Verizon reported adjusted earnings of $1.31 per share for the third quarter of 2026, beating the $1.28 analyst estimate, while revenue of $34.31B fell short of the consensus estimate of $34.77B.
Equipment revenue dropped 9% as customers hung onto phones longer and the company cut device subsidies, a strategy that pushed net income to $5.3B, up 5.2%.
Verizon added 406K postpaid phone customers, more than 820% above a year earlier and a turnaround from the 289K subscribers it lost in early 2025 and roughly double the Visible Alpha estimate of 209K, according to CNBC.
The company also booked 137K postpaid net account additions, its best in over a decade, plus 314K broadband net additions across fixed wireless and fiber.
Mobility and broadband service revenue reached $23.5B, up 2.9%, continuing a steady climb from 1.6% growth in the first quarter. Adjusted earnings before interest, taxes, depreciation, and amortization hit $13.8B, up 8%.
Guidance goes up for the third quarter running
Verizon now expects full-year adjusted earnings per share of $5.04 to $5.06, above the prior $4.99 to $5.04 range and the $5.02 analyst consensus, per Fiscal.ai data.
The postpaid phone target jumped to 1.1M to 1.2M for 2026, up from the upper half of 750K to 1M. Free cash flow growth is now seen approaching 12%, versus 9% to 10% before.
Free cash flow for the quarter came in at $7.8B, up 12.1%, with cash from operations of $11.5B.
Fiber becomes an AI business
Verizon signed an agreement worth more than $2B with Amazon Web Services to supply high-capacity fiber connectivity for data centers handling generative and agentic AI workloads.
It follows a $1B+ agreement with Google announced in July to connect hyperscale data centers using dark fiber, turning network infrastructure into a revenue line beyond phones and home internet.
Chief executive Dan Schulman marked one year in the job this quarter, having launched the Simplicity plan in June with transparent pricing and unlimited data, as carriers brace for SpaceX's push into wireless. Promotional acquisition costs fell 41% year over year.
Verizon expects total fiber passings to top 32M by yearend, on the way to a medium-term target of 40M to 50M. Capital spending guidance holds at $16B to $16.5B, including success-based investment tied to AI Connect.
