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    Is Verizon’s CEO Shift, Major Layoffs, and Steady Dividend Altering The Investment Case For Verizon (VZ)?

    Simply Wall St·12/13/2025 13:30:08
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    • Earlier this month, Verizon Communications appointed former PayPal CEO Dan Schulman as its new chief executive, launched its largest-ever layoffs exceeding 13,000 roles, and on December 4 affirmed a quarterly dividend of US$0.69 per share payable on February 2, 2026.
    • By cutting headcount to redirect cash toward AI, customer service, and network investments while maintaining its long-running dividend growth, Verizon is signaling a reset in how it balances shareholder income with reinvestment in the business.
    • We’ll now examine how Schulman’s appointment and the large layoffs could reshape Verizon’s investment narrative around growth, efficiency, and cash generation.

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    Verizon Communications Investment Narrative Recap

    To own Verizon today, you need to believe its core U.S. wireless and broadband franchises can keep generating strong cash flows despite a mature market and rising churn. The recent appointment of Dan Schulman and the 13,000-plus layoffs directly target the key short term catalyst of stabilizing customer trends and margins, while the biggest risk remains that intense competitive promotions and churn persist even after these changes.

    The reaffirmed quarterly dividend of US$0.69 per share, payable on February 2, 2026, is the announcement that matters most here, since it underlines Verizon’s commitment to income-focused shareholders even as it restructures. If cost cuts and AI investments fail to translate into better customer retention and monetization, however, the tension between funding the dividend and supporting future growth could become harder to manage.

    Yet investors should also be aware that persistent elevated churn and aggressive competitor promotions could still pressure Verizon’s ability to...

    Read the full narrative on Verizon Communications (it's free!)

    Verizon Communications' narrative projects $144.5 billion revenue and $22.1 billion earnings by 2028. This requires 1.8% yearly revenue growth and about a $3.9 billion earnings increase from $18.2 billion today.

    Uncover how Verizon Communications' forecasts yield a $47.52 fair value, a 16% upside to its current price.

    Exploring Other Perspectives

    VZ 1-Year Stock Price Chart
    VZ 1-Year Stock Price Chart

    Sixteen members of the Simply Wall St Community currently see Verizon’s fair value anywhere between US$46.38 and about US$97.10, reflecting very different expectations. When you set those views against the risk that intense competitive promotions may keep churn elevated, it underlines why looking at several perspectives on Verizon’s future cash generation really matters.

    Explore 16 other fair value estimates on Verizon Communications - why the stock might be worth just $46.38!

    Build Your Own Verizon Communications Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    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.