Verizon Adjusts Annual Profit Forecast Following First-Quarter Subscriber Growth

Apr 27, 2026, 11:05

Introduction

Verizon has increased its projected annual profit following a first-quarter increase in wireless subscribers, which exceeded market expectations.

Main Body

The company reported a net gain of 55,000 monthly bill-paying wireless subscribers for the quarter ending in March, marking the first such increase for this period in over ten years. This figure contrasted with projections from Visible Alpha analysts, who had anticipated a decrease of 81,809 subscribers. Consequently, Verizon now anticipates that its total retail postpaid phone net additions for the year will fall within the upper half of its 750,000 to 1 million forecast range. This growth is attributed to a strategic shift toward customer acquisition and retention, characterized by the implementation of bundled high-speed broadband and wireless plans. Furthermore, the company introduced incentives for customers migrating from competitors, specifically AT&T and T-Mobile. CEO Dan Schulman stated that these initiatives are intended to reduce customer friction and restore market leadership. The financial results for the period also incorporate the acquisition of Frontier, which concluded on January 20. Regarding financial performance, Verizon reported an adjusted first-quarter profit of $1.28 per share, surpassing the estimated $1.20. However, total quarterly revenue reached $34.4 billion, falling short of the $34.84 billion estimated by LSEG. This revenue variance was partially influenced by a ten-hour service interruption in January, which necessitated the issuance of $20 credits to a significant number of customers. Looking forward, the company has revised its 2026 adjusted profit forecast to a range of $4.95 to $4.99 per share, upward from the previous estimate of $4.90 to $4.95. Additionally, management is exploring partnerships with cloud providers, hyperscalers, and large enterprises to integrate 5G and fiber assets into AI infrastructure, a move projected to generate substantial revenue. Market reaction to these developments included a share price increase of between 3 and 4 percent.

Conclusion

Verizon has demonstrated a reversal in subscriber loss trends and an upward revision of profit guidance, supported by new bundling strategies and potential AI infrastructure integration.

Vocabulary Learning

anticipates (v.)

to expect or predict something in advance / 預期

Example:The company anticipates that its total retail postpaid phone net additions will fall within the upper half of its forecast range.

hyperscalers (n.)

large-scale cloud computing providers that can rapidly scale resources / 大型雲端服務供應商

Example:The company is exploring partnerships with cloud providers, hyperscalers, and large enterprises to integrate 5G and fiber assets into AI infrastructure.

incentives (n.)

things that motivate or encourage action / 激勵措施

Example:The company introduced incentives for customers migrating from competitors.

integration (n.)

the process of combining or coordinating different parts into a whole / 整合

Example:The integration of 5G and fiber assets into AI infrastructure is projected to generate substantial revenue.

retention (n.)

the act of keeping or maintaining customers or employees / 留存

Example:The strategic shift toward customer acquisition and retention aims to reduce customer friction.

Sentence Learning

Additionally, management is exploring partnerships with cloud providers, hyperscalers, and large enterprises to integrate 5G and fiber assets into AI infrastructure, a move projected to generate substantial revenue.

Reduced Relative Clause: The phrase 'a move projected to generate substantial revenue' functions as a reduced relative clause modifying 'move', indicating its expected outcome.簡化關係子句: 片語 'a move projected to generate substantial revenue' 作為簡化關係子句，修飾 'move'，表明其預期結果。

However, total quarterly revenue reached $34.4 billion, falling short of the $34.84 billion estimated by LSEG.

Participial Phrase: The participial phrase 'falling short of the $34.84 billion estimated by LSEG' modifies 'revenue' and describes its condition at the time of reporting.分詞短語: 分詞短語 'falling short of the $34.84 billion estimated by LSEG' 修飾 'revenue'，描述報告時的狀況。

This revenue variance was partially influenced by a ten-hour service interruption in January, which necessitated the issuance of $20 credits to a significant number of customers.

Relative Clause: The clause 'which necessitated the issuance of $20 credits to a significant number of customers' provides additional information about the service interruption and acts as a relative clause modifying 'service interruption'.關係子句: 子句 'which necessitated the issuance of $20 credits to a significant number of customers' 關於服務中斷的額外資訊，作為修飾 'service interruption' 的關係子句。