Key Highlights

  • Verizon Communications (NYSE:VZ) reported adjusted EPS of USD 1.31 against USD 1.27, added 406,000 postpaid phone customers, and raised 2026 adjusted EPS guidance to USD 5.04 to 5.06 for the third consecutive quarter.
  • Welltower (NYSE:WELL) reported normalized FFO of USD 1.67, up 24.6%, with same store NOI up 15.8%, and raised its 2026 normalized FFO guidance to USD 6.47 to 6.53 after USD 4.1 billion of investments.
  • Public Storage (NYSE:PSA) reported core FFO of USD 4.34, up 0.7%, with same store NOI up only 0.5%, yet it raised guidance to USD 16.90 to 17.10 after closing two large acquisitions.
  • Coca-Cola FEMSA (NYSE:KOF) reported revenue up 10.9% to 79.7 billion Mexican pesos with record volume of 1.1 billion unit cases, though published market data showed an EPS miss, USD 1.59 against USD 1.89, a 16.03% shortfall.

Verizon Communications (NYSE:VZ): Postpaid Turnaround and Raised Guidance

Verizon Communications (NYSE:VZ) reported third quarter 2026 adjusted EPS of USD 1.31 against a USD 1.27 consensus, on operating revenue of USD 34.3 billion, up 1.5%. It added 406,000 postpaid phone customers, with churn down 4 basis points to 0.94%, and broadband added 314,000 lines. The release credits customer-first plans and a bigger loyalty program rather than heavy handset subsidies, which is why equipment revenue fell 9.0% while adjusted EBITDA margin widened to 40.2% from 37.8%. Management raised 2026 adjusted EPS guidance to USD 5.04 to 5.06 and free cash flow growth to nearly 12.0%. Verizon Communications (NYSE:VZ) also signed an agreement worth USD 2.0 billion plus with AWS for AI compute. The main risks are competitive wireless pricing, falling equipment revenue and the cost of keeping loyalty offers attractive once comparisons toughen. Free cash flow was USD 7.8 billion, up 12.1%, and capital expenditure guidance is unchanged at USD 16.0 to 16.5 billion. Chief Executive Dan Schulman said the company is only one year into a multi-year growth story, a claim for later quarters to test.

Welltower (NYSE:WELL): Seniors Housing Drives 24.6% FFO Growth

Welltower (NYSE:WELL) reported normalized FFO of USD 1.67 per share, up 24.6% from USD 1.34, on revenue of USD 3.72 billion. Same store NOI rose 15.8%, led by Seniors Housing Operating at 21.0%, where occupancy gained 320 basis points and pricing rose 5.3%. The company completed USD 4.1 billion of investments in the quarter and has USD 21.0 billion closed or under contract, with net debt to adjusted EBITDA at 3.02 times. It raised 2026 normalized FFO guidance to USD 6.47 to 6.53. Published market data showed EPS of USD 0.67 against USD 0.71, a 6.14% miss, a measure REITs rarely headline. Welltower (NYSE:WELL) pays a quarterly dividend of USD 0.85. Risks include slower occupancy gains, integration of large deals and a valuation that already assumes strong growth. The dividend is the 222nd consecutive quarterly payment, payable November 19, 2026. Normalized FFO adds back depreciation, which is why net income of USD 0.54 per share looks far lower than the USD 1.67 headline measure for the same quarter.

Public Storage (NYSE:PSA): Slow Growth, Raised Guidance, Big Deals

Public Storage (NYSE:PSA) reported third quarter 2026 core FFO of USD 4.34 per share, up 0.7% from USD 4.31. Same store revenue and NOI each rose 0.5% and average occupancy was 92.2%. Net income per share fell 35.5% to USD 1.69, and published market data showed an EPS miss, USD 2.11 against USD 2.29. Even so, the company raised 2026 core FFO guidance to USD 16.90 to 17.10 and closed the all-stock National Storage Affiliates acquisition on July 22, 2026 and the Public Storage Canada deal on September 1, 2026 for USD 1.2 billion including debt. Public Storage (NYSE:PSA) now relies on acquisitions for growth, which brings integration costs and share dilution. Weak housing turnover and rent competition are the other risks. Excluding the two large deals, the company bought 25 facilities for USD 258.4 million in the quarter. An all-stock deal issues new shares, so per-share growth depends on how much cash flow the acquired facilities add relative to those shares.

Coca-Cola FEMSA (NYSE:KOF): Record Volume but an EPS Miss

Coca-Cola FEMSA (NYSE:KOF) reported third quarter 2026 revenue up 10.9% to 79.7 billion Mexican pesos and record volume of 1.1 billion unit cases, up 5.3%. Adjusted EBITDA rose 16.2% to 16.8 billion pesos, helped by a 1.1 billion peso Brazil insurance recovery. Majority net income rose only 5.5% to 6.2 billion pesos because net financing expense climbed to 2 billion pesos from 1.3 billion, and published market data showed EPS of USD 1.59 against USD 1.89, a 16.03% miss. Mexico operating income fell 3.1% on higher marketing, labor and freight costs. Coca-Cola FEMSA (NYSE:KOF) plans more pricing in Mexico in mid-November, expects a moderately optimistic 2027 and will announce a capital return mechanism in early 2027. Peso weakness is the main risk. Colombia volume rose 15.9% and capacity is strained in Colombia and Venezuela. Hedging covers 65% of 2026 PET and 88% of sugar, but only 16% of 2027 PET, which leaves more raw material exposure next year if prices rise.

Where Things Stand

Four defensive stocks showed that steady sectors still produce very different growth rates, which is a description and not advice. Verizon Communications (NYSE:VZ) turned subscriber trends positive while raising guidance. Welltower (NYSE:WELL) grew fastest on seniors housing. Public Storage (NYSE:PSA) grew slowly and relied on acquisitions. Coca-Cola FEMSA (NYSE:KOF) grew sales strongly but faced financing and cost pressure that held back profit. Competitive pricing, interest rates, peso weakness and integration costs are the common risks, and each company's dividend or return policy depends on future earnings, which are not guaranteed. Investors should compare guidance, cash flow and balance sheet strength, not only the size of the surprise, because estimates are set on different bases and can mislead.