Verizon, AT&T Q2 Preview: Subscribers growth, capex in focus

When Verizon (NYSE:VZ) posts second quarter results on Monday, the U.S. telecom giant’s subscriber numbers would capture investors’ attention.

Wall Street expects the New York-based Verizon to post EPS of $1.19 on revenue of $33.71 billion during the quarter.

Verizon, in April, lost more wireless subscribers as the company struggled with impact from a recent pricing action, less government spending, and intensifying competition from rivals to gain customers in a saturated market. The stock gained just 2.7% so far this year, underperforming the 7% rise in the broader S&P 500 index.

Morgan Stanley analyst Benjamin Swinburne believes Verizon has a clear strategy to continue to improve its performance in consumer wireless and expects the pace of market share losses to slow in the coming years. However, he noted that trends in 2025 appear more challenging.

On the other hand, AT&T beat estimates for wireless subscriber additions, thanks to its promotional activities and demand for its 5G offerings. The Dallas, Texas-based company, which gained nearly 18% YTD, is expected to post EPS of $0.53, implying a fall of 7%, while revenue is expected to rise over 2% to $30.48 billion.

“Fiber is a key element of AT&T’s long-term strategy. We believe AT&T’s combination of industry-leading fiber footprint and wireless assets positions the company well to compete in a more aggressive competitive environment,” BofA said.

AT&T is scheduled to post quarterly results on Wednesday, before markets open. The company, in June, reiterated its 2025 financial guidance and said that it is seeing “solid customer demand.”

Analysts are mostly bullish on both stocks. Seeking Alpha analysts and Wall Street rated the stocks a Buy, while Seeking Alpha’s Quant ratings consider them a Hold.

Investors will also keep a close eye on capital spending for both companies. BofA expects Verizon to face competitive pressure that will likely increase promotional spending and impact margins.

Over the last 2 years, AT&T has beaten EPS estimates 63% of the time and has beaten revenue estimates 50% of the time. Meanwhile, Verizon has beaten EPS estimates 88% of the time and has beaten revenue estimates 38% of the time.

Verizon EPS estimates have seen six upward revisions over the last three months, compared to seven downward revisions, while revenue estimates have been revised upwards 11 times versus three downward moves. A&T’s EPS and revenue estimates have seen three and 11 upward revisions, compared to nine and two downward moves.