Verizon Is “Hiding the Bad Metrics,” KeyBanc Says after Disclosure Changes; VZ Stock Slides

KeyBanc appears not to have confidence in the reporting structure changes made by telco giant Verizon Communications VZ -0.53% ▼ . The investment banking company contends that Verizon has “certainly ‘cherry-picked’ a few good metrics while the company is hiding the bad metrics.”

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KeyBanc Questions Reporting Structure Changes

Verizon’s shares dropped marginally on Monday afternoon following the comment. KeyBanc believes that the changes obscure visibility into the telco company and make it harder to track the company’s turnaround journey.

Furthermore, KeyBanc called the changes “very investor-unfriendly” and of no use for its financial modeling activities.

On Friday, Verizon submitted a Form 8-K with the U.S. Securities and Exchange Commission (SEC), informing the securities regulator of plans to collapse its product and service subcategories under its consumer and business segments into three areas: mobility and broadband service revenue, wireless equipment revenue, and other revenue. The changes are scheduled to kick off with its first quarter fiscal 2026 results.

“In the first quarter of 2026, Verizon also made changes to the presentation of certain operating metrics and, going forward, will only disclose operating metrics on a consolidated basis,” Verizon noted in the filing. Verizon previously provided more granular details on these areas.

Verizon Marks Turnaround under New CEO

The changes come as Verizon’s efforts to turn around the business under new CEO Dan Schulman — former chief executive at PayPal PYPL +1.54% ▲ — appear to be paying off.

During its fourth quarter ending December 31, Verizon comfortably surpassed Wall Street estimates to post its best quarterly performance in terms of new postpaid phone subscribers. Schulman had implemented a business operation restructuring, including slashing 13,000 roles, as part of turnaround efforts under his leadership.

Is Verizon a Buy, Sell, or Hold?

On Wall Street, analysts continue to approach Verizon’s shares with caution and currently still have a Moderate Buy consensus rating on its stock. This is based on six Buys and nine Holds assigned over the past three months.

Moreover, the average VZ price target of $49.96 implies about 2% downside risk.

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