VZ · Q2 FY2026
VERIZON COMMUNICATIONS INC Q2 FY2026 earnings analysis
By SageNoodle ResearchBearish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $34.25B | $34.50B (yr ago) | Miss |
| EPS | $0.92 | $1.18 (yr ago) | Miss |
| Free Cash Flow | Not meaningful | Not meaningful (yr ago) | Miss |
| Gross Margin | Not disclosed | Not disclosed (yr ago) | Miss |
| Operating Margin | 21.0% pre-tax margin | 23.7% pre-tax margin (yr ago) | Miss |
What changed
Q2 FY2026 revenue declined 0.7% year over year to $34.25 billion, while EPS fell 22.0% to $0.92. The more consequential change was profitability: the designated pre-tax margin contracted 270 basis points to 21.0%, reversing the margin stability seen in the first quarter.
Impact on the investment thesis
There is no prior SageNoodle fair value to revise. We establish fair value at $50 per share; the weaker margin and EPS prevent an above-market valuation despite broadly stable revenue.