- Verizon increases forecast for 2024 adjusted EBITDA, EPS and free cash flow following a solid Q2
- Company attributes gains to wireless service revenue growth and ongoing cost-cutting programme
What happened: Verizon’s wireless gains and lower costs drive a stronger Q2 and full-year upgrade
Verizon has raised its financial outlook for the full year 2024 following a stronger-than-expected second quarter, citing robust wireless revenue growth and improved operational efficiency. In its official statement, the company reported Q2 adjusted EBITDA of $12.2 billion, up 2.5% year-on-year, and increased its full-year guidance for adjusted EPS to $4.55–$4.65, up from $4.50–$4.60 previously.
Verizon also expects free cash flow for the year to reach around $19 billion, up from earlier projections of $18 billion. Wireless service revenue rose 3.8% in the quarter, driven by subscriber growth in both consumer and business segments. Chief financial officer Tony Skiadas highlighted the company’s continued progress in reducing costs, which he said “allowed us to increase our full-year expectations while continuing to invest in our network and growth priorities.”
Why this is important
The upgraded outlook reflects Verizon’s relative resilience in a saturated US telecoms market, where operators have faced slower subscriber growth and increasing infrastructure costs. Verizon’s focus on profitability, rather than subscriber discounts or aggressive promotions, marks a shift in how large telecoms firms are responding to macroeconomic pressure. With AT&T and T-Mobile also reporting earnings this week, the sector is under scrutiny over how it balances 5G investment with financial discipline.
This move by Verizon also comes as capital expenditure is expected to decline compared to 2023, suggesting a more measured rollout of next-gen infrastructure. Verizon’s C-band spectrum rollout continues, but at a slower clip, signalling cost-conscious expansion. Investors appear to welcome the strategy; the firm’s shares rose modestly following the announcement.
For enterprise clients and infrastructure vendors, Verizon’s stronger earnings and improved cash flow mean potential for more targeted investment in business services, cloud edge capabilities, and private networks. Competitors and partners alike will be watching closely as the company navigates its way through a maturing wireless landscape.
