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October 30, 2025 • 4 min read
Verizon Communications recently filed its third-quarter 2025 report, offering a detailed look into its financial health and operational performance. As one of the giants in the telecommunications space, Verizon's results are a bellwether for the industry. Let's dive into the numbers from their latest 10-Q filing to see what's driving the company's performance.
For the third quarter ending September 30, 2025, Verizon reported Total Operating Revenues of $33.8 billion, a modest 1.5% increase from the same period last year. However, the real headline is on the bottom line: Net Income attributable to Verizon surged to $4.95 billion, a substantial jump from $3.3 billion in Q3 2024. This translated to a diluted earnings per share (EPS) of $1.17, up from $0.78 a year ago.
To better understand how Verizon generated this profit, the following flow diagram visualizes the company's quarterly revenues and expenses.
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In the chart, the "Unallocated" revenue stream primarily represents activities from Verizon's corporate and other non-segment operations, which are not directly assigned to its main Consumer or Business groups.
Verizon's performance is best understood by looking at its two main divisions: Consumer and Business.
Verizon Consumer Group, which provides wireless and wireline services to individual customers, saw its revenue climb 2.9% to $26.1 billion. This growth was fueled by a 2.4% increase in wireless service revenue and a 6.4% rise in wireless equipment sales. While the segment saw a small net loss in total wireless postpaid customers, it continued to add broadband customers, with 121,000 net additions for its Fixed Wireless Access (FWA) service.
Verizon Business Group, serving enterprise, public sector, and other business clients, reported a 2.8% decrease in revenue to $7.1 billion. The decline was largely driven by softness in the Enterprise and Public Sector, which the company attributes in part to "government efficiency efforts." Despite the lower revenue, the segment's operating income actually increased from $565 million to $637 million, pointing to successful cost management and a focus on profitability.
So, what caused the nearly 50% leap in net income? A closer look at the operating expenses reveals the answer. Total operating expenses fell by $1.7 billion year-over-year. The main driver was a significant drop in Selling, General, and Administrative (SG&A) expenses, which were $7.75 billion this quarter compared to $9.7 billion in Q3 2024.
This isn't just a case of aggressive cost-cutting. The filing clarifies that the third quarter of 2024 included $1.7 billion in severance charges related to a voluntary separation program. The absence of this large, one-time expense in 2025 is the primary reason for the dramatic improvement in profitability. This highlights the importance of looking beyond the headline numbers to understand the underlying trends.
Beyond the income statement, Verizon's cash generation remains strong. For the first nine months of 2025, the company generated $28.0 billion in cash from operating activities, an increase from $26.5 billion in the prior year. After accounting for capital expenditures, Verizon's free cash flow (a key metric of financial health that shows cash available to pay dividends and reduce debt) rose to $15.8 billion for the nine-month period, up from $14.5 billion a year ago.
In conclusion, Verizon's Q3 2025 results paint a picture of a company executing steadily in a highly competitive market. While top-line growth is moderate, the significant improvement in net income, largely due to lapping last year's one-time costs, is a welcome sign for investors. With strong cash flow and disciplined cost management, particularly in its Business segment, Verizon appears well-positioned to continue investing in its 5G and broadband networks while navigating the challenges of the telecom industry.
Last updated: October 30, 2025