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How Does Verizon Make its Money?
Verizon Communications is the largest wireless carrier in the United States, serving over 114 million wireless connections. The company operates one of the country’s most extensive 4G LTE and 5G networks. Beyond wireless, Verizon also provides broadband, fiber optic (Fios), and enterprise networking services. The telecom giant generates steady cash flows that fund one of the highest dividend yields among large-cap stocks, making it a staple in income-focused portfolios.
Verizon (VZ) Business Model
Verizon operates in the telecommunications sector. Below is a summary of Verizon’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Verizon’s 2024 fiscal year filings with the SEC.
Verizon Competitors
Verizon’s key competitors and comparable public companies in the telecommunications sector include T-Mobile and Comcast. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Verizon stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
Verizon’s total revenue in 2024 grew 0.6% year-over-year. Here is how their revenue breaks down by segment:
| Revenue Stream | 2024 | 2023 |
|---|---|---|
| Wireless Service Revenue | $79,000 | $77,300 |
| Wireless Equipment Revenue | $22,400 | $22,900 |
| Fios (Broadband and Video) | $12,700 | $12,600 |
| Business Wireline | $13,800 | $14,500 |
| Other | $6,900 | $6,700 |
| Total | $134,800 | $134,000 |
All values in millions USD unless otherwise stated.
Income Statement Breakdown
Here is a summary of Verizon’s income statement comparing 2024 to 2023:
| Item | 2024 | 2023 |
|---|---|---|
| Total Revenue | $134,800 | $134,000 |
| Cost of Revenue | $56,800 | $57,000 |
| Gross Profit | $78,000 | $77,000 |
| Operating Expenses | $55,500 | $60,000 |
| Operating Income | $22,500 | $17,000 |
| Net Income | $17,500 | $12,100 |
All values in millions USD.
Key Financial Metrics
Gross Margin: 57.9% — This tells us how much profit Verizon keeps after direct costs of delivering their product or service.
Operating Margin: 16.7% — After accounting for all operating expenses like R&D, sales, and administration, this is the profit margin from core operations.
Revenue Growth: 0.6% — Year-over-year revenue growth from 2023 to 2024.
Is Verizon Profitable?
Yes, Verizon is profitable. The company reported net income of $17,500 on total revenue of $134,800.
Verizon (VZ) Financial Summary
Verizon (VZ) is a telecommunications company that generated $134,800 in total revenue in fiscal year 2024. The company earned $17,500 in net income, making it profitable. For a deeper look at Verizon’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.