What changed in this filing

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Item 1. Financial Statements

2026-07-31 compared with 2026-05-01 · 395 added, 141 removed, 837 unchanged (39% of the section changed)

3 unchanged sentences

and Subsidiaries

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions, except per share amounts) (unaudited) 2026 2025 2026 2025

3 unchanged sentences

Wireless equipment revenues

5,024 6,255 10,705 11,653

Total Operating Revenues 34,253 34,504 68,693 67,989

1 unchanged sentence

Cost of services (exclusive of items shown below)

7,225 6,878 14,392 13,828

Cost of wireless equipment

5,859 7,007 12,365 13,113

Selling, general and administrative expense

8,982 7,812 16,615 15,686

Depreciation and amortization expense

5,008 4,635 9,900 9,212

Total Operating Expenses 27,074 26,332 53,272 51,839

Operating Income 7,179 8,172 15,421 16,150

Equity in earnings of unconsolidated businesses 5 6

Equity in earnings (losses) of unconsolidated businesses 44 ( 3 ) 49 3

Other income, net 36 79 513 200

16 unchanged sentences

and Subsidiaries

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) (unaudited) 2026 2025 2026 2025

2 unchanged sentences

Foreign currency translation adjustments, net of tax of $( 2 ), $ 18 , $( 6 ) and $ 27

Unrealized gain on cash flow hedges, net of tax of $( 8 ) and $( 7 )

Unrealized loss on fair value hedges, net of tax of $ 63 and $ 219

8 76 ( 20 ) 143

Unrealized gain (loss) on cash flow hedges, net of tax of $( 7 ), $ 7 , $( 15 ) and $ 0

23 ( 21 ) 46 —

Unrealized gain (loss) on fair value hedges, net of tax of $( 181 ), $ 13 , $( 118 ) and $ 232

542 ( 39 ) 354 ( 692 )

Unrealized gain (loss) on marketable securities, net of tax of $ 0 , $ 0 , $ 1 and $ 0

1 unchanged sentence

14 ( 2 ) ( 435 ) ( 4 )

Other comprehensive loss attributable to Verizon ( 645 ) ( 566 )

Other comprehensive income (loss) attributable to Verizon 588 14 ( 57 ) ( 552 )

Total Comprehensive Income $ 4,537 $ 5,135 $ 9,038 $ 9,552

6 unchanged sentences

and Subsidiaries

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions, except per share amounts) (unaudited) 2026 2025

51 unchanged sentences

and Subsidiaries

Three Months Ended

Six Months Ended

(dollars in millions) (unaudited) 2026 2025

6 unchanged sentences

Provision for expected credit losses 1,043 1,135

Equity in losses of unconsolidated businesses, inclusive of dividends received 3 20

Equity in (earnings) losses of unconsolidated businesses, net of dividends received ( 35 ) 29

Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses ( 3,418 ) ( 3,318 )

36 unchanged sentences

Mobility and broadband service revenue, Wireless equipment revenue and Other revenue .

In the second quarter of 2026, the net assets representing Verizon's international wireline connectivity and managed network services business were classified as assets and liabilities held for sale and moved from the Business segment to Corporate and other.

See Note 3 for additional information.

Certain amounts have been reclassified to conform to the current period's presentation.

Earnings Per Common Share

There were a total of approximately 4.5 million and 4.4 million outstanding dilutive securities, primarily consisting of performance stock units and restricted stock units, included in the computation of diluted earnings per common share for the three months ended March 31, 2026 and 2025, respectively .

There were a total of approximately 3.7 million and 4.1 million outstanding dilutive securities, primarily consisting of performance stock units and restricted stock units, included in the computation of diluted earnings per common share for the three and six months ended June 30, 2026, respectively.

There were a total of approximately 4.6 million and 4.5 million outstanding dilutive securities, consisting of performance stock units and restricted stock units, included in the computation of diluted earnings per common share for the three and six months ended June 30, 2025, respectively.

In February 2026, we entered into accelerated share repurchase (ASR) agreements with certain financial institution counterparties to repurchase shares of our common stock.

These ASR transactions were completed in March 2026.

In April 2026, we entered into an ASR agreement with a certain financial institution counterparty to repurchase shares of our common stock.

This ASR transaction was completed in June 2026.

See Note 9 for additional information on share repurchases.

6 unchanged sentences

Cash, cash equivalents and restricted cash are included in the following line items in the condensed consolidated balance sheets:

At March 31, At December 31, Increase / (Decrease)

At June 30, At December 31, Increase / (Decrease)

(dollars in millions)

3 unchanged sentences

140 297 ( 157 )

Assets held for sale:

Prepaid expenses and other

Cash, cash equivalents and restricted cash $ 2,304 $ 19,499 $ ( 17,195 )

5 unchanged sentences

See Note 10 for additional information on revenue by segment, including Corporate and other.

During the three months ended March 31, 2026 and March 31, 2025, we recorded wireless service revenue of $ 20.6 billion and $ 20.8 billion, respectively.

During the three and six months ended June 30, 2026, we recorded wireless service revenue of $ 20.8 billion and $ 41.4 billion, respectively.

During the three and six months ended June 30, 2025, we recorded wireless service revenue of $ 20.9 billion and $ 41.7 billion, respectively.

We also earn revenues that are not accounted for under Topic 606 from leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement.

5 unchanged sentences

This exclusion primarily relates to our month-to-month service contracts.

As of March 31, 2026, month-to-month service contracts represented approximately 95 % of our wireless postpaid contracts and approximately 96 % of our wireline Consumer and small and medium Business contracts, compared to March 31, 2025, for which month-to-month service contracts represented approximately 95 % of both our wireless postpaid contracts and our wireline Consumer and small and medium Business contracts.

As of June 30, 2026, month-to-month service contracts represented approximately 95 % of our wireless postpaid contracts and approximately 96 % of our wireline Consumer and small and medium Business contracts, compared to June 30, 2025, for which month-to-month service contracts represented approximately 95 % of our wireless postpaid contracts and approximately 94 % of our wireline Consumer and small and medium Business contracts.

Remaining performance obligations primarily include performance obligations from contracts that are not accounted for as month-to-month.

9 unchanged sentences

These excluded contracts have varying terms spanning approximately twenty-seven years ending in September 2053 and have aggregate minimum contract payments totaling $ 1.3 billion.

At March 31, 2026, the aggregate amount of the transaction price related to unsatisfied performance obligations was $ 57.6 billion.

At June 30, 2026, the aggregate amount of the transaction price related to unsatisfied performance obligations was $ 55.2 billion.

We expect to recognize substantially all of this revenue from origination over the next thirty-six months , with the remainder recognized thereafter.

5 unchanged sentences

The following table presents information about receivables from contracts with customers:

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2026 2025

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The contract liability balances are presented in our condensed consolidated balance sheets as Other current liabilities and Other liabilities.

Revenues recognized related to contract liabilities existing at January 1, 2026 and January 1, 2025 were $ 4.6 billion for both the three months ended March 31, 2026 and March 31, 2025.

Revenues recognized related to contract liabilities existing at January 1, 2026 were $ 225 million and $ 4.9 billion for the three and six months ended June 30, 2026, respectively.

Revenues recognized related to contract liabilities existing at January 1, 2025 were $ 275 million and $ 4.9 billion for the three and six months ended June 30, 2025, respectively.

The balances of contract assets and contract liabilities recorded in our condensed consolidated balance sheets were as follows:

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2026 2025

11 unchanged sentences

Prepaid wireless and Consumer wireline contracts are amortized over the estimated customer relationship period.

Costs to obtain contracts are recorded in Selling, general and administrative expenses.

Costs to obtain contracts are recorded in Selling, general and administrative expense in our condensed consolidated statements of income.

