Key Moments
- Verizon increased its full-year forecast for postpaid phone subscriber additions to a range of 1.1 million to 1.2 million.
- The company signed an AI-focused infrastructure agreement with Amazon Web Services valued at more than $2 billion.
- Third-quarter revenue came in at $34.3 billion, below analyst expectations of $34.74 billion.
Subscriber Growth and Earnings Outlook
Verizon raised its full-year guidance for wireless customer growth after outpacing Wall Street expectations for postpaid phone additions in the third quarter. The telecom operator now projects it will add between 1.1 million and 1.2 million postpaid phone subscribers this year, compared with its prior estimate of 750,000 to 1 million.
The company also tightened and increased its full-year adjusted earnings per share forecast to a range of $5.04 to $5.06, up from its earlier outlook of $4.99 to $5.04.
Third-Quarter Performance Metrics
For the third quarter, Verizon reported 406,000 net additions in monthly-bill paying wireless subscribers, nearly twice analysts’ expectations. Visible Alpha had projected 209,439 such additions.
Despite the stronger subscriber performance, total revenue for the quarter was $34.3 billion, missing analyst estimates of $34.74 billion, according to LSEG data. The company indicated that revenue was weighed down by a decline in device upgrade activity, as customers kept their phones for longer periods following Verizon’s move to reduce device subsidies.
Shares of the New York-based company rose 2.4% in premarket trading.
| Metric | Reported | Analyst Expectation / Prior Guidance |
|---|---|---|
| Q3 postpaid phone net adds | 406,000 | 209,439 (Visible Alpha) |
| Full-year postpaid phone net adds forecast | 1.1 million – 1.2 million | 750,000 – 1 million (earlier projection) |
| Full-year adjusted EPS forecast | $5.04 – $5.06 | $4.99 – $5.04 (earlier projection) |
| Q3 revenue | $34.3 billion | $34.74 billion (LSEG estimate) |
Strategic Shift Under New Leadership
A year into CEO Dan Schulman’s leadership, Verizon has been executing a broad transformation of its operations. The company has restructured parts of its business and simplified its wireless product set.
As part of this effort, Verizon launched its Simplicity plan in June, introducing a streamlined structure that features transparent pricing and unlimited data.
AI Infrastructure Deals With AWS and Google
Verizon signed an AI infrastructure agreement worth more than $2 billion with Amazon Web Services. Under this arrangement, Verizon will deliver high-capacity fiber-optic connectivity to AWS data centers. The connectivity is intended to support faster and more reliable data transfers for increasingly intensive AI computing workloads.
The AWS transaction follows an earlier move in July, when Verizon announced an agreement of more than $1 billion with Google to link data centers through dark fiber. Together, these initiatives illustrate how increasing AI-related demand could provide telecom operators such as Verizon with new revenue opportunities beyond traditional wireless and broadband services.
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