Verizon’s expanding margins and Medifast’s restructuring losses offered contrasting pictures of US corporate performance on October 26, 2026. Both companies released third-quarter results before the opening bell. Verizon increased its full-year outlook as subscriber growth and cash generation improved, while Medifast reported falling sales and a larger statutory loss as it overhauled its business.
These are completed earnings announcements, rather than forecasts for companies reporting later. The important distinction across the releases is between reported accounting earnings and adjusted measures: restructuring charges and other exclusions can materially change the picture of operating performance.
Verizon: Profit Growth Outpaces Revenue
Verizon reported operating revenue of $34.3 billion, up 1.5% year over year. Consolidated net income rose 5.2% to $5.3 billion, while reported earnings per share increased 6.8% to $1.25 from $1.17. Adjusted EPS, a non-GAAP measure excluding special items, climbed 8.3% to $1.31 from $1.21.
The relatively modest sales increase concealed a stronger services business. Mobility and broadband service revenue grew 2.9% to approximately $23.5 billion, but equipment revenue fell 9%. Verizon attributed the equipment decline to lower upgrade volumes, longer device replacement cycles and reduced device subsidies. That mix matters because stronger recurring services revenue can coexist with slower handset sales.
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Net income margin increased to 15.5% from 14.9%. Adjusted EBITDA rose 8% to $13.8 billion, with its margin expanding to 40.2% from 37.8%. Together, these figures show that profitability improved faster than total revenue, supporting management’s emphasis on operating efficiency and more disciplined promotional spending.
Subscriber Gains and Cash Flow Support Higher Guidance
Verizon added 406,000 postpaid phone subscribers, more than 820% above the year-earlier quarter, and 137,000 postpaid accounts. Postpaid phone churn improved to 0.94%, down four basis points. Broadband net additions reached 314,000, comprising 159,000 fixed wireless and 155,000 fiber connections. The combination of customer additions and lower churn provides more evidence of operating progress than revenue growth alone.
Quarterly operating cash flow increased 2.2% to $11.5 billion, while free cash flow rose 12.1% to $7.8 billion. For the first nine months, free cash flow reached $18 billion, up 14.3%, against capital expenditure of $11.9 billion. Free cash flow is a non-GAAP measure and should be read alongside operating cash flow and investment spending.
Management raised its 2026 adjusted EPS forecast to $5.04–$5.06, representing 7%–7.5% annual growth. It now expects 1.1 million–1.2 million postpaid phone net additions and free cash flow growth approaching 12%. Capital expenditure guidance remains $16 billion–$16.5 billion. These are management forecasts, not achieved full-year results.
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Stronger reported results did not produce an immediate share-price gain in the available trading snapshot. Verizon’s investor page quoted its shares at $43.58, down $1.08, at 10:06 a.m. Eastern Time on October 26. This intraday quotation is not a closing price and does not establish a single cause for the market reaction.
Medifast: Revenue Contracts as Restructuring Widens Losses
Medifast reported quarterly revenue of $72 million, down 19.4% from $89.4 million. Its net loss widened to $17.5 million from $2.3 million, while diluted loss per share increased to $1.57 from $0.21. Excluding Catalyst restructuring charges, adjusted net loss was $2.1 million, or $0.19 per diluted share.
The gap between statutory and adjusted losses is central to interpreting the quarter. Catalyst restructuring and related charges totaled approximately $15.4 million in the reconciliation. Gross margin remained 69.5%, but selling, general and administrative expenses increased to $69.4 million, exceeding gross profit of $50 million.
Active earning coaches declined 47.7% to 10,200. Revenue per active earning coach increased 54.1% to $7,064, but that improvement accompanied a sharply smaller network. Medifast cited customer-acquisition pressure, including the adoption of GLP-1 weight-loss medications, and expects coach numbers to decline through year-end. Higher productivity therefore does not yet demonstrate a recovery in overall demand.
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Medifast’s Outlook Leaves Execution in Focus
Medifast ended September with $172.5 million in cash, cash equivalents and investment securities and no debt. It forecast fourth-quarter revenue of $55 million–$75 million and EPS of $0.00–$0.25. Full-year revenue guidance is $280 million–$300 million, with a reported loss of $1.80–$2.05 per share. Returning to quarterly profitability remains a management expectation.
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