Verizon (VZ) Stock Rises 4% as Subscriber Growth Beats Expectations

TLDR

• Verizon added 184,000 postpaid phone net additions in Q2, beating the 106,000 analyst estimate
• Revenue fell 0.7% to $34.3 billion, missing the $35.2 billion consensus
• Adjusted EPS came in at $1.30, ahead of the $1.28 estimate
• Profit dropped to $3.95 billion due to $1.8 billion in pretax special items, including costs tied to a new BT Group joint venture
• Full-year adjusted EPS guidance raised to $4.99–$5.04; mobility and broadband service revenue growth outlook lifted to 2.5%–3%

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Verizon (VZ) stock rose 4% in premarket trading Friday after the company reported Q2 results that showed subscriber momentum picking up under CEO Dan Schulman.

Verizon Communications Inc., VZ

Verizon posted 184,000 postpaid phone net additions for the quarter. That beat the FactSet consensus of 106,000 by a wide margin. A year ago, Verizon was posting a net loss on that same metric.

Revenue came in at $34.3 billion, down 0.7% year over year and below the $35.2 billion analyst estimate. The company blamed a nearly 20% drop in equipment revenue, as customers held onto devices longer and Verizon pulled back on device subsidies.

VERIZON $VZ Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $34.3B (Est. $35.28B) 🟢; -0.7% YoY
🔹 Adj. EPS: $1.30 (Est. $1.27) 🟢; +6.6% YoY
🔹 Mobility & Broadband Service: $23.4B; +2.8% YoY
🔹 Postpaid Phone Net Additions: 184,000 (Est. 103,900) 🟢
🔹 Adj EBITDA: $13.7B; +7.2% YoY… pic.twitter.com/tczfwp2VAZ

— Wall St Engine (@wallstengine) July 24, 2026

That revenue miss isn’t necessarily a red flag for wireless investors. The drop reflects a deliberate shift away from costly promotions, which Schulman flagged as a priority when he took the CEO role last October.

Adjusted EPS hit $1.30, up from $1.22 a year earlier and ahead of the $1.28 estimate.

Net income fell sharply to $3.95 billion, or 92 cents a share, from $5.12 billion, or $1.18 a share, a year ago. The drop was driven by $1.8 billion in pretax special items.

BT Joint Venture Weighs on Profit

A $746 million loss tied to Verizon’s deal with BT Group was the biggest single item in that charge. The two companies agreed last month to combine their international operations into a joint venture, allowing both to focus more on their home markets.

Verizon also added 348,000 net broadband connections in the quarter. Mobility and broadband service revenue rose 2.8% to $23.4 billion.

The company now expects that growth rate to “approach” 3% in Q3 and reach about 4% in Q4.

Guidance Raised

Full-year adjusted EPS guidance was lifted to $4.99–$5.04, up from the prior range of $4.95–$4.99. Full-year retail postpaid phone net additions guidance remains at 875,000 to one million.

Verizon also raised its full-year mobility and broadband service revenue growth outlook to 2.5%–3%, from a prior range of 2%–3%.

Last week, the company said it plans to cut roughly 3,000 workers and divest hundreds of retail stores to franchise owners. About 500 of those cuts are corporate roles.

Schulman said Verizon has achieved “a step-change in churn reduction” while lowering customer acquisition costs. He described the results as representing the company’s “strongest operating position we have seen in years.”

A new plan launched last month offers unlimited data at $45 a month for current customers, or $30 for switchers — below the standard $55 starting price.