VZ

Verizon Communications stock has delivered a strong 3-year performance, yet the valuation checks send a mixed signal rather than a clear bargain or clear premium. With the shares recently around US$50 and a mid-range value score, investors are weighing solid recent returns against an only partly supportive valuation picture. Over the past 3 years, Verizon Communications has returned about 77.2%, which puts extra focus on whether the current price already reflects much of that progress. Verizon's push to apply Google Cloud's AI tools across its network and customer operations can support earnings power, while ongoing regulatory and legal exposure, highlighted by the US$47 million FCC fine, may limit how much investors are willing to pay for the stock. On Simply Wall St’s broader checks, Verizon Communications carries a value score of 4 out of 6, which points to a mixed picture rather than a clearly cheap or clearly expensive stock. The issue now is whether Verizon Communications' current valuation leaves enough room for further return potential after the recent multi-year run. Spot other telecom and AI-focused opportunities by scanning the hand picked 55 AI infrastructure stocks. The P/E ratio is a useful metric for Verizon Communications because earnings remain a key driver of how investors look at mature telecom stocks. Verizon trades at about 12.9x earnings, which is higher than the peer group average of roughly 10.0x, yet below the broader telecom industry average of about 16.7x. That places the stock in the middle of the pack, not at a clear discount to direct peers and not at the upper end of the sector either. The fair P/E ratio implied by Simply Wall St’s model is around 15.5x. This is higher than the current 12.9x, which suggests that Verizon Communications may be undervalued on this earnings multiple, even after recent share price strength. Despite the recent AI partnership with Google Cloud, which has lifted the story around potential future efficiency and customer experience, the market P/E still sits below the level suggested by the fair ratio. On balance, Verizon Communications stock appears undervalued on its current P/E multiple when compared with the fair ratio implied by its fundamentals and risk profile. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Verizon Communications give you a structured way to think through what might need to happen next for earnings, margins and cash flows to make today's price look either conservative or stretched. Each narrative ties its number to a clear view on how Verizon Communications' growth, profitability and key risks could evolve. You can revisit these narratives as new company data and industry information emerge on the Community page. Community views on Verizon Communications are split, with one side focused on cash flow uplift from convergence and the other worried about execution, capital needs and competition. Bull case: roughly fairly valued Read the full Bull Case to see why Verizon Communications could be undervalued Bear case: 14% overvalued Read the full Bear Case to see why Verizon Communications could be overvalued Do you think there's more to the story for Verizon Communications? Head over to our Community to see what others are saying! For Verizon Communications, the current valuation leans toward undervalued on earnings multiples, but not by a wide margin. The stock appears to have some upside potential if the P/E moves closer to the fair ratio suggested by the fundamentals. The key question now is whether Verizon can translate its AI and network investments into durable cash flow gains without regulatory and capital spending pressures absorbing that benefit. That tension between efficiency progress and ongoing risk is what separates a genuine discount from a value trap argument for Verizon Communications. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Verizon has been treading water for the past six months, holding steady at $48.69. The stock also fell short of the S&P 500’s 12.9% gain during that period. Is now the time to buy Verizon, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free. We’re cautious about Verizon. Here are three reasons you should be careful with VZ, plus one stock we’d rather own. A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Verizon struggled to consistently increase demand as its $138.9 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a sign of poor business quality. Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Over the next year, analysts predict Verizon’s cash conversion will slightly improve. Their consensus estimates imply its free cash flow margin of 15.5% for the last 12 months will increase to 16.6%, giving it options for capital deployment (investments, share buybacks, etc.). We like to invest in businesses with high returns, but the trend in a company’s ROIC can also be an early indicator of future business quality. Unfortunately, Verizon’s ROIC averaged 2.3 percentage point decreases each year over the last few years. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. We see the value of companies helping consumers, but in the case of Verizon, we’re out. With its shares lagging the market recently, the stock trades at 9.5× forward P/E (or $48.69 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better investments elsewhere. We’d suggest looking at one of our top software and edge computing picks. ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Cogent Communications Holdings, Inc. CCOI shares gained 14% in the past week, even after falling 20.2% in the past month and 49.3% in the past three months. The rebound follows a narrower quarterly loss and improving earnings estimates.The setup remains mixed. Service revenues are still declining, the acquired Sprint wireline base continues to run off and leverage remains elevated, leaving investors to weigh improving operating trends against refinancing and execution risks. Second-quarter 2026 loss excluding non-recurring items narrowed to 80 cents per share from $1.21 a year earlier. The result was better than the Zacks Consensus Estimate for a loss of $1.12 per share.Service revenues fell 4.3% year over year to $235.6 million and missed the consensus estimate of $240.9 million. The revenue decline, driven mainly by weaker off-net business and the Sprint wireline runoff, keeps the earnings improvement from signaling a broad operating recovery. Cogent Communications Holdings, Inc. price-consensus-eps-surprise-chart | Cogent Communications Holdings, Inc. Quote Net-centric revenue increased 10.4% year over year to $107.4 million as IP network traffic rose 16%. IPv4 leasing revenue climbed 18.1% to $18.1 million, while wavelength revenue jumped 63.8% to $14.8 million and wavelength connections increased 66.4% to 2,445.Competitive investment remains active. Lumen Technologies, Inc. LUMN is expanding enterprise networking and AI-related connectivity while growing adoption of its digital networking services. Verizon Communications Inc. VZ continues to market global wide-area networking and infrastructure services for AI workloads, underscoring the competitive backdrop for high-capacity connectivity. On-net revenue including wavelengths rose 6.2% year over year to $150.2 million, while off-net revenue declined 17.3% to $84.5 million. The mix shift matters because Cogent's on-net services are more profitable than off-net services.Non-GAAP gross margin reached 47%, up from 44.4% a year earlier. Adjusted EBITDA margin was 30.2%, compared with 29.8% in the prior-year quarter, as cost reductions and the move toward higher-margin on-net products helped offset lower consolidated revenues. Corporate revenue declined 9.6% year over