Key Highlights

● Verizon reported third quarter Revenue of $34.3 billion, up 1.5%, with adjusted EPS of $1.31.

● The quarterly Dividend rose to $0.7075 per share from $0.69.

● Net unsecured Debt was $123.7 billion, or 2.3 times adjusted EBITDA.

● Alphabet replaced Verizon in the Dow effective before the open on June 29, 2026.

Verizon Communications Inc. (NYSE:VZ) is a familiar income name in telecom, and 2026 has changed how some investors view it. The company left the Dow Jones Industrial Average this summer, yet it has also closed a large fiber Acquisition and raised its dividend. On Tuesday, November 3, 2026, one useful lens may be Capital allocation: how the company funds dividends, buybacks, spectrum and network spending from Cash Flow while carrying a sizeable debt balance.

Dow Exit and Stronger Cash Flow

S&P Dow Jones Indices announced that Alphabet (NASDAQ:GOOGL) would replace Verizon in the Dow, effective before the open on June 29, 2026. Press coverage tied the change to the price-weighted design of the index, noting Verizon's modest share price and roughly half a percentage point of weight. On October 26, 2026, Verizon reported third quarter revenue of $34.3 billion, up 1.5%, with adjusted EPS of $1.31, up 8.3%. Postpaid phone net additions were 406,000.

Free cash flow reached $7.8 billion in the quarter and $18.0 billion for the first nine months. The company raised 2026 adjusted EPS guidance to $5.04 to $5.06 and free cash flow guidance to $22.44 to $22.54 billion, with capital expenditures unchanged at $16.0 to $16.5 billion. Verizon also reported broadband net additions of 314,000, split between 155,000 fiber and 159,000 fixed wireless, and 137,000 postpaid net account additions.

Dividends Against a Heavy Debt Load

Cash returns are a central driver. Verizon paid $8.8 billion in dividends and repurchased $4.0 billion of stock in the first nine months of 2026, and it declared a quarterly dividend of $0.7075 per share, up from $0.69. Against that, net unsecured debt was $123.7 billion at September 30, 2026, or 2.3 times adjusted EBITDA, and its June 30 quarterly filing showed $21.8 billion of debt due within one year. The Frontier acquisition closed January 20, 2026 and added to the fiber base, which stood at 11.1 million connections alongside 6.4 million fixed wireless. Spectrum is another use of cash, including a roughly $3.2 billion AWS-3 auction win and a $1.0 billion UScellular licence purchase completed June 1, 2026.

Fiber, Refinancing and Guidance

Investors may watch whether free cash flow keeps covering dividends and Buybacks as capital spending stays near the guided range. Leverage relative to the 2.3x level, and how the company refinances near-term maturities, could also be worth following. Fiber additions after Frontier, which the company said should exceed 32 million passings by year end, may influence the broadband narrative. Competition among carriers for postpaid customers, the timing of AWS-3 licence issuance by the FCC and the integration of Frontier's pension obligations are other items readers may monitor. Some readers may also compare the 2026 postpaid phone net addition guidance of 1.1 to 1.2 million with year-to-date progress.

Cash Returns Meet a Large Balance Sheet

Verizon's recent figures show stronger cash generation and rising Shareholder returns, while the Balance Sheet remains large and the Dow exit has reduced one source of visibility. These are factors, not forecasts, and results could differ from guidance. The company's execution on fiber, spectrum and debt management may help determine how the market frames the stock. Investors may also consider that guidance represents management expectations, not assured outcomes.