Analysis of Reportable Segments
Verizon Communications Inc. operates in 2 segments: Verizon Consumer Group and Verizon Business Group.
Paying user area
Try for free
Verizon Communications Inc. pages available for free this week:
- Income Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Verizon Communications Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Segment Profit Margin
Verizon Communications Inc., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Verizon Consumer Group | |||||
| Verizon Business Group |
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 segment profit margins for the Verizon Consumer Group and Verizon Business Group exhibit distinct trends over the five-year period. The Verizon Consumer Group demonstrates relative stability, while the Verizon Business Group shows more pronounced fluctuations.
- Verizon Consumer Group
- The Verizon Consumer Group’s profit margin began at 31.43% in 2021, decreased to 27.87% in 2022, and then showed a modest recovery to 28.55% in 2023. This was followed by a slight increase to 28.65% in 2024 before declining again to 27.74% in 2025. Overall, the segment experienced a net decrease in profit margin over the period, though the fluctuations were relatively contained.
- Verizon Business Group
- The Verizon Business Group’s profit margin experienced a more significant decline from 11.07% in 2021 to 8.47% in 2022. This downward trend continued to 6.86% in 2023, with a minimal increase to 6.97% in 2024. A notable recovery occurred in 2025, with the profit margin rising to 8.71%. Despite this recovery, the segment’s profit margin remained below the level observed in 2021.
The contrasting trends suggest differing dynamics within each segment. The Verizon Consumer Group appears to be facing consistent, though moderate, pressure on profitability. The Verizon Business Group, however, experienced a more substantial period of declining profitability before a recent partial rebound. Further investigation would be required to determine the underlying drivers of these trends, such as changes in competitive landscape, cost structures, or product mix within each segment.
Segment Profit Margin: Verizon Consumer Group
Verizon Communications Inc.; Verizon Consumer Group; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Operating revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Operating income ÷ Operating revenues
= 100 × ÷ =
The Verizon Consumer Group demonstrated relatively stable operating income between 2021 and 2025, fluctuating within a range of approximately US$28.8 billion to US$29.9 billion. Operating revenues experienced an initial increase, followed by a slight decrease and subsequent growth over the five-year period. Consequently, the segment profit margin exhibited some variability.
- Operating Income Trend
- Operating income decreased from US$29.955 billion in 2021 to US$28.846 billion in 2022, representing a decline. It then showed a modest recovery to US$29.011 billion in 2023 and continued to increase to US$29.484 billion in 2024, before reaching US$29.628 billion in 2025. This suggests a generally stable performance with some year-over-year fluctuations.
- Operating Revenue Trend
- Operating revenues increased significantly from US$95.3 billion in 2021 to US$103.506 billion in 2022. A slight decrease was observed in 2023, with revenues falling to US$101.626 billion. Revenues then increased moderately to US$102.904 billion in 2024 and further to US$106.807 billion in 2025. This indicates a generally positive revenue trajectory, despite a temporary dip in 2023.
- Segment Profit Margin Analysis
- The segment profit margin began at 31.43% in 2021. A notable decrease was observed in 2022, falling to 27.87%. The margin partially recovered in 2023 to 28.55% and continued to increase slightly to 28.65% in 2024. However, the margin decreased again in 2025, settling at 27.74%. This suggests that while revenue growth occurred, the ability to translate that growth into profit margin was inconsistent over the period.
The observed fluctuations in segment profit margin, despite relatively stable operating income and growing revenues, warrant further investigation. Potential factors contributing to these changes could include shifts in product mix, pricing pressures, or increased operating expenses within the Verizon Consumer Group.
Segment Profit Margin: Verizon Business Group
Verizon Communications Inc.; Verizon Business Group; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Operating revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Operating income ÷ Operating revenues
= 100 × ÷ =
The Verizon Business Group experienced fluctuating financial performance between 2021 and 2025. Operating income demonstrated an initial decline followed by a recovery, while operating revenues exhibited a consistent, albeit moderate, downward trend. The segment profit margin mirrored these movements, showing a period of contraction followed by improvement.
- Operating Income
- Operating income decreased from US$3,437 million in 2021 to US$2,066 million in 2023, representing a significant contraction over two years. A slight increase to US$2,058 million was observed in 2024, and further growth occurred in 2025, reaching US$2,532 million. This indicates a potential stabilization and recovery in profitability towards the end of the analyzed period.