year to $98.6 million. Sprint-related revenue had fallen to 15% of total revenues from 42% at closing, while off-net connections dropped 12.2% to 23,033, showing that legacy runoff is still weighing on the consolidated growth rate.Net leverage adjusted for amounts due from T-Mobile stood at 6.23 times, down from 6.79 times in the prior quarter. Cogent also faces a $750 million unsecured-note maturity in June 2027 and expects to complete refinancing in the third quarter of 2026, with management indicating that new funding will likely cost more. The 14% weekly gain coincides with better loss performance, improving margins and favorable estimate revisions, but revenue contraction, Sprint runoff and leverage remain unresolved. Those crosscurrents keep the investment case balanced despite the recent rebound.CCOI currently carries a Zacks Rank #2 (Buy), along with a Growth Score of A, Momentum Score of A, VGM Score of B and Value Score of D. The current fiscal-year EPS estimate has improved 36.4% over the past four weeks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.A Zacks Rank #2 paired with A or B Style Scores is generally favorable for the one- to three-month horizon. Still, the Value Score of D and the company's refinancing and revenue risks support a measured view rather than an uncomplicated turnaround call. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cogent Communications Holdings, Inc. (CCOI) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Lumen Technologies, Inc. (LUMN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Only one-quarter of AI use cases in customer service produce a return on investment, according to a Gartner analysis of 432 use cases released last month. Another one-quarter deliver negative returns, and 42% have unclear ROI in which support leaders say they simply don’t know the value produced. Only 11% of customer support use cases break even. Despite such unclear returns, more than three-quarters of leaders are planning to increase investment in AI in 2026. Although executives at major companies from Verizon to Airbnb tout the success of their AI chatbots, cost savings from AI investments in customer service remain elusive for most companies. Among business functions, customer service leads AI adoption in the enterprise. Gartner found that customer service and support teams are pursuing on average nearly five AI use cases and committing about 13% of their functional budget to AI. However, customer support leaders are increasingly being graded on something they can’t often prove. More than half of service and support leaders — 56% — expect to have their incentives tied directly to AI outcomes in 2026. This disconnect is a product of a top-down approach that fails to address customers’ actual needs and simplified assumptions about containment and headcount, experts say. “What we're seeing with the deployment, the backstory here is like everyone is trying to get AI,”  Antoine Nasr, head of AI at Forethought AI Agents by Zendesk, told CX Dive. “This is a top-down initiative: We need AI and customer support and customer experience.” Too often, when leadership directs customer support to implement AI, it doesn’t begin with a clear customer problem. “Too many AI rollouts begin with pressure to demonstrate a credible AI strategy to the board, rather than with a clearly defined business problem,” Julie Geller, principal research director at Info-Tech Research Group, told CX Dive via email. Many businesses expect cost savings via workforce reduction, with AI agents taking over many of the easy-to-answer questions customer service representatives field. But the rate of organizations increasing head count is equivalent to the rate reducing it, with one-quarter reporting workforce growth and about one-quarter reporting reductions, according to Gartner. As more businesses adopt AI, they also need to hire new specialized roles to manage AI. The goal of containment is also a misguided approach if it doesn’t help the customer. “Containment is also too often mistaken for success,” she said. “Delaying contact with a human agent is not the same as resolving the customer’s problem. The real test is much simpler: did the customer get what they needed, with less effort?” Gartner’s research falls in line with a recent report by Forethought AI Agents by Zendesk. While 70% of organizations have rolled out AI in customer experience, only a small percentage are producing value in the form of improving outcomes and ROI.

Interested in Array Digital Infrastructure Inc.? Here are five stocks we like better. Array raised its 2026 outlook, increasing adjusted OIBDA guidance to $60 million–$75 million, adjusted EBITDA guidance to $220 million–$235 million, and the low end of total revenue guidance to $205 million. Array completed major spectrum transactions, including a $168 million sale to T-Mobile and a $1 billion transaction with Verizon, monetizing roughly 70% of its spectrum holdings while continuing to evaluate its remaining C-band assets. Cash site rental revenue grew strongly, helped by T-Mobile interim sites, although interim revenue is beginning to decline as T-Mobile integrates operations. Array also narrowed its expected post-integration tenantless tower count to 1,000–1,700 and fully reserved outstanding 2025 DISH balances. MarketBeat Week in Review – 08/03 - 08/07 TDS reported second-quarter progress in its fiber expansion and tower infrastructure operations, while updating 2026 guidance for both TDS Telecom and Array Digital Infrastructure (NYSE:AD). Management also said it would not provide further updates or take questions regarding TDS’s pending proposal to acquire Array shares it does not already own. TDS President and CEO Walter Carlson said the company continued to advance its operational priorities during the first half of 2026. TDS Telecom added fiber service addresses and customers during the quarter, while Array increased tower tenancy on a sequential basis and completed transactions to monetize virtually all of its spectrum outside the C-band. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Is ADM’s Rally Getting Ahead of Its Policy Tailwind? TDS Telecom delivered approximately 66,000 marketable fiber service addresses in the second quarter, bringing first-half delivery to about 106,000 addresses. Ken Dixon, president and CEO of TDS Telecom, said the first-half total was the company’s strongest on record and exceeded its second-half 2025 fiber-address delivery, which is typically its peak construction period. The company raised its 2026 fiber service address delivery outlook by 50,000 addresses and now expects to deliver between 250,000 and 300,000 new fiber service addresses this year. TDS Telecom also increased its capital expenditure guidance to a range of $625 million to $675 million to support the higher construction activity. