Verizon Raises Profit Forecast as Q2 Earnings Surpass Expectations

American wireless communication giant Verizon has raised its forecasts for annual profit, Yahoo Finance reported. Verizon’s profit forecast was informed by beneficial tax laws introduced by President Donald Trump’s administration and growing demand for its premium plans.

Higher Q2 Revenues

Verizon Q2 2025 earnings surpassed quarterly forecasts, with shares of the company gaining 5% in pre-market trading on July 21. In quarter two, the telco reported total revenues amounting to $34.5 billion against a $33.74 analyst projection. The company said it expects a 1% to 3% growth in adjusted earnings per share, compared to the 0% to 3% projected for the year 2025.

Experts say that a 1% meaning per share would mean Verizon missed its projections by 3 cents. A 3% growth would mean that the company surpasses its estimates by 6 cents. Verizon’s earnings report showed that the company maintained a 2% to 2.8% revenue growth from its wireless service.

“Verizon delivered a better-than-expected Q2 report, managing to see double-digit growth in their equipment revenue and broadband connections segments,” Seeking Alpha Contributing Analyst Dividend Collectuh said.

The telecommunications giant has launched broadband-wireless bundles and price-lock marketing campaigns to retain customers as it faces intensive competition from T-Mobile, AT&T and other broadband providers like Charter and Comcast. Verizon maintained its capital spending budget at between $17.5 billion to $18.5 billion.

Even so, the wireless communication says that Telecom’s stock guidance and full-year projections do not reflect assumptions in its ongoing acquisition of Frontier.

Tax Reforms

Verizon’s quarterly performance was also enhanced by US tax reforms that have allowed it to write off the entire cost of specific new equipment. According to the company’s Chief Finance Officer, Tony Skiadas, the new legislation is set to enhance Verizon’s cash flow by up to $2 billion in 2025.

This write-off enabled it to review its forecast upwards to a high of $25.5 billion, up from the previous $18.5 billion. According to Wells Fargo analysts, Verizon pays the most cash taxes out of all leading telecommunications companies in the US. The analysts added that the new tax laws will boost the telecommunications industry significantly.

Subscriber Drop

Although Verizon boosted its annual profit forecast following the better-than-expected Q2 earnings, it admitted to struggling with retaining its monthly customers. The company reported a 9,000 drop in its monthly wireless subscribers in quarter two as it sought to overcome the churn it experienced in January following price hikes.

Analysts said that they did not expect Verizon to lose postpaid subscribers. Instead, they expected a rise in subscribers by 13,000. Despite the drop, there is an expectation that the telecommunication giant will grow its fixed wireless access customer base in the coming years.

“I think Verizon looks poised to see tailwinds from lower interest rates in the next year and will likely deliver on their goal of achieving 8 to 9 million fixed wireless access subscribers within the next 3 years. If they continue their performance while adding a share repurchase program, this could lead to strong price appreciation in the coming years,” Collectuh added.

To fuel its growth, Verizon has been growing its investment in fiber-optic assets as a way of tapping into the growing data usage by customers. In May this year, the company received approval from US regulators to acquire fiber-optic internet provider Frontier for $20 billion. Its focus on internet service enabled it to acquire 293,000 broadband customers in quarter two.