VZ

It has been about a month since the last earnings report for T-Mobile (TMUS). Shares have lost about 3.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is T-Mobile due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for T-Mobile US, Inc. before we dive into how investors and analysts have reacted as of late. TMUS Q1 Earnings Beat Estimates on Strong Service Revenue Growth T-Mobile reported first-quarter 2026 earnings of $2.70 per share, beating the Zacks Consensus Estimate of $2.06 by 31.07%. Earnings increased 4.7% from the year-ago quarter’s $2.58.Total revenues of $23.11 billion topped the consensus mark of $22.96 billion by 0.63% and rose 10.6% year over year. The upside was primarily driven by strong service revenue growth and continued expansion in postpaid accounts and ARPA. TMUS Posts Strong Service Revenue Growth T-Mobile generated total service revenues of $18.83 billion in the first quarter, reflecting an 11.3% year-over-year increase. This growth was fueled by higher postpaid service revenues, which climbed 15% to $15.63 billion.The expansion in service revenues was supported by an increase in postpaid accounts and higher average revenue per account (ARPA). Postpaid ARPA rose 3.9% year over year to $151.93, indicating sustained monetization of its customer base. T-Mobile Drives Account Growth and ARPA Expansion T-Mobile reported postpaid net account additions of 217,000 in the quarter, up 6% year over year, highlighting continued customer momentum. Total postpaid accounts reached 34.4 million at quarter-end.Growth was driven by higher gross additions, including contributions from prior acquisitions and broadband offerings, partially offset by increased industry switching. As shown in the investor factbook (page 4), account growth continues to trend upward despite seasonal softness in sequential additions. ARPA growth remained a key driver, supported by pricing optimization, increased customers per account and adoption of bundled services such as 5G broadband. TMUS Profitability Adversely Impacted by Higher Costs Operating income declined to $4.50 billion from $4.80 billion in the prior-year quarter, reflecting higher operating expenses. To...

A month has gone by since the last earnings report for Verizon Communications (VZ). Shares have added about 2.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Verizon due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Verizon Communications Inc. before we dive into how investors and analysts have reacted as of late. Verizon Beats Q1 Earnings Estimates on Strong Margins, Misses on Revenues Verizon delivered adjusted earnings of $1.28 per share in the first quarter of 2026, up 7.6% year over year and ahead of the Zacks Consensus Estimate of $1.22 by 4.9%. Total operating revenue rose 2.9% from the year-ago quarter to $34.44 billion but missed the consensus mark of $35.03 billion by 1.7%. The quarter featured 341,000 broadband net additions, led by fixed wireless access growth. VZ Revenue Mix Reflects Service-Led MomentumService revenues and other increased 2.4% year over year to $28.76 billion, supported by mobility and broadband service trends. Wireless equipment revenue climbed 5.2% to $5.68 billion, even as management pointed to moderated upgrade activity tied to a disciplined approach to promotional spending. Within reportable segments, Consumer operating revenue grew 3.3% to $26.5 billion, driven by higher mobility and broadband service revenue and a lift in wireless equipment sales. Business revenue increased 1.8% to $7.4 billion, as growth in “Other” revenue helped offset pressure in mobility and broadband service revenue. Verizon Expands Profitability With Better Operating LeverageNet income attributable to Verizon rose 3.4% year over year to $5.05 billion, while operating income improved 3.3% to $8.24 billion. Total operating expenses increased 2.7% to $26.20 billion, with selling, general and administrative expenses down 3.1%, partially offset by higher depreciation and amortization expenses. Adjusted EBITDA increased 6.7% year over year to $13.4 billion, marking the company’s highest quarterly adjusted EBITDA, as cited by management. Interest expense rose 18.9% to $1.94 billion, a notable headwind versus the year-ago quarter. VZ Wireless Metrics Improve as Churn and Adds ReboundVZ posted total postpaid phone net additions of 55...

