Schwab Network on $VZ (Oct 26, 2026)

Verizon fell 2.5 percent after releasing its earnings report. So, let's take a closer look at these Verizon earnings figures. This is the main focus of this morning's trading.

Despite exceeding the revenue target, the price fell by 2.5 percent. I think a lot of this is due to a slight shortfall in their revenue. This also surpassed their revenue success and their strongest subscriber growth record in the last 5 years, especially in terms of postpaid phone subscriber additions in the third quarter.

It was one of their best figures in the last five years, but it wasn't enough to boost the share price.

If we look at the numbers, their EPS was $1.31. As I said, it exceeded expectations, but revenue came in at $34.31 billion. This was lower than the expected target of $34.74 billion.

The number of postpaid net subscribers increased by 406,000. This is 820 percent more than last year. Their net account growth during this quarter was 137,000. They also raised their fiscal year forecast for the third consecutive quarter.

They have increased the postpaid phone net subscriber growth forecast to 11 lakh to 12 lakh from the previous range of 7.5 lakh to 10 lakh. They also raised their consolidated EPS growth forecast to between 7 percent and 7.5 percent.

The previous limit was 6 to 7 percent. This takes us to the midpoint at around $5.05. They also raised their free cash flow growth expectations to around 12 percent from the previous range of 9-10 percent.

So, overall Verizon's future prospects look good, but Wall Street clearly wants to see this subscriber growth translate into faster service revenue so that their 'customer first' strategy can gain credibility here.

Their service revenue was higher this quarter. It increased by about 3 percent to $23.5 billion. Additionally, Verizon announced that it has signed a deal with Amazon Web Services worth more than $2 billion.

This is done to expand their distributed computing infrastructure for AI work. And this is also a great blessing for them.

October 9th, when we first heard the announcement of their $8 billion purchase of low-band spectrum, was Verizon's worst single-day performance since 2002.

And then, as you also said, their stock price plummeted last week after Bloomberg reported that they were planning to potentially gain access to 80,000 US cell towers. However, the CEO commented that he thinks it will take at least four to six years and cost hundreds of billions of dollars for SpaceX to build a mobile network.

So, this is Verizon's perspective on this matter. This is not an imminent threat. This is a potential long-term threat. However, in the short term, Verizon is providing a lot of transparency and has raised their guidance for the third time.

But, Sam, that's not enough to change the situation this morning. Despite the rest of the market being positive , we are down about 2.5% , which is quite interesting.

Yes, thank you for inviting me. Of course, this is not a very good day for Verizon. Overall, it's a good day. I think this is a very important week, to say the least.

And finally, as for Verizon , yes, they are facing a lot of competition in this new world. I think this could be similar to what T-Mobile did in the past, just offering lower pricing options for customers.

So, it's going to be quite difficult for Verizon to handle this. They'll have to cut their profits a bit, probably spend more to retain existing customers,

But I think the days ahead will be difficult for Verizon. For example, as a trade, I'm looking at March. I am looking at a put option at 41. It will be around $1.85 this morning, despite a slight weakness.

So, if Verizon shows further weakness , there could be some support around 41. I see that if we break that level , it could go even lower. So, there may be some protection in this trade, or continued downward momentum, as it has stalled this year.

We see some ups and downs from time to time, but nothing that exciting. If it turns negative, I will keep an eye on that $41 area.