Key Takeaways
- Verizon shares climbed approximately 4% during premarket hours following stronger-than-expected quarterly results
- The carrier gained 55,000 net postpaid phone subscribers — marking the first positive first quarter performance since 2013
- Earnings per share on an adjusted basis reached $1.28, surpassing Wall Street’s $1.21 projection
- Annual 2026 EPS outlook upgraded to $4.95–$4.99 from the previous $4.90–$4.95 forecast
- Wireless service revenue experienced temporary pressure due to $20 customer credits issued after a January network disruption
Verizon delivered first-quarter performance on Monday that exceeded market expectations, triggering a positive stock reaction. Shares of the telecommunications provider climbed approximately 4% before the opening bell, trading at $48.33.
Verizon Communications Inc., VZ
The company reported adjusted earnings of $1.28 per share, surpassing the analyst projection of $1.21 per share based on FactSet data. Total revenue reached $34.4 billion, representing a 2.9% increase from the year-ago period, while coming in marginally below the $34.8 billion forecast.
The most significant metric that captured market attention centered on customer additions. Verizon gained 55,000 net postpaid phone subscribers during the quarter. Wall Street had anticipated a decline ranging from 81,000 to 88,000.
This represents the first occasion Verizon has delivered positive postpaid phone customer growth during a first quarter since 2013. For a telecommunications company working to strengthen its wireless operations, this achievement carries significant weight.
Forces Behind the Customer Growth Reversal
CEO Dan Schulman attributed the performance to a revised approach to customer relationships. “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 stated.
The strategy included aggressive targeting of competing carriers’ customers. Verizon presented enhanced offers to consumers who submitted bills from AT&T and T-Mobile, successfully drawing subscribers from these competitors.
The company has also emphasized bundled service packages — pairing home broadband with wireless plans — a tactical approach AT&T has employed to strengthen customer retention. Early indications suggest this approach is generating results.
The quarterly figures incorporate Frontier for the first time, reflecting the completion of that acquisition on January 20.
One challenge deserves mention: wireless service revenue faced pressure from $20 credits distributed to customers following a network disruption in January that persisted for approximately 10 hours. Hundreds of thousands of subscribers received this compensation, creating a headwind for revenue.
Upgraded Financial Outlook
Verizon elevated its full-year adjusted EPS projection to $4.95–$4.99 per share, an increase from the prior $4.90–$4.95 range, and exceeding the $4.90 analyst consensus at the midpoint.
The telecommunications provider also indicated expectations for total retail postpaid phone net customer additions throughout 2026 to fall within the upper portion of its 750,000 to 1 million projected range.
This represents a subtle yet important forecast enhancement. Verizon is signaling to the investment community that the first quarter performance represents a sustainable trend.
S&P 500 futures showed minimal movement on Monday as the broader market awaited earnings reports from major technology companies.
