Common-Size Income Statement
Quarterly Data
Verizon Communications Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The revenue structure exhibits a consistent seasonal pattern characterized by a shift in the mix between service and equipment revenues. Service revenues and other typically constitute the majority of operating revenues, generally fluctuating between 77% and 85%. A recurring dip in service revenue percentages is observed every December, coinciding with a peak in wireless equipment revenues, which often exceed 21% during the fourth quarter. This indicates a cyclical increase in hardware sales relative to recurring service fees at year-end.
- Gross Profitability and Cost of Sales
- Gross profit margins remain relatively stable, typically ranging from 55% to 62%. The cost of services generally fluctuates between 19% and 25%, while the cost of wireless equipment shows high volatility aligned with the equipment revenue spikes. A notable compression in gross profit is observed in the December quarters, reflecting the lower margin profile of wireless equipment compared to service offerings.
- Operating Expenses and Efficiency
- Selling, general, and administrative (SG&A) expenses generally fluctuate between 19% and 29% of operating revenues. While these expenses are often stable, periodic spikes are evident, such as in September 2024. Depreciation and amortization expenses show a gradual upward trend, rising from approximately 12% in early 2021 to over 14% by mid-2026, suggesting an increase in the capital asset base relative to revenue growth.
- Operating Income and Non-Recurring Items
- Operating income typically maintains a margin between 20% and 27%. However, a significant anomaly occurred on December 31, 2023, where operating income dropped to 1.71%. This decline was driven by a one-time Verizon Business Group goodwill impairment charge of 16.63% of operating revenues, highlighting a substantial non-cash write-down during that period.
- Financial Costs and Tax Impact
- A persistent upward trend is observed in interest expenses as a percentage of operating revenues, increasing from 3.35% in March 2021 to 5.80% by June 2026. This suggests a growing burden of debt service relative to the company's top-line performance. Income tax provisions generally remain between 4% and 6%, though they decrease significantly during quarters with lower pre-tax income.
- Net Profitability Trends
- Net income attributable to Verizon generally ranges between 13% and 19% of operating revenues. The most significant deviation occurred in December 2023, resulting in a net loss of 7.70% due to the aforementioned impairment charge. Another notable dip occurred in December 2025, with net income falling to 6.44%, likely influenced by the combined effect of seasonal margin compression and rising interest costs.
AI Ask an analyst for more