Investing.com -- Verizon Communications Inc (NYSE: VZ) on Friday reported second quarter results that exceeded adjusted earnings expectations while revenue fell short of analyst estimates, with shares rising 2.7% following the announcement.

The telecommunications company posted adjusted earnings per share of $1.30, beating the analyst consensus of $1.28, while revenue of $34.3 billion missed the estimate of $35.28 billion. Revenue declined 0.7% YoY, primarily due to a nearly 20% drop in equipment revenue as customers held onto devices longer and the company reduced device subsidies.

However, mobility and broadband service revenue grew 2.8% YoY to approximately $23.4 billion. The company added 184,000 postpaid phone net additions, significantly exceeding the estimate of 103,900 and marking the best Consumer second quarter performance in five years.

Shares gained 2.7% as investors responded positively to the earnings beat and raised full-year guidance. The company increased its 2026 adjusted EPS outlook to $4.99 to $5.04, representing 6.0% to 7.0% YoY growth, with the midpoint of $5.02 above prior expectations.

"We’re putting customers at the center of every decision we make," said Dan Schulman, Verizon CEO. "Our second-quarter results provide clear, compelling evidence that this transformation is driving a structural inflection point across our entire business."

Verizon delivered 348,000 broadband net additions in the quarter, up 12.3% YoY, including 193,000 fixed wireless access additions and 155,000 fiber broadband additions. Consolidated adjusted EBITDA reached a record $13.7 billion, up 7.2% YoY, with adjusted EBITDA margin expanding to 40.1% from 37.1% in the prior year period.

For the first half of 2026, cash flow from operations grew 9.9% to $18.4 billion, while free cash flow surged 16.0% to $10.2 billion. The company raised its full-year free cash flow growth guidance to 9.0% to 10.0% and expanded its share buyback target to up to $4.5 billion from a previous target.

Verizon also raised its mobility and broadband service revenue growth guidance to 2.5% to 3.0% for 2026, with growth expected to accelerate to approximately 4.0% in the fourth quarter.