VZ · 10-Q · 2026Q3 · Full report
Operating Expense Trends
VERIZON COMMUNICATIONS INC · 2026-10-29 · Importance 36 · Surprise 14 · In source text
Consolidated operating expenses were $25.663 billion in the third quarter of 2026, down 0.2%, and $78.935 billion for the first nine months, up 1.8% from 2025. Depreciation and amortization expense increased 10.3% to $5.095 billion for the quarter and 8.4% to $14.995 billion for nine months, primarily because of the mix of assets and depreciable assets acquired with Frontier. Cost of services rose 5.9% to $7.265 billion in the quarter and 4.7% to $21.657 billion for nine months; nine-month personnel costs increased $665 million, primarily following the Frontier acquisition. Nine-month SG&A increased 2.8% to $24.095 billion, including a $740 million loss on disposition of the Verizon Contributed Business, $401 million of increased acquisition and integration charges, and $397 million of increased severance charges, partly offset by $676 million lower advertising costs.
Key facts
- Cost of services was $6,231 million for the nine months ended September 30, 2026, compared with $6,199 million in 2025, an increase of 0.5%. source
- Cost of wireless equipment was $3,562 million for the nine months ended September 30, 2026, down $46 million (1.3%) from 2025. source
- Selling, general and administrative expense was $5,487 million for the nine months ended September 30, 2026, down $349 million (6.0%) from 2025. source
- Depreciation and amortization expense was $3,226 million for the nine months ended September 30, 2026, an increase of 7.9% from 2025. source
- Total operating expenses were $6,168 million for the three months ended September 30, 2026, up 0.7% from 2025. source
- Total operating expenses were $18,506 million for the nine months ended September 30, 2026, down $126 million (0.7%) from 2025. source
- Verizon recorded $289 million of pre-tax amortization expense related to acquired intangible assets in the three months ended September 30, 2026 and $803 million in the nine months ended September 30, 2026. source
- Verizon recorded a $740 million net loss on disposition of business in the nine months ended September 30, 2026 in connection with classifying the Verizon Contributed Business assets and liabilities as held for sale. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -2.3% | Verizon recorded $289 million of pre-tax amortization expense related to acquired intangible assets in the three months ended September… |
| operating_income | positive | realized | +0.4% | Total operating expenses were $18,506 million for the nine months ended September 30, 2026, down $126 million (0.7%) from 2025. |