We also defer costs incurred to fulfill contracts that:

9 unchanged sentences

The balances of deferred contract costs included in our condensed consolidated balance sheets were as follows:

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2026 2025

2 unchanged sentences

Total $ 6,272 $ 6,163

For the three months ended March 31, 2026 and March 31, 2025, we recognized expense of $ 1.0 billion and $ 877 million, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income.

For the three and six months ended June 30, 2026, we recognized expense of $ 1.0 billion and $ 2.1 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income.

For the three and six months ended June 30, 2025, we recognized expense of $ 892 million and $ 1.8 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our condensed consolidated statements of income.

We assess our deferred contract costs for impairment on a quarterly basis.

We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses.

There were no impairment charges recognized for the three months ended March 31, 2026 or March 31, 2025.

There were no impairment charges recognized for the three and six months ended June 30, 2026 or June 30, 2025.

Acquisitions and Divestitures

Spectrum License Transactions

On October 17, 2024, Verizon entered into a license purchase agreement to acquire select spectrum licenses of United States Cellular Corporation (currently known as Array Digital Infrastructure, Inc.) and certain of its subsidiaries (collectively, UScellular) for total consideration of $ 1.0 billion, subject to certain potential adjustments.

The closing of this transaction is subject to the receipt of regulatory approvals and other closing conditions, including the sale of UScellular's wireless operations and select spectrum assets to T-Mobile US, Inc., which concluded in August 2025, and the termination of certain post-closing arrangements with respect to that sale.

On June 1, 2026, we completed the acquisition of the spectrum licenses for total cash consideration of $ 1.0 billion.

In June 2026, the Federal Communications Commission (FCC) concluded Auction 113 for Advanced Wireless Services (AWS-3) licenses.

Verizon paid an immaterial cash deposit to participate in the auction, and was the winning bidder on 82 spectrum licenses valued at approximately $ 3.2 billion.

In July 2026, we made additional payments totaling approximately $ 3.1 billion in connection with these licenses.

The timing of the license issuance remains subject to FCC determination.

Joint Venture with BT Group plc

On June 28, 2026, the Company entered into a transaction agreement (the Transaction Agreement) with BT Group plc (BT) and Jasper NewCo Limited (NewCo), pursuant to which the Company and BT will each acquire a 50 % equity interest in NewCo.

As consideration, the Company will contribute the equity interests of certain subsidiaries comprising its international wireline connectivity and managed network services business (the Verizon Contributed Business) and make a $ 625 million cash payment to NewCo, which NewCo will distribute to BT.

BT will contribute the equity interests of certain subsidiaries comprising its international wireline connectivity and managed network services business (the BT Contributed Business) to NewCo.

The relative values of the Verizon Contributed Business and the BT Contributed Business are subject to customary post-closing adjustments based on the levels of cash, net working capital, and indebtedness of each business at closing.

The Transaction Agreement contemplates the entry into a joint venture agreement between the Company, BT and NewCo in respect of the governance of NewCo, as well as certain ancillary commercial agreements and transition services arrangements.

C losing of the transaction is subject to customary regulatory approvals and other closing conditions.

In the second quarter of 2026, the net assets representing the Verizon Contributed Business were classified as assets and liabilities held for sale and moved from the Business segment to Corporate and other.

In connection with this classification as held for sale, we recorded a pre-tax loss on disposition of business of $ 746 million to write down the disposal group to its fair value less costs to sell.

The charge was recorded in Selling, general, and administrative expense in our condensed consolidated statements of income for the three and six months ended June 30, 2026.

The fair value of the net assets representing the Verizon Contributed Business was estimated based on the fair value of the Company's share of the joint venture, net of cash

consideration to be contributed.

The fair value was estimated by using a combination of the market approach and the income approach.

The valuation is considered a Level 3 fair value measurement due to the use of significant judgment and unobservable inputs, which include the amount and timing of future cash flows, and a discount rate reflecting risks inherent in the future cash flows.

The pre-tax results associated with the Verizon Contributed Business for all periods presented in our condensed consolidated statements of income were immaterial.

The following table summarizes the major classes of assets and liabilities of the Verizon Contributed Business which are currently included in our continuing operations and classified as held for sale in our condensed consolidated balance sheets as of June 30, 2026.

(dollars in millions) As of

June 30, 2026

Assets held for sale:

Prepaid expenses and other

Cash and cash equivalents $ 250

Accounts receivable, net

Other current assets 142

Property, plant and equipment, net

Other assets 204

Valuation allowance ( 746 )

Liabilities held for sale:

Other current liabilities

Accounts payable and accrued liabilities

Other current liabilities ( 102 )

Other liabilities $ ( 255 )

Business Acquisitions

2 unchanged sentences

The financial results of Frontier and Starry are included in the Company's consolidated results from January 20, 2026 and January 30, 2026, respectively.

The aggregate operating revenues arising from these acquisitions and included in our condensed consolidated statements of income amounted to less than 5 % of total operating revenues for the three months ended March 31, 2026.

Pro forma financial information has not been disclosed for these acquisitions as the impacts to both revenue and earnings, individually and in the aggregate, would not have been material to our consolidated statements of income.

9 unchanged sentences

The identification and measurement of the assets acquired and liabilities assumed are based on their fair values, which are determined by using a combination of the income, market, or cost approaches, including market based assumptions.

The purchase price allocation is preliminary and subject to revision as additional information about the fair value of the assets acquired and liabilities assumed, including related deferred income taxes, contingencies and contract liabilities becomes available.

Any necessary adjustments will be finalized within one year from the Acquisition Date.

The following table summarizes the preliminary allocation of the consideration paid to the identifiable assets acquired and liabilities assumed as of the Acquisition Date.

(dollars in millions) As of January 20, 2026

(dollars in millions) As of

January 20, 2026 Measurement Period Adjustments (2)

Adjusted Fair Value

Purchase consideration (1) :

$ 9,917 $ ( 1 ) $ 9,916

Assets acquired:

4 unchanged sentences

Other noncurrent assets

355 ( 31 ) 324

Total assets acquired 28,500 ( 16 ) 28,484

1 unchanged sentence

Current liabilities, excluding current debt

$ 3,154 $ ( 22 ) $ 3,132

Debt maturing within one year

1,694 ( 1 ) 1,693

Long-term debt, including finance lease obligations

11,589 1 11,590

Other noncurrent liabilities

2,146 7 2,153

Total liabilities assumed

18,583 ( 15 ) 18,568

Net assets acquired $ 9,917 $ ( 1 ) $ 9,916

(1) Purchase consideration reflects the purchase price allocated to assets and liabilities, including a non-cash component of $ 157 million.

(2) Adjustments to the fair value measurements reflect new information obtained about facts and circumstances that existed as of the Acquisition Date, that if known, would have affected the measurement of the amounts recognized as of that date.

Goodwill is calculated as the difference between the Acquisition Date fair value of the consideration paid and the fair value of the net assets acquired, and represents the future economic benefits that we expect to achieve as a result of the acquisition.

6 unchanged sentences

Other noncurrent liabilities include employee benefit obligations consisting of $ 2.5 billion of assets acquired and $ 3.0 billion of liabilities assumed associated with the Frontier Communications defined benefit pension and postretirement benefit plans.

During the three months ended March 31, 2026, we recorded acquisition and integration related charges associated with the Frontier acquisition of $ 261 million within Selling, general and administrative expense in our condensed consolidated statements of income.

During the three months ended March 31, 2026, we repaid approximately $ 6.4 billion of the principal amount of debt assumed as part of the Frontier acquisition.

During the six months ended June 30, 2026, we repaid approximately $ 12.4 billion of the principal amount of debt assumed as part of the Frontier acquisition.

See Note 5 for additional information on debt assumed as part of the acquisition.

During the three and six months ended June 30, 2026, we recorded acquisition and integration related charges associated with the Frontier acquisition of $ 120 million and $ 381 million, respectively, within Selling, general and administrative expense in our condensed consolidated statements of income.

