Verizon Communications (VZ) Earnings Date & Reports

Key Takeaways

• Verizon reported third-quarter 2026 adjusted earnings per share (EPS) of $1.31, beating the analyst consensus of $1.28 by $0.03.
• Total operating revenue rose 1.5% year over year to $34.31 billion, but came in slightly below the consensus estimate of $34.77 billion.
• Postpaid phone net additions reached 406,000, up more than 820% year over year and the company's strongest third quarter in five years.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 8% to a record $13.8 billion, with margins expanding to 40.2%.
• Free cash flow grew 12.1% to $7.8 billion, the highest quarterly level since 2020, prompting a third consecutive full-year guidance increase.
• Verizon also announced a dark fiber agreement with Amazon Web Services valued at more than $2 billion to support AI data-center connectivity.
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Earnings Context and Why It Matters

Verizon's third-quarter report is a key test of the turnaround strategy launched under CEO Dan Schulman, which emphasizes customer-first offerings and disciplined promotions over heavy device subsidies. Coming into the quarter, investors were watching whether the wireless carrier could sustain subscriber momentum against rivals AT&T and T-Mobile while preserving profitability. The results matter because they show whether Verizon can convert customer additions into durable service-revenue growth and expanding margins—trends that directly support its dividend and cash-flow profile. With the company also integrating its Frontier Communications acquisition and expanding into AI-driven fiber connectivity, this report offered a read on both near-term competitive positioning and longer-term growth initiatives.

Reported Results

For the third quarter of 2026, Verizon reported adjusted EPS of $1.31, an 8.3% increase from the prior year and $0.03 above consensus. Total operating revenue rose 1.5% year over year to $34.31 billion, though the figure landed below the $34.77 billion analysts expected, largely reflecting a 9% decline in wireless equipment revenue as upgrade volumes fell more than 20%.

Operationally, the quarter was strong. Verizon added 406,000 postpaid phone subscribers, versus about 44,000 a year earlier, and 137,000 postpaid net accounts—its best account growth in more than a decade. Broadband net additions totaled 314,000, and postpaid phone churn improved 4 basis points to 94 basis points. Mobility and broadband service revenue grew 2.9% to approximately $23.5 billion.

Adjusted EBITDA climbed 8% to a record $13.8 billion, with the margin reaching 40.2%, up 240 basis points year over year. Free cash flow rose 12.1% to $7.8 billion, its highest quarterly total since 2020. Management raised full-year guidance for adjusted EPS growth to 7.0%–7.5% (a range of $5.04–$5.06) and lifted free cash flow growth expectations to approach 12%.

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Market Reaction and Investor Sentiment

Verizon shares rose approximately 0.7% following the announcement, a muted but positive response that reflected the quarter's split signals. The earnings beat, record profitability, and raised guidance supported the stock, while the revenue miss and softer equipment sales tempered enthusiasm. Broader sentiment heading into the print had been shaped by competitive concerns in wireless and SpaceX-related disruption fears, yet Verizon's ability to add subscribers at a lower cost to acquire and retain underscored management's emphasis on profitable growth. The third consecutive upward revision to full-year guidance signaled confidence in sustained momentum, though investors remain attentive to leverage levels and the integration of the Frontier acquisition.

Forward Outlook and Key Factors to Monitor

Verizon enters the fourth quarter with clear momentum in subscriber growth and cash generation. Management now expects postpaid phone net additions of 1.1 million to 1.2 million for the full year and projects mobility and broadband service revenue growth to accelerate to roughly 4% in the fourth quarter. The company also anticipates a return to wireless service revenue growth during that period.

Several factors warrant monitoring. First, investors will watch whether Verizon can sustain its subscriber gains without reverting to costly promotions, given that its cost of acquisition and retention both declined sharply in the quarter. Second, the fiber build remains central to the long-term story, with management targeting more than 32 million fiber passings by year-end and 40 million to 50 million over the medium term.

Third, the newly signed AWS dark fiber agreement—part of roughly $4 billion in signed contracts—points to emerging AI-infrastructure demand, with management expecting revenue contributions to build meaningfully into 2027. Finally, progress on the $9 billion cost-reduction plan and Frontier integration synergies will shape margin and cash-flow trajectories. While the quarter reinforced the turnaround narrative, execution on these initiatives will determine whether the momentum is sustainable.

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