Verizon Raises 2026 Outlook as Subscriber Growth Accelerates

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Chief Market Analyst with over 15 years experience with candid commentary and focuses on daily market analysis and financial research writing
 

•  24 Jul 2026
 

$VZ Verizon surprised the market with stronger customer additions, raised its outlook, and sent the stock nearly 3% higher on Wall Street. The largest US wireless operator by subscriber count reported second quarter 2026 results that exceeded analyst expectations across key metrics. Verizon added 184,000 postpaid wireless subscribers, well above the market estimate of about 106,000 and a sharp reversal from the loss of roughly 9,000 subscribers in the same quarter last year.

This was the company strongest consumer subscriber performance in five years, while total gross wireless additions reached an eight year high. The stock had traded weakly since the start of the year as competition intensified across the US 5G market. The improved subscriber trend triggered gains from the opening bell and reinforced earnings momentum.

Adjusted earnings per share reached $1.30, above the $1.28 consensus estimate and up 6.6% from $1.22 a year earlier. Total revenue was $34.3 billion, down 0.7% and slightly below expectations of about $35.3 billion. Net income declined 23% to $3.9 billion, affected by $1.8 billion in one time items related to employee departures, efficiency measures, and asset sales.

The core business remained the main growth engine. Wireless and internet service revenue increased 2.8% to $23.4 billion, and management expects growth to accelerate to about 4% in the final quarter of the year. Adjusted EBITDA reached a record $13.7 billion, rising 7.2%, while the margin expanded to 40.1% from 37.1% a year earlier. The combination of service growth and margin improvement supports multiple expansion.

Home internet activity also accelerated during the quarter. Verizon added 348,000 internet subscribers, including 193,000 fixed wireless access customers and 155,000 fiber customers, bringing the total base close to 17.1 million connections. Combined wireless and internet additions exceeded 550,000 during the quarter, more than double the pace recorded in the first half of 2025.

Fixed wireless access has become one of the fastest growing segments in the US home internet market. Instead of extending expensive fiber infrastructure to every home, the technology delivers high speed connectivity through the company wireless network. This allows Verizon to add customers in areas with limited wired infrastructure while generating additional revenue from the capital already invested in its 5G network.

Chief Executive Officer Dan Schulman is leading the improvement through an efficiency plan focused on reducing customer churn and lowering acquisition costs. The combination of retaining existing customers and adding new customers at a lower cost is directly improving profitability. Free cash flow increased 24.4% during the quarter, and Verizon raised its annual growth forecast to a range of 9% to 10% while maintaining capital spending of $16 billion to $16.5 billion.

Verizon raised its adjusted earnings per share forecast for all of 2026 to a range of $4.99 to $5.04 from the previous range of $4.95 to $4.99. The company also expanded its annual share repurchase target to as much as $4.5 billion after buying approximately $3.5 billion of stock since the start of the year. Total shareholder returns during the first half, including dividends, reached $9.4 billion, strengthening institutional flows.

The company now expects annual wireless subscriber additions to finish in the upper half of its target range of 750,000 to one million. Investors in the US telecommunications sector continue to track the subscriber race among major operators, with each company using combined wireless and internet packages to attract customers. For Verizon, previously viewed as conservative and defensive, the quarter marks a return to growth that is easing market concerns.

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