TLDR
- Verizon reported Q4 2025 adjusted earnings of $1.09 per share on revenue of $36.4 billion, beating analyst estimates of $1.05 per share and $36.1 billion in revenue.
- The company added 616,000 postpaid phone subscribers in Q4, exceeding the expected 417,000 and surpassing the 504,000 added in the same quarter last year.
- Verizon’s board authorized a $25 billion share buyback program over three years, with at least $3 billion planned for 2026, and raised its quarterly dividend by 2.5% to $0.7075 per share.
- The company projects 2026 adjusted earnings between $4.90 and $4.95 per share, beating Wall Street’s expectation of $4.75 at the midpoint.
- Verizon added 372,000 net broadband connections and 319,000 net fixed-wireless connections in Q4, with Fios internet net additions reaching 67,000, the highest in five years.
Verizon stock surged Friday morning after the wireless carrier delivered better-than-expected fourth-quarter results and announced a massive shareholder return program. The company posted adjusted earnings of $1.09 per share on revenue of $36.4 billion. Analysts had expected earnings of $1.05 per share and revenue of $36.1 billion, according to FactSet.
Verizon Communications Inc., VZ
The real standout was subscriber growth. Verizon added 616,000 postpaid phone subscribers during the quarter. That figure crushed analyst expectations of 417,000 new subscribers and beat the 504,000 the company added in the same period last year.
The postpaid churn rate came in at 1.3%. This measures how many customers cancel their service each month.
Beyond wireless phones, Verizon showed strength in its broadband business. The company added 372,000 net broadband connections and 319,000 net fixed-wireless connections in the fourth quarter. Fios internet net additions totaled 67,000, marking the highest number in five years.
These results marked the first quarter under new CEO Dan Schulman. The former PayPal chief took over in early October after serving on Verizon’s board since 2018. Schulman oversaw the company’s largest layoff in history, affecting over 13,000 employees.
“The actions we’re taking are designed to make us faster and more focused,” Schulman wrote in a memo to employees. He added that being “customer-first, cost-conscious” would become a way of life at the company.
Forward Guidance Exceeds Expectations
For 2026, Verizon expects wireless service revenue growth to remain flat. The company said this reflects a transition to “sustainable volume-based growth.” But the earnings forecast told a different story.
Verizon is targeting adjusted earnings between $4.90 and $4.95 per share for 2026. Wall Street had been expecting $4.75 at the midpoint. That’s a clear beat of analyst expectations.
On the earnings call, Schulman told analysts the company was “just at the beginning of its efficiency journey.” This suggests more cost-cutting measures could be coming.
Major Shareholder Return Program Announced
The board authorized a share repurchase program worth up to $25 billion over the next three years. Verizon plans to buy back at least $3 billion of stock in 2026 alone.
The company also raised its quarterly dividend to $0.7075 per share. This represents an increase of $0.07 per share annually, or 2.5% higher than the previous rate. The dividend is payable on May 1 to shareholders of record as of April 10.
With the latest increase, Verizon has now raised its dividend for 21 consecutive years. The current yield stands at 6.93%, according to InvestingPro data.
Combined with dividends, Verizon plans to return approximately $55 billion to shareholders through the end of 2028. The company said these returns will be funded by changes to its cost structure and strategic approach.
Verizon’s total unsecured debt stood at $131.1 billion at the end of the fourth quarter. That’s up from $117.9 billion last year. Net unsecured debt was $110.1 billion compared to $113.7 billion in 2024.
Shares jumped 7.1% to $42.63 on Friday. According to Dow Jones Market Data, this was on pace to be the largest same-day percentage increase since a 9.3% jump in 2023. The S&P 500 ticked down 0.1% during the same period.
Heading into the earnings report, Verizon shares had fallen 2.3% year-to-date. Over the past 12 months, the stock had risen just 1.1%. The benchmark S&P 500 rose 1.8% and nearly 15% over the same periods.
The quarterly results didn’t include the $20-per-customer rebates Verizon offered following a service outage in mid-January. Assuming all 32 million consumer postpaid wireless accounts receive a credit, this would amount to a nearly $650 million one-time cost for the company.