On January 30, 2026, Verizon completed the acquisition of Starry, a fixed wireless broadband provider serving multi-dwelling units in five markets across the U.S.

3 unchanged sentences

The carrying amounts of Wireless licenses are as follows:

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2026 2025

Wireless licenses $ 158,159 $ 157,039

At March 31, 2026 and 2025, approximately $ 6.3 billion and $ 9.4 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs.

We recorded $ 82 million and $ 122 million of capitalized interest on wireless licenses for the three months ended March 31, 2026 and 2025, respectively.

During the three months ended March 31, 2026, we renewed various wireless licenses in accordance with Federal Communications Commission (FCC) regulations.

During the three and six months ended June 30, 2026, we acquired select spectrum licenses of UScellular for total cash consideration of $ 1.0 billion.

See Note 3 for additional information.

At June 30, 2026 and 2025, approximately $ 5.6 billion and $ 8.6 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs.

We recorded $ 154 million and $ 234 million of capitalized interest on wireless licenses for the six months ended June 30, 2026 and 2025, respectively.

During the six months ended June 30, 2026, we renewed various wireless licenses in accordance with Federal Communications Commission (FCC) regulations.

The average renewal period for these licenses was 10 years.

5 unchanged sentences

6,031 1,792 7,823

Balance at March 31, 2026 (1)

Balance at June 30, 2026 (1)

$ 27,208 $ 3,456 $ 30,664

4 unchanged sentences

The following table displays the composition of Other intangible assets, net as well as the respective amortization periods:

At March 31, 2026 At December 31, 2025

At June 30, 2026 At December 31, 2025

(dollars in millions) Gross

12 unchanged sentences

The amortization expense for Other intangible assets was as follows:

Three Months Ended

(dollars in millions) March 31,

Three Months Ended Six Months Ended

(dollars in millions) June 30, June 30,

2026 $ 877 $ 1,713

2025 754 1,488

The estimated future amortization expense for Other intangible assets for the remainder of the current year and next 5 years is as follows:

3 unchanged sentences

Debt or equity financing may be needed to fund additional investments or development activities or to maintain an appropriate capital structure to ensure our financial flexibility.

The following tables show the significant transactions involving the unsecured debt securities of the Company and its subsidiaries that occurred during the three months ended March 31, 2026, excluding acquisition-related activity which is detailed under the Debt Assumed section below.

Repayments and Repurchases

(dollars in millions) Principal Repaid/ Repurchased Amount Paid (1)

The following tables show the significant transactions involving the unsecured debt securities of the Company and its subsidiaries that occurred during the three and six months ended June 30, 2026.

Exchange Offers

(dollars in millions) Principal Amount Exchanged

Principal Amount Issued

Three Months Ended June 30, 2026

5.125 % - 8.625 % notes issued by certain subsidiaries of Verizon, due 2028 - 2033

Verizon 5.125 % - 8.625 % notes, due 2028 - 2033 (1)

Three and Six Months Ended June 30, 2026 total $ 161 $ 161

(1) The principal amount issued in exchange does not include either an insignificant amount of cash paid in lieu of the issuance of fractional new notes or accrued and unpaid interest paid on the old notes accepted for exchange to the date of exchange.

Tender Offers

(dollars in millions) Principal Amount Purchased

Cash Consideration (1)

Three Months Ended June 30, 2026

2.100 % - 8.750 % notes of Verizon and certain of its subsidiaries, due 2027 - 2033 (2)

$ 1,858 $ 1,877

Three and Six Months Ended June 30, 2026 total $ 1,858 $ 1,877

(1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase.

(2) The tender offer was launched concurrently with the exchange offer discussed above.

Repayments, Redemptions and Repurchases

(dollars in millions) Principal Repaid/Redeemed/ Repurchased Amount Paid (1)

Three Months Ended March 31, 2026

Verizon floating rate notes due 2026 $ 206 $ 208

Open market repurchases of various Verizon notes 620 504

(1) Represents amount paid to repay or repurchase, including any accrued interest.

Three Months Ended March 31, 2026 total $ 712

Three Months Ended June 30, 2026

Verizon 2.100 % notes due 2026

Verizon 4.329 % notes due 2028

$ 1,295 1,309

Open market repurchases of various Verizon notes 777 635

Three Months Ended June 30, 2026 total 2,257

Six Months Ended June 30, 2026 total $ 2,969

(1) Represents amount paid to repay, redeem or repurchase, including any accrued interest.

In addition, for securities denominated in a currency other than the U.S.

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See Note 7 for additional information on cross currency swap transactions related to the transaction.

The amount paid excludes acquisition-related activity which is detailed in the section titled "Debt Assumed" below.

(dollars in millions) Principal Amount Issued Net Proceeds (1)

Three Months Ended March 31, 2026

Verizon 4.246 % junior subordinated notes due 2056 (2)

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Verizon 7.166 % junior subordinated notes due 2056 (2)

Total $ 4,380

Three Months Ended March 31, 2026 total $ 4,380

Three Months Ended June 30, 2026

Verizon 6.050 % junior subordinated notes due 2058 (2)

$ 2,000 $ 1,983

Verizon 6.200 % junior subordinated notes due 2056 (2)

Three Months Ended June 30, 2026 total 3,966

Six Months Ended June 30, 2026 total $ 8,346

(1) Net proceeds were net of underwriting discounts and other issuance costs.

4 unchanged sentences

(2) Notes are subordinate to our senior unsecured notes and have an interest rate reset and deferral features.

See Note 7 for additional information on derivative activity related to these transactions.

On January 20, 2026, we completed the acquisition of Frontier.

1 unchanged sentence

The principal amount of the debt assumed was $ 12.7 billion as of the Acquisition Date.

During the three months ended March 31, 2026, we repaid approximately $ 6.4 billion of the principal amount of debt assumed as part of the acquisition.

At March 31, 2026, the carrying value of the remaining principal amount of debt assumed was $ 6.3 billion, primarily consisting of unsecured notes, and reported in our condensed consolidated balance sheet.

During the six months ended June 30, 2026, we repaid approximately $ 12.4 billion of the principal amount of debt assumed as part of the acquisition through repayments, repurchases and the settlement of tender offers.

In addition, we extinguished an insignificant amount of the principal amount of debt assumed as part of the exchange offers completed during the three and six months ended June 30, 2026.

At June 30, 2026, the remaining principal amount of debt assumed was $ 219 million, primarily consisting of unsecured notes, and reported in Long-term debt in our condensed consolidated balance sheet.

Commercial Paper Program

During the three months ended March 31, 2026, we issued $ 983 million in net proceeds and made $ 983 million in principal repayments of commercial paper.

During the six months ended June 30, 2026, we issued $ 7.6 billion in net proceeds and made $ 7.6 billion in principal repayments of commercial paper.

These transactions are reflected within Cash flow from financing activities in our condensed consolidated statements of cash flows on a net basis.

As of March 31, 2026, we had no commercial paper outstanding.

As of June 30, 2026, we had no commercial paper outstanding.

Asset-Backed Debt

As of March 31, 2026 , the carrying value of our asset-backed debt was $ 30.0 billion.

As of June 30, 2026 , the carrying value of our asset-backed debt was $ 28.8 billion.

Our asset-backed debt includes Asset-Backed Notes (ABS Notes) issued to third-party investors (Investors), loans (ABS Financing Facilities) received from banks and their conduit facilities (collectively, the Banks), and sales of residual interests under our ABS Notes and certain ABS Financing Facilities (Class R Interest) under a master repurchase agreement (master repurchase agreement) with a bank (the Counterparty).

3 unchanged sentences

Our asset-backed debt is secured by the transferred receivables, participation interest and Class R Interest, future collections on such receivables, underlying receivables related to such participation interest and such Class R Interest, as applicable.

