Verizon (VZ 0.86%) stock is posting big gains in Monday's trading following the company's recent earnings report. The telecommunications giant's share price was up 5% as of 2:15 p.m. ET. At the same point in the day's trading, the S&P 500 (^GSPC +0.25%) and the Nasdaq Composite (^IXIC +0.47%) were up 0.5% and 0.7%, respectively.
Verizon posted its second-quarter results before the market opened this morning, and it delivered sales and earnings performance that came in far better than Wall Street's forecasts. In addition to the strong Q2 performance, the company also raised its full-year targets.
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Verizon stock surges on strong Q2 results
Verizon posted non-GAAP (generally accepted accounting principles) adjusted earnings per share of $1.22 on sales of $34.5 billion in the second quarter. The results came in significantly better than the average Wall Street analyst estimates, which had called for per-share earnings of $1.19 on sales of $33.79 billion. Revenue crushed expectations and came 5% higher year over year, with wireless service revenue coming in at $20.9 billion and representing the top result for the industry in the period.
Meanwhile, equipment revenue increased roughly 25% year over year to $6.3 billion, and the company closed out the period with 12.9 million broadband connections, up roughly 12% year over year.
NYSE: VZ
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What's next for Verizon?
In conjunction with the strong Q2 results, Verizon raised its full-year guidance. The company now expects that adjusted earnings per share will grow between 1% and 3% annually -- up from previous guidance for growth between 0% and 3%.
Despite today's pop, the stock is still down roughly 15.5% across 2025's trading. The company is now trading at roughly 9.2 times this year's expected earnings and pays a dividend yielding roughly 6.3%. While the company looks reasonably valued and pays a strong dividend, the competitive outlook in the telecom space could get even tougher in the face of new satellite-based entrants.
