Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Verizon Communications Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Service revenues and other	112,721)	111,571)	109,652)	109,625)	110,449)
Wireless equipment revenues	25,470)	23,217)	24,322)	27,210)	23,164)
Operating revenues	138,191)	134,788)	133,974)	136,835)	133,613)
Cost of services	(27,789)	(27,997)	(28,100)	(28,637)	(31,234)
Cost of wireless equipment	(28,976)	(26,100)	(26,787)	(30,496)	(25,067)
Cost of services and wireless equipment	(56,765)	(54,097)	(54,887)	(59,133)	(56,301)
Gross profit	81,426)	80,691)	79,087)	77,702)	77,312)
Selling, general and administrative expense	(33,818)	(34,113)	(32,745)	(30,136)	(28,658)
Depreciation and amortization expense	(18,349)	(17,892)	(17,624)	(17,099)	(16,206)
Verizon Business Group goodwill impairment	—)	—)	(5,841)	—)	—)
Operating income	29,259)	28,686)	22,877)	30,467)	32,448)
Equity in earnings (losses) of unconsolidated businesses	—)	(53)	(53)	44)	145)
Interest income	329)	336)	354)	146)	48)
Other components of net periodic benefit income (cost)	(827)	300)	(938)	2,386)	3,785)
Net debt extinguishment gains (losses)	368)	385)	308)	(1,077)	(3,541)
Other, net	237)	(26)	(37)	(82)	20)
Other income (expense), net	107)	995)	(313)	1,373)	312)
Interest expense	(6,694)	(6,649)	(5,524)	(3,613)	(3,485)
Income before provision for income taxes	22,672)	22,979)	16,987)	28,271)	29,420)
Provision for income taxes	(5,064)	(5,030)	(4,892)	(6,523)	(6,802)
Net income	17,608)	17,949)	12,095)	21,748)	22,618)
Net income attributable to noncontrolling interests	(434)	(443)	(481)	(492)	(553)
Net income attributable to Verizon	17,174)	17,506)	11,614)	21,256)	22,065)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The financial performance presented indicates a period of fluctuating revenues and profitability. While operating revenues generally increased over the five-year period, net income experienced significant volatility. A detailed examination of key income statement items reveals underlying trends and potential areas of concern.

Revenue Performance: Service revenues and other remained relatively stable between 2021 and 2023, with a slight increase observed in 2024 and 2025. Wireless equipment revenues demonstrated more variability, peaking in 2022 before declining in 2023 and showing a modest recovery in 2025. Overall operating revenues followed a similar pattern, increasing initially, dipping in 2023, and then rising again in the subsequent two years.
Cost Analysis: Cost of services exhibited a decreasing trend from 2021 to 2023, followed by stabilization and a slight increase in 2025. Cost of wireless equipment fluctuated, mirroring the trends in wireless equipment revenues. The combined cost of services and wireless equipment generally increased, but at a slower rate than revenue growth in some periods.
Profitability Trends: Gross profit showed a consistent upward trend throughout the period, indicating some success in managing costs relative to revenue. However, operating income experienced a substantial decline in 2023, driven by increases in selling, general, and administrative expenses, depreciation, and a significant goodwill impairment charge related to the Verizon Business Group. Operating income partially recovered in 2024 and 2025, but did not return to levels seen in 2021 and 2022.
Non-Operating Items: Interest income increased significantly from 2021 to 2023, then leveled off. Other income (expense), net, was volatile, with a large positive impact in 2022 and a negative impact in 2023. Interest expense consistently increased over the period, reflecting potential changes in debt levels or interest rates. Net debt extinguishment gains (losses) fluctuated, contributing to variability in overall profitability.
Net Income and Attributable Income: Net income mirrored the volatility observed in operating income and non-operating items, with a sharp decline in 2023 and a subsequent recovery. Net income attributable to Verizon followed a similar pattern. The impact of noncontrolling interests remained relatively consistent, representing a small percentage of overall net income.
Provision for Income Taxes: The provision for income taxes generally tracked net income, decreasing in 2023 alongside lower profits and remaining relatively stable in subsequent years.

In summary, the period under review was characterized by revenue growth, fluctuating costs, and significant volatility in profitability. The 2023 decline in operating income and net income appears to be largely attributable to a combination of increased operating expenses and a substantial goodwill impairment. While profitability recovered somewhat in 2024 and 2025, continued monitoring of expense management and non-operating items is warranted.

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Verizon Communications Inc. (NYSE:VZ)

Income Statement