VZ · 10-Q · 2026Q2 · Full report

Operating Expense Trends

VERIZON COMMUNICATIONS INC · 2026-07-31 · Importance 25 · Surprise 32 · From source text

Total operating expenses decreased $85 million, or 1.4%, in the second quarter of 2026 and $167 million, or 1.3%, in the first six months, to $6.164 billion and $12.338 billion, respectively. Selling, general and administrative expense fell $143 million, or 7.2%, in the quarter and $256 million, or 6.5%, year to date, primarily because personnel costs declined $139 million and $294 million from workforce reduction initiatives. Cost of services declined $37 million in the quarter and $74 million year to date as access costs fell $121 million and $210 million, partly offset by higher personnel costs for third-party contracted resources. Depreciation and amortization increased 9.3% in the quarter and 7.7% year to date because of the asset mix, including depreciable assets acquired in the Frontier acquisition.

Key facts

• Cost of wireless equipment consolidated for the three months ended June 30, 2026: $5,859 million, a decrease of $1,148 million (16.4%) compared to $7,007 million in 2025. source
• Cost of services consolidated for the three months ended June 30, 2026: $7,225 million, an increase of 5.0% compared to $6,878 million in 2025. source
• Special items included in Income Before Provision For Income Taxes totaled $1,810 million for the three months and $2,074 million for the six months ended June 30, 2026. source
• Cost of services in Consumer segment for the three months ended June 30, 2026: $4,928 million, an increase of $347 million (7.6%) compared to $4,581 million in 2025; increases included $150 million in personnel costs and $111 million in digital content costs (three months). source
• Cost of services was $2,023 million for the three months ended June 30, 2026 and $4,140 million for the six months ended June 30, 2026. source
• Cost of wireless equipment was $1,203 million for the three months and $2,405 million for the six months ended June 30, 2026. source
• Selling, general and administrative expense was $1,847 million for the three months and $3,653 million for the six months ended June 30, 2026. source
• Total operating expenses were $6,164 million for the three months and $12,338 million for the six months ended June 30, 2026. source

Impact estimates