Verizon’sVZ

signal might be strong, but its subscriber sentiment is rapidly declining. The world’s second-largest telecom giant reported an alarming loss of 289K monthly phone subscribers in Q1 2025, far exceeding analysts’ expected 185.5K decline. The subscriber exodus — likely driven by increasing sign-up bonuses by rivals and the switch to cheaper phone plans — sent Verizon shares down 2% yesterday despite better-than-expected results.

• The company’s postpaid phone losses doubled from last year’s 114K, with Verizon’s Frank Boulben warning the numbers would be “soft” due to an “elevated level of competitive intensity.”
• Despite the drop in customers, Verizon’s first-quarter revenue rose 1.5% to $33.5B, while adjusted earnings met analyst expectations of $1.15 per share.

Silver linings remain: Broadband continues to shine as Verizon’s growth engine, with the firm adding 339K internet customers in Q1 as it steadily siphons market share from traditional cable providers through its fiber connections and 5G-powered home wireless service. The company reaffirmed its full-year guidance, including adjusted earnings growth of 2% to 3.5%, signaling confidence despite the competitive pressures. While Verizon blamed part of its subscriber decline on reduced federal agency spending amid job cuts under the Trump administration, investors are now shifting their attention to AT&TT

and T-Mobile USTMUS

, set to report earnings today and tomorrow, respectively, to see if the trend of subscriber losses extends across the telecom industry.