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be 3 Safe Buy-and-Hold Dividend Stocks With Strong Balance Sheets Dixon said TDS Telecom’s expanded construction capacity and pipeline of addresses under construction support the increased outlook. The build program includes new expansion markets, upgrades through its Fiber Deeper program, and work supported by the federal Enhanced Alternative Connect America Cost Model, or E-ACAM, program. TDS Telecom is the largest recipient of E-ACAM support, according to Dixon, and is using the program to bring fiber to more than 300,000 addresses across 22 states in its incumbent footprint. The company has already met its 2026 E-ACAM obligations in three states and has its highest-ever crew counts in remaining E-ACAM markets, Dixon said. → First Solar’s Profit Engine Faces a New Policy Test in Washington Residential fiber net additions totaled 15,100 during the quarter, up 47% from a year earlier. The company now serves nearly 1.2 million fiber service addresses, representing 60% of its total footprint, with 80% of addresses capable of gigabit speeds. Residential fiber revenue increased 13%, or $11 million, from a year earlier, helping offset declines in legacy revenue streams. Residential revenue per connection rose 1%, reflecting annual price increases partly offset by lower video attachment rates. However, cable revenue declined roughly 10% from the second quarter of 2025, and total residential revenue fell $6 million year over year, including about $2 million attributable to divestitures of primarily copper-based markets. TDS Telecom’s total operating revenue declined 6% in the quarter, or 4% excluding divestitures. Kris Bothfeld, vice president of financial analysis and strategic planning, said roughly half of the year-over-year decline resulted from discrete wholesale revenue adjustments that benefited 2025. The remainder reflected continued pressure in legacy revenue streams, partly offset by fiber customer growth and higher revenue per connection. Cash expenses were flat year over year, as savings from cost-management initiatives were offset by expenses supporting expansion markets and inflation. Capital expenditures totaled $179 million in the quarter. For 2026, TDS Telecom lowered its total revenue outlook to $1 billion to $1.025 billion, citing headwinds in copper and cable markets. It narrowed adjusted EBITDA guidance to $310 million to $330 million. Bothfeld said the legacy revenue challenges were largely falling to the bottom line, while fiber revenue growth and transformation-related cost savings are expected to support results in the second half. TDS also said it remains active in pursuing small- to medium-sized fiber acquisitions that fit its clustering strategy. The company expects to close its acquisition of Granite State Communications in the third quarter, adding approximately 11,000 fully fibered service addresses for $25 million. Array’s second-quarter performance was driven by tower leasing activity and spectrum monetization. Anthony Carlson, president and CEO of Array, said cash site rental revenue increased 55% year over year from all customers, or 65% when normalized for the impact of DISH. Array ceased recognizing revenue from DISH during the first quarter after DISH generally stopped making payments under its contracts in December. Array said all outstanding 2025 DISH balances have been fully reserved, and DISH co-locations are no longer included in the company’s tenancy ratio. The company said T-Mobile interim site revenue contributed to its growth. Cash site rental revenue increased 81% year over year with the addition of that revenue, or 92% when normalized for DISH. However, Carlson said interim site revenue has begun to decline as T-Mobile advances its integration process. T-Mobile has until January 2028 to finalize 2,015 committed sites under the companies’ new master lease agreement. Array narrowed its projected range of tenantless towers following the T-Mobile integration to 1,000 to 1,700. Array has reached agreements to monetize roughly 70% of its spectrum holdings. During the quarter, it closed a $168 million sale of 600 MHz, 700 MHz and AWS licenses to T-Mobile and a $1 billion spectrum transaction with Verizon. Remaining T-Mobile transactions are expected to close by the end of 2026, subject to regulatory approvals and other closing conditions. Array continues to evaluate monetization options for its remaining spectrum, primarily C-band. Carlson said the company does not view itself as a forced seller and believes it has time to pursue value for the spectrum because there are no near-term build-out requirements. Array raised the low end of its 2026 total operating revenue guidance to $205 million from $200 million, while leaving the high end unchanged. The company cited expectations for higher T-Mobile interim site revenue based on the current pace of integration. It increased adjusted OIBDA guidance to $60 million to $75 million from $50 million to $65 million, reflecting the higher revenue outlook and expectations for modestly lower operating expenses. Adjusted EBITDA guidance was revised to $220 million to $235 million, compared with prior guidance of $200 million to $250 million. The company also raised its expected equity income to $145 million from $140 million and increased expected interest and dividend income to $15 million from $10 million, citing year-to-date trends, partnership budgets and a higher cash balance associated with the timing of spectrum transaction inflows and outflows. TDS said it paid its regular quarterly dividend, while Array paid a special dividend of $11 per common share during the quarter. TDS did not repurchase shares in the second quarter because it was restricted by its offer for Array, though it had $520 million remaining under its repurchase authorization at quarter-end. United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Array Digital Infrastructure Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Telephone and Data Systems, Inc. TDS reported a sharp improvement in second-quarter 2026 earnings, but the headline gain was driven partly by spectrum monetization at Array Digital Infrastructure. Earnings reached $2.24 per share compared with a loss of 5 cents a year earlier, while operating revenues rose 3.6% to $309.3 million. The quarter also showed faster fiber deployment at TDS Telecom, making the sustainability of the earnings improvement an important consideration for investors. Telephone and Data Systems, Inc. price-consensus-eps-surprise-chart | Telephone and Data Systems, Inc. Quote TDS reported $2.24 per share in second-quarter earnings, up from a loss of 5 cents in the year-ago quarter. Earnings topped the Zacks Consensus Estimate, producing a 100% surprise, while revenues missed the $315 million consensus estimate by 1.83%.Array’s spectrum monetization was a major contributor to the earnings improvement. Array completed a $1 billion spectrum transaction with Verizon Communications Inc. VZ in June and about $168 million of additional spectrum sales to T-Mobile US, Inc. TMUS in May. The transactions helped lift net income attributable to TDS common shareholders to $260.6 million from a $6 million loss a year earlier.The distinction between transaction-related gains and recurring operations is important. Array’s license sales boosted reported results, but TDS excludes the gain on license sales and exchanges when calculating Adjusted EBITDA. That measure provides a clearer view of underlying operating performance. TDS Telecom continued to expand its fiber footprint during the quarter. The business delivered approximately 66,000 new marketable fiber service addresses, bringing the first-half total to about 106,000. Residential fiber net additions reached 15,100, up 47% year over year. Marketable fiber service addresses totaled approximately 1.17 million, with 60% of service addresses served by fiber.Fiber growth is beginning to offset pressure from legacy operations, but it has not yet reversed the broader revenue decline. TDS Telecom generated $248 million of operating revenues, down 6% year over year, as copper and cable declines and divestitures outweighed a 13% increase in fiber revenue. Adjusted EBITDA declined 21% to $70 million, while capital expenditures nearly doubled to $179 million as construction activity accelerated.Management raised its 2026 fiber service address delivery target to 250,000-300,000 from 200,000-250,000 previously. The company continues to target 2.1 million marketable fiber service addresses