Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

$24.99

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.

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Verizon Communications Inc., consolidated income statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Service revenues and other
Wireless equipment revenues
Operating revenues
Cost of services
Cost of wireless equipment
Cost of services and wireless equipment
Gross profit
Selling, general and administrative expense
Depreciation and amortization expense
Verizon Business Group goodwill impairment
Operating income
Equity in earnings (losses) of unconsolidated businesses
Interest income
Other components of net periodic benefit income (cost)
Net debt extinguishment gains (losses)
Other, net
Other income (expense), net
Interest expense
Income before provision for income taxes
Provision for income taxes
Net income
Net income attributable to noncontrolling interests
Net income attributable to Verizon

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.