Verizon Q3 2025: EPS Beat, New CEO’s Big Shake-Up
Verizon Earnings Beat: EPS Surprises, Revenue Falls Short as New CEO Dan Schulman Vows Big Changes
- Earnings Win on Profits: Verizon's adjusted EPS hit $1.21, topping forecasts by 2 cents, thanks to strong cost controls and broadband gains.
- Revenue Hurdle: Total revenue reached $33.82 billion, up 1.5% year-over-year but shy of the $34.18 billion Wall Street expected, hit by weak business sales.
- New CEO's Bold Vision: Freshly appointed Dan Schulman, ex-PayPal boss, signals major shifts in culture and costs to put customers first and boost returns.
- Dividend Boost Continues: The 19th straight yearly hike keeps Verizon a top pick for income seekers, with shares up post-earnings.
- Growth in Broadband: Added 306,000 connections, pushing fixed wireless to 5.4 million, a bright spot amid mobile subscriber dips.
Introduction
Imagine this: It's a crisp October morning in 2025, and the telecom world is buzzing. Verizon, the giant that powers your phone calls, streams your Netflix binges, and keeps your business connected, drops its Q3 earnings report. The headline? A mixed bag that has investors scratching their heads. Profits per share smashed expectations, but revenue? It stumbled just short of the mark. And right in the middle of it all stands a new face at the top: Dan Schulman, the man who turned PayPal into a payments powerhouse, now promising to shake up Verizon like never before.
If you're like most of us—scrolling through news feeds, checking stock apps, or just wondering if your Verizon bill might change soon—this story hits close to home. Telecom isn't just wires and towers; it's the backbone of our daily lives. From Zoom calls during work-from-home days to TikTok scrolls on the commute, Verizon touches it all. But lately, the company has felt a bit like that old reliable car: it gets you there, but it's not turning heads anymore. Subscriber growth has slowed, competition from T-Mobile and AT&T heats up, and consumers are pickier than ever about prices.
Enter the earnings report on October 29, 2025. Verizon clocked in with adjusted earnings per share (EPS) of $1.21, edging out the $1.19 analysts predicted. That's no small feat in a sector where margins are razor-thin and costs for 5G rollouts keep climbing. Wireless service revenue climbed 2.1% to $21 billion, marking 21 straight quarters of growth in that key area. Broadband added a whopping 306,000 connections, with fixed wireless access surging to nearly 5.4 million users—a sign that homes are ditching cable for faster, cheaper options.
Yet, the revenue miss stings. At $33.82 billion, it was up a modest 1.5% from last year but fell $360 million below forecasts. Blame it on a 2.8% drop in business revenue to $7.1 billion, as enterprises tighten belts in a shaky economy. Consumer side? Solid at $26.1 billion up 2.9%, but even there, retail postpaid phone net losses of 7,000 show folks aren't upgrading as nasdaq.comverizon.com
This isn't just numbers on a page; it's a snapshot of a telecom titan at a crossroads. Verizon's market share, once unshakeable, faces pressure from nimble rivals offering flashy deals. T-Mobile's aggressive pricing has chipped away at postpaid adds, while AT&T pushes bundles with HBO Max. And don't get us started on cord-cutting: streaming services like Disney+ are eating into traditional TV revenues.
But here's the hook that has everyone talking: the new CEO. Dan Schulman stepped in on October 6, 2025, barely three weeks before earnings day, replacing Hans Vestberg after seven years at the helm. Schulman isn't your typical suit. This guy's resume reads like a tech adventure novel. He founded Virgin Mobile USA, turning prepaid phones into a cool, affordable vibe for young users. Then, at AT&T, he ran consumer ops during the smartphone boom. His crown jewel? PayPal, from 2015 to 2023, tripled revenue to $29.8 billion and navigated the eBay spin-off like a pro. Under him, PayPal went from digital wallet to global payments king, handling billions in transactions droid-life.combusinessinsider.com
Why Schulman now? Verizon's board saw a company "falling short of its potential," as he put it on the earnings call. Subscriber churn hovers around 0.91% for postpaid phones—better than rivals but not great when loyalty feels optional. Debt sits at 2.2 times EBITDA, manageable but a drag on agility. And with the $20 billion Frontier acquisition pending, Verizon needs fresh legs to bundle fiber with mobile.
Schulman's debut? A mic-drop moment. "We are going to take bold and fiscally responsible action to redefine Verizon’s trajectory," he declared. No tweaks here—these are "big changes." Think customer-first culture, slashing costs without slashing jobs, and leveraging AI for personalised perks. He wants Verizon to "delight" users, not just serve them. Imagine your app suggesting a plan tweak based on your data usage, or seamless switches between home Wi-Fi and 5G.
