Verizon Earnings Surprise Lifts Outlook

Verizon earnings showed unexpected subscriber gains and raised FY adjusted EPS guidance, boosting free cash flow outlook and reinforcing buyback capacity.

April 27, 2026·2 min read
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Flat vector cell tower with blooming nodes representing Verizon earnings turnaround and raised EPS outlook.

KEY TAKEAWAYS

  • First positive Q1 postpaid phone net adds since 2013 totaled 55,000, reversing a decade-long trend.
  • Adjusted EPS was $1.28, up 7.6% year over year; adjusted EBITDA hit $13.4B, a company record.
  • Raised FY2026 adjusted EPS guidance to $4.95-$4.99 and revised postpaid net-adds toward the top of the range.

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Verizon earnings on April 27, 2026 showed unexpected subscriber momentum that management said supports the company's raised full-year adjusted EPS outlook and signals improving operating efficiency under CEO Dan Schulman.

Quarter Results and Subscriber Gains

Verizon reported first-quarter adjusted earnings per share of $1.28, up 7.6% year over year, on total operating revenue of $34.4 billion, a 2.9% increase. Adjusted EBITDA rose 6.7% to $13.4 billion, the highest quarterly total in company history. Consolidated net income was $5.1 billion, and diluted EPS was $1.20. CEO Dan Schulman said the results reflect a disciplined approach delivering healthier economics, lower churn, and the first positive first-quarter postpaid phone net additions since 2013.

The company posted 55,000 total postpaid phone net additions, reversing a decade-long trend and improving by 340,000 year over year versus consensus expectations for a loss. Core prepaid net additions reached 115,000, marking the seventh consecutive quarter of growth. Broadband net additions totaled 341,000, including 214,000 fixed-wireless-access and 127,000 fiber connections, bringing total FWA and fiber connections to about 16.8 million. Mobility and broadband service revenue rose 1.6% to $22.9 billion despite an 80-basis-point headwind from January network-outage customer credits. Wireless equipment revenue increased 5.2% to $5.7 billion.

Guidance and Capital Outlook

Verizon raised its full-year 2026 adjusted EPS guidance to a range of $4.95 to $4.99, implying 5.0% to 6.0% growth. The company also increased its expected total retail postpaid phone net additions to the top half of a 750,000 to 1,000,000 range, citing subscriber momentum and lower churn.

For the year, Verizon projects mobility and broadband service revenue growth of 2.0% to 3.0%, about $93 billion, with wireless service revenue roughly flat. It expects cash flow from operations between $37.5 billion and $38.0 billion, capital expenditures of $16.0 billion to $16.5 billion, and free cash flow of at least $21.5 billion, a 7% increase and the highest level since 2020. In the first quarter, cash flow from operations was $8.0 billion, capital spending $4.2 billion, and free cash flow $3.8 billion. Share repurchases totaled $2.5 billion, keeping the company on track for at least $3.0 billion in buybacks this year.

Verizon closed its acquisition of Frontier Communications on January 20, 2026, and has repaid roughly half of Frontier’s debt. The company reported unsecured debt of $142.5 billion at quarter-end, with net unsecured debt of $130.1 billion and a net unsecured debt-to-EBITDA ratio of 2.6 times. It expects to repay the remaining Frontier debt by year-end 2026 after receiving required regulatory approvals.

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