TLDR
- Verizon added 616,000 postpaid phone connections in Q4, crushing analyst expectations of 417,000
- New CEO Dan Schulman projects $5 billion in operating cost savings for 2026
- Company forecasts adding 750,000 to 1 million postpaid phone subscribers in 2026
- Verizon closed $9.6 billion Frontier acquisition, boosting broadband connections to 16.3 million
- Board authorized $25 billion in share repurchases over three years
Verizon turned heads this quarter. The wireless carrier added 616,000 postpaid phone connections in the fourth quarter, crushing Wall Street’s expectations by nearly 50%.
Analysts had predicted just 417,000 new subscribers. The actual numbers tell a different story about Verizon’s momentum under new leadership.
Verizon Communications Inc., VZ
CEO Dan Schulman took the helm in October with a clear mission. Turn around a company that had been bleeding customers to competitors for three straight quarters.
His approach? Get aggressive.
Verizon rolled out promotions like four phone lines for $100 per month during the holiday shopping season. The strategy worked. The company posted its biggest combined mobile and broadband additions since 2019.
Cost Cutting Takes Center Stage
Schulman isn’t just chasing growth. He’s slashing expenses at the same time.
The company announced its largest-ever round of job cuts in November, affecting more than 13,000 positions. Schulman told investors the company is “examining every dollar” of spending.
The CEO projects $5 billion in operating cost savings for 2026. That’s a massive number for a company focused on becoming “scrappier.”
Fourth-quarter revenue hit $36.4 billion, up 2% from last year. That slightly beat analyst expectations of $36.06 billion.
Wireless service revenue came in at $21 billion. The company ended the quarter with 146.9 million total wireless retail connections.
Per-share earnings landed at 55 cents, or $1.09 excluding special items. The severance charges from layoffs ate into profits.
Broadband Expansion Accelerates
Verizon closed its $9.6 billion acquisition of Frontier Communications in January. The deal brought total fixed-wireless and fiber broadband connections to 16.3 million.
Frontier expands Verizon’s fiber footprint substantially. The company is betting big on selling customers both mobile service and home internet together.
The carrier added 372,000 net broadband connections in Q4 alone. Fixed-wireless connections increased by 319,000 in the quarter.
Fixed-wireless uses cell towers instead of cables to deliver home internet. It’s become a key battleground as carriers compete on bundled offerings.
Schulman made a key promise on pricing. Verizon will no longer raise prices without adding value for customers.
He said the old approach was driving people away. The company is changing course.
Looking ahead, Verizon expects to add between 750,000 and one million postpaid phone connections in 2026. Wireless service revenue should stay flat this year.
Total mobility and broadband service revenue is projected to grow 2% to 3%. Capital expenditures are forecast at $16 billion to $16.5 billion, down from $17 billion in 2025.
The board authorized up to $25 billion in share repurchases over the next three years. That’s a vote of confidence in the turnaround plan.
Verizon projects adjusted profit for 2026 between $4.90 and $4.95 per share. Analysts had expected $4.76 per share.
Annual free cash flow is expected to hit at least $21.5 billion. Wall Street had been looking for $20.96 billion.
Schulman also apologized for a widespread network outage earlier in January that affected millions of customers. The CEO called the fourth quarter a “critical inflection point” for the company.
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