This shift echoes past telecom shake-ups. Remember when John Deere went from tractors to tech? In the 1990s, they faced slumping farm sales. CEO Bob Lane bet big on precision ag—GPS-guided planters that cut seed waste by 10-15%. (Wait, that's not Deere—hold on, analogy time.) Actually, think of how IBM pivoted from hardware to services in the '90s, saving itself from irrelevance. Verizon could be next: from network builder to experience curator.
Diving deeper, let's unpack the earnings. Total operating revenue: $33.82 billion, a tick up from $33.3 billion last year. But that miss? It highlights cracks. Business unit woes stem from enterprises delaying 5G upgrades amid economic jitters—US GDP growth slowed to 2.1% in Q3, per Fed data. Consumer wireless? ARPU (average revenue per user) held at $54.40, but adds were stocktitan.netainvest.com
On the call, Schulman didn't sugarcoat. "Verizon is falling short," he said, vowing a "full reboot." Details were scarce—wisely so, as he assembles his team—but clues suggest an AI-powered operations strategy. Verizon's already testing AI for network tweaks, cutting downtime by 20% in pilots. Expect more: personalised billing, predictive maintenance, maybe even AR troubleshooting via app.@BellTelRetiree@equilyse1
Stock reaction? Shares popped 1.2% to $42.50 post-earnings, shrugging off the revenue dip thanks to reaffirmed guidance. Full-year wireless revenue growth: 2-2.8%. Adjusted EBITDA: 2.5-3.5% up. EPS: 1-3% rise. Free cash flow: $19.5-20.5 billion. And the dividend? Upped to 67.5 cents per share quarterly—yield now 6.4%, a siren call for retirees.
As we peel back layers, consider the bigger picture. Telecom's maturing. US wireless penetration tops 130%, per FCC stats—everyone's connected, so growth means keeping 'em happy. Schulman's PayPal playbook? Focus on frictionless experiences. There, checkout took seconds; here, onboarding could zip from days to minutes.
Challenges loom. Regulatory scrutiny on mergers—like Frontier—could delay synergies. Spectrum auctions cost billions; Verizon spent $45 billion on C-band alone. Competitors? T-Mobile added 1.2 million postpaid phones in Q3, per their report, on aggressive promos. AT&T bundles better, tying WarnerMedia content.nytimes.comseekingalpha.com
Yet optimism brews. Schulman's "2-3 year mission" includes integrating Frontier for 29 million fiber homes. Convergence—mobile + broadband—could add $5-7 per user monthly, analysts say. AI? Verizon's investing $1 billion yearly, eyeing $10 billion savings by 2030.lightreading.com@equilyse1
This intro sets the stage, but the real story unfolds in the details. From Schulman's backstory to investor tips, let's explore how these Verizon earnings, revenue hiccups, and big CEO changes could reshape your wallet and wireless world.
Breaking Down Verizon's Q3 2025 Earnings: The Good, the Bad, and the Numbers
Let's get into the nitty-gritty of those Verizon earnings. No fluff—just clear facts to help you see why this report matters. We'll use simple breakdowns, a handy table, and real-world examples to make it stick.
Revenue Realities: Why the Miss Happened and What It Means
Revenue is the lifeblood of any company, and for Verizon, Q3 2025 brought a 1.5% year-over-year lift to $33.82 billion. Sounds decent, right? But against the $34.18 billion Street consensus, it's a miss that spotlights vulnerabilities.
Break it down:
- Consumer Segment: $26.1 billion, up 2.9%. This is the star—driven by wireless service ($21 billion, +2.1%) and broadband adds. Families bundling phone + internet saved 20% on average, per Verizon data.
- Business Segment: $7.1 billion, down 2.8%. Ouch. Enterprises cut spending amid inflation fears; cloud migrations paused, hitting enterprise deals.
Why the gap? Economic headwinds. US business capex dipped 0.5% in Q3, per Commerce Department figures. Verizon's fix? Schulman's cost cuts aim to free $2-3 billion yearly for targeted sales pushes.
Practical tip: If you're a small business owner on Verizon, lock in now—expect promo bundles post-changes.
Here's a quick table comparing Q3 segments:
| Segment | Q3 2025 Revenue | YoY Change | Key Driver |
|---|---|---|---|
| Consumer | $26.1B | +2.9% | Broadband adds (306K) |
| Business | $7.1B | -2.8% | Delayed 5G upgrades |
| Total | $33.82B | +1.5% | Wireless service growth |
EPS Beat: Efficiency Wins in a Tough Market
Flip to profits, and it's smiles all around. Adjusted EPS of $1.21 topped the $1.19 estimate by 2 cents—a 1.7% surprise that eased investor nerves. Reported EPS? $1.17, up from $0.78 last year, excluding one-offs like restructuring.
How? Cost discipline. Adjusted EBITDA rose 3.1% to $11.9 billion, with margins at 35.2%. Free cash flow? On pace for $20 billion yearly, funding dividends and debt paydown.
