VZ · 10-Q · 2026Q2 · Full report

Interest Rate Environment

VERIZON COMMUNICATIONS INC · 2026-07-31 · Importance 19 · Surprise 6 · From source text

Verizon had $165.2 billion of total debt at June 30, 2026, including $136.5 billion of unsecured debt and $28.8 billion of secured debt. Approximately 76% of the debt portfolio was fixed-rate, while a 100-basis-point change in rates affecting floating-rate debt would change annual interest expense by approximately $412 million. Verizon’s effective interest rate was 5.0% for the six months ended June 30, 2026, compared with 5.1% in the prior-year period. The company uses interest-rate swaps and maintains a mix of fixed- and variable-rate debt to manage borrowing costs and earnings volatility.

Key facts

• A 100-basis-point change in interest rates affecting Verizon's floating rate debt would result in a change in annual interest expense of approximately $412 million, including interest rate swap agreements designated as hedges. source
• Approximately 76% of the aggregate principal amount of Verizon's total debt portfolio consisted of fixed-rate indebtedness as of June 30, 2026, including effect of interest rate swaps designated as hedges. source
• The fair value of the liability of Verizon's interest rate swap contracts was $5.2 billion at June 30, 2026 and $5.1 billion at December 31, 2025, with total notional amount $23.7 billion at both dates. source
• Effective interest rate for the three months ended June 30, 2026: 5.0% compared to 5.1% for the three months ended June 30, 2025. source
• During the six months ended June 30, 2026 and 2025, Verizon's effective interest rate was 5.0% and 5.1%, respectively. source

Impact estimates