Verizon: Structural Problems Persist

Verizon Communications remains structurally challenged, with no revenue growth and intensifying competition from Starlink and satellite communications. The wireless giant beat EPS estimates in Q2'26 via cost cuts, but missed revenue by nearly $1B and reported falling revenues, highlighting weak underlying demand. Management's aggressive buybacks and $12B annual dividend persist despite $165B in debt and limited capex flexibility, raising long-term sustainability concerns. The stock faces the same structural issues that have generated limited returns the last decade compared to over 300% in the S&P 500.

Verizon Communications Inc. (VZ) got a nice pop from quarterly earnings, but the business continues to face structural problems. The wireless giant is boosting short-term problems by limiting investments, a plan that hasn't worked well for the last