Verizon Beats Subscriber Estimates, Lifts Guidance and Signs $2B+ AWS Fiber Deal
VZ sits 20% above its 52-week low of $38.39 on elevated volume (2.2× avg).
Summary
Verizon added 406,000 postpaid phone subscribers in Q3, nearly double the 209,439 analysts expected, and raised full-year net add guidance to 1.1-1.2 million from 750,000-1 million, while also raising its 2026 postpaid phone net adds forecast. It lifted FY adjusted EPS to $5.04-$5.06 from $4.99-$5.04, and now sees 2026 cash flow from operations growth of 3.5%-5% versus a prior view of 2%-4%. Q3 adjusted EPS came in at $1.31 and EPS at $1.25, consolidated net income was $5.3 billion, up 5.2%, and consolidated adjusted EBITDA grew 8% to $13.8 billion, with free cash flow of $7.8 billion, up 12.1%. The offset: Q3 revenue of $34.3 billion missed the $34.74 billion consensus as customers held phones longer after Verizon cut device subsidies. Separately, Verizon signed an AI infrastructure deal worth more than $2 billion with Amazon Web Services to supply high-capacity fiber connectivity for AWS data centers, with capacity booked through 2027 — a second data-center fiber win after July's $1 billion-plus Google dark-fiber agreement, and a new revenue stream beyond wireless. AWS is the counterparty here; the financial impact lands on Verizon. Watch whether the subscriber momentum holds into Q4 now that the Simplicity plan is the growth engine under CEO Dan Schulman's overhaul.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Verizon's Q3 consolidated net income was $5.3 billion, up 5.2%, and Adjusted EBITDA $13.8 billion, up 8.0%, with free cash flow of $7.8 billion, up 12.1%.
At the time of this announcement, VZ was trading at $46.20 on NYSE in the Trade & Services sector, with a market capitalization of approximately $185.6B. The 52-week trading range was $38.39 to $51.68. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.