Samsara’s IOT margin expansion gained significant momentum in fiscal 2026, and the company appears well-positioned to sustain that trend into fiscal 2027. The company delivered strong operating leverage in fiscal 2026 as non-GAAP operating margin expanded to 17% from 9% in fiscal 2025, while fourth-quarter non-GAAP operating margin reached 21%, up from 16% a year ago. Samsara expects the momentum to continue in fiscal 2027, with a 19% non-GAAP operating margin and 21-22% revenue growth. A key driver behind the improving profitability is Samsara’s ability to scale revenue faster than operating expenses. Fiscal 2026 revenues increased 30% year over year to $1.62 billion, while non-GAAP operating income more than doubled to $282.4 million. The company continues to benefit from strong adoption among large enterprise customers, with ARR from customers contributing more than $100,000 annually, rising 37% year over year to $1.2 billion. Larger customers typically adopt multiple Samsara products, which improves platform monetization without proportionally increasing customer acquisition costs. Another important factor supporting margin expansion is disciplined expense management. Samsara’s expanding mix of multi-product enterprise deployments also strengthens its long-term margin profile. In the fourth quarter, nine of the company’s top 10 net new ACV deals included two or more products, while six included four or more products. This demonstrates that customers increasingly view Samsara as a mission-critical connected operations platform rather than a point solution provider. Implementation of new products and a deeper automation strategy may allow Samsara to generate higher incremental margins as software adoption increases across its installed customer base. Samsara’s strong enterprise momentum, expanding AI capabilities, disciplined cost structure and increasing operating leverage indicate that the company can likely sustain its margin expansion momentum in fiscal 2027. Samsara operates in a highly competitive market. Players include Motive, Lytx, Verizon VZ, Trimble TRMB and Geotab in the vehicle telematics space. To compete with these companies, Samsara is investing heavily in its operations, such as sales and marketing and research and development. Verizon offers products like Connect Reveal, Connect Fleet and Connect Asset Tracking to address GPS fleet tracki...

TELUS Corporation TU reported first-quarter 2026 adjusted earnings per share (EPS) of C$0.23, down from C$0.26 a year ago. Quarterly total operating revenues decreased around 1% year over year at C$5,013 million. The company’s operating revenues (from contracts with customers) were C$4,989 million, compared with C$5,081 million in the same period last year. TELUS delivered total mobile and fixed customer growth of 262,000 during the first quarter, driven by 12,000 additions in mobile phones, 21,000 additions in Internet customers and 229,000 connected device additions. TELUS’ board declared a quarterly dividend of C$0.4184 per share, payable on July 2, 2026, to shareholders of record as of June 10, 2026. Management highlighted that TELUS adopted a measured response to wireless promotional discounting during the first quarter, with a continued focus on preserving its premium brand positioning. This strategy contributed to positive network revenue growth of 1% and continued sequential improvement in ARPU, reinforcing the effectiveness of the company’s go-to-market approach. Management added that TELUS will continue executing with precision throughout 2026, maintaining a differentiated strategy that supports long-term wireless industry health. Management further emphasized that TELUS remains well-positioned to deliver sustainable long-term growth, supported by its strong asset mix, diversified business portfolio and operational execution capabilities. The company continues to focus on strong free cash flow generation through EBITDA growth, moderation in capital expenditure intensity, and ongoing efficiency and synergy realization. As part of its disciplined capital allocation strategy, TELUS is maintaining its dividend at the current level while gradually reducing the discount on its dividend reinvestment plan, which was lowered to 1.75% starting in the first quarter of 2026. Management also mentioned its target of at least 10% compounded annual free cash flow growth through 2028. TELUS has lost 13% in the past year against the Zacks Diversified Communication Services industry’s growth of 18.8%. Image Source: Zacks Investment Research In the first quarter, TTech revenues and other income decreased 2% year over year to C$3,790 million. TTech operating revenues (arising from contracts with customers) declined 2% year over year to C$3,772 million, primarily due to...

With a YTD Return of 17.08% as of May 7, Verizon Communications Inc. (NYSE:VZ) is included among the 10 Best Stocks to Buy to Beat the S&P 500. Ken Wolter / Shutterstock.com On May 5, Erste Group downgraded Verizon Communications Inc. (NYSE:VZ) to Hold from Buy, saying the company’s earnings growth remains below the sector average. The analyst said this trend is expected to continue through 2026. During the Q1 2026 earnings call, Daniel Schulman, Verizon’s Director and CEO, said the company’s turnaround strategy continued to make progress and was gaining momentum through a broad transformation program. Schulman said first-quarter revenue increased 2.9% to $34.4 billion. He also noted that the company added 55,000 postpaid phone net subscribers during the quarter. He explained that reported growth included a one-time 80-basis-point impact on wireless service revenue tied to customer credits and other effects related to the company’s network outage. Schulman added that the company expects Q1 mobility and broadband service revenue growth to mark the low point for 2026. He also said acquisition and retention costs in March declined about 35% from the end of Q4, while adjusted earnings per share came in at $1.28 for the quarter. Meanwhile, Anthony Skiadas, Verizon’s Executive Vice President and CFO, said the company completed the Frontier transaction during the quarter and also finalized a deal involving Starry. He noted that the investment is expected to create additional broadband growth opportunities in urban multi-dwelling units. Skiadas also said Verizon repurchased $2.5 billion worth of shares during the first quarter. Verizon Communications Inc. (NYSE:VZ) is a holding company that, through its subsidiaries, provides communications, technology, information, and streaming products and services to consumers, businesses, and government entities. While we acknowledge the potential of VZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Value Stocks to Buy in 2026 According To Warren Buffett and 10 Best Performing Dividend Stocks So Far in 2026 Disclosure: None. Follow Insider Monkey on Goog...

