Verizon Communications Inc. (NYSE:VZ)

The quarterly financial data reflects several notable trends in revenues, costs, profitability, and expenses over the analyzed periods.

Revenue Trends

Service revenues and other have shown a generally stable trend with minor fluctuations, slightly increasing from around $27.5 billion in early 2020 to approximately $28 billion by the first quarter of 2025. Wireless equipment revenues experienced more volatility, marked by significant spikes in December quarters, peaking notably in December 2021 and December 2023, followed by declines in the immediate next quarters. Operating revenues followed a broadly similar pattern to service revenues but exhibited more pronounced quarterly variations, driven mainly by wireless equipment revenue fluctuations, with overall modest growth over the five-year span.

Cost Patterns

The cost of services remained relatively steady across the period, fluctuating narrowly between about $6.9 billion and $8 billion quarterly, showing no major increasing or decreasing trend. The cost of wireless equipment exhibited more variation, characterized by sharp increases in December quarters, similar to the revenue spikes, reflecting seasonal or cyclical activity. Combined, the cost of services and wireless equipment showed corresponding peaks in fourth quarters, suggesting variable costs aligned with equipment revenue sales cycles.

Profitability and Gross Profit

Gross profit remained stable in the range of roughly $19 billion to $20.5 billion, indicating consistent margins despite fluctuations in revenues and costs. This stability suggests effective cost control relative to revenue changes. Operating income showed more variability, with notable dips such as in the fourth quarter of 2023, coinciding with a substantial $5.8 billion goodwill impairment recorded in that quarter, which heavily impacted operating results. Apart from this impairment event, operating income generally ranged between approximately $6 billion and $9 billion, with intermittent peaks and troughs.

Expense Analysis

Selling, general and administrative expenses displayed some volatility but stayed broadly within $7 billion to $9.7 billion. Depreciation and amortization expenses increased slightly over time, moving from around $4.15 billion to $4.58 billion across the reporting horizon, reflecting ongoing investment in capital assets. Interest expense showed a general declining trend mid-period but rose again in later quarters, oscillating between $739 million and $1.6 billion, suggesting fluctuations in debt levels or interest rates.

Other Income and Earnings Components

Other income (expense), net, demonstrated large fluctuations, with substantial positive spikes such as $2.7 billion at the end of 2022, and negative swings including a $-860 million in late 2020 and a $-807 million in late 2023. Equity earnings of unconsolidated businesses remained relatively minor and inconsistent, exerting minimal impact on overall results.

Net Income and Taxation

Net income exhibited volatility aligned with operating income trends and unusual items like the goodwill impairment. Quarterly net income was generally positive, fluctuating mostly between $4 billion and $6.7 billion, but a sharp net loss occurred in the fourth quarter of 2023 due to impairment charges. Income taxes mostly ranged around $1.3 billion to $2.1 billion per quarter, showing some correlation with pre-tax income fluctuations. Net income attributable to the company followed the net income pattern, accounting for noncontrolling interests, and reflected similar volatility and overall stability outside of impairment-affected periods.

In summary, the quarterly data reveals steady service revenues coupled with more variable wireless equipment sales driving revenue and cost fluctuations. Profitability is generally stable but susceptible to significant one-time charges like goodwill impairment. Expense management appears consistent, with moderate growth in depreciation and fluctuating interest expenses. Overall, results indicate operational stability interspersed with cyclical sales and occasional extraordinary impacts affecting income levels.