Verizon’s Surprise Subscriber Boost Redefines Profits

Verizon Communications (VZ) boosted its full-year earnings outlook on Monday following the addition of 55,000 wireless customers in Q1, propelling shares higher by 3% during premarket trading¹. The unexpected customer growth represents Verizon’s first net gains for a March-concluded quarter in more than a decade, indicating possible market share recovery versus competitors AT&T and T-Mobile.

Key Takeaways

• First Q1 wireless subscriber gains in over 10 years
• Annual profit forecast raised to $4.95-$4.99 per share
• Revamped customer offers and bundled plans driving growth

Market Reaction & Context

Shares of Verizon surged 3% in premarket activity after the earnings release¹. The telecommunications company now anticipates adjusted earnings for 2026 ranging from $4.95 to $4.99 per share, an increase from its previous guidance of $4.90 to $4.95¹.

Wall Street analysts had projected a loss of 81,809 wireless customers for the quarter, making the 55,000 net subscriber additions a considerable outperformance¹. The company generated quarterly revenue of $34.4 billion, falling modestly short of consensus estimates at $34.84 billion¹.

Strategic Turnaround Takes Hold

CEO Dan Schulman attributed the improvement to the company’s customer-focused strategy.

“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,” Schulman said¹.

Verizon’s enhanced customer incentives, including improved terms for subscribers who presented bills from rivals such as AT&T (T) and T-Mobile (TMUS), contributed to the customer growth¹. This approach forms part of a comprehensive turnaround initiative aimed at revitalizing wireless expansion following years of declining market position.

Frontier Acquisition Boosts Outlook

The performance includes contributions from Frontier Communications following Verizon’s $20 billion purchase that completed on January 20¹. This transaction substantially enhanced Verizon’s fiber network, enabling stronger competition through bundled internet and wireless packages.

Verizon currently projects total retail postpaid phone net gains for the year will fall in the upper portion of its 750,000 to 1 million guidance¹. The carrier posted 293,000 broadband net additions during the second quarter, showcasing progress in its fiber expansion strategy².

Earnings Beat Despite Revenue Headwinds

During the first quarter, Verizon delivered adjusted earnings of $1.28 per share, surpassing analyst expectations of $1.20¹. Nevertheless, wireless service revenue growth faced pressure from customer credits associated with a January service disruption lasting approximately 10 hours, prompting Verizon to provide $20 credits to hundreds of thousands of affected customers¹.

The disruption constituted a temporary obstacle within an otherwise strengthening operational track record. The company’s emphasis on premium service plans and decreased customer turnover appears to be generating momentum as it seeks to distinguish itself from budget-focused competitors.

Not investment advice. For informational purposes only.

References

¹Reuters (April 27, 2026). “Verizon lifts annual profit forecast after surprise rise in wireless subscribers”. Reuters. Retrieved April 27, 2026.

²Business Reporter (July 21, 2025). “Verizon boosts annual forecast on demand for premium plans, tax law benefit”. Business Reporter. Retrieved April 27, 2026.