Financial Analysis

Note 16. Commitments and Contingencies In the ordinary course of business, Verizon is involved in various litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, Verizon establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including: (1) uncertain damage theories and demands; (2) a less than complete factual record; (3) uncertainty concerning legal theories and their resolution by courts or regulators; and (4) the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter in future periods will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period. Verizon is currently involved in approximately 30 federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by non-practicing entities and effectively seek only monetary damages; a small number are bro …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 7. Debt Outstanding long-term debt obligations as of December 31, 2025 and 2024 are as follows: (dollars in millions) At December 31, Maturities Interest Rates % 2025 2024 Verizon Communications < 5 Years 0.85 - 7.75 $ 29,192 $ 29,325 5-10 Years 1.13 - 7.88 39,769 33,851 > 10 Years 1.13 - 8.95 60,471 52,719 < 5 Years Floating (1) 1,373 1,171 5-10 Years Floating (1) 647 1,735 Alltel Corporation < 5 Years 6.80 38 38 5-10 Years 7.88 56 56 Operating telephone company subsidiaries debentures < 5 Years 6.00 - 8.38 317 286 5-10 Years 5.13 - 8.75 297 328 Other subsidiaries asset-backed debt < 5 Years 1.53 - 6.09 18,247 16,363 < 5 Years Floating (1) 8,857 9,805 Finance lease obligations (average rate of 5.0% and 4.8% in 2025 and 2024, respectively) (2) 2,511 2,349 Vendor financing arrangements (2) 16 85 Unamortized discount, net of premium (3,463) (3,604) Unamortized debt issuance costs (619) (558) Total long-term debt, including current maturities 157,709 143,949 Less long-term debt maturing within one year 18,177 22,568 Total long-term debt $ 139,532 $ 121,381 Long-term debt maturing within one year $ 18,177 $ 22,568 Add short-term vendor financing arrangements (2) 441 65 Debt maturing within one year $ 18,618 $ 22,633 Add long-term debt 139,532 121,381 Total debt $ 158,150 $ 144,014 N/A - not applicable (1) For the period ending December 2025, the debt obligations bore interest at floating rates, including floating rates associated with the Secured Overni …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 10. Stock-Based Compensation Verizon Long-Term Incentive Plan In May 2017, our shareholders approved the 2017 Long-Term Incentive Plan (the 2017 Plan) and terminated the Company's authority to grant new awards under the Verizon 2009 Long-Term Incentive Plan (the 2009 Plan). The 2017 Plan provides for broad-based equity grants to employees, including executive officers, and permits the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units and other awards. Upon approval of the 2017 Plan, we reserved for issuance under the 2017 Plan the number of shares that were remaining but not issued under the 2009 Plan. Shares subject to outstanding awards under the 2009 Plan that expire, are canceled or otherwise terminated will also be available for awards under the 2017 Plan. As of December 31, 2025, 37 million shares are reserved for future issuance under the 2017 Plan. Restricted Stock Units Restricted Stock Units (RSUs) granted under the 2017 Plan generally vest in three equal installments on each anniversary of the grant date. The RSUs that are paid in stock upon vesting and are thus classified as equity awards are measured using the grant date fair value of Verizon common stock and are not remeasured at the end of each reporting period. In 2020, Verizon announced a broad-based program that provides for the annual award of cash-settled RSUs under the 2017 Plan to all full-time and part-time em …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 9. Fair Value Measurements and Financial Instruments Recurring Fair Value Measurements The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2025: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Prepaid expenses and other: Fixed income securities $ $ 40 $ $ 40 Cross currency swaps 4 4 Foreign exchange forwards 1 1 Other assets: Marketable equity securities 453 453 Fixed income securities 344 344 Cross currency swaps 1,417 1,417 Total $ 453 $ 1,806 $ $ 2,259 Liabilities: Other current liabilities: Interest rate swaps $ $ 1,910 $ $ 1,910 Cross currency swaps 222 222 Foreign exchange forwards 1 1 Other liabilities: Interest rate swaps 3,171 3,171 Cross currency swaps 951 951 Total $ $ 6,255 $ $ 6,255 (1) Quoted prices in active markets for identical assets or liabilities. (2) Observable inputs other than quoted prices in active markets for identical assets and liabilities. (3) Unobservable pricing inputs in the market. The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2024: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Prepaid expenses and