These receivables and participation interest transferred to the ABS Entities, such Class R Interest and related assets, consisting primarily of restricted cash, will only be available for payment of asset-backed debt and expenses related thereto, payments to the Originators in respect of additional transfers of certain receivables and participation interest, and other obligations arising from our asset-backed debt transactions, as applicable, and will not be available to pay other obligations or claims of Verizon’s

creditors until the associated asset-backed debt and other obligations are satisfied.

The Investors, Banks or Counterparty, as applicable, which hold our asset-backed debt have legal recourse to the assets securing the debt, but in the case of our ABS Notes and ABS Financing Facilities, do not have any recourse to Verizon with respect to the payment of principal and interest on the debt.

Under a parent support agreement, the Company has agreed to guarantee certain of the payment obligations of Cellco and the Originators to the ABS Entities in connection with our ABS Notes and ABS Financing Facilities.

Under a parent support agreement, the Company has agreed to guarantee certain of the payment obligations of Cellco

and the Originators to the ABS Entities in connection with our ABS Notes and ABS Financing Facilities.

In connection with the master repurchase agreement, the Company has agreed to unconditionally and irrevocably guarantee payment obligations of the related ABS Entity, including to repurchase Class R Interest from the Counterparty.

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The asset-backed debt issued is included in Debt maturing within one year and Long-term debt in our condensed consolidated balance sheets.

During the three months ended March 31, 2026 , we completed the following ABS Notes transactions:

During the six months ended June 30, 2026 , we completed the following ABS Notes transactions:

(dollars in millions) Interest Rates % Expected Weighted-average Life to Maturity (in years) Principal Amount Issued

4 unchanged sentences

C Junior class notes 4.430 1.94 67

March 2026 total 1,538

Series 2026-2

A-1a Senior class notes

4.510 2.97 994

A-1b Senior class notes

Compounded SOFR + 0.460 (1)

B Junior class notes 4.710 2.97 82

C Junior class notes 4.850 2.97 49

June 2026 total 1,200

Total $ 2,738

(1) Compounded Secured Overnight Financing Rate (SOFR) is calculated using SOFR as published by the Federal Reserve Bank of New York in accordance with the terms of such notes.

Under the terms of each series of ABS Notes outstanding as of March 31, 2026, there is a revolving period of up to two years , three years , or five years , as applicable, during which we may transfer additional receivables to the ABS Entity.

During the three months ended March 31, 2026 , we made aggregate principal repayments of $ 1.0 billion in connection with an anticipated redemption of ABS Notes.

Compounded SOFR for the interest payment made in June 2026 was 3.59 %.

Under the terms of each series of ABS Notes outstanding as of June 30, 2026, there is a revolving period of up to two years , three years , or five years , as applicable, during which we may transfer additional receivables to the ABS Entity.

During the six months ended June 30, 2026 , we made aggregate principal repayments of $ 2.4 billion in connection with an anticipated redemption of ABS Notes.

ABS Financing Facilities

Under the two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in 2021 and most recently renewed in 2025 (2021 ABS Financing Facility), we borrowed an additional $ 2.3 billion in January 2026, borrowed an additional $ 1.0 billion in February 2026, prepaid an aggregate of $ 2.3 billion in March 2026 and borrowed an additional $ 100 million in March 2026.

The aggregate outstanding balance under the 2021 ABS Financing Facility was $ 6.7 billion as of March 31, 2026.

In April 2026, we prepaid an aggregate of $ 500 million under the loan agreement outstanding in connection with the 2021 ABS Financing Facility.

T he aggregate outstanding balance under the loan agreement outstanding in connection with the ABS Financing Facility originally entered into in 2022 and most recently renewed in 2025 was $ 5.0 billion as of March 31, 2026 .

In April 2026, we prepaid an aggregate of $ 224 million under the loan agreement outstanding in connection with the 2022 ABS Financing Facility.

Under the two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in 2021 (2021 ABS Financing Facility), we borrowed an additional $ 2.3 billion in January 2026, borrowed an additional $ 1.0 billion in February 2026, prepaid an aggregate of $ 2.3 billion in March 2026, borrowed an additional $ 100 million in March 2026, prepaid an aggregate of $ 500 million in April 2026 and prepaid an aggregate of $ 300 million in May 2026.

In June 2026, we renewed one of the loan agreements and borrowed an additional $ 4.7 billion under the related loan series.

Concurrently, we repaid in full the $ 4.7 billion outstanding principal balance under the other loan agreement and terminated the related loan series.

The aggregate outstanding balance under the 2021 ABS Financing Facility was $ 5.9 billion as of June 30, 2026.

Under the loan agreement outstanding in connection with the ABS Financing Facility originally entered into in 2022 and most recently renewed in 2025 (2022 ABS Financing Facility), we prepaid an aggregate of $ 224 million in April 2026.

T he aggregate outstanding balance under 2022 ABS Financing Facility was $ 4.8 billion as of June 30, 2026 .

Master Repurchase Agreement

In January 2026, we amended the master repurchase agreement originally entered into in 2025 to increase the maximum capacity thereunder to approximately $ 2.5 billion.

During the three months ended March 31, 2026 , we received $ 1.3 billion under the master repurchase agreement.

The aggregate amount outstanding was $ 2.5 billion as of March 31, 2026 and is collateralized by certain Class R interest.

During the six months ended June 30, 2026 , we received $ 1.3 billion under the

master repurchase agreement.

The aggregate amount outstanding was $ 2.5 billion as of June 30, 2026 and is collateralized by certain Class R interest.

The master repurchase agreement has a remaining maturity of less than one year and is classified as Debt maturing within one year in our condensed consolidated balance sheets.

The estimated fair value of such Class R Interest was $ 3.4 billion as of March 31, 2026 .

The estimated fair value of such Class R Interest was $ 3.4 billion as of June 30, 2026 .

In July 2026, we entered into an additional repurchase agreement with a bank to sell residual equity interest in two of our ABS Entities.

In connection with the agreement, we received approximately $ 500 million in proceeds.

Variable Interest Entities

The ABS Entities meet the definition of a VIE for which we have determined that we are the primary beneficiary as we have both the power to direct the activities of the entity that most significantly impact the entity's performance and the obligation to absorb

losses or the right to receive benefits of the entity.

Therefore, the assets, liabilities and activities of the ABS Entities are consolidated in our financial results and are included in amounts presented on the face of our condensed consolidated balance sheets.

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Therefore, the assets, liabilities and activities of these entities are included in the amounts presented on the face of our condensed consolidated balance sheets.

As of March 31, 2026, all asset-backed debt issued through these entities has been extinguished and we are in the process of dissolving or merging these entities and transferring the remaining assets to operating business entities.

As of June 30, 2026, all asset-backed debt issued through these entities has been extinguished and we are in the process of dissolving or merging these entities and transferring the remaining assets to operating business entities.

Long-Term Credit Facilities

At March 31, 2026

At June 30, 2026

(dollars in millions) Maturities Facility Capacity Unused Capacity Principal Amount Outstanding

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The revolving credit facility provides for the issuance of letters of credit.

As of March 31, 2026 , there have been no drawings against the revolving credit facility since its inception.

(2) During the three months ended March 31, 2026, we drew down approximately $ 1.6 billion.

During the three months ended March 31, 2025, there were no drawings from these facilities.

As of June 30, 2026 , there have been no drawings against the revolving credit facility since its inception.

(2) During the six months ended June 30, 2026, we drew down approximately $ 1.6 billion.

During the six months ended June 30, 2025, there were no drawings from these facilities.

Borrowings under certain of these facilities are repaid semi-annually in equal installments up to the applicable maturity dates.

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Non-Cash Transactions

During the three months ended March 31, 2026 and 2025, we financed, primarily through alternative financing arrangements, the purchase of approximately $ 1.1 billion and $ 627 million, respectively, of long-lived assets consisting primarily of network equipment.

