• Verizon reported adjusted EPS of $1.31, beating expectations of $1.27, while revenue came in at $34.3 billion, slightly below the $34.74 billion consensus.
  • The telecom giant added 406,000 postpaid phone subscribers, nearly double the 209,000 expected, marking its strongest third-quarter performance in five years.
  • Verizon also unveiled a multibillion-dollar AI infrastructure deal with Amazon Web Services (AMZN) and raised its full-year adjusted EPS guidance to $5.04–$5.06.

Subscriber Momentum and AI Deal Offset Revenue Miss

Verizon Communications Inc. ($VZ) reported third-quarter results that surpassed analyst earnings estimates and showed a sharp turnaround in subscriber growth, though revenue fell slightly short of expectations. The company posted adjusted earnings per share of $1.31, about 3.1% above the consensus of $1.27, according to its earnings release. Revenue totaled $34.3 billion, missing the $34.74 billion forecast by about 1.3%.

The standout figure was postpaid phone net additions of 406,000, nearly double the 209,000 analysts had projected and up more than 820% from a year earlier. Verizon described the result as its strongest third-quarter phone performance in five years. The company also added 314,000 broadband subscribers, continuing its expansion in fixed wireless and fiber.

Alongside the results, Verizon announced a major artificial intelligence infrastructure agreement with Amazon Web Services valued at more than $2 billion. The deal, which was not previously disclosed, is expected to support Verizon’s network and AI-related services. However, the company did not provide a recognition schedule, margin details, or the full investment requirements, leaving analysts to question the near-term financial impact.

“What institutional investors like us are really focused on is regulatory stability,” said a person familiar with the company’s strategy, speaking on condition of anonymity. “But operational execution is what drives the stock, and today’s subscriber number is a clear sign that the turnaround is gaining traction.”

Guidance Raised, Capex Maintained

Verizon lifted its full-year adjusted EPS guidance to $5.04–$5.06, up from the previous range of $4.99–$5.04. The company also reaffirmed its capital spending outlook of $16.0–$16.5 billion, including success-based investments for AI Connect. Management expects mobility and broadband service revenue growth in the upper half of its 2.5%–3.0% annual range, with approximately 4% growth in the fourth quarter.

The subscriber gains come under the leadership of new CEO Dan Schulman, who took over on October 6, 2025, replacing Hans Vestberg. Schulman has promised substantial changes to Verizon’s customer experience, cost structure, and financial profile. The company has also been restructuring its workforce, with layoffs and increased automation in customer service and digital sales, according to recent reports.

Verizon completed its $20 billion acquisition of Frontier Communications (FYBR) on January 20, 2026, expanding its fiber footprint to approximately 30 million premises passed. The deal, approved by the FCC in May 2025, accelerates Verizon’s mobility and broadband convergence strategy. The FCC approval also highlighted Verizon’s commitment to end certain diversity, equity, and inclusion practices, a move that drew criticism from public-sector investors in an August 17 letter citing potential legal and governance risks.

Market Reaction and What to Watch

At 7:03 a.m. ET, before the earnings call scheduled for 8:30 a.m. ET, market reaction was not yet settled. Analysts’ pre-release expectations centered on roughly $1.27 in EPS and revenue in the mid-$34 billion range. Verizon has cleared the earnings hurdle but not the revenue hurdle; the available evidence does not yet support attributing a post-results consensus verdict to analysts.

The AWS agreement connects Verizon’s network assets to the expanding AI infrastructure market, potentially diversifying growth beyond consumer phone plans. However, the key question is how much profitable, recurring business the deal creates relative to its capital needs. Maintaining the capex range is encouraging but does not by itself establish the deal’s return on investment.

Verizon faces ongoing risks including interest rates, inflation, trade policy, and substantial indebtedness. The company also contends with intense competition from AT&T (T), which reported more than 39 million consumer and business locations reached at September 30, 2026, and targets above 40 million by year-end. Those are network-availability figures, not subscriber counts, but they illustrate the scale of the competitive investment race.

Management’s immediate task on the earnings call will be to explain whether subscriber growth is translating into higher service revenue without excessive promotional spending. The release’s approximately 4% fourth-quarter service-revenue growth expectation provides a concrete benchmark. The call should also clarify AWS contract timing, required investment, and the assumptions behind the narrower EPS range.

Verizon’s strong phone additions and raised guidance improve the turnaround narrative, but the revenue miss and undisclosed AWS economics still warrant scrutiny. The most consequential next evidence will be the company’s own disclosure of contract economics, retention, service revenue, and cash generation.

Related tickers: $VZ, $AMZN, $T