- Operating Revenues
- Operating revenues remained relatively stable between 2021 and 2022, fluctuating around US$31 billion. A gradual decline was then observed, decreasing to US$30,122 million in 2023, US$29,531 million in 2024, and further to US$29,069 million in 2025. This suggests a consistent, though moderate, erosion of revenue generation within the segment.
- Segment Profit Margin
- The segment profit margin followed a distinct pattern. It decreased from 11.07% in 2021 to 8.47% in 2022, and continued to decline to a low of 6.86% in 2023. A modest recovery to 6.97% occurred in 2024, followed by a more substantial increase to 8.71% in 2025. This suggests that while revenue decreased, improved cost management or pricing strategies contributed to margin expansion in the latter years of the period.
The interplay between declining revenues and fluctuating operating income resulted in a volatile segment profit margin. The improvement in the profit margin in 2025, despite continued revenue decline, warrants further investigation to understand the underlying drivers of this positive trend.
Operating revenues
Verizon Communications Inc., operating revenues by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Verizon Consumer Group | |||||
| Verizon Business Group | |||||
| Total reportable segments |
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 operating revenues of the reportable segments demonstrate varied performance over the five-year period. Overall, total reportable segment revenues initially increased before experiencing a slight decline and subsequent recovery.
- Verizon Consumer Group
- The Verizon Consumer Group exhibited a general upward trend in operating revenues. Revenues increased from US$95.3 billion in 2021 to a peak of US$106.807 billion in 2025. A notable increase occurred between 2021 and 2022, growing to US$103.506 billion, followed by a slight decrease to US$101.626 billion in 2023. Revenues then stabilized and increased again in 2024 and 2025.
- Verizon Business Group
- In contrast to the Consumer Group, the Verizon Business Group experienced a consistent downward trend in operating revenues throughout the period. Revenues remained relatively stable between 2021 and 2022, at approximately US$31.0 billion. However, a decline was observed in subsequent years, decreasing to US$29.069 billion by 2025. The rate of decline appeared to be relatively consistent year-over-year.
- Total Reportable Segments
- Total operating revenues for all reportable segments increased from US$126.342 billion in 2021 to US$134.578 billion in 2022. A decrease was then recorded in 2023, with revenues falling to US$131.748 billion. Revenues showed a modest increase in 2024, reaching US$132.435 billion, and continued to rise in 2025, reaching US$135.876 billion. The overall trend suggests a period of growth followed by stabilization and a final increase.
The differing performance of the Consumer and Business Groups suggests a potential shift in revenue drivers. While the Consumer Group continues to demonstrate growth, the Business Group’s declining revenues warrant further investigation to understand the underlying causes and potential mitigation strategies.
Operating income
Verizon Communications Inc., operating income by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Verizon Consumer Group | |||||
| Verizon Business Group | |||||
| Total reportable segments |
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 operating income of the reportable segments demonstrates varied performance over the five-year period. Overall, total reportable segment operating income experienced initial decline followed by stabilization and modest growth.
- Verizon Consumer Group
- The Verizon Consumer Group exhibited relative stability in operating income. Beginning at US$29,955 million in 2021, it decreased to US$28,846 million in 2022 before recovering to US$29,011 million in 2023. A slight upward trend is then observed, reaching US$29,484 million in 2024 and further increasing to US$29,628 million in 2025. This suggests consistent performance with minor fluctuations.
- Verizon Business Group
- The Verizon Business Group experienced a more pronounced downward trend in operating income from 2021 to 2023. Operating income decreased from US$3,437 million in 2021 to US$2,631 million in 2022, and continued to decline to US$2,066 million in 2023. Operating income remained relatively flat in 2024 at US$2,058 million, before showing a recovery to US$2,532 million in 2025. This indicates potential challenges within this segment followed by a recent positive shift.
- Total Reportable Segments
- Total operating income for all reportable segments decreased from US$33,392 million in 2021 to US$31,477 million in 2022. A further decrease was noted in 2023, with total operating income reaching US$31,077 million. Operating income then showed a modest increase in 2024 to US$31,542 million, and continued to grow to US$32,160 million in 2025. The overall trend suggests a period of contraction followed by stabilization and a return to growth, largely influenced by the performance of the individual segments.
The contrasting trends between the Consumer and Business Groups highlight differing market dynamics or internal strategic shifts. The recent recovery in the Business Group’s operating income in 2025 is a notable development and warrants further investigation.