Shares of Verizon Communications (NYSE: VZ) were falling today after the telecom giant posted disappointing revenue results on weakness in wireless equipment and due to a slow phone upgrade cycle.

As of 11:44 a.m. ET, Verizon stock was down 4.3%.

Verizon underwhelms

Verizon's core wireless service business continued to deliver steady growth, up 2.7% to $19.8 billion with 239,000 retail postpaid netphone additions, meaning monthly paying customers. The broadband business also delivered solid growth with net additions up 389,000.

Overall revenue was flat at $33.3 billion, slightly below estimates at $33.43 billion, as wireless equipment revenue fell 8.1% to $5.3 billion.

Verizon also said it reached its fixed wireless subscriber target 15 months ahead of schedule, hitting 4.2 million fixed wireless subscribers.

However, on the cost side, the company reported $2.3 billion in special charges, including $1.7 billion related to severance charges for layoffs.

Smartphone upgrades have slowed down even with the release iPhone 16, and its bottom-line growth remained sluggish with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) up modestly from $12.2 billion to $12.5 billion. Adjusted earnings per share (EPS) fell from $1.22 to $1.19, which edged out estimates for $1.18.

CEO Hans Vestberg said, "Our new products -- myPlan, myHome and Verizon Business Complete -- and our brand refresh are resonating with customers."

What's next for Verizon

Verizon maintained its full-year guidance of wireless service revenue growth of 2% to 3.5%, adjusted EBITDA growth of 1% to 3%, and adjusted EPS of $4.50 to $4.70, which compared to estimates at $4.57.

Verizon is looking forward to closing on its acquisition of Frontier Communications, which it sees as a way of expanding its fiber footprint. The deal will cost $20 billion, which includes Frontier's $11 billion in debt. The deal is risky, and it will take time to work its way through the regulatory process.

Today's earnings report didn't have any red flags, but it's understandable that the stock is sliding on a decline in revenue and EPS in the quarter.

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