Verizon Q1 Earnings Make History, Stock up 2.25%
Quick overview
- Verizon reported positive net adds for postpaid phone plans for the first time in over a decade, reflecting a successful shift to a customer-focused strategy.
- The company posted earnings per share of $1.28, exceeding expectations, although revenue fell short at $34.4 billion.
- Verizon raised its EPS growth guidance for the year from 4% to 6% and anticipates significant growth in postpaid phone net adds.
- The company expects to save around $5 billion by 2026 through operational improvements and AI productivity enhancements.
On Monday, Verizon Communications Inc. (VZ) posted earnings for its first fiscal quarter and was able to report positive net adds for postpaid phone plans for the first time in over a decade.
Verizon shifted their approach to become more customer focused and started chasing long-term contracts rather than working toward quick gains. That tactic has paid off, and they posted earnings per share of $128.
That was better than the expected EPS of $1.21. They missed the revenue mark, though, reporting $34.4 billion for the quarter as opposed to the expected $34.82 billion. However, investors were happy with the Q1 performance and their outlook moving forward, and their stock initially rose 3% and then settled down to 1.70% later in the day.
Verizon Beat Four Years of EPS Growth
The quarterly report for Verizon shows a number of areas in which they improved from the previous quarter. Their adjusted earnings per share grew by its largest rate in four years, helping VZ stock climb to $47.48. The stock dropped from a 2026 high of $51.38 per share back in March, and it is on the road to recovery now after an impressive earnings report.
Verizon’s outlook for the rest of the year is promising, and during their earnings call, they raised their EPS growth guidance from a low of 4% to a high of 6%. They also expect their postpaid phone net adds to grow even more than they previously forecasted. Now, they are setting their sights on adds between 750,000 and one million.
Their broadband service and mobility revenue growth for Q1 were relatively low, but they expect those areas will perform better in other quarters. Verizon anticipates around 2-3% growth annually for those aspects of their business for the remainder of the year.
One of the biggest areas of improvement for the company is in their operating expenses. They anticipate saving around $5 billion for 2026 thanks to plans to close down legacy components of the network and using AI to boost productivity. On Monday, VZ stock performed well above its competitors, most of which were down for the day. It also outperformed the stock indices it is listed on, including the Nasdaq and S&P 500, which were up 0.6% and 0.10%, respectively.
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