other: Fixed income securities $ $ 16 $ $ 16 Interest rate caps 3 3 Other assets: Fixed income securities 269 269 Cross currency swaps 500 500 Total $ $ 788 $ $ 788 Liabilities: Other current liabilities: Interest rate swaps $ $ 1,964 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 4. Wireless Licenses, Goodwill and Other Intangible Assets Wireless Licenses The carrying amounts of Wireless licenses are as follows: (dollars in millions) At December 31, 2025 2024 Wireless licenses $ 157,039 $ 156,613 At December 31, 2025 and 2024, approximately $7.0 billion and $10.1 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. We recorded $428 million and $616 million of capitalized interest on wireless licenses for the years ended December 31, 2025 and 2024, respectively. During 2025 and 2024, we renewed various wireless licenses in accordance with FCC regulations with an average renewal period of 10 years. See Note 1 for additional information. As discussed in Note 1, we test our wireless licenses for potential impairment annually or more frequently if impairment indicators are present. In 2024, we performed a quantitative impairment assessment, in accordance with our policy, which compared the estimated fair value of our aggregate wireless licenses, estimated using the Greenfield approach, to the aggregate carrying amount of the licenses as of the test date. Our annual assessment in 2024 indicated that the fair value of our wireless licenses exceeded the carrying value and, therefore, did not result in an impairment. In 2025, we performed a qualitative impairment assessment, which indicated it was more likely than not that the fair value of our wireless licenses remained a …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Note 12. Taxes The components of income before provision for income taxes are as follows: (dollars in millions) Years Ended December 31, 2025 2024 2023 Domestic $ 20,150 $ 21,253 $ 15,668 Foreign 2,522 1,726 1,319 Total $ 22,672 $ 22,979 $ 16,987 The components of the provision for income taxes are as follows: (dollars in millions) Years Ended December 31, 2025 2024 2023 Current Federal $ 1,735 $ 3,367 $ 2,070 Foreign 323 240 219 State and local 666 608 215 Total 2,724 4,215 2,504 Deferred Federal 2,115 807 1,799 Foreign 19 (4) 28 State and local 206 12 561 Total 2,340 815 2,388 Total income tax provision $ 5,064 $ 5,030 $ 4,892 The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal income tax rate: (dollars in millions) 2025 2024 2023 Years Ended December 31, Amount Percent Amount Percent Amount Percent U.S. federal statutory tax rate $ 4,761 21.0 % $ 4,825 21.0 % $ 3,567 21.0 % State and local income taxes, net of federal income tax effect (1) 739 3.3 566 2.5 664 3.9 Foreign tax effects (131) (0.6) (68) (0.3) (16) (0.1) Effect of cross-border tax laws 41 0.2 18 0.1 Tax credits (25) (0.1) (27) (0.1) (27) (0.2) Changes in valuation allowances (34) (0.2) 15 0.1 Nontaxable or nondeductible items Goodwill impairment 1,149 6.8 Other (69) (0.3) (116) (0.5) (133) (0.8) Changes in unrecognized tax benefits 19 0.1 40 0.2 (27) (0.2) Other adjustments Federal refund claims (17) (0.1) (245) (1.4) Other (237) (1. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 6. Leasing Arrangements We enter into various lease arrangements for network equipment including towers, distributed antenna systems, small cells, real estate and connectivity mediums including dark fiber, equipment, and other various types of assets for use in our operations. Our leases have remaining lease terms ranging from 1 year to 30 years, some of which include options that we can elect to extend the leases term for up to 25 years, and some of which include options to terminate the leases. For the majority of leases entered into during the current period, we have concluded it is not reasonably certain that we would exercise the options to extend the lease or not terminate the lease. Therefore, as of the lease commencement date, our lease terms generally do not include these options. We include options to extend the lease when it is reasonably certain that we will exercise that option. During December 2024, we completed a transaction with Vertical Bridge REIT, LLC (Vertical Bridge) pursuant to which Vertical Bridge obtained the exclusive rights to lease, operate and manage over 6,000 wireless towers from Verizon in exchange for an upfront payment of $2.8 billion. Under the terms of the agreement, Vertical Bridge has exclusive rights to lease, operate and manage the towers over an average term of approximately 30 years, with the option to acquire the towers at the end of the lease terms. We have leased back a portion of the capacity on the towers from Vertical Bridg …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Note 11. Employee Benefits We maintain non-contributory defined benefit pension plans for certain employees. In addition, we