VZ · 10-Q · 2026Q3 · Full report

Interest Expense Increase

VERIZON COMMUNICATIONS INC · 2026-10-29 · Importance 60 · Surprise 40 · No source text

Interest expense increased 17.2% to $1.950 billion in the third quarter of 2026 and 19.0% to $5.875 billion for the first nine months compared with 2025. Total interest costs on debt balances rose 13.6% to $2.097 billion for the quarter and 15.2% to $6.342 billion for nine months. Average debt outstanding increased to $167.321 billion for the quarter from $146.578 billion and to $168.591 billion for nine months from $145.154 billion. Verizon attributed the increase in interest expense primarily to higher average debt balances; the effective interest rate was 5.0% for both third quarters and 5.0% for nine months in 2026 versus 5.1% in 2025.

Key facts

• Verizon's total interest expense increased 17.2% to $1.950 billion in the three months and 19.0% to $5.875 billion in the nine months ended September 30, 2026, primarily due to higher average debt balances. source
• A 100-basis-point interest-rate change affecting Verizon's floating-rate debt would change annual interest expense by approximately $403 million, including designated interest-rate swap agreements. source
• The notional amount of Verizon's interest-rate swaps was $22.4 billion at September 30, 2026, compared with $23.7 billion at December 31, 2025. source
• The fair value of Verizon's interest-rate-swap liability was $6.3 billion at September 30, 2026, compared with $5.1 billion at December 31, 2025. source
• Verizon's effective interest rate was 5.0% for the three months and 5.0% for the nine months ended September 30, 2026. source

Impact estimates