VZ · Earnings call · 2026Q3T · Full report

Operating Margin Drivers

VERIZON COMMUNICATIONS INC · 2026-10-26 · Importance 49 · Surprise 32 · No source text

Third-quarter adjusted EBITDA was $13.8 billion, up 8% year over year, and adjusted EBITDA margin increased 240 basis points to 40.2%, a company high. Verizon continued its $5 billion operating cost-efficiency program and expected to meet its 2026 goal; lower acquisition and retention costs helped produce the lowest net equipment subsidy in two years. The Frontier integration was on track to generate more than $1 billion in annualized operating-cost synergies by 2028.

Key facts

• Q3 2026 adjusted EBITDA was $13.8 billion, up 8% year over year.
• Q3 2026 adjusted EBITDA margin was 40.2%, up 240 basis points year over year and the highest reported by Verizon.
• Q3 promotional cost of acquisition declined 41% year over year and retention cost declined 30%.
• Verizon's Q3 consumer postpaid phone customer acquisition cost declined 41% year over year.
• Verizon's overall cost of retention declined 30% year over year for the second consecutive quarter.

Impact estimates