Verizon Raises Profit Outlook After Strong Q1 Results and AI Infrastructure Push
Verizon Raises Profit Outlook After Strong Q1 Results and AI Infrastructure Push
Verizon Communications lifted its full-year profit guidance after reporting a solid first quarter, supported by stronger customer growth, higher earnings, and continued demand for broadband services.
The telecom giant reported first-quarter revenue of $34.4 billion, up 2.9% year over year. Although revenue came in slightly below analyst expectations, adjusted earnings per share reached $1.28, beating forecasts and rising 7.6% from the same period last year.
Profit Guidance Raised for 2026
Following the stronger-than-expected earnings performance, Verizon raised its 2026 adjusted EPS guidance to a range of $4.95 to $4.99. The company said this would represent annual growth of about 5% to 6%.
Management also said it now expects total retail postpaid phone net additions to land in the upper half of its previous target range of 750,000 to 1 million for the full year.
Subscriber Growth Shows Clear Momentum
One of the biggest highlights was Verizon’s return to positive first-quarter postpaid phone growth. The company added 55,000 postpaid phone customers, marking its first positive first-quarter result in that category since 2013.
Verizon also recorded 115,000 core prepaid net additions, showing that demand improved across different customer segments. This is important because wireless subscriber growth is a key measure of strength in the telecom industry.
Broadband Business Continues to Expand
Broadband remained another bright spot. Verizon added 341,000 total broadband customers during the quarter. This included 214,000 fixed wireless access net additions and 127,000 fiber broadband net additions.
The company said its combined fixed wireless and fiber broadband customer base reached about 16.8 million connections, giving Verizon a stronger platform for future growth in home internet, enterprise services, and digital infrastructure.
AI Infrastructure Becomes a New Growth Opportunity
Verizon also said it is in advanced talks with hyperscalers, cloud providers, and large enterprises about using its fiber and 5G network assets to support artificial intelligence infrastructure. The company described this opportunity as potentially worth multiple billions of dollars.
This matters because AI services require fast, reliable, and large-scale network capacity. Verizon’s fiber network and 5G assets could become valuable tools for companies building AI data systems, cloud platforms, and enterprise technology services.
Cash Flow and EBITDA Improve
Verizon’s adjusted EBITDA rose 6.7% year over year to $13.4 billion. Net income increased 3.3% to $5.1 billion, while cash flow from operating activities grew 2.6% to $8 billion. Free cash flow reached $3.8 billion, up 4%.
For the full year, Verizon continues to expect operating cash flow of $37.5 billion to $38 billion, capital expenditure of $16 billion to $16.5 billion, and free cash flow of at least $21.5 billion.
New CEO’s Strategy Begins to Show Results
The quarter was the first full reporting period under CEO Dan Schulman. Verizon said its recent transformation efforts are focused on improving customer loyalty, simplifying the user experience, and delivering stronger financial results.
Early signs suggest that the strategy is gaining traction. Better subscriber growth, improved earnings, and stronger cash flow helped support investor confidence after the results were released.
Market Reaction
Verizon shares rose after the earnings announcement, with investors responding positively to the upgraded profit outlook and stronger customer additions. Proactive Investors reported that shares climbed by roughly 3% following the results.
Conclusion
Verizon’s first-quarter results showed a company gaining momentum in a competitive telecom market. While revenue missed expectations slightly, stronger earnings, improved subscriber growth, broadband expansion, and a clearer AI infrastructure opportunity helped strengthen the outlook.
With higher profit guidance and improving customer trends, Verizon appears focused on turning its network scale into long-term growth across wireless, broadband, enterprise technology, and AI-related infrastructure.
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