Verizon Communications Inc. (VZ) reported a significant milestone in its first-quarter earnings, adding 55,000 postpaid phone subscribers—a feat not achieved in the March quarter since 2013. The telecom giant also raised its full-year adjusted earnings per share outlook, signaling early progress under new CEO Dan Schulman.
For the quarter ended March 31, 2026, Verizon posted total revenue of $34.4 billion, a 2.9% increase year-over-year. Net income rose 3.3% to $5.1 billion, while adjusted EPS climbed 7.6% to $1.28, beating analyst expectations. Adjusted EBITDA reached $13.4 billion, with free cash flow of $3.8 billion.
The company's postpaid phone net additions are particularly notable because these high-value subscribers typically generate steady revenue and exhibit lower churn. Verizon's consumer postpaid phone churn rate improved to 0.90% for the quarter, dipping below 0.85% in March, according to the company.
Schulman, who took the helm earlier this year, described the quarter as evidence of a "turnaround gaining momentum." The company now expects full-year adjusted EPS in the range of $4.95 to $4.99, up from its previous guidance of $4.90 to $4.95. Verizon also anticipates retail postpaid phone net additions to land at the higher end of its 750,000 to 1 million projection.
CFO Tony Skiadas noted that Verizon is able to attract customers "with better economics" and without relying on "expensive promotions and free phones," a departure from industry practices that have pressured margins. However, Morningstar equity director Michael Hodel offered a cautious view, noting that wireless churn remains elevated, though he acknowledged Verizon is "doing a much better job attracting new customers than a year ago."
Competition in the wireless market remains intense. AT&T (T) added 294,000 postpaid phone subscribers in the first quarter, surpassing analyst estimates. T-Mobile US (TMUS) was scheduled to report after the market close, with expectations of 393,100 net postpaid phone additions. Both rivals continue to use handset subsidies and service bundles to lure customers.
Verizon's broadband business also showed strength, adding 341,000 net new broadband subscribers. Of these, 214,000 were fixed wireless access customers and 127,000 opted for fiber. The recently completed acquisition of Frontier Communications has bolstered Verizon's fiber network, which is now bundled with wireless plans.
Despite the positive subscriber trends, the quarter had some blemishes. Revenue fell short of the LSEG consensus estimate of $34.84 billion, partly due to credits related to a January network outage. Fixed wireless broadband additions lagged some forecasts, and debt levels rose following the Frontier integration.
Shares rose 1.5% in premarket trading to $47.10, as investors focused on the subscriber gains, lower churn, and improved profit outlook. The key question now is whether Verizon can sustain this momentum without resorting to costly promotions. For now, Schulman has delivered a quarter of concrete progress: positive phone additions, declining churn, lower acquisition costs, and an upgraded EPS forecast.
