How does Verizon (VZ) make money?

Verizon (VZ) generates revenue primarily from Verizon Consumer Group, which accounted for 78.7% of total revenue in TTM through Q2 2026. The company reported $139B in revenue and converted 11.6% of it into net profit, equivalent to roughly $16.2B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Verizon (VZ)?

Verizon (VZ) reported a gross profit margin of 59.1% in TTM through Q2 2026, equivalent to $82.1B in gross profit on $139B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Verizon (VZ)?

Verizon (VZ) reported an operating profit margin of 20.5% in TTM through Q2 2026, equivalent to $28.5B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Verizon (VZ)?

Verizon (VZ) reported a net profit margin of 11.6% in TTM through Q2 2026, equivalent to $16.2B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Verizon (VZ) profitable?

Yes. Verizon (VZ) reported $16.2B in net income for TTM through Q2 2026, with a net profit margin of 11.6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Verizon (VZ) spend on capital expenditures?

Verizon (VZ) spent $17.4B on capital expenditures (CapEx) during TTM through Q2 2026, roughly 12.5% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Verizon (VZ) generate?

Verizon (VZ) generated $21.4B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 15.4%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Verizon (VZ)?

Verizon (VZ) had an effective tax rate of 23.3% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Verizon (VZ)?

Verizon (VZ) reports revenue across 2 reportable product segments, led by Verizon Consumer Group at 78.7% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Verizon Makes Money: 2026 Visual Revenue Map

Verizon (VZ) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported June 30, 2026).

Verizon discloses geographic revenue only in annual filings. to view the full breakdown.

Verizon (VZ) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Verizon (VZ), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Verizon Consumer Group	$109B	78.7%
Verizon Business Group	$29.6B	21.3%
Total	$139B	100%

Verizon Consumer Group$109B
Verizon Business Group$29.6B
Total$139B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Verizon (VZ) reports revenue across 2 reportable product segments; the largest segment was Verizon Consumer Group at 78.7%, followed by Verizon Business Group (21.3%).

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