During the three months ended March 31, 2026, we also assumed $ 428 million of financing arrangements in connection with the acquisition of Frontier.

As of March 31, 2026 and December 31, 2025 , $ 3.8 billion and $ 3.0 billion, respectively, relating to these financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding.

During the six months ended June 30, 2026 and 2025, we financed, primarily through alternative financing arrangements, the purchase of approximately $ 2.4 billion and $ 1.2 billion, respectively, of long-lived assets consisting primarily of network equipment.

During the six months ended June 30, 2026, we also assumed $ 428 million of financing arrangements in connection with the acquisition of Frontier.

As of June 30, 2026 and December 31, 2025 , $ 4.3 billion and $ 3.0 billion, respectively, relating to

these financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding.

These purchases are non-cash financing activities and therefore are not reflected within Capital expenditures in our condensed consolidated statements of cash flows.

Net Debt Extinguishment Gains

During the three months ended March 31, 2026 and 2025 , we recorded net debt extinguishment gains of $ 95 million and $ 90 million, respectively.

During the three months ended June 30, 2026 and 2025 , we recorded net debt extinguishment gains of $ 152 million and $ 88 million, respectively.

During the six months ended June 30, 2026 and 2025, we recorded net debt extinguishment gains of $ 247 million and $ 178 million, respectively.

T he net gains are recorded in Other income, net in our condensed consolidated statements of income.

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We guarantee the debentures of our operating telephone company subsidiaries.

As of March 31, 2026 , $ 614 million aggregate principal amount of these obligations remained outstanding.

As of June 30, 2026 , $ 385 million aggregate principal amount of these obligations remained outstanding.

Each guarantee will remain in place for the life of the obligation unless terminated pursuant to its terms, including the operating telephone company no longer being a wholly-owned subsidiary of the Company.

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The following table presents information about accounts receivable, net of allowances, recorded in our condensed consolidated balance sheet:

At March 31, 2026

At June 30, 2026

(dollars in millions) Device payment plan agreement Wireless service

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(1) Other receivables primarily include wireline and other receivables, of which the allowances are individually insignificant.

Included in Other assets and Accounts receivable, net at March 31, 2026 and December 31, 2025, are net device payment plan agreement receivables, net wireless service receivables and net other receivables of $ 30.6 billion and $ 30.0 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets.

Included in Accounts receivable, net at March 31, 2026 and December 31, 2025, are net other receivables of $ 880 million and $ 1.4 billion, respectively, on which a participation interest has been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets.

Included in Other assets and Accounts receivable, net at June 30, 2026 and December 31, 2025, are net device payment plan agreement receivables, net wireless service receivables and net other receivables of $ 30.3 billion and $ 30.0 billion, respectively, which have been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets.

Included in Accounts receivable, net at June 30, 2026 and December 31, 2025, are net other receivables of $ 939 million and $ 1.4 billion, respectively, on which a participation interest has been transferred to ABS Entities and continue to be reported in our condensed consolidated balance sheets.

See Note 5 for additional information.

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The following table displays both the current and non-current portions of device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets:

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2026 2025

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The associated interest income, which is included within Service revenues and other in our condensed consolidated statements of income, is recognized over the financed device payment term.

In connection with certain device payment plan agreements, we may offer a promotion to allow our customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as

trading in their device in good working order.

When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we account for this trade-in right as a guarantee obligation.

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Under these types of promotions, the customer receives a credit for the value of the trade-in device.

At March 31, 2026 and December 31, 2025, the amount of trade-in liability was $ 305 million and $ 332 million, respectively.

At June 30, 2026 and December 31, 2025, the amount of trade-in liability was $ 262 million and $ 332 million, respectively.

In addition, we may provide the customer with additional future billing credits that will be applied against the customer’s monthly bill as long as service is maintained.

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The model for new customers pools all Consumer and Business wireless customers based on less than 210 days as "new customers." The model for existing customers pools all Consumer and Business wireless customers based on 210 days or more as "existing customers."

The following table presents device payment plan agreement receivables, at amortized cost, and gross write-offs recorded, as of and for the three months ended March 31, 2026, by credit quality indicator and year of origination:

The following table presents device payment plan agreement receivables, at amortized cost, and gross write-offs recorded, as of and for the six months ended June 30, 2026, by credit quality indicator and year of origination:

Year of Origination (1)

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(1) Includes accounts that have been suspended at a point in time.

The data presented in the table above was last updated on March 31, 2026.

The data presented in the table above was last updated on June 30, 2026.

We assess indicators for the quality of our wireless service receivables portfolio as one overall pool.

The following table presents wireless service receivables, at amortized cost, and gross write-offs recorded, as of and for the three months ended March 31, 2026, by year of origination:

The following table presents wireless service receivables, at amortized cost, and gross write-offs recorded, as of and for the six months ended June 30, 2026, by year of origination:

Year of Origination

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Gross write-offs 95 183 278

The data presented in the table above was last updated on March 31, 2026.

The data presented in the table above was last updated on June 30, 2026.

Allowance for Credit Losses

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Recoveries collected 32 31

Balance at March 31, 2026 $ 1,693 $ 253

Balance at June 30, 2026 $ 1,625 $ 248

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

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Recurring Fair Value Measurements

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2026:

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2026:

(dollars in millions) Level 1 (1)

2 unchanged sentences

Cross currency swaps — 29 — 29

Interest rate caps — 9 — 9

Other assets:

6 unchanged sentences

Cross currency swaps — 279 — 279

Interest rate caps — 9 — 9

Foreign exchange forwards — 3 — 3

2 unchanged sentences

Cross currency swaps — 1,116 — 1,116

Variable prepaid forward — — 493 493

Total $ — $ 6,586 $ 493 $ 7,079

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Certain of our equity investments do not have readily determinable fair values and are excluded from the tables above.

Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in

orderly transactions for an identical or similar investment of the same issuer and are included in Investments in unconsolidated businesses in our condensed consolidated balance sheets.

As of March 31, 2026 and December 31, 2025, the carrying amount of our investments without readily determinable fair values was $ 657 million and $ 710 million, respectively.

During the three months ended March 31, 2026, there were no adjustments due to observable price changes and there were insignificant impairment charges.

As of March 31, 2026, cumulative adjustments due to observable price changes and impairment charges were $ 191 million and $ 155 million, respectively.

Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer and are included in Investments in unconsolidated businesses in our condensed consolidated balance sheets.

As of June 30, 2026 and December 31, 2025, the carrying amount of our investments without readily determinable fair values was $ 672 million and $ 710 million, respectively.

During the three and six months ended June 30, 2026, there were insignificant adjustments due to observable price changes and there were insignificant impairment charges.

As of June 30, 2026, cumulative adjustments due to observable price changes and impairment charges were $ 190 million and $ 155 million, respectively.

Fixed income securities consist primarily of investments in municipal bonds.

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The valuation determines that these securities are classified as Level 2.

Derivative contracts are valued using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified within Level 2.

We use mid-market pricing for fair value measurements of our derivative instruments.

Derivative contracts, other than the variable prepaid forward (VPF), are valued using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified within Level 2.

We use mid-market pricing for fair value measurements of these derivative instruments.

For the VPF, the value is determined using the Black-Scholes method using a combination of readily observable market parameters such as floor and call prices of the VPF, risk free rate, contractual term of the instrument and unobservable inputs such as implied volatility of the underlying marketable securities.

This represents a Level 3 measurement.

Level 3 instruments include valuation based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants.

Our derivative instruments are recorded on a gross basis.

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(dollars in millions) Carrying Amount Level 1 Level 2 Level 3 Total

At March 31, 2026 $ 169,215 $ 96,509 $ 69,767 $ — $ 166,276

At June 30, 2026 $ 161,639 $ 90,965 $ 68,942 $ — $ 159,907

At December 31, 2025 155,639 91,664 62,640 — 154,304

1 unchanged sentence

We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates.