Lumen Technologies, Inc. LUMN recently reported first-quarter 2026 results. The quarter was a messy one, with adjusted loss widening to 47 cents compared with the Zacks Consensus Estimate of a loss of 6 cents. The company had incurred a loss of 13 cents in the prior-year quarter. Legacy revenue headwinds eroded quarterly revenues. Total revenues declined 9% to $2.899 billion, while Mass Markets revenues fell sharply, reflecting the impact of divestitures. Since the earnings announcement on May 5, LUMN stock has tanked 8.3% and closed yesterday at $8.46. Lumen Technologies, Inc. price-consensus-eps-surprise-chart | Lumen Technologies, Inc. Quote Despite near-term pressures, the company’s narrative remains focused on growing AI opportunity, which is driving demand for its Private Connectivity Fabric (“PCF”) solutions. It has secured $13 billion in PCF deals so far. The investment debate, therefore, is not just about the earnings miss. It is about whether Lumen’s transformation efforts will eventually offset legacy revenue erosion and boost margins and cash flows. Let’s do a deep dive to understand what to do with LUMN stock after its first-quarter earnings report. One of the positives for Lumen is its improving business mix. Strategic revenues were a key bright spot, reaching 51% of total business revenues in the quarter, up from 49% in the fourth quarter. Strategic revenues were $1.246 billion, up 9.4% year over year, while legacy revenues declined 13.5% to $1.198 billion. The shift reflects continued traction in newer offerings. With about $13 billion in PCF deals, LUMN recognized revenues of $78 million associated with these deals. Management noted that about $32 million of that figure reflected a delivery milestone payment that is not expected to repeat in the second quarter. Digital revenues were $37 million, while other strategic revenues were $1,131 million. As AI demand surges, large companies across industries are urgently seeking fiber capacity, which is becoming highly valuable and potentially scarce. These “prefunded deals” are helping Lumen to expand capacity and provide upfront capital for its business plan. It has already implemented 17 million intercity fiber miles in 2025 and expects network expansion to reach 58 million fiber miles by 2031. Investments in PCF are expected to create future revenue streams and strengthen Lumen’s position as a r...

BCE Inc. BCE reported first-quarter 2026 adjusted earnings of C$0.63 per share (46 cents), down 8.7% year over year. The Zacks Consensus Estimate was pegged at 43 cents. Quarterly total operating revenues rose 4% to C$6.17 billion ($4.4 billion), reflecting growth in both service and product revenue. The rise in service revenue was mainly driven by the addition of Bell CTS U.S. — including revenue from Ziply Fiber — and growth in Bell Media. This was partly offset by lower revenue at Bell CTS Canada compared to the previous year. The consensus estimate was pegged at $4.5 billion. Operationally, BCE posted 16,947 postpaid mobile phone net subscriber activations in the quarter, a sharp turnaround from the year-ago period, as promotional intensity and bring-your-own-device activity lifted gross adds. Shares of the company have gained 1.5% in the past year compared with the Zacks Diversified Communication Services industry's growth of 16.6% Image Source: Zacks Investment Research The top line benefited from 3.4% service revenue growth to C$5.35 billion and a 7.9% increase in product revenue to C$818 million. Segmentally, Bell CTS generated C$5.49 billion of operating revenue, while Bell Media contributed C$778 million. Profitability expanded at the adjusted EBITDA line, which increased 2.9% to C$2.63 billion. The adjusted EBITDA margin declined 0.4 percentage points to 42.7%, as operating costs rose with the inclusion of Ziply Fiber expenses and higher activity-linked items. Bell CTS Canada posted operating revenue of C$5.25 billion, up 0.1% year over year. Within that, service revenue declined 1.2% to C$4.43 billion, weighed by ongoing legacy wireline and TV erosion, heavier residential discounting and softer wireless monetization. BCE, Inc. price-consensus-eps-surprise-chart | BCE, Inc. Quote Product revenue improved, supported by delivery activity tied to Bell AI Fabric, even as wireless product revenue declined 6.3% due to fewer contracted device sales amid a higher BYOD mix. Bell Business Markets revenue increased 9.7% year over year, driven by 113% growth in AI-powered solutions revenue tied to Ateko, Bell Cyber and Bell AI Fabric. Wireless metrics showed a meaningful year-over-year rebound. Postpaid net activations were 16,947 against a net loss of 9,598 a year ago, driven by a 20.6% increase in gross activations. Blended ARPU declined 0.8% to C$56.61, re...

