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    Verizon Communications (VZ) Q2 Beat And Alphabet Deal Put Fair Value Back In Focus

    Simply Wall St·07/29/2026 03:21:54
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    Verizon Communications (VZ) is back in focus after second quarter 2026 results, a new dark fiber agreement with Alphabet and an expanded share repurchase program put fresh attention on the stock.

    See our latest analysis for Verizon Communications.

    Verizon Communications shares have gathered momentum this year, with an 18.93% year to date share price return and a 20.54% total shareholder return over the past 12 months, as investors react to higher guidance, AI infrastructure deals and ongoing buybacks.

    If Verizon’s AI and fiber moves have your attention, it can also be useful to see what other infrastructure focused opportunities are out there, starting with the 34 power grid technology and infrastructure stocks

    After Verizon Communications stock’s sharp move and a share price still sitting below many analyst targets and intrinsic value estimates, the gap is clear. Is the market’s caution on earnings quality and capital intensity still fair?

    Most Popular Narrative: 4.6% Undervalued

    Compared with the last close at $48.19, the most followed narrative on Verizon Communications points to a fair value of $50.50 using its own set of assumptions.

    Verizon, for instance, had been on my wish list for a very long time, but I kept putting it off due to conflicting reports about the company. At the time (2023), I was able to buy it for approximately $31. Eventually, I did purchase it this week (May 5, 2026) at $47.50 because the company is showing strong figures, including for the coming years. I bought a very small batch, 5 shares. And yes, the psychology of the stock market: if I buy, it drops! I will wait and see for now, and if it drops further later, I will just buy another small amount to maintain the average purchase price. This purchasing method has already saved me a lot of money over the past few years. My goal is to invest a maximum of $5,000 within one to two years. That brings me to 50 companies in which I have invested, with a current portfolio value of $200,000, which has yielded a return of over 15% per year over the past 5 years, partly due to reinvesting all dividends.

    Read the complete narrative.

    The narrative from Silvester leans on measured revenue growth, firm profit margins and a projected earnings multiple that treats Verizon Communications more like a compounder than a utility. Curious which specific assumptions sit under that $50.50 fair value and how sensitive they are to small changes in growth or margins.

    Result: Fair Value of $50.50 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, investors still need to watch Verizon Communications for pressure from capital heavy network spending, as well as any stall in revenue or earnings growth that challenges the compounder thesis.

    Find out about the key risks to this Verizon Communications narrative.

    Next Steps

    With Verizon Communications attracting both optimism about rewards and concern about risks, this is a moment to act quickly and ground your own view in the details by reviewing the 3 key rewards and 2 important warning signs

    Looking for more investment ideas beyond Verizon Communications?

    If Verizon Communications has sharpened your focus, do not stop here. Broader ideas from the Simply Wall St screener can help you stress test and refine your portfolio.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.