We employ risk management strategies, which may include the use of a variety of derivatives including interest rate swaps, cross currency swaps, forward starting interest rate swaps, treasury rate locks, interest rate caps, swaptions and foreign exchange forwards.

We do not hold derivatives for trading purposes.

The following table sets forth the notional amounts of our outstanding derivative instruments:

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2026 2025

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The following tables summarize the activities of our designated derivatives:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2026 2025 2026 2025

10 unchanged sentences

336 ( 2,422 ) 937 ( 3,500 )

Excluded components recognized in Other comprehensive loss

Excluded components recognized in Other comprehensive income

745 ( 28 ) 516 ( 877 )

Initial value of the excluded component amortized into Interest expense

Three Months Ended

Treasury Rate Locks:

Notional value entered into — 4,900 — 4,900

Notional value settled — — — —

Pre-tax loss recognized in Other comprehensive income

— ( 55 ) — ( 55 )

Six Months Ended

(dollars in millions) 2026 2025

Other, net Cash Flows from Operating Activities:

Cash paid for settlement of interest rate swaps $ — $ ( 45 )

Other, net Cash Flows from Financing Activities:

Cash paid for settlement of cross currency swaps, net $ — $ ( 73 )

Cash received (paid) for settlement of cross currency swaps, net 17 ( 80 )

The following table displays the amounts recorded in Long-term debt in our condensed consolidated balance sheets related to cumulative basis adjustments for our interest rate swaps designated as fair value hedges.

The cumulative amounts exclude cumulative basis adjustments related to foreign exchange risk.

At March 31, At December 31,

At June 30, At December 31,

(dollars in millions) 2026 2025

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We present exchange gains and losses from the conversion of foreign currency denominated debt as a part of Interest expense.

During the three months ended March 31, 2026 and March 31, 2025 , these amounts completely offset each other and no net gain or loss was recorded.

Changes in the fair value of cross currency swaps attributable to time value and cross currency basis spread are initially recorded to Other comprehensive loss.

Unrealized gains or losses on excluded components are recorded in Other comprehensive loss and are recognized into Interest expense on a systematic and rational basis through the swap accrual over the life of the hedging instrument.

During the three and six months ended June 30, 2026 and June 30, 2025 , these amounts completely offset each other and no net gain or loss was recorded.

Changes in the fair value of cross currency swaps attributable to time value and cross currency basis spread are initially recorded to Other comprehensive income.

Unrealized gains or losses on excluded components are recorded in Other

comprehensive income and are recognized into Interest expense on a systematic and rational basis through the swap accrual over the life of the hedging instrument.

On March 31, 2022, we elected to de-designate our cross currency swaps previously designated as cash flow hedges and re-designated these swaps as fair value hedges.

2 unchanged sentences

The initial value of the excluded components of $ 1.0 billion as of March 31, 2022 will continue to be amortized into Interest expense over the remaining life of the hedging instruments.

During the three months ended March 31, 2026 and March 31, 2025 , the amortization of the initial value of the excluded component completely offset the amortization related to the amount remaining in Other comprehensive loss related to cash flow hedges.

During the three and six months ended June 30, 2026 and June 30, 2025 , the amortization of the initial value of the excluded component completely offset the amortization related to the amount remaining in Other comprehensive income related to cash flow hedges.

See Note 9 for additional information.

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In January 2026, we de-designated the existing net investment hedge and re-designated the same Euro-denominated note in a new net investment hedge including additional foreign subsidiaries.

The notional amount of Euro-denominated debt designated as a net investment hedge was € 750 million as of both March 31, 2026 and December 31, 2025.

The notional amount of Euro-denominated debt designated as a net investment hedge was € 750 million as of both June 30, 2026 and December 31, 2025.

Treasury Rate Locks

We enter into treasury rate locks designated as cash flow hedges to mitigate our interest rate risk on future transactions.

We recognize gains and losses resulting from interest rate movements in Other comprehensive loss .

We recognize gains and losses resulting from interest rate movements in Other comprehensive income .

We also enter into undesignated treasury rate locks to mitigate our interest rate risk on future transactions.

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The following table summarizes the activity of our derivatives not designated in hedging relationships:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2026 2025 2026 2025

3 unchanged sentences

Pre-tax gain (loss) recognized in Other income, net

( 10 ) 60 ( 22 ) 88

Cross Currency Swaps:

1 unchanged sentence

Notional value settled — — — —

Pre-tax loss recognized in Interest expense

Pre-tax gain (loss) recognized in Interest expense

10 — ( 11 ) —

Treasury Rate Locks:

1 unchanged sentence

Notional value settled — 1,000 — 1,250

Pre-tax gain recognized in Interest expense

Pre-tax loss recognized in Interest expense

— ( 8 ) — ( 5 )

Variable Prepaid Forward:

Notional value entered into 422 — 422 —

Notional value settled — — — —

Pre-tax loss recognized in Other income, net

( 135 ) — ( 135 ) —

Foreign Exchange Forwards

We entered into Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries.

Variable Prepaid Forward

In May 2026, we entered into a VPF to mitigate market risk related to certain marketable equity securities and received a prepayment of approximately $ 358 million.

The prepayment resulted in an other-than-insignificant financing element.

As such, the cash flows related to the VPF will be classified within Cash flow from financing activities in the condensed consolidated statements of cash flows.

As part of this arrangement, the Company has pledged the underlying marketable equity securities with a fair value of approximately $ 546 million as of June 30, 2026.

Concentrations of Credit Risk

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We do not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value.

At both March 31, 2026 and December 31, 2025, we did not hold any collateral.

At both March 31, 2026 and December 31, 2025, we posted $ 1.1 billion of collateral related to derivative contracts under collateral exchange agreements, which were recorded as Prepaid expenses and other in our condensed consolidated balance sheets.

At both June 30, 2026 and December 31, 2025, we did not hold any collateral.

At both June 30, 2026 and December 31, 2025, we posted $ 1.1 billion of collateral related to derivative contracts under collateral exchange agreements, which were recorded as Prepaid expenses and other in our condensed consolidated balance sheets.

While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect that any such nonperformance would result in a significant effect on our results of operations or financial condition due to our diversified pool of counterparties.

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Pension Health Care and Life

Three Months Ended March 31, 2026 2025 2026 2025

Three Months Ended June 30, 2026 2025 2026 2025

Service cost - Cost of services $ 53 $ 35 $ 5 $ 7

4 unchanged sentences

Interest cost 129 101 135 137

Remeasurement gain, net ( 18 ) — ( 219 ) —

Remeasurement loss, net — 45 — —

Other components $ ( 6 ) $ 40 $ 97 $ 98

Total $ 47 $ 81 $ 102 $ 106

(dollars in millions)

Pension Health Care and Life

Six Months Ended June 30,

2026 2025 2026 2025

Service cost - Cost of services $ 101 $ 69 $ 11 $ 14

Service cost - Selling, general and administrative expense

Service cost $ 101 $ 80 $ 11 $ 17

Amortization of prior service cost (credit) $ 82 $ 56 $ ( 62 ) $ ( 64 )

Expected return on plan assets ( 361 ) ( 268 ) ( 14 ) ( 14 )

Interest cost 248 204 264 273

Remeasurement loss (gain), net ( 18 ) 45 ( 219 ) —

Other components $ ( 49 ) $ 37 $ ( 31 ) $ 195

Total $ 52 $ 117 $ ( 20 ) $ 212

The service cost component of net periodic benefit cost (income) is recorded in Cost of services and Selling, general and administrative expense in the condensed consolidated statements of income while the other components, including mark-to-market adjustments, if any, are recorded in Other income, net.

Severance Payments

During the three months ended March 31, 2026, we paid severance benefits of $ 973 million primarily related to separations in connection with the workforce reduction initiatives announced in the prior year.

