VZ · Earnings call · 2026Q3T · Full report
Capital Expenditures and Cash Flow
VERIZON COMMUNICATIONS INC · 2026-10-26 · Importance 54 · Surprise 40 · No source text
Cash flow from operations was $29.9 billion for the first nine months of 2026, up nearly 7% year over year, while free cash flow increased 14.3% to $18 billion. Capital expenditures totaled $11.9 billion through Q3, and Verizon remained on track for full-year spending of $16 billion–$16.5 billion, including success-based AI Connect investment. Management raised full-year free cash flow growth guidance to approximately 12%.
Key facts
- Q3 2026 free cash flow was $7.8 billion, the highest quarterly free cash flow since 2020 and up more than 12% year over year.
- Cash flow from operations was $29.9 billion for the first nine months of 2026, up over $1.9 billion or nearly 7% year over year.
- Verizon capital expenditures were $11.9 billion through Q3 2026.
- Free cash flow was $18 billion for the first nine months of 2026, up 14.3%.
- Verizon's incremental capital required to deliver its AI infrastructure agreements is modest, success-based and tied to defined contracts.
- Verizon stated that AI Connect would have no change to its 2026 capital expenditure envelope and would involve modest success-based CapEx in 2027.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -2.9% | Verizon capital expenditures were $11.9 billion through Q3 2026. |
| cash | positive | realized | +0.5% | Free cash flow was $18 billion for the first nine months of 2026, up 14.3%. |
| cash | positive | realized | — | Cash flow from operations was $29.9 billion for the first nine months of 2026, up over $1.9 billion or nearly 7% year over year. |