Verizon Communications (VZ) boosted its annual earnings outlook on Monday following the addition of 55,000 wireless customers in Q1, propelling shares higher by 3% during premarket hours1. The unexpected customer growth represents Verizon’s initial net gains for a first quarter in more than ten years, indicating possible market position recovery versus competitors AT&T and T-Mobile.
Key Takeaways
- First Q1 wireless subscriber gains in over 10 years
- Annual profit forecast raised to $4.95-$4.99 per share
- Revamped customer offers and bundled plans driving growth
Market Reaction & Context
Shares of Verizon climbed 3% in premarket activity after the earnings release1. The telecommunications company now anticipates adjusted earnings for 2026 ranging from $4.95 to $4.99 per share, an increase from its previous guidance of $4.90 to $4.951.
Wall Street analysts had projected a loss of 81,809 wireless customers for the period, making the 55,000 net customer additions a substantial outperformance1. The firm’s overall quarterly sales totaled $34.4 billion, falling just short of consensus estimates of $34.84 billion1.
Strategic Turnaround Takes Hold
CEO Dan Schulman attributed the improved performance to the company’s customer-focused strategy.
“We are beginning to reclaim our market leadership by putting the customer at the center of everything we do, reducing friction to increase loyalty and create genuine value,” Schulman said1.
The company’s enhanced customer incentives, including improved terms for consumers switching from rivals such as AT&T (T) and T-Mobile (TMUS), contributed to the subscriber expansion1. This approach forms part of a comprehensive transformation initiative aimed at restoring wireless momentum following years of declining market share.
Frontier Acquisition Boosts Outlook
These outcomes incorporate the impact of Frontier Communications following Verizon’s $20 billion purchase that completed on January 201. The transaction substantially enhanced Verizon’s fiber network presence, strengthening its ability to compete through combined internet and wireless packages.
The carrier now projects total retail postpaid phone net customer additions for the full year to fall within the higher end of its 750,000 to 1 million guidance range1. During the second quarter, the company recorded 293,000 broadband net additions, showcasing progress in its fiber expansion plan2.
Earnings Beat Despite Revenue Headwinds
In the first quarter, Verizon delivered adjusted earnings per share of $1.28, surpassing analyst expectations of $1.201. Nevertheless, wireless service revenue expansion faced headwinds from customer credits associated with a January network disruption lasting approximately 10 hours, prompting Verizon to provide $20 credits to hundreds of thousands of affected users1.
The service interruption constituted a temporary obstacle within an otherwise strengthening operational trajectory. The company’s emphasis on premium service tiers and decreased customer defections appears to be generating momentum as it seeks to distinguish itself from budget-oriented rivals.
Not investment advice. For informational purposes only.
References
1Reuters (April 27, 2026). “Verizon lifts annual profit forecast after surprise rise in wireless subscribers”. Reuters. Retrieved April 27, 2026.
2Business Reporter (July 21, 2025). “Verizon boosts annual forecast on demand for premium plans, tax law benefit”. Business Reporter. Retrieved April 27, 2026.