Verizon Communications (VZ) boosted its full-year earnings outlook on Monday following the addition of 55,000 wireless customers in Q1, propelling shares higher by 3% in premarket sessions1. The unexpected customer additions represent Verizon’s first net subscriber gains for a March quarter in more than a decade, suggesting a 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 surged 3% in premarket activity after the earnings release1. The telecommunications giant now anticipates adjusted earnings for 2026 ranging from $4.95 to $4.99 per share, an increase from the 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. Total quarterly sales came in at $34.4 billion, marginally below the $34.84 billion consensus estimate1.
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 refreshed customer incentives, including improved terms for consumers switching from rivals such as AT&T (T) and T-Mobile (TMUS), contributed to the subscriber momentum1. This approach forms part of a comprehensive turnaround initiative aimed at revitalizing wireless expansion following years of competitive losses.
Frontier Acquisition Boosts Outlook
These outcomes incorporate the integration of Frontier Communications following Verizon’s $20 billion purchase completed on January 201. The transaction substantially enhanced Verizon’s fiber network reach, strengthening its ability to compete with combined internet and wireless packages.
Verizon now projects total retail postpaid phone net customer additions for the year will fall in the upper portion of its 750,000 to 1 million guidance range1. The telecommunications provider recorded 293,000 broadband net additions in the second quarter, highlighting progress in its fiber expansion strategy2.
Earnings Beat Despite Revenue Headwinds
During the first quarter, Verizon delivered adjusted earnings of $1.28 per share, surpassing the $1.20 consensus1. Nevertheless, wireless service revenue growth faced headwinds from customer credits issued following a January network disruption lasting approximately 10 hours, prompting Verizon to provide $20 credits to hundreds of thousands of affected subscribers1.
The service interruption marked a temporary challenge amid otherwise strengthening operational metrics. The company’s emphasis on premium service tiers and improved customer retention rates appears to be showing results as it seeks to distinguish itself from budget-focused 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.