Strongest Q1 ever: Assurant said record Global Lifestyle results and double‑digit growth in Connected Living (earnings up 18%) plus a 23% rise in Global Automotive powered the quarter, with nearly 69 million devices protected and expanded mobile partnerships (T‑Mobile, Xfinity, Verizon) and planned AI‑driven product rollouts. Capital return and outlook: Management accelerated buybacks, returned $169 million in Q1 and now targets $300–$350 million of share repurchases for 2026, while guiding to low‑single‑digit adjusted EBITDA and EPS growth excluding catastrophes (high single‑digit underlying growth excluding prior‑year reserve development). Housing and reinsurance: Global Housing included $24 million of Q1 catastrophes, and Assurant finalized a 2026 catastrophe reinsurance program with a $160 million per‑event retention, roughly $1.6 billion of coverage above retention and lower reinsurance premiums (~$180M vs ~$200M in 2025), supporting a targeted full‑year combined ratio in the low‑to‑mid 80s excluding prior‑year development. Interested in Assurant, Inc.? Here are five stocks we like better. Assurant (NYSE:AIZ) reported what management described as the strongest first-quarter performance in the company’s history, driven by record earnings in its Global Lifestyle segment and continued momentum across mobile device protection and related services. On the company’s first-quarter 2026 earnings call, President and CEO Keith Demmings said Assurant delivered 6% growth in adjusted EBITDA and 9% growth in adjusted EPS, both excluding reportable catastrophes. He added that, excluding impacts from Global Housing’s prior-year reserve development, adjusted EBITDA and adjusted EPS grew 8% and 12%, respectively. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Demmings said the company used what he called the “strength and flexibility” of its capital position to accelerate share repurchases during the quarter, citing a “compelling valuation.” Demmings said Global Lifestyle produced record earnings, with double-digit earnings growth in both Connected Living and Global Automotive. In Connected Living, he said earnings increased 18%, driven by expansion with existing clients and optimization of recently added programs. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches During prepared remarks, Demmings highlighted four mobil...

Verizon’s first quarter results were met with a positive market reaction, reflecting strong operational execution in customer retention and cost efficiency. Management attributed the quarter's momentum to improved postpaid phone net additions and significant reductions in acquisition and retention costs, despite the headwinds from a network outage in January. CEO Daniel Schulman noted, “We are purposely shifting our mix towards durable recurring service revenues and away from low-margin, highly promotional activity,” emphasizing the company’s focus on customer lifetime value and operational discipline. Is now the time to buy VZ? Find out in our full research report (it’s free). Revenue: $34.44 billion vs analyst estimates of $34.95 billion (2.9% year-on-year growth, 1.5% miss) Adjusted EPS: $1.28 vs analyst estimates of $1.21 (5.8% beat) Adjusted EBITDA: $13.4 billion vs analyst estimates of $13.14 billion (38.9% margin, 1.9% beat) Operating Margin: 23.9%, in line with the same quarter last year Market Capitalization: $200.9 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Michael Rollins (Citi) asked about the outlook for accounts, ARPA, and how Verizon’s pricing and promotional strategies affect these metrics. CEO Daniel Schulman said the company is shifting focus from line growth to high-quality accounts, expecting ARPA (average revenue per account) and account net adds to improve as promotional amortization pressures subside. Michael Ng (Goldman Sachs) questioned device upgrade activity and the move away from device subsidies. Schulman explained that Verizon is using micro-segmentation to customize offers, reducing reliance on free handsets and focusing on profitability rather than blanket promotions. John Hodulik (UBS) inquired about the pace and impact of the $5 billion OpEx savings program and broadband growth strategy. CFO Anthony Skiadas detailed ongoing savings from network streamlining, workforce reductions, and digital channel adoption, while Schulman emphasized the acceleration of fiber and broadband market penetration. Sebastiano Petti (JPMorgan) asked about fixed wireless access (FWA) subscribe...

