Verizon Q3 2026 Earnings Boost Outlook, AWS Pact
Verizon Q3 2026 earnings beat on adjusted EPS and strong postpaid-phone adds, lifting full-year targets and reshaping near-term cash-flow expectations.
KEY TAKEAWAYS
- Adjusted EPS rose 8.3% to $1.31, beating consensus.
- Postpaid phone net additions reached 406,000, the strongest Q3 in five years.
- Raised full-year targets to 1.1-1.2 million postpaid phones and $5.04-$5.06 adjusted EPS.
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Verizon Communications (VZ) reported stronger-than-expected adjusted earnings per share (EPS) for the third quarter of 2026, prompting the company to raise its full-year targets on Oct. 26, 2026. The carrier also announced a commercial fiber-connectivity agreement with Amazon Web Services (AWS) to support artificial-intelligence workloads.
Quarter Results and Guidance
Verizon said in a press release on Oct. 26, 2026, that adjusted EPS rose 8.3% year over year to $1.31, surpassing analyst estimates near $1.27 to $1.28. Total operating revenue increased 1.5% to $34.3 billion but fell short of external forecasts around $34.7 billion to $34.8 billion.
The company added 406,000 postpaid phones, an increase of more than 820% from a year earlier, marking its strongest third-quarter result in five years. Postpaid net-account additions reached 137,000, the best quarterly growth in over a decade. Verizon attributed the subscriber gains to demand for simplified plans. Meanwhile, lower device-upgrade volumes pressured revenue as customers held phones longer after subsidy reductions.
Adjusted EBITDA, a proxy for operating profit, rose 8.0% to $13.8 billion. Consolidated net income increased 5.2% to $5.3 billion, producing reported EPS of $1.25 compared with $1.17 a year earlier. Operating cash flow grew 2.2% to $11.5 billion, and free cash flow rose 12.1% to $7.8 billion. Mobility and broadband service revenue climbed 2.9% to $23.5 billion.
Verizon raised its full-year targets for postpaid phone net additions to a range of 1.1 million to 1.2 million from 750,000 to 1.0 million. It also lifted adjusted EPS guidance to $5.04–$5.06, expecting growth of about 7.0% to 7.5% year over year, up from a prior 6.0% to 7.0%. Free cash flow growth is now projected to approach 12.0%, compared with the previous 9.0% to 10.0%. The company expects mobility and broadband service revenue to grow roughly 4.0% in the fourth quarter. This marks the third consecutive quarterly upward revision of its guidance.
AWS Connectivity Agreement
Verizon described a commercial connectivity agreement with AWS under which it will provide high-capacity fiber-optic connectivity for AWS data centers supporting generative and "agentic" artificial-intelligence workloads. The deal is valued at more than $2 billion.
The arrangement is not an acquisition, merger, or regulated change-of-control transaction. The available materials do not specify regulatory approvals, government authorizations, closing conditions, termination dates, or fees related to the agreement. Details on contract duration, revenue recognition, capital expenditures, or exclusivity were not disclosed.