maintain postretirement health care and life insurance plans for certain retirees and their dependents, which are both contributory and non-contributory, and include a limit on our share of the cost for certain current and future retirees. In accordance with our accounting policy for pension and other postretirement benefits, operating expenses include service costs associated with pension and other postretirement benefits while other credits and/or charges based on actuarial assumptions, including projected discount rates, an estimated return on plan assets, and impact from health care trend rates are reported in Other income (expense), net. These estimates are updated in the fourth quarter or upon a remeasurement event, to reflect actual return on plan assets and updated actuarial assumptions. The adjustment is recognized in the income statement during the fourth quarter and upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses. Pension and Other Postretirement Benefits Pension and other postretirement benefits for certain employees are subject to collective bargaining agreements. Modifications in benefits have been bargained from time to time, and we may also periodically amend the benefits in the management plans. The following tables summarize benefit costs, as well as the benefit obligations …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Note 2. Revenue and Contract Costs We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment. Revenue by Category We have two reportable segments that we operate and manage as strategic business units, Consumer and Business. Revenue is disaggregated by products and services within Consumer, and customer groups (Enterprise and Public Sector, Business Markets and Other, and Wholesale) within Business. See Note 13 for additional information on revenue by segment, including Corporate and other. We also earn revenues that are not accounted for under Topic 606 from leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement. We have elected the practical expedient within Topic 842, to combine the lease and non-lease components for those customer arrangements under Topic 606 that involve customer premise equipment where we are the lessor. Remaining Performance Obligations When allocating the total contract transaction price to identified performance obligations, a portion of the total transaction price may relate to service performance obligations which were not satisfied or are partially satisfied as of the end of the reporting period. Below we disclose information relati …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 13. Segment Information Reportable Segments We have two reportable segments that we operate and manage as strategic business units - Consumer and Business. We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker's (CODM) assessment of segment performance. The Company's CODM is the Chief Executive Officer. The CODM uses segment operating income to allocate resources (including employees, financial or capital resources) and to assess performance during the monthly and quarterly financial strategic review process. When assessing segment performance and how to allocate resources, the CODM focuses on evaluating whether revenues generated are sufficient to cover variable and fixed costs with an appropriate return on investment. Key decisions considered by the CODM using segment operating income include prioritization and timing of changes to network technologies, allocation of capital expenditures based on the Company's priorities, geographic expansion of wireline and wireless networks, establishment of key financial and operational targets, pricing decisions, branding matters and people management. Our segments and their principal activities consist of the following: Segment Description Verizon Consumer Group Our Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 12. Commitments and Contingencies In the ordinary course of business, Verizon is involved in various litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, Verizon establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including: (1) uncertain damage theories and demands; (2) a less than complete factual record; (3) uncertainty concerning legal theories and their resolution by courts or regulators; and (4) the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter in future periods will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period. Verizon is currently involved in numerous federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by non-practicing entities and effectively seek only monetary damages; a small number are brought by …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Note 5. Debt Significant Debt Transactions Debt or equity financing may be needed to fund additional investments or development activities or to maintain an appropriate capital structure