At March 31, 2026, we had a remaining severance liability of $ 699 million, a portion of which includes future contractual payments to employees separated as part of the workforce reduction initiatives.

During the three and six months ended June 30, 2026, we paid severance benefits of $ 142 million and $ 1.1 billion, respectively, primarily related to separations in connection with the workforce reduction initiatives from the prior year.

At June 30, 2026, we had a remaining severance liability of $ 959 million, a portion of which includes future contractual payments to employees separated as part of our workforce reduction initiatives.

Employer Contributions

During the three months ended March 31, 2026 and March 31, 2025, we made no contributions to our qualified pension plans and made insignificant contributions to our nonqualified pension plans.

In April 2026, we made an insignificant required contribution to our recently acquired Frontier Communications pension plan.

See Note 3 for additional information on recent acquisitions.

During the three and six months ended June 30, 2026, we made an insignificant contribution to one of our qualified pension plans.

During the three and six months ended June 30, 2025, we made a discretionary non-cash contribution to our qualified pension plans in the principal amount of $ 563 million.

During the three and six months ended June 30, 2026 and June 30, 2025, we made insignificant contributions to our nonqualified pension plans.

An additional insignificant required qualified pension plan contribution is expected through December 31, 2026.

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This was primarily driven by a credit of $ 412 million due to an increase in our discount rate assumption used to determine the current year liabilities of certain plans from a weighted-average of 5.7 % for the pension plans and 5.4 % for the postretirement plans at December 31, 2025 to a weighted-average of 5.9 % for the pension plans and 5.7 % for the postretirement plans at March 31, 2026, partially offset by a charge of $ 175 million primarily resulting from the difference between our estimated and our actual return on certain pension plan assets.

The net credit was recorded in Other income, net, in our condensed consolidated statement of income.

The net credit was recorded in Other income, net, in our condensed consolidated statements of income.

Equity and Accumulated Other Comprehensive Loss

Changes in the components of Total equity were as follows:

Three Months Ended March 31,

Three Months Ended June 30,

(dollars in millions, except per share amounts, and shares in thousands) Shares Amount Shares Amount

3 unchanged sentences

Balance at beginning of period 13,263 13,415

Balance at end of period 13,258 13,412

Retained Earnings

Balance at beginning of period 96,824 91,128

Net income attributable to Verizon 3,835 5,003

Dividends declared ($ 0.7075 , $ 0.6775 per share)

( 2,931 ) ( 2,856 )

Balance at end of period 97,728 93,275

Accumulated Other Comprehensive Loss

Balance at beginning of period attributable to Verizon ( 2,372 ) ( 1,489 )

Foreign currency translation adjustments 8 76

Unrealized gain (loss) on cash flow hedges 23 ( 21 )

Unrealized gain (loss) on fair value hedges 542 ( 39 )

Unrealized gain on marketable securities 1 —

Defined benefit pension and postretirement plans 14 ( 2 )

Other comprehensive income 588 14

Balance at end of period attributable to Verizon ( 1,784 ) ( 1,475 )

Treasury Stock

Balance at beginning of period ( 115,874 ) ( 5,335 ) ( 75,178 ) ( 3,295 )

Shares purchased ( 21,289 ) ( 1,000 ) — —

Employee plans 505 23 70 3

Balance at end of period ( 136,658 ) ( 6,312 ) ( 75,108 ) ( 3,292 )

Deferred Compensation-ESOPs and Other

Balance at beginning of period 500 534

Restricted stock equity grant 188 183

Amortization ( 87 ) ( 3 )

Balance at end of period 601 714

Noncontrolling Interests

Balance at beginning of period 1,313 1,315

Total comprehensive income 114 118

Distributions and other

( 151 ) ( 135 )

Balance at end of period 1,276 1,298

Total Equity $ 105,196 $ 104,361

Six Months Ended June 30,

(dollars in millions, except per share amounts, and shares in thousands) Shares Amount Shares Amount

Balance at beginning of period 4,291,434 $ 429 4,291,434 $ 429

Balance at end of period 4,291,434 429 4,291,434 429

Additional Paid In Capital

Balance at beginning of period 13,372 13,466

( 114 ) ( 54 )

Balance at end of period 13,258 13,412

Retained Earnings

8 unchanged sentences

Unrealized gain on cash flow hedges 46 —

Unrealized loss on fair value hedges ( 188 ) ( 653 )

Unrealized loss on marketable securities ( 3 ) 1

Unrealized gain (loss) on fair value hedges 354 ( 692 )

Unrealized gain (loss) on marketable securities ( 2 ) 1

Defined benefit pension and postretirement plans ( 435 ) ( 4 )

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Under the program, shares may be repurchased in privately negotiated transactions, on the open market, or otherwise, including through plans complying with Rule 10b5-1 or Rule 10b-18 under the Exchange Act.

The timing and number of shares purchased under the program, if any, will depend on prevailing stock prices,

general economic and market conditions, and other considerations.

The timing and number of shares purchased under the program, if any, will depend on prevailing stock prices, general economic and market conditions, and other considerations.

The share repurchase program does not obligate us to acquire any particular amount of common stock, and the program may be suspended or discontinued at any time at our discretion.

In February 2026, we entered into ASR agreements with certain financial institution counterparties to repurchase shares of our common stock in exchange for an upfront payment of $ 2.5 billion and received an initial delivery of 45,116,772 shares of common stock using a reference price of $ 47.10 .

In March 2026, the ASR transactions were completed, and we received an additional 5,641,251 shares.

In March 2026, these ASR transactions were completed, and we received an additional 5,641,251 shares.

This resulted in a total of 50,758,023 shares repurchased under the ASR agreements at an average repurchase price of $ 49.25 , not including related excise tax.

The initial and additional shares received under the ASR agreements were excluded from the outstanding shares used to calculate the weighted average common shares outstanding for basic and diluted earnings per share from the date the respective shares were received by the Company and classified as treasury shares.

At March 31, 2026, the maximum remaining aggregate consideration that could be paid by or on behalf of Verizon under our share repurchase program was $ 22.5 billion.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareholder plans, including 9.1 million shares of common stock issued from treasury stock during the three months ended March 31, 2026.

In April 2026, we entered into an ASR agreement with a certain financial institution counterparty to repurchase shares of our common stock in exchange for an upfront payment of $ 1.0 billion and received an initial delivery of 17,993,226 shares of common stock using a reference price of $ 47.24 .

In June 2026, the ASR transaction was completed, and we received an additional 3,296,217 shares.

This resulted in a total of 21,289,443 shares repurchased under the ASR agreement at an average repurchase price of $ 46.97 , not including related excise tax.

For the six months ended June 30, 2026, we repurchased a total of 72,047,466 shares for an aggregate payment of $ 3.5 billion.

All shares received under the ASR agreements were excluded from the outstanding shares used to calculate the weighted average common shares outstanding for basic and diluted earnings per share from the date the respective shares were received by the Company and classified as treasury shares.

At June 30, 2026, the maximum remaining aggregate consideration that could be paid by or on behalf of Verizon under our share repurchase program was $ 21.5 billion.

Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareholder plans, including 9.6 million shares of common stock issued from treasury stock during the six months ended June 30, 2026.

Accumulated Other Comprehensive Loss

1 unchanged sentence

(dollars in millions) Foreign

currency translation adjustments Unrealized gain (loss) on cash flow hedges Unrealized loss on fair value hedges Unrealized loss on marketable securities Defined benefit pension and postretirement plans Total

currency translation adjustments Unrealized gain (loss) on cash flow hedges Unrealized gain (loss) on fair value hedges Unrealized loss on marketable securities Defined benefit pension and postretirement plans Total

Balance at January 1, 2026 $ ( 607 ) $ ( 989 ) $ ( 328 ) $ — $ 197 $ ( 1,727 )

3 unchanged sentences

Net other comprehensive income (loss) ( 20 ) 46 354 ( 2 ) ( 435 ) ( 57 )

Balance at March 31, 2026 $ ( 635 ) $ ( 966 ) $ ( 516 ) $ ( 3 ) $ ( 252 ) $ ( 2,372 )

Balance at June 30, 2026 $ ( 627 ) $ ( 943 ) $ 26 $ ( 2 ) $ ( 238 ) $ ( 1,784 )

The amounts presented above in Net other comprehensive income (loss) are net of taxes.

