Verizon Communications Inc. Announces Changes to Revenue Reporting and Operating Metrics

Key Highlights

• Revised Segment Revenue Presentation: Starting Q1 2026, Verizon will change how it reports revenue for its two main segments: Verizon Consumer Group (Consumer) and Verizon Business Group (Business).
• New Revenue Categories: Revenue will now be disaggregated and reported as follows:
  • Mobility and broadband service revenue
  • Wireless equipment revenue
  • Other revenue
• Consolidated Operating Metrics: Verizon will begin disclosing operating metrics only on a consolidated basis, rather than segment-by-segment. This change starts in Q1 2026.
• Historical Data Provided: To help investors adjust, Verizon has published unaudited historical financial and operating information reflecting these changes.

Potentially Price-Sensitive Information for Shareholders

• Impact on Transparency: The shift to consolidated metrics may affect analysts’ ability to independently assess the performance of Verizon’s individual segments. This could impact valuation models and market sentiment.
• Revenue Reclassification: The new reporting format may change how revenue growth is perceived within each segment, potentially affecting investor expectations and share price movements, especially if the reclassification reveals stronger or weaker performance than previously understood.
• Disclosure of Unaudited Information: Verizon has made available selected historical financial and operating data (unaudited) to help investors understand the impact of these reporting changes. Investors are advised that these data are not audited and should be interpreted with caution.

Details of Newly Reported Revenue Categories

Mobility and Broadband Service Revenue: This category will include all revenue related to wireless and broadband services, reflecting the core of Verizon’s consumer and business offerings.

Wireless Equipment Revenue: Revenue from sales of wireless devices and equipment will be reported separately, offering more clarity on device-driven income versus service-driven income.

Other Revenue: Any ancillary products, services, or miscellaneous items will be captured here, ensuring a more granular breakdown for investors.

Important Shareholder Notes

• Trading Symbols: Verizon’s common stock (par value \$0.10) trades under the symbol VZ on both the New York Stock Exchange and Nasdaq Global Select Market.
• Debt Securities: The company lists a wide array of notes with varying maturities and coupon rates (e.g., 1.375% Notes due 2026, 0.875% Notes due 2027, etc.), all trading on NYSE under distinct symbols. Shareholders should be aware of the breadth of Verizon’s debt instruments, which may affect credit ratings, financial leverage, and interest expenses.
• Emerging Growth Company Status: Verizon is not an emerging growth company and has not elected to use the extended transition period for new accounting standards.

Summary Table: Securities Registered Under Section 12(b)

Financial Data Access

Exhibit 99: Investors can review selected historical financial and operating information as provided in Exhibit 99, available on Verizon’s investor relations website or via the SEC filing. This data is unaudited and intended for informational purposes only.

Note: The change in revenue reporting and operating metrics may influence analyst models, market perception, and ultimately Verizon’s share price depending on how the new presentation affects visibility into underlying segment performance and growth.

Conclusion

Verizon’s move to revise segment revenue reporting and consolidate operating metrics represents a significant shift in disclosure practices. Shareholders and analysts should closely monitor the impact of these changes on financial transparency and market expectations. The unaudited historical data provided will be a key resource for understanding the transition and its effects on Verizon’s reported performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information provided is based on unaudited financial disclosures and may be subject to change. Investors should consult official filings and seek professional advice before making investment decisions.

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