over the long term. The updated outlook captures the trade-off between faster fiber deployment and weaker near-term financial performance. TDS Telecom’s 2026 revenue guidance was reduced to $1-$1.025 billion from $1.015-$1.055 billion, while Adjusted EBITDA guidance was narrowed to $310-$330 million from $310-$350 million. At the same time, fiber service address guidance increased and capital expenditure guidance rose to $625-$675 million from $550-$600 million.The higher spending reflects the construction required to expand the fiber footprint. TDS Telecom’s second-quarter capital expenditures nearly doubled to $179 million, making cash generation an important measure of whether the additional fiber investment will translate into sustainable operating gains.The earnings picture therefore remains mixed. Fiber deployment and customer additions are accelerating, but legacy revenue declines and higher investment are keeping pressure on the telecom segment’s near-term profitability. Array’s second-quarter results also reflected its transition toward a tower-focused operating model. Operating revenues increased 90% year over year to $54.1 million, while Adjusted EBITDA rose 56% to $56.2 million.The underlying tower indicators improved as well. Cash site rental revenue increased 65% year over year excluding T-Mobile interim revenues and DISH revenues, while the tower tenancy rate increased to 0.98 from 0.96 in the first quarter, excluding DISH colocations.Spectrum monetization is helping Array reduce its exposure to retained wireless licenses while it focuses more heavily on recurring tower operations. TDS said Array completed transactions that monetized virtually all of its spectrum outside the C-Band. The company also issued an $11 special dividend per common share in June. TDS currently carries a Zacks Rank #1 (Strong Buy). Its Zacks Style Scores are Value Score of C, Growth Score of F, Momentum Score of B and VGM Score of F. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Style Scores provide additional context to the Zacks Rank. The Style Score framework uses Value, Growth and Momentum characteristics alongside the Zacks Rank, while the VGM Score combines the three individual styles. The Zacks Style Score Education material emphasizes that earnings estimate revisions remain the key factor behind the Zacks Rank, while favorable Style Scores can provide an additional signal.For TDS, the second-quarter results present both sides of the investment case. The earnings beat, faster fiber deployment and improving tower metrics provide evidence of operational progress. However, a material portion of the earnings increase came from spectrum monetization, while TDS Telecom continues to face legacy declines and higher capital requirements. Investors therefore need to distinguish the one-time benefit from spectrum sales from the recurring earnings potential of the company’s expanding fiber and tower businesses. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Telephone and Data Systems, Inc. (TDS) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earnings estimates for Verizon Communications Inc. VZ for fiscal 2026 and fiscal 2027 have moved up 1.21% to $5.03 and 0.38% to $5.29, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiments about the stock’s growth potential. Image Source: Zacks Investment Research Verizon’s wireless business is showing solid subscriber momentum. During the second quarter, the company posted 184,000 postpaid phone net additions during the quarter, marking its strongest consumer second-quarter performance in five years. Core prepaid net additions totaled 73,000, extending the company's streak of positive prepaid subscriber growth to eight consecutive quarters.Consumer postpaid phone churn declined to 84 basis points from 95 basis points in the fourth quarter of 2025. Verizon disclosed that promotional customer acquisition costs declined about 15% year over year and retention costs fell about 17%. Hence, the important driver is not only higher gross adds but also lower churn. This shows improving customer economics and greater operating leverage for Verizon.Verizon has taken several approaches to further boost customer economics. In the second quarter, the company launched its Simplicity wireless plan, Verizon One and a companywide loyalty program. These offerings are designed to reduce churn and increase customer lifetime value. Verizon is increasingly using its wireless and broadband assets together. The Verizon One offering combines mobility and broadband into a single offering. The bundled offering also simplifies the customer experience. By opting for a single service provider for all internet requirements, users can bypass the billing, service and customer support-related complexities from several vendors. For Verizon, it increases customer stickiness, bringing significant cross-selling opportunities. Google has signed an agreement worth more than $1 billion to use Verizon’s dark-fiber routes to connect its data centers. Verizon boasts an extensive metro fiber network that can offer low-latency and resilient connectivity needed to link data centers. Verizon is also converting some of its existing central offices into edge data centers to support AI inference closer to end users. The company is reportedly exploring deals with other hyperscalers as well. These AI infrastructure-related initiatives can become a major revenue-generating source for the next several years. Fixed wireless access (FWA) remains an important growth engine for the company. However, FWA net additions fell 30.6% year over year to 193,000 in the second quarter. Clearly, growth momentum has weakened to some extent. At the end of the second quarter of 2026, total unsecured debt stood at $136.5 billion, while net unsecured debt totaled $128.7 billion. Although both balances improved from the first quarter through stronger cash generation and debt reduction, net unsecured debt to adjusted EBITDA remained 2.5x. As of 2026, Verizon’s current ratio stood at 0.60, while its quick ratio was 0.57. A current ratio of lower than 1 suggests that the company might face difficulties in paying off short-term obligations.Verizon continues to operate in a mature U.S. wireless market where national carriers and cable competitors compete aggressively on pricing, promotions and bundled offerings. The company faces competition from other major players, such as AT&T, Inc. T and T-Mobile, US, Inc. TMUS. AT&T is rapidly expanding its fiber infrastructure and has also undertaken a convergence strategy to drive user growth. Verizon has gained 8.2% in the past year compared with the Wireless National industry’s growth of 79%. The stock has underperformed the Zacks Computer & Technology sector during this time period. Image Source: Zacks Investment Research The company has outperformed its peers like AT&T and T-Mobile. Shares of AT&T have declined 13.7%, while T-Mobile has declined 28.8% during this period. From a valuation standpoint, VZ appears to be trading relatively cheaper compared to the industry but trading above its mean. Going by the price/earnings ratio, the company’s shares currently trade at 9.11, lower than 38.13 for the industry. Image Source: Zacks Investment Research Verizon continues to strengthen its long-term investment case through improving customer acquisition, lower churn, broadband expansion and disciplined execution. Upward estimate revision underscores growing investor confidence. Verizon's new Simplicity plans, Verizon One offering and loyalty program are designed to improve customer retention without materially increasing promotional spending, but sustained competitive responses from rivals could slow margin expansion and reduce the benefits of improving customer economics over time. High debt burden remains a major concern. With a Zacks Rank #3 (Hold), VZ appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Verizon Communications Inc. (VZ) : Free Stock Analysis Report AT&T Inc. (T) : Free Stock Analysis Report T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earnings estimates for AT&T, Inc. T for fiscal 2026 and fiscal 2027 have moved up 1.29% to $2.35 and 1.18% to $2.57, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiments about the stock’s growth potential. Image Source: Zacks Investment Research AT&T is aggressively expanding its fiber footprint. It added more than 1 million fiber locations in the second quarter. Total fiber locations reached are now 38.6 million. The company expects to exceed 40 million locations by the end of 2026 and reach more than 60 million by 2030. The acquisition of Lumen's mass-market fiber business has accelerated AT&T’s fiber expansion strategy.Wireless remains a major contributor to overall growth. AT&T added 432,000 postpaid phone customers in the second quarter, with churn of just 0.86%. The company added 279,000 fixed wireless connections in the second quarter. The company has been taking several steps to become the customer's single connectivity provider by bundling home internet and wireless. In the second quarter, 42.5% of advanced home internet customers also had an AT&T postpaid wireless account. When customers get dependent on multiple services from a single vendor, it becomes difficult for them to change service providers. This higher switching friction lowers churn rate and boosts customer retention. This significantly boosts the company’s cross-selling opportunities as well. The rising usage of Agentic AI is driving network traffic growth. To support the significant surge of data traffic, the companies need a network that can support near-real-time communication, high bandwidth and significantly greater uplink capacity. A major part of AI processing is expected to move closer to the end user, or the edge, to reduce latency. With a dense metro fiber network combined with nationwide wireless spectrum, AT&T can benefit from this AI infrastructure expansion initiative. AT&T's growth strategy is heavily reliant on continued investment in fiber and wireless infrastructure. The company is expanding fiber aggressively while also investing in its wireless network and spectrum. Such a high capex requirement may impact free cash flow growth in the near term.AT&T is competing for both wireless and broadband customers. Rivals like Verizon and T-Mobile are also expanding network infrastructure and taking several approaches to drive customer addition. Verizon has also taken a convergence strategy to improve churn rate. Stiff competition in a saturated telecom market is impacting margins.Amid this high investment requirement, AT&T’s leveraged balance sheet remains a major concern. Net debt-to-adjusted EBITDA was 2.68X at the end of second-quarter 2026, with total debt of $144 billion and cash and equivalents of $17.6 billion. Management expects leverage to rise to about 3.2X after the planned EchoStar spectrum acquisition, before returning to the 2.5X range within about three years. The company also plans $23 to $24 billion of annual capital investment and $10 billion of 2026 buybacks, leaving less flexibility if operating execution weakens. AT&T has lost 14% in the past year compared with the Wireless National industry’s decline of 78.9%. The stock has also underperformed the Zacks Computer & Technology sector and the S&P 500’s growth during this period. Image Source: Zacks Investment Research The company has underperformed its peers like Verizon Communications Inc. VZ but outperformed T-Mobile, US, Inc. TMUS. Verizon has gained 9.3%, while T-Mobile has lost 29.2% year to date. From a valuation standpoint, AT&T appears to be trading relatively cheaper compared to the industry and trading below its mean. Going by the price/earnings ratio, the company shares currently trade at 9.86 forward earnings, lower than 33.07 for the industry. Image Source: Zacks Investment Research Rapid fiber expansion, healthy traction in the postpaid wireless business are major growth drivers. Effort to reduce churn through bundled product offering is a positive factor. Upward estimate revision underscores growing investors’ confidence on stock’s growth potential. However, fierce competition is weighing on margin. High capex requirement amid elevated debt obligation remains major concern. With a Zacks Rank #3 (Hold), AT&T appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AT&T (NYSE: T) appears to face a significant threat from Space Exploration Technologies (NASDAQ: SPCX). COO Gwynne Shotwell announced that SpaceX's connectivity segment, Starlink, will compete with AT&T, Verizon, and T-Mobile as a full-fledged wireless carrier. Admittedly, such a move appears bleak for AT&T shareholders, since Starlink can cover the entire planet if the law allows, whereas AT&T can cover only the populated parts of the U.S. However, AT&T's 4.7% dividend yield stands out compared to SpaceX, which offers no dividend. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Moreover, AT&T trades at a massive valuation discount to SpaceX, and even with a recent pullback, the competitive threat from SpaceX probably does not justify a discounted valuation for AT&T stock for two reasons. At first glance, competition from SpaceX appears to put AT&T at a competitive disadvantage. Starlink plans to build a terrestrial coverage network, claiming it will use low-cost ground small cells and femtocells to improve signal where coverage is weak. It believes it offers a lower-cost approach to coverage than the massive networks of existing carriers. Still, AT&T investors should remember that satellite internet has not threatened its own internet business. Also, Starlink's internet service comes with critical limitations. It needs a line of sight to a satellite, and adverse weather, network congestion, and other factors can negatively affect its service. That is why it needs its own terrestrial network to compete. Nonetheless, this also raises challenges, suggesting Starlink's service may not add significant value. For one, Starlink has a partnership with T-Mobile in which satellite-to-cell service can take over when the terrestrial network is unavailable. T-Mobile CEO Srini Gopalan said that this type of service accounts for only 0.0003% of its network usage, even during the busiest times of the summer. Another issue is capital expenditures (capex). Even if Starlink can deliver wireless service at a lower cost, the capex costs could still be considerable. The connectivity segment of SpaceX (Starlink) spent just over $4.9 billion on capex over the trailing 12 months. Connectivity accounted for nearly 12% of SpaceX's capex over that period. That will have to increase, which could affect other parts of SpaceX. The main reasons to invest in SpaceX's stock, aside from Elon Musk's reputation as an innovator, are a near-monopoly on space launches and the prospect of AI data centers in space. The massive growth of Starlink also contributes to its success, but its satellite-based internet remains a niche market. Furthermore, investing in SpaceX is considerably riskier than owning AT&T stock. SpaceX does not have a P/E ratio, reflecting ongoing losses. That's one less tool in the standard value investor toolbelt. Buying SpaceX stock today means one pays 85 times sales for a money-losing enterprise that does not pay dividends. Also, AT&T derives nearly all of its revenue from serving as a wireless carrier and a wireless and fiber-based internet