The amounts reclassified to net income related to unrealized gain (loss) on cash flow hedges and unrealized loss on fair value hedges in the table above are included in Other income, net and Interest expense in our condensed consolidated statements of income.

The amounts reclassified to net income related to unrealized gain (loss) on cash flow hedges and unrealized gain (loss) on fair value hedges in the table above are included in Other income, net and Interest expense in our condensed consolidated statements of income.

See Note 7 for additional information.

26 unchanged sentences

Corporate and other primarily includes device insurance programs, investments in unconsolidated businesses and development stage businesses that support our strategic initiatives, as well as unallocated corporate expenses, certain pension and other employee benefit related costs and interest and financing expenses.

Corporate and other also includes the historical results of divested businesses and other adjustments and gains and losses that are not allocated or used in assessing segment performance due to their nature.

Corporate and other also includes the results of divested businesses and businesses held for sale, as well as other adjustments and gains and losses that are not allocated or used in assessing segment performance due to their nature.

Although such transactions are excluded from the business segment results, they are included in reported consolidated earnings.

Gains and losses from these transactions that are not individually significant are included in segment results and therefore included in the CODM's assessment of segment performance.

Where applicable, historical segment results have been reclassified to conform to the current period presentation.

The following table provides operating financial information for our two reportable segments:

Three Months Ended March 31,

Three Months Ended June 30,

(dollars in millions) Consumer Business Total

7 unchanged sentences

Total Operating Revenues (6)

26,242 7,155 33,397 26,648 6,973 33,621

Operating Expenses (3)

3 unchanged sentences

Depreciation and amortization expense (6)

3,787 1,091 4,878 3,582 998 4,580

Other segment expenses (5)(6)

3 unchanged sentences

Operating Income (6)

$ 8,032 $ 991 $ 9,023 $ 7,643 $ 724 $ 8,367

(1) Mobility and broadband service revenue primarily includes revenue from mobility communication services, FWA broadband, Fios internet and other fiber-based services.

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(5) Other segment expenses for each reportable segment include certain personnel, digital content, sales-related, overhead, other direct and operating costs.

(6) Historical Business segment results have been reclassified to conform to the current period presentation.

See Note 3 for additional information.

Six Months Ended June 30,

(dollars in millions) Consumer Business Total

Segments Consumer Business Total

External Operating Revenues

Mobility and broadband service (1)

$ 38,671 $ 7,402 $ 46,073 $ 37,655 $ 7,436 $ 45,091

Wireless equipment 9,002 1,703 10,705 9,901 1,752 11,653

4,876 5,166 10,042 4,562 4,773 9,335

Intersegment revenues 146 14 160 148 14 162

Total Operating Revenues (6)

52,695 14,285 66,980 52,266 13,975 66,241

Operating Expenses (3)

Cost of wireless equipment 9,961 2,405 12,366 10,718 2,395 13,113

Centrally managed network and shared service costs (4)(6)

9,020 4,473 13,493 9,042 4,574 13,616

Depreciation and amortization expense (6)

7,517 2,140 9,657 7,125 1,987 9,112

Other segment expenses (5)(6)

10,451 3,320 13,771 10,314 3,549 13,863

Total Operating Expenses (6)

36,949 12,338 49,287 37,199 12,505 49,704

Operating Income (6)

$ 15,746 $ 1,947 $ 17,693 $ 15,067 $ 1,470 $ 16,537

(1) Mobility and broadband service revenue primarily includes revenue from mobility communication services, FWA broadband, Fios internet and other fiber-based services.

(2) Other revenue primarily includes revenue from wireline products that provide legacy voice, video and data solutions, as well as broadband solutions over a traditional copper-based network.

Other revenue also includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, leasing and interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement.

(3) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

Intersegment expenses are included within the amounts shown.

(4) Centrally managed network and shared service costs include costs for network and leased assets, supply chain and other centralized services that are allocated to our Consumer and Business segments based on proportionate usage of services.

(5) Other segment expenses for each reportable segment include certain personnel, digital content, sales-related, overhead, other direct and operating costs.

(6) Historical Business segment results have been reclassified to conform to the current period presentation.

See Note 3 for additional information.

Reconciliation to Consolidated Financial Information

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A reconciliation of the reportable segments' operating revenues to consolidated operating revenues is as follows:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2026 2025 2026 2025

3 unchanged sentences

936 965 1,872 1,909

( 80 ) ( 82 ) ( 159 ) ( 161 )

Total consolidated operating revenues $ 34,253 $ 34,504 $ 68,693 $ 67,989

(1) Historical segment results have been reclassified to conform to the current period presentation.

See Note 3 for additional information.

A reconciliation of the total reportable segments' operating income to consolidated income before provision for income taxes is as follows:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2026 2025 2026 2025

Total reportable segments operating income (1)

$ 9,023 $ 8,367 $ 17,693 $ 16,537

Corporate and other (1)

( 280 ) ( 187 ) ( 433 ) ( 371 )

Other components of net periodic benefit charges (Note 8) ( 28 ) ( 8 ) ( 42 ) ( 16 )

Severance charges

( 397 ) — ( 397 ) —

Acquisition and integration related charges

( 135 ) — ( 396 ) —

Asset rationalization ( 258 ) — ( 258 ) —

Loss on disposition of business ( 746 ) — ( 746 ) —

Total consolidated operating income 7,179 8,172 15,421 16,150

Equity in earnings of unconsolidated businesses 5 6

Equity in earnings (losses) of unconsolidated businesses 44 ( 3 ) 49 3

Other income, net 36 79 513 200

1 unchanged sentence

Income Before Provision For Income Taxes $ 5,274 $ 6,609 $ 12,058 $ 13,082

No single customer accounted for more than 10% of our total operating revenues during the three months ended March 31, 2026 or 2025.

(1) Historical segment results have been reclassified to conform to the current period presentation.

See Note 3 for additional information.

No single customer accounted for more than 10% of our total operating revenues during the three and six months ended June 30, 2026 or 2025.

The CODM does not review disaggregated assets on a segment basis;

3 unchanged sentences

We maintain a voluntary supplier finance program with a financial institution which provides certain suppliers the option, at their sole discretion, to participate in the program and sell their receivables due from Verizon to the financial institution on a non-recourse basis.

As of March 31, 2026 and December 31, 2025, $ 533 million and $ 723 million, respectively, remained as confirmed obligations outstanding related to suppliers participating in the supplier finance program.

As of June 30, 2026 and December 31, 2025, $ 491 million and $ 723 million, respectively, remained as confirmed obligations outstanding related to suppliers participating in the supplier finance program.

Commitments and Contingencies

15 unchanged sentences

From time to time, counterparties may make claims under these provisions, and Verizon will seek to defend against those claims and resolve them in the ordinary course of business.

As of March 31, 2026, Verizon had 29 renewable energy purchase agreements (REPAs) with third parties.

As of June 30, 2026, Verizon had 29 renewable energy purchase agreements (REPAs) with third parties.

Each of the REPAs is based on the expected operation of a renewable energy-generating facility and has a fixed price term of 12 to 20 years from the commencement of the facility's entry into commercial operation.

Twenty-two of the facilities have entered into commercial operation, and the remainder are under development.

Twenty-two of the facilities have entered into commercial

operation, and the remainder are under development.

The REPAs generally are expected to be financially settled based on the prevailing market price as energy is generated by the facilities.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements