VZ · 10-Q · 2026Q2 · Full report

Interest Expense Increase

VERIZON COMMUNICATIONS INC · 2026-07-31 · Importance 65 · Surprise 48 · Matches filing data

Average debt outstanding increased to $170.098 billion in the second quarter of 2026 from $144.695 billion in the comparable 2025 period. Total interest costs on debt balances increased 16.7% to $2.136 billion in the second quarter and 16.0% to $4.245 billion for the first six months. Reported interest expense increased 21.1% to $1.985 billion in the second quarter and 20.0% to $3.925 billion year to date, primarily because of higher average debt balances. The effective interest rate declined to 5.0% from 5.1% in both comparable periods.

Key facts

• Total interest costs on debt balances for the three months ended June 30, 2026: $2,136 million, an increase of 16.7% compared to $1,830 million in the three months ended June 30, 2025. source
• Interest expense (net of capitalized interest) for the three months ended June 30, 2026: $1,985 million, an increase of 21.1% compared to $1,639 million in the three months ended June 30, 2025. source
• During the six months ended June 30, 2026 and 2025, Verizon recorded capitalized interest related to wireless licenses of $154 million and $234 million, respectively. source
• The increase in consolidated total interest costs and interest expense for the three and six months ended June 30, 2026 was primarily due to an increase in interest costs associated with higher average debt balances. source

Impact estimates