Verizon Beats Third-Quarter Profit Estimates and Raises 2026 Earnings Guidance

Verizon Communications (NYSE:VZ) reported third-quarter 2026 adjusted earnings above analysts’ expectations on Monday and increased its full-year guidance following growth in mobile phone subscribers, service revenue and cash flow.

The US telecommunications company reported adjusted earnings per share of $1.31, exceeding the analyst consensus of $1.28 by $0.03.

Quarterly revenue increased 1.5% year on year to $34.31 billion, although the figure was below market expectations of $34.77 billion.

Verizon shares rose 0.7% following the announcement.

The company also raised its adjusted earnings outlook for 2026 for the third consecutive quarter, reflecting its latest operating performance and expectations for the remainder of the year.

Mobile Subscriber Additions Increase During Third Quarter

Verizon reported 406,000 net additions of postpaid mobile phone subscribers during the quarter, representing an increase of more than 820% compared with the same period last year.

The company said the figure marked its highest third-quarter subscriber additions in five years.

Postpaid net account additions reached 137,000, representing Verizon’s highest quarterly result in more than a decade.

The increase in subscriber numbers followed changes to the company’s customer offerings, including its Simplicity plans and expanded loyalty programme.

Verizon has been focusing on customer retention and service offerings rather than relying primarily on promotional device subsidies to attract subscribers.

The company reported that mobility and broadband service revenue increased 2.9% year on year to $23.5 billion.

Adjusted EBITDA Rises 8% to $13.8 Billion

Verizon reported consolidated adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $13.8 billion for the third quarter.

The figure represented an 8.0% increase compared with the corresponding period in 2025.

According to the company, this was its highest quarterly adjusted EBITDA on record.

The increase accompanied growth in service revenue and customer additions, while Verizon continued implementing changes to its commercial and operating strategy.

Chief Executive Officer Dan Schulman commented on the results and the company’s progress over the past year.

“Verizon delivered another record-breaking quarter. One year into our transformation, Verizon is fundamentally stronger — operationally, financially, and competitively,” Schulman said.

“By prioritizing customer-first offerings like Simplicity and our expanded loyalty program over heavy subsidies, we are winning loyal, high-value customers while expanding margins, reducing churn, and generating strong sustained cash flow.”

The comments reflect management’s assessment of Verizon’s operating performance and its approach to subscriber acquisition and retention.

Verizon Raises Full-Year 2026 Earnings and Subscriber Guidance

Verizon increased its full-year 2026 adjusted earnings per share forecast to a range of $5.04 to $5.06.

The midpoint of $5.05 is above the analyst consensus estimate of $5.02.

The company now expects adjusted EPS growth of 7.0% to 7.5% compared with 2025, up from its previous forecast of 6.0% to 7.0%.

Verizon also increased its forecast for full-year postpaid phone net additions to between 1.1 million and 1.2 million.

The previous guidance called for performance in the upper half of a range of 750,000 to 1.0 million net additions.

The revised outlook follows the company’s third-quarter subscriber performance and represents its third consecutive quarterly increase in annual guidance.

Free Cash Flow Reaches $7.8 Billion

Verizon reported operating cash flow of $11.5 billion during the third quarter, an increase of 2.2% year on year.

Free cash flow rose 12.1% to $7.8 billion.

The company also increased its full-year free cash flow growth forecast, now expecting an increase approaching 12.0% compared with 2025.

Its previous guidance projected growth of between 9.0% and 10.0%.

The revised forecast reflects Verizon’s expectations for cash generation as it continues to invest in telecommunications infrastructure and manage its operating expenses.

Verizon Outlook

Verizon’s third-quarter results showed growth in adjusted earnings, mobile subscriber additions, service revenue and cash flow, although total revenue remained below analysts’ expectations.

The company increased its annual forecasts for adjusted earnings, postpaid subscriber additions and free cash flow growth.

Investors will continue to assess whether Verizon can maintain its subscriber additions, revenue growth and cash generation while implementing its customer retention and operating strategy.

Verizon Communications stock price