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    Verizon Communications (VZ) Expands Google Cloud AI Partnership, Is The Stock Still Undervalued?

    Simply Wall St·08/26/2026 12:32:17
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    Verizon Communications (VZ) is drawing fresh attention after announcing an expanded partnership with Google Cloud that will roll out Gemini Enterprise AI tools across customer service, network operations, marketing, and internal workflows.

    Over the past year Verizon Communications has seen momentum build, with a year to date share price return of 24.01% and a 30 day share price return of 8.34%, alongside a 1 year total shareholder return of 22.11%. Recent product launches and upcoming debt redemption continue to keep the stock in focus.

    Spot emerging telecom and AI momentum by comparing Verizon Communications with a handpicked 55 AI infrastructure stocks that are also leaning into large scale cloud and Gemini-style deployments.

    After a 24% year to date move and fresh AI headlines, Verizon Communications is no longer a forgotten income play. Does the current valuation still compensate you for the execution and capital allocation risks from here?

    Most Popular Narrative: 50% Undervalued

    Verizon Communications last closed at $50.25, compared with a narrative fair value of $50.50 that points to a modest undervaluation once the full cash flow story is considered.

    Verizon, for instance, had been on my wish list for a very long time, but I kept putting it off due to conflicting reports about the company. At the time (2023), I was able to buy it for approximately $31. Eventually, I did purchase it this week (May 5, 2026) at $47.50 because the company is showing strong figures, including for the coming years. I bought a very small batch, 5 shares. And yes, the psychology of the stock market, if I buy, it drops! I will wait and see for now, and if it drops further later, I will just buy another small amount to maintain the average purchase price. This purchasing method has already saved me a lot of money over the past few years! My goal is to invest a maximum of $5,000 within one to two years. That brings me to 50 companies in which I have invested, with a current portfolio value of $200,000, which has yielded a return of over 15% per year over the past 5 years, partly due to reinvesting all dividends.

    Read the complete narrative.

    The fair value call here rests on more than a headline discount rate. It weighs Verizon Communications revenue growth, profit margin assumptions and a future earnings multiple that has to be earned, not assumed. It also considers which of those levers contributes most in the model and how sensitive that $50.50 figure is to even small changes in the outlook.

    Result: Fair Value of $50.50 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, Verizon Communications still faces execution risk on Gemini integration, and its sizeable debt load could limit flexibility if cash flows soften or rates stay restrictive.

    Find out about the key risks to this Verizon Communications narrative.

    Next Steps

    If this mix of optimism and concern around Verizon Communications feels familiar, do not wait on the sidelines. Explore the full balance of potential risks and upsides in the 3 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond Verizon Communications?

    Do not stop with Verizon Communications. Use the Simply Wall Street Screener to surface fresh ideas tailored to the way you like to build a portfolio.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.