Verizon's stock rose 40 cents to close at $42.94 Tuesday.
Verizon Wireless revenue climbed 9.5 percent to $20 billion and contributed nearly all of the profit, as usual. Verizon Communications owns 55 percent of Verizon Wireless. The rest is owned by Vodafone Group PLC, which gets a corresponding share of its profits.
On the wired side, operating revenue continued its long slide, falling 1.5 percent to $10 billion as households kept cancelling their landlines.
To compensate, Verizon added a net 144,000 Internet customers and 134,000 pay-TV customers to its FiOS fiber-optic service, bringing the company to a total of 5.4 million FiOS Internet and 4.7 million FiOS Video customers.
For the year, Verizon Communications earned $875 million, or 31 cents per share. In 2011, it earned $2.4 billion, or 85 cents per share. Annual revenue increased to $115.85 billion from $110.88 billion.
Verizon's report marks the debut for telecommunications companies this earnings season. Rival AT&T Inc. reports on Thursday.
AP Business Writer Michelle Chapman contributed to this report.