Verizon Communications Inc. has delivered a strong fourth-quarter performance and issued an optimistic outlook for 2026, pointing to what the company calls the beginning of a strategic turnaround. US telecom major beat Wall Street estimates on both earnings and revenue, due to strong customer additions across mobility and broadband, disciplined spending, and the expansion of its fibre network.
Strong customer growth drives performance
One of the biggest reasons behind Verizon’s strong quarter was its best customer additions in years. In the fourth quarter of 2025, the company added 616,000 postpaid phone subscribers, its highest quarterly figure since 2019 and well above analyst expectations. Total mobility and broadband net additions crossed one million, also the strongest level since 2019.
Broadband growth was particularly strong, with 372,000 net additions, including 319,000 fixed wireless access customers and 67,000 Fios internet subscribers, marking the best fourth quarter for Fios additions since 2020. Wireless service revenue rose 1.1% year-on-year to $21.0 billion, and wireless equipment revenue jumped 9.1% to $8.2 billion, helped by strong device upgrade demand.
Earnings and revenue beat expectations
Verizon reported adjusted earnings per share of $1.09 for the quarter, beating analyst estimates of $1.06. Total revenue came in at $36.4 billion, exceeding expectations by about $200 million.
Net income for the quarter stood at $2.4 billion, compared with $5.1 billion a year earlier, indicating that higher device costs during a seasonally strong upgrade cycle. However, investors focused on the underlying growth momentum and improving outlook.
Clear message from management
Verizon’s leadership said the results show the company is regaining momentum by focusing on customer trust, healthy volumes, and disciplined growth.
“We are exiting 2025 with strong momentum, delivered by a team that is intensely focused on winning through healthy volumes and fiscally responsible growth,” said Verizon CEO Dan Schulman. “Our performance in the fourth quarter proves that we can grow by delighting our customers and building deep trust and loyalty.”
Frontier deal expands fibre reach
Another key reason behind the positive outlook is Verizon’s recently closed acquisition of Frontier Communications. The deal expands Verizon’s fibre footprint to over 30 million homes and businesses, strengthening its national strategy of combining wireless and broadband services. Following the acquisition, Verizon now has over 16.3 million fixed wireless and fibre broadband connections. All of Verizon’s 2026 guidance includes Frontier’s results from January 20, 2026, the date the acquisition closed.
Strong cash flow supports confidence
Verizon’s financial position also improved steadily in 2025. For the full year, the company generated $20.1 billion in free cash flow, up from $19.8 billion in 2024, while operating cash flow reached $37.1 billion. For 2026, Verizon expects free cash flow of at least $21.5 billion, representing about 7% growth and the highest level since 2020. Capital spending is expected to remain disciplined at $16.0–$16.5 billion, including fibre expansion of at least 2 million passings.
Upbeat 2026 guidance lifts sentiment
Looking ahead, Verizon forecast adjusted EPS of $4.90 to $4.95 for 2026, well above analyst estimates of around $4.76 and up from $4.71 in 2025. The company expects 750,000 to 1.0 million postpaid phone net additions. 2% to 3% growth in total mobility and broadband service revenue, equivalent to about $93 billion
Cash flow from operations of $37.5–$38.0 billion
Wireless service revenue is expected to remain flat as Verizon shifts to sustainable, volume-led growth. Schulman said the company is entering a new phase: “Verizon is at a critical inflection point. Our number one priority is to invest wisely and strategically into our business, so we maintain our network excellence and fully delight our customers. Our 2026 guidance tell us the beginning of our turnaround, and is a step function change from our past five-year historical average.”
Verizon also said it has modernised its long-term MVNO agreements with Charter Communications and Comcast, supporting profitable growth for all parties and extending access to Verizon’s wireless network for their customers.