to ensure our financial flexibility. The following tables show the significant transactions involving the unsecured debt securities of the Company and its subsidiaries that occurred during the three and six months ended June 30, 2026. Exchange Offers (dollars in millions) Principal Amount Exchanged Principal Amount Issued Three Months Ended June 30, 2026 5.125% - 8.625% notes issued by certain subsidiaries of Verizon, due 2028 - 2033 $ 161 $ Verizon 5.125% - 8.625% notes, due 2028 - 2033 (1) 161 Three and Six Months Ended June 30, 2026 total $ 161 $ 161 (1) The principal amount issued in exchange does not include either an insignificant amount of cash paid in lieu of the issuance of fractional new notes or accrued and unpaid interest paid on the old notes accepted for exchange to the date of exchange. Tender Offers (dollars in millions) Principal Amount Purchased Cash Consideration (1) Three Months Ended June 30, 2026 2.100% - 8.750% notes of Verizon and certain of its subsidiaries, due 2027 - 2033 (2) $ 1,858 $ 1,877 Three and Six Months Ended June 30, 2026 total $ 1,858 $ 1,877 (1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase. (2) The tender offer was launched concurrently with the exchange offer discusse …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 7. Fair Value Measurements and Financial Instruments Recurring Fair Value Measurements The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2026: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Prepaid expenses and other: Fixed income securities $ $ 35 $ $ 35 Cross currency swaps 29 29 Interest rate caps 9 9 Other assets: Marketable equity securities 553 553 Fixed income securities 350 350 Cross currency swaps 1,182 1,182 Total $ 553 $ 1,605 $ $ 2,158 Liabilities: Other current liabilities: Interest rate swaps $ $ 2,154 $ $ 2,154 Cross currency swaps 279 279 Interest rate caps 9 9 Foreign exchange forwards 3 3 Other liabilities: Interest rate swaps 3,025 3,025 Cross currency swaps 1,116 1,116 Variable prepaid forward 493 493 Total $ $ 6,586 $ 493 $ 7,079 (1) Quoted prices in active markets for identical assets or liabilities. (2) Observable inputs other than quoted prices in active markets for identical assets and liabilities. (3) Unobservable pricing inputs in the market. The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2025: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Prepaid expenses and other: Fixed income securities $ $ 40 $ $ 40 Cross currency swaps 4 4 Foreign exchange forwards 1 1 Other assets: Marketable equity securities 453 453 Fixed income securities 344 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 4. Wireless Licenses, Goodwill, and Other Intangible Assets Wireless Licenses The carrying amounts of Wireless licenses are as follows: At June 30, At December 31, (dollars in millions) 2026 2025 Wireless licenses $ 158,159 $ 157,039 During the three and six months ended June 30, 2026, we acquired select spectrum licenses of UScellular for total cash consideration of $1.0 billion. See Note 3 for additional information. At June 30, 2026 and 2025, approximately $5.6 billion and $8.6 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. We recorded $154 million and $234 million of capitalized interest on wireless licenses for the six months ended June 30, 2026 and 2025, respectively. During the six months ended June 30, 2026, we renewed various wireless licenses in accordance with Federal Communications Commission (FCC) regulations. The average renewal period for these licenses was 10 years. Goodwill Changes in the carrying amount of Goodwill are as follows: (dollars in millions) Consumer Business Total Balance at January 1, 2026 (1) $ 21,177 $ 1,664 $ 22,841 Acquisitions (2) 6,031 1,792 7,823 Balance at June 30, 2026 (1) $ 27,208 $ 3,456 $ 30,664 (1) Goodwill is net of accumulated impairment charges of $5.8 billion related to our Business reporting unit. (2) Changes in goodwill due to acquisitions are related to Frontier and another immaterial transaction. See Note 3 for additional informati …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Note 8. Employee Benefits We maintain non-contributory defined benefit pension plans for certain employees. In addition, we maintain postretirement health care and life insurance plans for certain retirees and their dependents, which are both contributory and non-contributory, and include a limit on our share of the cost for certain current and future retirees. In accordance with our accounting policy for pension and other postretirement benefits, operating expenses include service costs associated with pension and other postretirement benefits while other credits and/or charges based on actuarial assumptions, including projected discount rates, an estimated return on plan assets, and impact from health care trend rates are reported in Other income, net. These estimates