AT&T, Verizon, and T-Mobile all gained after their latest earnings reports. Verizon and T-Mobile increased their full-year guidance, leading to larger upside moves than AT&T. Analysts are optimistic about T-Mobile, forecasting significant appreciation ahead. Interested in T-Mobile US, Inc.? Here are five stocks we like better. AT&T (NYSE: T), Verizon Communications (NYSE: VZ), and T-Mobile US (NASDAQ: TMUS) are the three dominant players in the United States telecom industry. These firms battle fiercely for customers across mobile phone connectivity and home and business internet solutions. In late April, all three of these names reported earnings, providing investors the latest glimpse into how the telecom war is playing out. Notably, there was not a clear “loser” in Q1 2026, with each of these stocks gaining after their results. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook However, there was a clear distinction in how impressed markets were with each of their performances. Let’s dive into what transpired among these telecom giants during Q1 2026. Starting with AT&T, the company managed to post beats on both the top and bottom lines. Revenue rose by 2.9% year over year (YOY) to $31.51 billion, exceeding expectations of $31.29 billion. Adjusted earnings per share increased by 11.8% (YOY) to 57 cents, better than estimates of 55 cents. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Net wireless subscribers rose by 294,000. Although the figure dropped 9% YOY, it still exceeded estimates. AT&T continued to show strength within broadband, which looks at providing internet to home and business locations. The firm added 584,000 total fiber and fixed wireless customers, with additions split evenly between the two. AT&T also made very strong progress on its “convergence strategy.” Its convergence rate measures the percentage of home internet customers that are also wireless subscribers. The figure came in at 42% on a reported basis. → 2 Stocks to Watch as the Quantum Space Gets More Crowded However, AT&T added 1.1 million fiber customers through its recent deal with Lumen Technologies (NYSE: LUMN), which dilutes reported convergence. Adjusting for this, the company’s organic convergence rate was 44.6%. This was a big step up from 40.9% in Q1 2025, and marked the company’s fastest YOY convergence growth rate ever. Ove...

Glo Fiber momentum continues with a 9% year-over-year improvement in net customer additions, driven by the successful launch of all planned expansion markets. Management attributes strong Glo Fiber penetration growth to a new 5-year price guarantee rate card and the strategic expansion of door-to-door sales channels. Commercial Fiber growth of 4.7% was fueled by demand from wireless carriers and enterprise customers, with the Verizon acquisition integration now substantially complete. Incumbent market performance faced headwinds from video-to-streaming cord-cutting and targeted promotional competition from satellite providers in rural areas. Operational focus is shifting from heavy construction to maximizing penetration across the existing 19,000-mile fiber footprint. The company maintains a competitive edge in incumbent markets where it remains the sole fixed wireline provider for approximately two-thirds of passings. Management reiterated 2026 guidance, expecting to reach 510,000 Glo Fiber passings and complete the current expansion phase by year-end. The company projects achieving positive free cash flow in 2027, driven by double-digit EBITDA growth and significantly declining capital intensity. Future revenue growth in Commercial Fiber is expected to be in the mid-single digits, though management noted this segment can be lumpy due to large carrier deals. Strategic positioning for data center connectivity is a key long-term priority as facilities migrate toward rural areas with available land and power. Capital expenditures are expected to decline as the business exits its primary construction phase, with marketing expenses remaining stable to support subscriber acquisition. A slight uptick in incumbent market churn to 1.46% was specifically linked to Starlink's aggressive first-quarter promotions, including free equipment offers. Management responded to satellite competition by implementing significant speed increases for rural customers at no additional cost to enhance the value proposition. Adjusted EBITDA margins expanded by 300 basis points, aided by a favorable government grant true-up and a shift away from lower-margin video services. Liquidity remains stable at $195 million with no debt maturities until 2029, following a strategic debt refinancing in 2025. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how...

The Standard & Poor's 500 index rose 0.9% this week to another closing record high as the communicat