service provider. That makes the company much simpler to understand than SpaceX from an investor standpoint. Additionally, it produced over $16 billion in free cash flow over the trailing 12 months. Around $8 billion of that free cash flow funds a $1.11-per-share annual dividend, which offers the aforementioned yield of 4.7%, well above the S&P 500's (SNPINDEX: ^GSPC) average yield of 1.2%. Also, it sells at a P/E ratio of just 8, and the P/S ratio of 1.3 is a tiny fraction of SpaceX's sales multiple. To be sure, AT&T still has its challenges. The company's stock is inexpensive because it has run up massive debt. It has spent heavily on capex and lost tens of billions of dollars in failed satellite TV and media content ventures years ago, leaving it with a strained balance sheet that may concern its investors. Still, its profitability should reassure risk-averse investors, especially when compared with SpaceX. Investors should probably stay with AT&T despite SpaceX's plan to become a wireless carrier. Indeed, Musk has built a reputation for technological transformation, and investors should not forget SpaceX stock. Nonetheless, investors should remember that Starlink has not threatened AT&T's internet service business. Moreover, the massive costs of entering a competitive industry like wireless services offer no obvious benefit to investors. In contrast, AT&T's stable dividend and low valuation probably make it a less risky investment choice than SpaceX stock. Hence, if you're choosing between these stocks, the safer move is to buy AT&T and collect its generous dividend. Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AT&T wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. Will Healy has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. AT&T Yields 4.7% and Trades At 8 Times Earnings. Is the SpaceX Threat Really Worth That Discount? was originally published by The Motley Fool

Interested in Telephone and Data Systems, Inc.? Here are five stocks we like better. TDS Telecom accelerated its fiber expansion, raising 2026 delivery guidance to 250,000–300,000 new service addresses and capital-expenditure guidance to $625 million–$675 million. Fiber residential net additions rose 47% year over year in the second quarter. Legacy copper and cable declines continued to weigh on results, prompting TDS to lower 2026 telecom revenue guidance to $1.0 billion–$1.025 billion and narrow adjusted EBITDA guidance to $310 million–$330 million. Array Digital Infrastructure completed $1.17 billion in spectrum sales to T-Mobile and Verizon, has agreements to monetize about 70% of its spectrum holdings, and raised its 2026 revenue and adjusted EBITDA outlooks. 2 Mid-Cap Telecom Stocks Offering Superior Returns Telephone and Data Systems (NYSE:TDS) reported second-quarter progress in its fiber expansion and tower operations, while lowering revenue expectations for its telecom business amid continued pressure from legacy copper and cable services. The company also said Array Digital Infrastructure completed major spectrum transactions during the quarter and raised several elements of its full-year outlook. TDS Chief Executive Officer Walter Carlson said the company would not provide an update on its previously announced all-stock proposal to acquire the Array shares it does not already own. Array’s board has formed an independent special committee to evaluate the proposal. → No Hangover: Revisiting Microsoft One Week After Earnings The Market Is So Over Overstock...But Is It Now Oversold? TDS Telecom delivered approximately 66,000 marketable fiber service addresses during the second quarter, bringing first-half delivery to about 106,000 addresses. Ken Dixon, president and CEO of TDS Telecom, said the first-half performance was the strongest in company history and exceeded the company’s address delivery in the second half of 2025, traditionally its busiest construction period. The company increased its 2026 fiber address delivery guidance by 50,000 addresses and now expects to add between 250,000 and 300,000 new marketable fiber service addresses this year. TDS Telecom also raised its capital-expenditure outlook to a range of $625 million to $675 million to support the accelerated construction activity. → MarketBeat Week in Review – 08/03 - 08/07 These 11 stocks will be Dividend Kings in 5 years or less. TDS Telecom ended the quarter with nearly 1.2 million fiber service addresses, representing 60% of its total footprint, with 80% capable of gigabit speeds. The company said it is using federal Enhanced Alternative Connect America Cost Model, or E-ACAM, support to expand fiber to more than 300,000 addresses in 22 states within its incumbent footprint over the next two years. Dixon said TDS Telecom has already met its 2026 E-ACAM obligations in three states and has its highest crew counts ever in its remaining E-ACAM markets. He added that the company is seeing strong demand when it brings fiber to markets previously served by copper infrastructure. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Residential fiber net additions totaled approximately 15,100 in the second quarter, up 47% from a year earlier. TDS said it has expanded door-to-door sales capacity, added outside sales vendors, and improved performance through its online channel. The company is also adding sales resources in cable and multi-dwelling-unit markets. Despite fiber growth, TDS Telecom reported total operating revenue declined 6% year over year in the second quarter, or 4% excluding divestitures. Kristina Bothfeld, vice president of financial analysis and strategic planning, said approximately half of the year-over-year decline reflected discrete wholesale revenue adjustments that benefited 2025 results. The rest was tied to legacy revenue pressure, partly offset by fiber connection growth and higher revenue per connection. Residential fiber revenue rose 13%, or $11 million, from a year earlier, while cable revenue declined roughly 10%. Total residential revenue decreased by $6 million, including approximately $2 million related to divestitures of primarily copper-based markets. Cash expenses were flat as cost-management savings were offset by expenses tied to expansion markets and inflation. Capital expenditures totaled $179 million during the quarter. TDS Telecom reduced its full-year revenue guidance to $1 billion to $1.025 billion, citing pressure in its copper and cable markets. The company narrowed its adjusted EBITDA outlook to $310 million to $330 million. 2026 telecom revenue guidance: $1.0 billion to $1.025 billion. 2026 adjusted EBITDA guidance: $310 million to $330 million. 2026 fiber address delivery guidance: 250,000 to 300,000. 