Verizon Communications Inc. (VZ) Stock: Shares Surge On Strong Q4 Results And Bullish 2026 Outlook

TLDR

• Verizon reported Q4 adjusted EPS of $1.09, beating expectations
• Revenue rose to $36.4 billion with strong wireless and broadband growth
• Postpaid phone net additions hit a six-year high at 616,000
• Verizon guided 2026 adjusted EPS between $4.90 and $4.95
• The board approved a $25 billion share repurchase program

Verizon Communications Inc. (VZ) stock surged to $42.75, up 7.33%, in early trading on January 30 as investors reacted positively to stronger-than-expected fourth-quarter results and an upbeat outlook for 2026. The rally reflects renewed confidence that the telecom giant is entering a period of operational stabilization after several challenging years.

Verizon Communications Inc., VZ

The company reported fourth-quarter adjusted earnings of $1.09 per diluted share, slightly lower than $1.10 a year earlier but well above analyst expectations of about $1.05. Revenue for the quarter climbed to $36.38 billion from $35.68 billion last year, also topping consensus estimates. Management framed the quarter as a turning point driven by disciplined promotions, cost controls, and renewed focus on customer retention.

Subscriber Growth Hits Multi-Year High

A key highlight of the quarter was Verizon’s strongest combined wireless and broadband subscriber performance since 2019. The company added 616,000 postpaid phone customers, far exceeding Wall Street forecasts of roughly 417,000. These gains came during a highly competitive holiday period when rivals also leaned heavily on promotions.

Wireless service revenue, Verizon’s largest segment, reached $21.0 billion, marking a 1.1% year-over-year increase. Wireless equipment revenue jumped 9.1% to $8.2 billion, reflecting higher device upgrades. Broadband momentum also remained strong, with 372,000 net additions, including 319,000 fixed wireless access subscribers and 67,000 Fios internet customers.

New CEO Pushes Cost Discipline And Cultural Shift

Chief Executive Officer Dan Schulman, who took over in October, described the quarter as a “critical inflection point.” Since assuming the role, Schulman has pushed for aggressive cost discipline, including Verizon’s largest-ever round of job cuts announced in November. He said the company expects to realize $5 billion in operating expense savings this year by streamlining operations and examining every dollar of spending.

Schulman emphasized a cultural reset, noting Verizon will no longer raise prices without improving customer value. Management acknowledged that prior pricing strategies contributed to subscriber losses earlier in the year. The improved fourth-quarter performance suggests that strategy adjustments are starting to resonate with consumers.

2026 Outlook Beats Market Expectations

Looking ahead, Verizon issued a confident forecast for 2026, projecting adjusted earnings per share between $4.90 and $4.95. This guidance came in well above analyst expectations near $4.75 and reinforced investor optimism. The company expects total retail postpaid phone net additions of 750,000 to one million, compared with 362,000 added in 2025.

Verizon also sees total mobility and broadband service revenue growing between 2% and 3% in 2026. Free cash flow is projected at no less than $21.5 billion, which would mark the company’s strongest cash generation since 2020. Capital expenditures are expected to range from $16 billion to $16.5 billion, slightly below 2025 levels.

Buybacks, Dividends And Frontier Deal

To underline confidence in its financial outlook, Verizon’s board approved a new share repurchase authorization of up to $25 billion over the next three years, with at least $3 billion planned for this year. The company also declared a quarterly dividend of $0.7075 per share, payable May 1.

The 2026 outlook includes the impact of Verizon’s recently closed $9.6 billion acquisition of Frontier Communications. The deal expands Verizon’s fiber footprint to more than 30 million homes and businesses, supporting its strategy to bundle wireless and home internet services. Management views fiber infrastructure as a key driver of long-term wireless subscriber growth.

Market Reaction And Strategic Implications

Shares of Verizon jumped more than 5% in premarket trading following the announcement, reflecting relief that subscriber trends have stabilized and confidence that management’s turnaround efforts are gaining traction. While challenges remain in a competitive telecom landscape, Verizon’s Q4 results and forward guidance suggest the company is rebuilding momentum through disciplined growth, cost control, and a renewed focus on customer value.

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