Schwab Network on $VZ (Oct 26, 2026)

Let's start with Verizon, which announced its results today. Yes, the results are mixed. Haven't investors tried to understand how to interpret these results? The company performed better than expected in its net profit, but did not achieve the expected revenue.

Although Verizon and its peers were leading performers, they were under pressure. Part of this is due to the potential competitive threat from Elon Musk and his SpaceX plans in the telecommunications sector .

Adjusted earnings rose 8.3% to $31 per share, better than expected, as Wall Street forecasts were for $27.

Revenue exceeded $34.3 billion, but Wall Street had expected more , $34.74 billion , an increase of 1.5%. We have seen growth in wireless and broadband services. This helped to offset weak equipment sales.

As for the notable growth, telephone customers were the most prominent. Verizon added this key demographic, 406,000 postpaid telephone customers . These are the customers who pay their bills monthly.

This is roughly double Wall Street's expectations.

Therefore, that is why we saw a rise in the company's shares initially before the market opened. And now, the stocks have fallen again. Part of this is due to the pressure and potential competitive threat from Elon Musk’s plans in this area.

Broadband services performed poorly. While it is true that the company increased its customer base by adding 314,000 customers, this fell short of expectations.

So, the company has achieved strong growth in phone sales, which is encouraging, but the improvement is not even across all its sectors. The company now expects to add between 1.1 million and 1.2 million new telephone customers over the course of the year .

This is higher than the upper half of its previous range.

As for adjusted earnings, the company expects them to range between $504 and $506 per share . They expect free cash flow growth to approach 12%, which is up from 9 to 10% with respect to mobile and broadband communications revenues that, as you mentioned, Nicole, have seen an increase of nearly 3%.

but I'm thinking about the stock and how it was under pressure with talk of SpaceX potentially entering the same type of business, in addition to Verizon and Amazon Web Services signing a $2 billion deal for AI infrastructure.