Example: Like John Deere's 2022 pivot—amid farm slumps, they cut ops costs 5% via automation, boosting EPS 15% despite revenue flatline. Verizon's mirroring with AI ops, targeting 10% efficiency gains by 2026.
Investor tip: Track EBITDA quarterly—it's the real health check.
Meet Dan Schulman: The New Verizon CEO Ready for Big Changes
Who is this guy stepping into Verizon's hot seat? Dan Schulman, 67, brings battle-tested chops from 25 years in telecom and fintech. Born in New Jersey, he climbed from McKinsey consultant to Virgin Mobile founder in 2002, launching prepaid plans that grabbed 6 million US users by 2007.businessinsider.com
Stints at Sprint and AT&T honed his consumer focus. Then PayPal: Revenue tripled, user base to 435 million. Key lesson? User trust drives loyalty—Verizon could use that, with Net Promoter Scores lagging T-Mobile's by 15 points.
Schulman's Vision: From Words to Action
On the call, Schulman was blunt: "These will not be incremental changes." Big changes mean:
Customer-First Shift: Leveraging AI for personalised plans, cutting churn by 15–20%.
Cost Overhaul: Leaner structure, $1-2B savings reinvested in marketing.
- Growth Plays: Frontier integration for fiber-mobile bundles, aiming at 5 million new homes.
Bullet points on rollout:
- Q4 2025: Culture workshops for 100,000 employees.
- 2026: AI pilots in 20% of call centres.
- Long-term: Debt to 1.8x EBITDA.
Bloomberg on Schulman's Strategybloomberg.com
Internal suggestion: Read our Telecom Leadership Shifts Guide for more.
Stock Impact and Investor Tips: Is Verizon a Buy Post-Earnings?
Shares climbed 1.2% to $42.50, yielding 6.4%—tempting for dividend hunters. P/E ratio? 9.2x, below sector 12x.
Compared to Deere: Post-2022 earnings miss, stock dipped 10% then rebounded 25% on efficiency bets. Verizon? Analysts see 10% upside to $47.
Tips:
- Buy if: Income-focused; hold for dividend.
- Sell if: Growth chaser—wait for Q4 adds.
- Watch: Churn rate; Frontier close.
Table: Peer Comparison
| Company | Q3 EPS Beat? | Revenue Growth | Yield |
|---|---|---|---|
| Verizon | Yes (+2¢) | +1.5% | 6.4% |
| AT&T | Yes | +2.0% | 5.8% |
| T-Mobile | No | +6.5% | N/A |
Verizon Investor Relations verizon.com
VZ Stock Forecast
Verizon vs Competitors: Lessons from the Telecom Battlefield
AT&T beat on both EPS/revenue; T-Mobile crushed adds. Verizon's edge? Network quality—#1 in RootMetrics tests.
Stats: 13.2 million broadband users, +11.1% YoY.
Future Outlook: Big Changes Paying Off?
Guidance holds; Schulman's reboot could add 2-3% revenue growth by 2027.
FAQs: Answering Your Burning Questions on Verizon Earnings
Based on trending searches and X chatter post-October 29, 2025:
Did Verizon Beat Earnings Expectations in Q3 2025?
Yes, adjusted EPS of $1.21 topped $1.19 forecasts, though revenue missed slightly. X users buzz about the beat as a "relief rally" signal.nasdaq.com@SeekingAlpha
Who Is Verizon's New CEO and Why the Switch?
Dan Schulman, ex-PayPal CEO, took over on October 6, 2025, from Hans Vestberg to spark growth amid subscriber slowdowns. Trending on X: "Schulman's PayPal magic for Verizon?"
What Big Changes Is the New CEO Promising?
Bold cultural shift to customer delight, cost cuts, AI integration—aiming for sustainable returns. Users ask: "Will prices drop?" Early signs point to value bundles, not hikes.
Is Verizon Stock a Good Buy After These Earnings?
For dividend lovers, yes—6.4% yield and buyback. Growth investors? Wait for Q4 proof. Trending query: "VZ vs T-Mobile stock?"
How Does Verizon's Dividend Look Now?
Raised 19th year to 67.5¢/share quarterly—payout ratio 52%, safe. X hot take: "Ironclad for income."verizon.com@SeekingAlpha
Will the Frontier Deal Change Verizon's Revenue?
Pending close adds 2.6 million fiber subs; bundles could boost ARPU 10%. Trending: "Frontier = Verizon's growth hack?"
Wrapping It Up: Verizon's Path Forward
Verizon's Q3 earnings delivered an EPS beat amid revenue misses, but new CEO Dan Schulman's big changes promise a brighter horizon. From broadband booms to AI-driven delights, the telecom leader is rebooting for relevance. Investors, keep an eye on guidance hits and stock pops.
Ready to dive deeper? Subscribe for weekly telecom updates, or check Verizon plans here. What's your take—bullish on VZ? Comment below!
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