Verizon Communications Inc. VZ is benefiting from strong free cash flow growth. In the second quarter of 2026, Verizon generated $6.4 billion of free cash flow, up 24.4% year over year. It was one of the strongest quarterly cash flow performances. Strong free cash flow is supported by improving profitability. Adjusted EBITDA increased 7.2% year over year to $13.7 billion in the second quarter, while the adjusted EBITDA margin expanded to 40.1% from 37.1% a year ago. Verizon's strategy to improve customer acquisition and retention economics while reducing costs is boosting operating leverage and driving cash flow. Verizon's ongoing transformation program is another potential source of cash flow improvement.
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