2026 capital-expenditure guidance: $625 million to $675 million. Chief Financial Officer Vicki Villacrez said the company’s balance sheet has been strengthened by transactions completed during the past year, including Array’s June spectrum sale to Verizon. TDS expects its acquisition of Granite State Communications to close in the third quarter, adding 11,000 fully fibered service addresses for $25 million. Villacrez said TDS continues to evaluate small- and medium-sized fiber acquisition opportunities that fit its clustering strategy and have either existing fiber infrastructure or an economically viable path to full fiber deployment. Array Digital Infrastructure said cash site rental revenue increased 55% year over year from all customers, or 65% when normalized for the impact of DISH. The company stopped recognizing revenue from DISH during the first quarter after DISH generally stopped making payments under its contracts in December and certain DISH entities entered bankruptcy proceedings. Array reported a tenancy ratio of 0.96 at quarter-end, compared with 0.98 at the end of the prior quarter. The company said that, excluding the removal of DISH co-locations from the metric, it continues to see steady tenancy growth. Anthony Carlson, Array’s president and CEO, said T-Mobile interim site revenue drove the year-over-year increase in site rental revenue. That revenue began to decline during the quarter as T-Mobile progresses through its network integration. T-Mobile has until January 2028 to finalize 2,015 committed sites under its master lease agreement with Array. Array narrowed its forecast for tenantless towers following the T-Mobile integration to between 1,000 and 1,700. The company said it is evaluating lease-up opportunities, ground-lease costs, long-term demand and potential decommissioning for sites without a path to economic viability. During the quarter, Array closed a $168 million sale of 600 MHz, 700 MHz and AWS spectrum licenses to T-Mobile and a $1 billion spectrum transaction with Verizon. Array said it has agreements to monetize roughly 70% of its spectrum holdings, with remaining T-Mobile transactions expected to close by the end of 2026, subject to regulatory approval and other closing conditions. The company continues to seek opportunities to monetize its remaining spectrum, primarily C-Band holdings. Carlson said Array is not a forced seller and believes the spectrum has substantial value given its availability for deployment and proximity to Upper C-Band spectrum. Array raised its 2026 total operating revenue outlook to $205 million to $210 million from a prior range beginning at $200 million. It increased adjusted OIBDA guidance to $60 million to $75 million and adjusted EBITDA guidance to $220 million to $235 million. Capital-expenditure guidance was unchanged. Telephone and Data Systems, Inc (NYSE: TDS) is a diversified telecommunications company headquartered in Chicago, Illinois. Through its subsidiaries, the company provides a broad array of communications services, including wireless voice and data, wireline broadband and voice, cable television, and managed IT and cloud solutions. Its two primary operating units—TDS Telecom and U.S. Cellular—serve residential, business and wholesale customers across the United States. TDS Telecom focuses on delivering broadband internet, digital voice, video and data communications services in primarily rural and suburban markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Telephone and Data Systems Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Array Digital Infrastructure Inc (NYSE:AD) reported a 65% year-over-year increase in cash site rental revenue, excluding Dish impact, driven by strong demand and new customer agreements. The company successfully closed spectrum monetization transactions with T-Mobile and Verizon, including a $1 billion deal with Verizon, strengthening its balance sheet. Array Digital Infrastructure Inc (NYSE:AD) raised its full-year adjusted EBITDA guidance to $60-$75 million, reflecting higher revenue expectations and lower operating expenses. The tenancy ratio improved sequentially to 0.96, excluding Dish, indicating steady growth in co-locations and tower utilization. The company has a strong pipeline of applications and expects continued revenue growth from existing customers and new leasing opportunities, with no near-term buildout requirements for its C-band spectrum. Array Digital Infrastructure Inc (NYSE:AD) continues to face significant costs related to the wind-down of legacy wireless operations, which are expected to persist throughout 2026. The company's tenancy ratio is negatively impacted by Dish's bankruptcy and cessation of payments, leading to a full reserve of outstanding balances and removal of Dish co-locations from the ratio. T-Mobile interim site revenue is expected to decline as integration progresses, creating uncertainty in future revenue streams. The company faces elevated strategic alternatives costs related to the evaluation of TDS's acquisition proposal, which could impact profitability. Array Digital Infrastructure Inc (NYSE:AD) has a projected 1,000 to 1,700 tenantless towers post T-Mobile integration, requiring ongoing ground lease optimization and potential decommissioning of economically unviable sites. Warning! GuruFocus has detected 6 Warning Signs with AD. Is AD fairly valued? Test your thesis with our free DCF calculator. Q: How should we think about the timing of TDS resuming its share repurchase program given the pending offer for Array, and is there now an open window for C-band spectrum discussions following the recent AWS auction? A: Vicky Villarez (EVP & CFO, TDS): We are pleased with our balance sheet flexibility but were restricted from buybacks in Q2 due to the pending Array offer. We remain committed to executing the $520 million remaining authorization as soon as business and market conditions permit, but cannot speculate on timing. Regarding C-band, we are encouraged by the AWS re-auction results for spectrum value implications. We are not in a quiet period now and will explore sales when permitted, but we are not forced sellers given the reasonable carrying costs relative to the asset's value. Q: Can you elaborate on the confidence behind the TDS Telecom EBITDA guidance inflection in the second half, and should that momentum persist into 2027? A: Chris Botfeld (VP of Financial Analysis & Strategic Planning, TDS): We revised guidance due to legacy revenue pressures and divestitures, but we are seeing strong momentum in fiber revenue growth (up 13% year-over-year in Q2). This will continue as we deliver more service addresses in the back half. Our transformation efforts are generating cost savings that offset inflationary increases and sales capacity investments. The midpoint guides to a 2% cost reduction for the full year, and there is no reason to think this momentum won't persist into 2027. Q: What are you seeing in terms of fiber overbuild activity in your footprint, and do you still deploy fiber in markets where overbuilders are present? A: Ken Dixon (President & CEO, TDS Telecom): We've seen some overbuilder activity in our cable markets, but those markets are already 22% fibered. We ran those markets through our edge-out analysis and found tremendous opportunities to fiberize further. Where we see an economical path, we will expand. We have approved some of these expansions recently and expect continued activity over the next couple of quarters. Q: How are you thinking about M&A on the fiber side given current valuations, and what is Array's perspective on tower M&A? A: Vicky Villarez (EVP & CFO, TDS) and Anthony Carlson (President & CEO, Array): On fiber, we signed an agreement for Granite State Communications (11,000 fiber addresses for $25 million), demonstrating our focus on small, accretive, cluster-adjacent opportunities. We remain active in the space. From Array's perspective, private market tower prices are a bit high relative to other uses of our capital. We are laser-focused on improving operations, including ground lease optimization, which are more attractive uses of money than buying towers at current prices. Q: Can you frame the longer-term leasing opportunity for Array's towers now that you've had time to engage with customers post the T-Mobile integration? A: Anthony Carlson (President & CEO, Array): We are seeing an upward trend in demand. On towers that will ultimately be tenantless post T-Mobile integration, and on towers that already have tenants, we believe there is significant growth potential. We won't speculate on the endpoint, but we see strong potential for growth across the portfolio. Q: Are there any changes from controlling partners