Operating Profit Margin
since 2005
Calculation
Verizon Communications Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 21.17% | = | 100 | × | 29,259) | ÷ | 138,191) |
| Dec 31, 2024 | 21.28% | = | 100 | × | 28,686) | ÷ | 134,788) |
| Dec 31, 2023 | 17.08% | = | 100 | × | 22,877) | ÷ | 133,974) |
| Dec 31, 2022 | 22.27% | = | 100 | × | 30,467) | ÷ | 136,835) |
| Dec 31, 2021 | 24.29% | = | 100 | × | 32,448) | ÷ | 133,613) |
| Dec 31, 2020 | 22.45% | = | 100 | × | 28,798) | ÷ | 128,292) |
| Dec 31, 2019 | 23.04% | = | 100 | × | 30,378) | ÷ | 131,868) |
| Dec 31, 2018 | 17.02% | = | 100 | × | 22,278) | ÷ | 130,863) |
| Dec 31, 2017 | 21.75% | = | 100 | × | 27,414) | ÷ | 126,034) |
| Dec 31, 2016 | 21.48% | = | 100 | × | 27,059) | ÷ | 125,980) |
| Dec 31, 2015 | 25.12% | = | 100 | × | 33,060) | ÷ | 131,620) |
| Dec 31, 2014 | 15.42% | = | 100 | × | 19,599) | ÷ | 127,079) |
| Dec 31, 2013 | 26.52% | = | 100 | × | 31,968) | ÷ | 120,550) |
| Dec 31, 2012 | 11.36% | = | 100 | × | 13,160) | ÷ | 115,846) |
| Dec 31, 2011 | 11.62% | = | 100 | × | 12,880) | ÷ | 110,875) |
| Dec 31, 2010 | 13.74% | = | 100 | × | 14,645) | ÷ | 106,565) |
| Dec 31, 2009 | 13.01% | = | 100 | × | 14,027) | ÷ | 107,808) |
| Dec 31, 2008 | 17.34% | = | 100 | × | 16,884) | ÷ | 97,354) |
| Dec 31, 2007 | 16.67% | = | 100 | × | 15,578) | ÷ | 93,469) |
| Dec 31, 2006 | 15.17% | = | 100 | × | 13,373) | ÷ | 88,144) |
| Dec 31, 2005 | 19.72% | = | 100 | × | 14,814) | ÷ | 75,112) |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The operating profit margin exhibited considerable fluctuation over the period from 2005 to 2025. Initial years showed a generally decreasing trend, followed by periods of significant increase and subsequent stabilization, with a final decline in the most recent year.
- Initial Decline (2005-2009)
- From 2005 to 2009, the operating profit margin decreased from 19.72% to 13.01%. This represents a substantial contraction, indicating increasing cost pressures relative to revenue or a shift in the revenue mix towards lower-margin products or services. The decline was not monotonic, with a slight increase in 2007 before resuming the downward trend.
- Volatility and Peak (2010-2013)
- The period between 2010 and 2013 was characterized by volatility. The margin initially recovered to 13.74% in 2010, then experienced a decline to 11.62% in 2011 and 11.36% in 2012. A dramatic increase occurred in 2013, reaching a peak of 26.52%, likely driven by a significant increase in operating income relative to operating revenues. This peak was followed by a substantial decrease to 15.42% in 2014.
- Fluctuations and Stabilization (2014-2018)
- From 2014 to 2018, the operating profit margin continued to fluctuate. It rose to 25.12% in 2015, then decreased to 21.48% in 2016 and 21.75% in 2017, before falling to 17.02% in 2018. This period suggests a struggle to maintain consistent profitability despite revenue growth. The margin remained relatively stable between 21% and 25% for several years before the decline in 2018.
- Recent Trends (2019-2025)
- The operating profit margin experienced a recovery in 2019, reaching 23.04%, followed by 22.45% in 2020 and a peak of 24.29% in 2021. However, a decline was observed in 2022 to 22.27%, and a more pronounced decrease occurred in 2023 to 17.08%. This downward trend continued into 2024 and 2025, with margins of 21.28% and 21.17% respectively, indicating potential emerging challenges to profitability. The most recent values suggest a return to levels not seen since 2018.
Overall, the operating profit margin demonstrates a lack of consistent upward trajectory. While periods of strong profitability were observed, they were interspersed with declines, suggesting sensitivity to external factors or internal operational changes. The recent decline warrants further investigation to determine the underlying causes and potential impact on future performance.
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Comparison to Competitors
Verizon Communications Inc., operating profit margin, long-term trends, comparison to competitors
| Verizon Communications Inc. | AT&T Inc. | T-Mobile US Inc. | |
|---|---|---|---|
| Dec 31, 2025 | 21.17% | 19.23% | 20.70% |
| Dec 31, 2024 | 21.28% | 15.57% | 22.13% |
| Dec 31, 2023 | 17.08% | 19.16% | 18.16% |
| Dec 31, 2022 | 22.27% | -3.80% | 8.22% |
| Dec 31, 2021 | 24.29% | 13.83% | 8.60% |
| Dec 31, 2020 | 22.45% | 3.73% | 9.70% |
| Dec 31, 2019 | 23.04% | 15.43% | 12.72% |
| Dec 31, 2018 | 17.02% | 15.28% | 12.26% |
| Dec 31, 2017 | 21.75% | 13.05% | 12.04% |
| Dec 31, 2016 | 21.48% | 14.87% | 10.21% |
| Dec 31, 2015 | 25.12% | 16.88% | 6.44% |
| Dec 31, 2014 | 15.42% | 8.87% | 4.79% |
| Dec 31, 2013 | 26.52% | 23.67% | 4.08% |
| Dec 31, 2012 | 11.36% | 10.20% | — |
| Dec 31, 2011 | 11.62% | 7.27% | — |
| Dec 31, 2010 | 13.74% | 15.75% | — |
| Dec 31, 2009 | 13.01% | 17.47% | — |
| Dec 31, 2008 | 17.34% | 18.59% | — |
| Dec 31, 2007 | 16.67% | 17.16% | — |
| Dec 31, 2006 | 15.17% | 16.32% | — |
| Dec 31, 2005 | 19.72% | 14.06% | — |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).