Verizon Communications Inc. saw its shares climb roughly 3% in Monday morning trading after the telecommunications giant reported a surprising increase in monthly wireless subscribers for the first quarter and raised its full-year adjusted earnings forecast for 2026. The results mark an early milestone for CEO Dan Schulman, who took the helm earlier this year.
The company added 55,000 net new postpaid phone customers during the quarter, a key metric for wireless carriers as these monthly billed accounts typically generate higher margins. Analysts polled by Visible Alpha had anticipated a decline of 81,809 subscribers. This represents Verizon's first positive first-quarter postpaid phone net additions in over a decade, with a year-over-year improvement of more than 340,000 subscribers.
Total operating revenue rose 2.9% to $34.4 billion, though it fell short of Wall Street's expectations. Net income increased 3.3% to $5.1 billion, while adjusted earnings per share climbed 7.6% to $1.28. The company raised its 2026 adjusted EPS guidance to a range of $4.95 to $4.99, implying growth of 5% to 6% from the prior year.
"Our turnaround is not only progressing, it is gaining momentum," Schulman said in a statement, adding that the company is focused on "reclaiming market leadership" by reducing customer friction and improving retention. During the earnings call, Schulman emphasized that Verizon is leaning more heavily into steady service revenue and pulling back on lower-margin promotions.
The broadband segment also delivered strong results, with the company adding 341,000 broadband subscribers in the quarter. This included 214,000 new fixed wireless access customers—home internet services delivered over its wireless network—and 127,000 new fiber subscribers. Verizon ended the quarter with approximately 16.8 million broadband customers, bolstered by the recent closure of its Frontier Communications acquisition on January 20.
However, the quarter was not without challenges. Revenue came in below analysts' estimates, and wireless service revenue growth was dampened by approximately 80 basis points due to customer credits issued following a network outage in January. According to Reuters, the company provided $20 credits to hundreds of thousands of affected customers.
Debt levels also moved higher, with net unsecured debt reaching $130.1 billion at quarter-end, up from $110.1 billion at the close of Q4 2025. Verizon noted it has already retired about half of Frontier's debt since the acquisition closed and aims to repay nearly all of it by year-end.
On the cost front, CFO Tony Skiadas reported that the company's $5 billion cost-cutting initiative is "off to a great start," with lower spending on network operations, advertising, and staffing. The challenge ahead, however, will be retaining subscribers without resorting to aggressive handset subsidies. "Not every retention is going to be a free handset," Schulman told analysts during the call.
