Communication services stocks declined on October 26, 2026, with the SPDR Communication Services Sector ETF (XLC) reaching its lowest level since June 2025. Verizon shares fell 3.2% following its earnings release, even though the company reported higher quarterly profit and raised its full-year outlook.

Key Takeaways

  • XLC reached its lowest level since June 2025 as several communication services shares declined.
  • Verizon’s stock decline contrasted with earnings growth and a third consecutive increase in full-year guidance.

Communication services stocks retreat across several names

The market update published at 18:11 UTC on October 26 showed Reddit shares down 3% and Meta down 1.4%. APP and TMUS also traded below their previous 52-week lows.

The declines describe a trading-session snapshot, not confirmed closing prices. No percentage change or trading price was supplied for XLC, and the available information does not establish a single cause for the broader retreat.

Verizon’s results show growth rather than an earnings contraction

Verizon’s third-quarter 2026 earnings release reported total operating revenue of $34.3 billion, up 1.5% from a year earlier, and consolidated net income of $5.3 billion, up 5.2%. Earnings per share rose to $1.25 from $1.17; adjusted earnings per share, a non-GAAP measure, increased to $1.31 from $1.21.

Operating performance was mixed beneath those headline gains. Mobility and broadband service revenue grew 2.9%, while equipment revenue declined 9%. Verizon attributed the equipment decline primarily to fewer device upgrades and its decision to reduce device subsidies.

The company raised its full-year guidance for the third consecutive quarter. It now expects adjusted earnings per share of $5.04 to $5.06 and postpaid phone net additions of 1.1 million to 1.2 million. Those figures are management forecasts, not completed results.

The share-price decline therefore should not be treated as evidence that Verizon’s earnings contracted or that it cut its outlook. The supplied information does not establish which factors drove investors’ response.

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