in your cellular investments regarding how they value these stakes, and could that help close the bid-ask spread? A: Anthony Carlson (President & CEO, Array): Without getting into specific conversations, there continues to be a bid-ask spread. An NPV calculation based on historical growth rates and cost of capital would yield a value significantly higher than a simple multiple approach. We remain open to offers that reflect the value we see in these businesses, which generate significant cash flow. Q: What is your assessment of sales efficiency for TDS Telecom, and what initiatives are working to improve fiber conversion rates? A: Ken Dixon (President & CEO, TDS Telecom): Address delivery is the first driver, and we've had strong delivery in Q1 and Q2. Our pre-sale execution has helped achieve low-20% pre-sale penetration. We've significantly expanded door-to-door capacity, both internal and with new vendors, and our dotcom channel has seen significant improvement as it's our lowest cost acquisition channel. We've also brought in new leadership for our multi-dwelling unit channel, as 22% of addresses are MDUs, and we want to win there. Q: With the recent spectrum transactions involving satellite players like SpaceX and Amazon, do you see potential to expand the universe of parties interested in your C-band spectrum? A: Anthony Carlson (President & CEO, Array): Yes, there is growing demand for spectrum from a growing number of parties. We are not going to discriminate in who we sell the C-band spectrum to; we are focused on achieving the highest possible value. If a non-traditional party offers that value, we would be happy to sell to them. Q: Can you provide more color on the initiatives driving the tenancy ratio improvement and what could lead to a step change? A: Anthony Carlson (President & CEO, Array): We are working on both the numerator and denominator. On the tenant side, our new sales team has been doing excellent work, and our new vertical sales business is gaining traction with various players. On the tower count side, we are evaluating every tower for economic viability and decommissioning the worst performers, which reduces the denominator. We are also encouraged by potential deployments from AT&T's 600 MHz spectrum and other carriers' network development. Q: What is the penetration rate in the E-ACAM markets, and what is the migration opportunity versus penetration opportunity in those markets? A: Ken Dixon (President & CEO, TDS Telecom): We are not sharing the overall penetration rate externally, but we are seeing very nice early cohort penetration and penetration curves that match our expectations. We are seeing very strong demand as soon as we bring fiber into these unserved markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Space Exploration Technologies Corp. SPCX reported impressive second-quarter 2026 results with both the top and bottom lines surpassing the respective Zacks Consensus Estimate. Yet, SPCX shares plummeted sharply yesterday after the earnings release. While the headline numbers were undeniably strong, the market apparently focused on what lies ahead rather than what the company had delivered. SpaceX reported second-quarter revenue of $7.81 billion, up 92% year over year, comfortably ahead of analyst expectations. The company also posted a narrower-than-expected loss of 9 cents per share versus consensus expectations for a 26-cent loss. Adjusted EBITDA nearly tripled from the year-ago quarter, reflecting robust operating leverage across its businesses. Growth remained broad-based, fueled by AI cloud services and Starlink expansion. Starlink subscribers doubled to 12 million, while nameplate compute reached 1.4 gigawatts. Connectivity revenues climbed 65.8% year over year to $4.29 billion. Consumer revenues increased 44.4% to $2.49 billion, while Enterprise & Government revenues more than doubled to $1.81 billion on aviation wins and U.S. government demand.AI revenues jumped 247.5% year over year and 213.1% sequentially to $2.56 billion. New cloud services agreements contributed $1.60 billion of incremental infrastructure revenue, while total contracted cloud sales reached $14.10 billion. Space revenues increased 29% year over year and 55.4% sequentially to $962 million. The company completed 10 customer launches and 28 internal launches during the quarter, carrying 485 metric tons to orbit. Despite the earnings beat, investors were likely rattled by one number: capital expenditures. SpaceX spent roughly $18.4 billion during the quarter—far above Wall Street expectations—with the overwhelming majority directed toward AI infrastructure, including data centers and compute capacity. The spending level suggests elevated investment will continue over the coming quarters. The market's reaction reflects a familiar concern among high-growth companies: investors welcome revenue growth, but only if the path to sustainable cash generation remains intact.Management argued that aggressive investments will generate attractive long-term returns through AI compute services and expanding customer demand. However, Wall Street remains cautious.Industry experts expect annual spending to remain exceptionally high as the company races to build AI infrastructure. While management emphasized strong customer demand and attractive payback periods, investors worry that massive capital requirements could pressure free cash flow for years. Another factor weighing on sentiment is valuation. Following its blockbuster IPO, SPCX had already priced in significant optimism surrounding Starlink, launch services and AI infrastructure. When expectations are exceptionally high, even strong quarterly execution may not be enough if investors become concerned about future spending or profitability.While these businesses continue to offer significant long-term opportunities, the valuation has left little margin for execution missteps. The recent pullback appears to reflect compression and profit-booking following the stock's extraordinary run. SpaceX has declined 19.6% since its IPO against the industry’s growth of 99.7%. It has lagged peers like Verizon Communications Inc. VZ and AT&T Inc. T over this period. While Verizon has declined 1%, AT&T is up 0.3%. SPCX Stock Price Performance Since IPO Image Source: Zacks Investment Research The Zacks Consensus Estimate for SpaceX’s 2026 loss has narrowed from 98 cents per share to a loss of 64 cents over the past 30 days, while the same for 2027 has improved from a loss of 3 cents to earnings of 63 cents per share. The positive estimate revision depicts bullish sentiment about the stock’s growth potential. Image Source: Zacks Investment Research SpaceX is steadily transforming from a pure-play aerospace company into a diversified AI infrastructure leader. Its aggressive investments in AI computing, the integration of SpaceXAI, expanding enterprise partnerships and plans for space-based data centers underscore management's conviction that AI will be a key driver of future growth.Although the AI segment is likely to remain under pressure in the near term due to elevated investment levels, the company's long-term growth prospects appear increasingly tied to the rapid expansion of the global AI infrastructure market. While high operating costs and execution risks warrant attention, SpaceX appears well-positioned to benefit from the secular growth of the space economy. Those who already own the stock can hold onto it while new investors may wait for a better entry point.SpaceX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Space Exploration Technologies Corp. (SPCX) : Free Stock Analysis Report AT&T Inc. (T) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research