Verizon Communications (NYSE: VZ) reported Q3 earnings that fell short on revenue and with a slight beat on earnings per share, and the stock is moving higher pre-market. Revenue came in at $33.82 billion, missing the $35.31 billion estimate by $1.49 billion. EPS landed at $1.21, beating by $0.02 the $1.19 consensus.
Net income surged 48.4% to $5.06 billion from $3.41 billion a year ago. That dramatic jump masks the underlying story: one-time tax benefits inflated the bottom line, while core operations remained sluggish. Wireless service revenue grew 2.1% to $21.0 billion, and equipment revenue climbed 5.2% to $5.6 billion. Both segments showed modest momentum, but neither offset the broader revenue miss.
Free cash flow came in strong at $15.76 billion, supporting Verizon's 19th consecutive dividend increase. The company raised its quarterly payout to $0.69 per share. For investors focused on cash generation, this metric reinforces the company's ability to fund shareholder returns even as top-line growth stalls.
Total revenue grew just 1.5% year over year. That's the core issue. EPS edged up 1.7%, but that's largely a function of share buybacks, not earnings expansion.
