Stock Markets January 30, 2026

Verizon Lifts 2026 Profit Outlook After Best Quarterly Wireless Adds in Six Years

Aggressive year-end promotions and a fiber expansion from the Frontier deal underpin guidance, alongside a $25 billion buyback plan

By Avery Klein VZ
Verizon Lifts 2026 Profit Outlook After Best Quarterly Wireless Adds in Six Years
VZ

Verizon reported a surge in fourth-quarter retail wireless additions driven by heavy device and bundle promotions, prompting the company to raise its 2026 adjusted earnings and free cash flow targets above market expectations. Management also announced a multiyear $25 billion share repurchase program and set a robust subscriber-growth target for 2026 as fiber assets expand following the Frontier acquisition.

Key Points

  • Verizon added 616,000 monthly bill-paying wireless phone subscribers in Q4 2025, surpassing the 417,250 additions expected by FactSet - impacts the telecommunications and consumer services sectors.
  • The company announced a share repurchase program of up to $25 billion over three years, with at least $3 billion planned for the current year - impacts equity markets and investor returns.
  • Verizon raised its 2026 adjusted EPS outlook to $4.90-$4.95 and set minimum annual free cash flow at $21.5 billion, both above analyst expectations - impacts corporate finance and fixed-income assessments of free cash flow sustainability.

Verizon said on Friday it expects 2026 adjusted earnings and free cash flow to top market forecasts after reporting its strongest quarterly retail wireless phone net additions in six years. The company attributed the quarterly gain to aggressive promotions during the peak holiday buying period and to growing traction from combined wireless and broadband bundle offers.

Shares of the U.S. wireless carrier rose 9% after the company unveiled a share repurchase program of up to $25 billion to be executed over the next three years, including at least $3 billion planned for this year.

Telecom operators typically roll out device incentives and bundled plans during the fourth quarter to capture customers switching carriers amid Black Friday and Cyber Monday deals. Verizon said promotions such as offering four phone lines for $100 per month drew strong consumer response, helping the carrier add 616,000 monthly bill-paying wireless phone subscribers in the final three months of 2025. That figure exceeded the 417,250 additions forecast by analysts surveyed by FactSet.

Verizon is leaning on a strategy of wireless and broadband convergence to sustain subscriber growth as it incorporates additional fiber assets from the recently closed Frontier acquisition. Analysts at MoffettNathanson noted that with the Frontier deal completed last week, Verizon’s fiber footprint has expanded to nearly the size of AT&T’s, a development the company is using to bolster bundled offerings that tie mobile service to high-speed home internet.

"Verizon will no longer be a hunting ground for our competitors," the company said. Since taking over as CEO in October, Schulman has pursued cost reductions and restructuring measures, most recently announcing more than 13,000 job cuts as part of efforts to make the company leaner.

For the year, Verizon expects to add between 750,000 and 1 million retail postpaid phone subscribers, a meaningful step up from the 362,000 additions reported in 2025. The company projected adjusted earnings per share for 2026 in a range of $4.90 to $4.95, versus consensus estimates of $4.76 compiled by LSEG. Verizon also set a baseline for annual free cash flow of at least $21.5 billion, above Visible Alpha estimates of $20.96 billion.

Management’s combination of heavy promotional activity, expanded fiber capabilities from the Frontier closing, and an aggressive capital return program has been met positively by investors, as reflected in the share-price movement following the announcements. The firm’s guidance and buyback plan together signal confidence in near-term cash generation tied to both wireless subscriber momentum and the enlarged broadband footprint.


Data and statements in this article reflect the information provided by the company and third-party estimates cited relating to expectations and comparisons.

Risks

  • Promotional intensity required to drive quarterly additions may pressure near-term margins and device economics - impacts the telecommunications sector’s profitability metrics.
  • Execution risk around integrating and monetizing Frontier’s fiber assets to sustain bundled-growth assumptions - impacts broadband and telecom capital allocation.
  • Guidance and buyback plans depend on ongoing cash generation; downward swings in subscriber growth or FCF could affect capital returns and valuation - impacts investor sentiment and equity performance.

More from Stock Markets

Vanguard Lowers Fund Fees Again, Trimming Expense Ratios Across 53 Funds Feb 2, 2026 Snowflake Shares Edge Higher After $200 Million OpenAI Agreement Feb 2, 2026 Vanguard cuts fees on 53 index-backed funds and ETFs in second large reduction this year Feb 2, 2026 Insider Activity Spotlight: Major Purchases in Hycroft Mining Amid Heavy Volume; Multiple Executive Sales Across Tech and Energy Names Feb 2, 2026 60 Degrees Pharmaceuticals Shares Slide After GoodRx Deal to Offer Discounts on ARAKODA Feb 2, 2026