional spending, adjusted EBITDA surged 7.2 percent, resulting in a margin improvement to 40.1 percent the highest in Verizon’s history.

Net income, impacted by $1.8 billion in pre-tax charges related to business restructuring and severance, declined 22.9 percent to $3.9 billion. However, cash flow from operations grew by nearly 10 percent to $18.4 billion, with free cash flow rising 16 percent to $10.2 billion in the first half of the year. This strong cash generation enabled Verizon to expand shareholder returns significantly, including raising its buyback program.

Despite the solid fundamentals, Verizon’s shares edged lower, closing at $43.82 and slipping further in pre-market trading. The cautious market reaction contrasts with the company’s optimistic outlook and upward revision of its 2026 guidance. Continued solid service growth and improved profitability indicate Verizon’s resilience amid evolving industry challenges.