Verizon Communications Inc. (NYSE:VZ) stock gained on Friday after the company reported upbeat fourth-quarter financial results and 2026 guidance.
The company reported quarterly revenue growth of 2.0% year-over-year (Y/Y), reaching $36.40 billion, which beat the analyst consensus estimate of $36.06 billion.
Adjusted EPS of $1.09 topped the analyst consensus estimate of $1.05.
Verizon reported total postpaid phone net additions of 616,000, up from 504,000 a year ago, marking the best quarter of postpaid phone net additions since 2019.
Don’t Miss:
Verizon reported 372,000 broadband net additions in the quarter.
Total fixed wireless access net additions were 319,000 in the quarter, bringing the base to over 5.7 million fixed wireless access subscribers.
The company delivered 67,000 Fios internet net additions in the quarter.
Total broadband connections grew to over 16.3 million as of the end of the quarter upon the closing of the Frontier acquisition.
In the fourth quarter of 2025, wireless service revenue reached $21.0 billion, representing a year-over-year increase of 1.1%.
Total quarterly Verizon Consumer revenue was $28.44 billion, up by 3.2% Y/Y, reporting 551,000 wireless retail postpaid phone net additions for the quarter, up from 367,000 postpaid phone net additions Y/Y.
Consumer wireless service revenue for the quarter reached $17.37 billion, up 1.2% Y/Y.
Trending: Blue-chip art has historically outpaced the S&P 500 since 1995, and fractional investing is now opening this institutional asset class to everyday investors.
Consumer wireless retail postpaid churn was 1.21%, and wireless retail postpaid phone churn was 0.95% for the quarter. Consumer wireless postpaid average revenue per account (ARPA) stood at $147.36, representing a 1.2% year-over-year increase.
Consumer reported 109,000 wireless retail core prepaid net additions.
Total quarterly Verizon Business revenue was $7.37 billion, a decrease of 1.8% Y/Y amid 11,000 wireless retail postpaid net additions in the quarter, including 65,000 postpaid phone net additions.
Business wireless service revenue was $3.59 billion, up by 0.5% Y/Y for the quarter.
Business wireless retail postpaid churn was 1.64% and wireless retail postpaid phone churn was 1.27% in the quarter.
The Consumer segment EBITDA margin declined by 100 bps to 36.5%, while the Business segment EBITDA margin fell by 10 bps to 22.0%.
Verizon’s quarterly adjusted EBITDA decreased to $11.86 billion, down from $11.93 billion Y/Y.
Verizon’s net income stood at $2.45 billion, compared to $5.11 billion a year ago.
Verizon’s quarterly free cash flow was $4.37 billion, down from $5.36 billion Y/Y.
Verizon CEO Dan Schulman highlighted the closing of Verizon’s Frontier acquisition on January 20 as a significant milestone in the turnaround, expanding the company’s fiber footprint to more than 30 million homes and businesses.
He added that Verizon has reached a critical inflection point.
See Also: Wall Street’s $12B Real Estate Manager Is Opening Its Doors to Individual Investors — Without the Crowdfunding Middlemen
Verizon is pushing an aggressive growth strategy to regain ground from AT&T Inc. (NYSE:T) and T-Mobile US, Inc. (NASDAQ:TMUS).
Under the new CEO, Verizon launched heavier promotions, streamlined operations, and refocused on customer retention.
Verizon has offered free top-tier smartphones with new lines and bundled internet plans, including perks such as a free Samsung TV, to stand out in a crowded market.
Schulman has also moved quickly to reshape the company, cutting roughly 13,000 jobs and pledging a leaner, faster organization after Verizon lost momentum due to price hikes and customer service issues.
Verizon expects total retail postpaid phone net additions of 750,000 to 1.0 million.
The company expects total mobility and broadband service revenue growth of 2.0%-3.0%, equating to approximately $93 billion.
It expects flat wireless service revenue growth as the company transitions to sustainable volume-based growth.
Verizon expects adjusted EPS of $4.90-$4.95 versus the analyst consensus estimate of $4.76.
The company expects free cash flow of $21.5 billion or more, implying a Y/Y growth rate of 7% or more, marking the highest free cash flow it has generated since 2020.
It expects an operating cash flow of $37.5 billion-$38.0 billion, and capital expenditure of $16.0 billion-$16.5 billion.
Read Next: Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro
Photo by Ken Wolter via Shutterstock
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga:
This article Verizon Posts Best Subscriber Growth Since 2019 originally appeared on Benzinga.com
