Verizon CEO Declares Turnaround 'Gaining Momentum'

Verizon reported first-quarter 2026 earnings that delivered a mixed top line but a powerful bottom-line beat. Revenue of $34.4 billion slightly missed analyst estimates, but adjusted earnings per share (EPS) of $1.28 came in well above the $1.20 forecast. More importantly, the company demonstrated robust financial health, with adjusted EBITDA hitting a record quarterly high of $13.4 billion and free cash flow growing 4% to $3.8 billion.

CEO Dan Schulman didn't mince words, stating the company's turnaround is "not only progressing, it is gaining momentum." This confidence was backed by subscriber growth, with Verizon adding 55,000 postpaid phone customers, 115,000 prepaid users, and a strong 341,000 broadband connections. Customer retention also improved, with postpaid phone churn falling below 85 basis points in March.

The company is aggressively managing its capital. It repurchased $2.5 billion in shares and remains on track for at least $3 billion in buybacks for the full year. It also paid down a significant portion of debt related to its Frontier acquisition. Operationally, Verizon is targeting $5 billion in cost savings this year and more than $1 billion in synergies from the Frontier deal by 2028.

Perhaps the most forward-looking news came from management's comments on artificial intelligence. Verizon revealed it is in advanced discussions with major cloud and tech companies to integrate its extensive fiber and 5G networks into AI infrastructure, potentially unlocking new, multi-billion dollar revenue streams.

For investors, this quarter matters because it shows Verizon is successfully executing a multi-pronged strategy: improving its core business, strengthening its balance sheet, and planting seeds for future growth. The record profitability and rising free cash flow provide the financial fuel for dividends, buybacks, and debt reduction, which directly supports the stock's appeal to income-focused investors.

The raised full-year EPS guidance to a range of $4.95-$4.99, above prior estimates, signals management's growing confidence in its operational plan. It suggests the earnings beat wasn't a one-off but part of a sustainable trend. This guidance upgrade is a key catalyst for the stock's positive reaction.

The subscriber metrics are critical. In the competitive U.S. wireless market, adding postpaid phone customers while simultaneously lowering churn and reducing acquisition costs is a sign of effective marketing and improved service quality. It indicates Verizon is holding its own against rivals like T-Mobile and AT&T.

Most significantly, the AI infrastructure initiative could redefine Verizon's long-term narrative. By leveraging its hard-to-replicate physical assets—nationwide fiber and 5G networks—Verizon is positioning itself not just as a utility, but as a critical partner in the AI revolution. This opens a potential growth avenue that the market has not traditionally priced into telecom stocks, offering a path to re-rate the company's valuation higher over time.