Verizon is trading at 9.8x trailing earnings and 8.7x FY’27 consensus estimates, reflecting a subdued valuation even as shares have climbed 14% year-to-date. That rally was driven by 616,000 Q4 2025 postpaid additions and 55,000 Q1 2026 net adds, though churn ticked up to 0.97%.

A $5 billion internal OpEx reduction in 2026 from headcount cuts, real estate consolidation and network decommissioning is bolstering EPS, while annual capex is falling toward $16 billion. Verizon also authorized a $25 billion share buyback program to further support earnings per share.

The Frontier deal is forecast to deliver $1 billion in annual cost savings by 2028 through eliminating redundant corporate layers and integrating Frontier fiber into Verizon’s backhaul network. These synergies aim to convert Frontier’s net losses into incremental net income for Verizon.

With the wireless market nearing saturation and churn rising, organic subscriber growth may stall if promotional incentives are reduced. Broadband expansion faces competition from satellite offerings like Starlink and Amazon Kuiper, potentially limiting fixed wireless access growth.