Verizon Communications Inc. (NYSE:VZ) moved higher in premarket trading after delivering first-quarter earnings that topped expectations and lifting its full-year profit outlook, despite revenue coming in below forecasts.
Shares gained 4.9% ahead of the open, supported in part by the company’s first positive first-quarter postpaid phone net additions since 2013.
Earnings Top Estimates While Revenue Misses
Verizon reported adjusted earnings per share of $1.28, exceeding analyst expectations of $1.21. Revenue totaled $34.4 billion, missing the consensus estimate of $34.82 billion but still reflecting a 2.9% increase compared to the same period last year.
The company attributed the revenue shortfall to a more disciplined stance on promotional activity and softer upgrade trends, which weighed on wireless equipment sales. Results were also impacted by an approximately 80 basis point drag on wireless service revenue growth stemming from a network outage in January.
Guidance Raised for Full-Year 2026
Verizon increased its fiscal 2026 adjusted EPS forecast to a range of $4.95 to $4.99, implying annual growth of 5.0% to 6.0%. The midpoint of $4.97 is above the current analyst consensus of $4.91. The company also now expects total retail postpaid phone net additions to land in the upper end of its previously projected range of 750,000 to 1 million.
“Our first-quarter 2026 results show that our turnaround is not only progressing, it is gaining momentum,” said CEO Dan Schulman. “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.”
Subscriber Growth and Cash Flow Improve
During the quarter, Verizon added 55,000 postpaid phone subscribers, marking a year-over-year improvement of more than 340,000. Consolidated adjusted EBITDA rose 6.7% to $13.4 billion, while cash flow from operations reached $8.0 billion, up 2.6% from the prior-year period.
More about Verizon Communications Inc.
Verizon Communications Inc. is a leading telecommunications provider offering wireless, broadband, and digital services to consumers and businesses, with a focus on network reliability and customer experience.