Key Highlights
- Verizon shares climbed approximately 4% during premarket hours following stronger-than-expected Q1 results
- Company gained 55,000 net postpaid phone subscribers — marking its first positive Q1 performance since 2013
- Adjusted earnings per share reached $1.28, surpassing analyst projections of $1.21
- 2026 full-year EPS forecast upgraded to $4.95–$4.99, exceeding previous guidance of $4.90–$4.95
- January network outage temporarily impacted wireless revenue through $20 customer compensation credits
Verizon delivered unexpectedly strong first-quarter earnings on Monday, triggering an enthusiastic market reaction. Shares of the telecommunications giant rallied approximately 4% during premarket hours, climbing to $48.33.
Verizon Communications Inc., VZ
The company reported adjusted earnings of $1.28 per share, exceeding Wall Street’s consensus forecast of $1.21 per share based on FactSet data. Total revenue reached $34.4 billion, representing a 2.9% year-over-year increase, although falling marginally short of the anticipated $34.8 billion.
While the earnings beat drew praise, the real story centered on subscriber performance. Verizon successfully added 55,000 net postpaid phone customers during the quarter. This defied analyst expectations, which had predicted a loss ranging from 81,000 to 88,000 subscribers.
This marks the first instance of positive postpaid phone subscriber growth in a first quarter for Verizon since 2013. For a telecommunications company working to revitalize its wireless operations, this represents a significant achievement.
Factors Behind the Customer Growth
CEO Dan Schulman attributed the success to a revised customer-focused approach. “We are beginning to reclaim our market leadership by putting the customer at the center of everything we do, reducing friction to increase loyalty and create genuine value,” he explained.
A key component of this approach involved aggressive competitor targeting. Verizon introduced attractive incentives for customers willing to switch from AT&T and T-Mobile by presenting their existing bills, successfully converting rival subscribers.
Additionally, the carrier has emphasized bundled service offerings — pairing home internet with wireless plans — a strategy AT&T has employed effectively to improve customer retention. Early indicators suggest this tactic is delivering results for Verizon.
This quarter’s financial statements also incorporate Frontier’s operations for the first time, following the acquisition’s completion on January 20.
One notable challenge: wireless service revenue experienced pressure from $20 credits distributed to customers following a roughly 10-hour service disruption in January. Hundreds of thousands of subscribers received these compensation credits, creating a modest drag on revenue.
Improved Financial Outlook
Verizon elevated its full-year adjusted EPS guidance to a range of $4.95–$4.99 per share. This represents an increase from the previously announced $4.90–$4.95 range and exceeds the analyst consensus of $4.90 at the midpoint.
The company additionally indicated that total retail postpaid phone net additions for 2026 are now projected to fall in the upper portion of its 750,000 to 1 million guidance range.
While subtle, this revision carries significant weight. Verizon isn’t merely celebrating a single quarter’s success — management is signaling sustained momentum ahead.
S&P 500 futures traded essentially flat on Monday as investors awaited major technology company earnings announcements.