are updated in the fourth quarter or upon a remeasurement event, to reflect actual return on plan assets and updated actuarial assumptions. The adjustment is recognized in the income statement during the fourth quarter and upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses. Net Periodic Benefit Cost (Income) The following table summarizes the components of net periodic benefit cost (income) related to our pension and postretirement health care and life insurance plans: (dollars in millions) Pension Health Care and Life Three Months Ended June 30, 2026 2025 2026 2025 Service cost - Cost of services $ 53 $ 35 $ 5 $ 7 Service cost - Selling, general and …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Note 2. Revenue and Contract Costs We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment. Revenue by Category We have two reportable segments that we operate and manage as strategic business units, Consumer and Business. Revenue is disaggregated by products and services within our segments. See Note 10 for additional information on revenue by segment, including Corporate and other. During the three and six months ended June 30, 2026, we recorded wireless service revenue of $20.8 billion and $41.4 billion, respectively. During the three and six months ended June 30, 2025, we recorded wireless service revenue of $20.9 billion and $41.7 billion, respectively. We also earn revenues that are not accounted for under Topic 606 from leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement. We have elected the practical expedient within Topic 842, to combine the lease and non-lease components for those customer arrangements under Topic 606 that involve customer premise equipment where we are the lessor. Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to unsatisfied or partially unsatisfied service performan …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 10. Segment Information Reportable Segments We have two reportable segments that we operate and manage as strategic business units, Consumer and Business. We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker's (CODM) assessment of segment performance. The Company's CODM is the Chief Executive Officer. The CODM uses segment operating income to allocate resources (including employees, financial or capital resources) and to assess performance during the monthly and quarterly financial strategic review process. When assessing segment performance and how to allocate resources, the CODM focuses on evaluating whether revenues generated are sufficient to cover variable and fixed costs with an appropriate return on investment. Key decisions considered by the CODM using segment operating income include prioritization and timing of changes to network technologies, allocation of capital expenditures based on the Company's priorities, geographic expansion of wireline and wireless networks, establishment of key financial and operational targets, pricing decisions, branding matters and people management. Our segments and their principal activities consist of the following: Segment Description Verizon Consumer Group Our Consumer segment provides consumer-focused wireless and wireline communication services and products. Our wireless services are provided across one of the most extensive wireless networks in …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 9. Equity and Accumulated Other Comprehensive Loss Equity Changes in the components of Total equity were as follows: Three Months Ended June 30, 2026 2025 (dollars in millions, except per share amounts, and shares in thousands) Shares Amount Shares Amount Common Stock Balance at beginning of period 4,291,434 $ 429 4,291,434 $ 429 Balance at end of period 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of period 13,263 13,415 Other (5) (3) Balance at end of period 13,258 13,412 Retained Earnings Balance at beginning of period 96,824 91,128 Net income attributable to Verizon 3,835 5,003 Dividends declared ($0.7075, $0.6775 per share) (2,931) (2,856) Balance at end of period 97,728 93,275 Accumulated Other Comprehensive Loss Balance at beginning of period attributable to Verizon (2,372) (1,489) Foreign currency translation adjustments 8 76 Unrealized gain (loss) on cash flow hedges 23 (21) Unrealized gain (loss) on fair value hedges 542 (39) Unrealized gain on marketable securities 1 Defined benefit pension and postretirement plans 14 (2) Other comprehensive income 588 14 Balance at end of period attributable to Verizon (1,784) (1,475) Treasury Stock Balance at beginning of period (115,874) (5,335) (75,178) (3,295) Shares purchased (21,289) (1,000) Employee plans 505 23 70 3 Balance at end of period (136,658) (6,312) (75,108) (3,292) Deferred Compensation-ESOPs and Other Balance at beginning of period 500 534 Restricted stock equity grant 188 183 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing