New York, Jan 30, 2026, 13:18 EST — Regular session
- Verizon shares jumped nearly 9.7% in afternoon trading following the carrier’s boost to its 2026 forecast and announcement of a $25 billion share buyback program.
- Verizon boosted its quarterly dividend to 70.75 cents per share and announced plans to buy back a minimum of $3 billion in stock during 2026.
- The company reported 616,000 postpaid phone net additions in Q4 and projected free cash flow of at least $21.5 billion for 2026.
Verizon Communications Inc shares surged Friday following an upgrade to its 2026 outlook and the announcement of a $25 billion share buyback program. The stock climbed 9.7% to $43.66, swinging between a low of $39.70 and a high of $43.98 during the session.
This matters as Verizon aims to prove it can boost growth without burning through cash in a promotion-heavy wireless market. U.S. carriers have relied on deals and bundles to attract switchers, even while rising network expenses and persistent inflation squeeze costs.
A regulatory filing detailed Verizon’s multi-year cash return strategy. The company plans to return roughly $55 billion to shareholders by the end of 2028 through dividends and share buybacks, all while maintaining investments and managing debt levels. (SEC)
Verizon posted fourth-quarter revenue of $36.4 billion and adjusted earnings of $1.09 per share. The company added 616,000 postpaid phone subscribers and saw broadband net additions of 372,000. Looking ahead to 2026, Verizon forecast adjusted EPS between $4.90 and $4.95, with free cash flow expected to top $21.5 billion, the cash remaining after capital expenditures. (SEC)
Those targets highlight a familiar balancing act: pursue volume, then protect margins. Verizon anticipates wireless service revenue will stay about flat this year as it moves toward what it describes as “sustainable volume-based growth.”
Promotions powered the quarter, including a deal offering four phone lines for $100 a month, helping Verizon surpass FactSet’s expected postpaid adds of 417,250. CEO Dan Schulman declared that Verizon “will no longer be a hunting ground for our competitors.” Analysts at MoffettNathanson highlighted Frontier’s closure as a move that brings Verizon’s fiber coverage nearly on par with AT&T’s. (Reuters)
The Frontier deal has become key to Verizon’s “convergence” strategy — combining mobile service with home internet to stem customer churn. Verizon noted the transaction, finalized on Jan. 20, boosts fiber availability to over 30 million homes and businesses.
Verizon highlighted a revamped deal with Comcast and Charter. The company updated its long-term MVNO agreement — MVNOs being wireless brands that resell network capacity from carriers like Verizon — aiming to drive “profitable growth” for all parties involved.
During the earnings call, Verizon executives focused heavily on cost-cutting and customer retention. CFO Anthony Skiadas highlighted a clear path to $5 billion in operating expense savings by 2026 and noted that “postpaid phone churn remained elevated,” as the company navigates past pricing moves and stiff competition. CEO Schulman also addressed the recent network outage and confirmed that the Frontier integration is projected to yield at least $1 billion in run-rate synergies by 2028. (The Motley Fool)
Still, risks linger on the fringes of the rally. Verizon closed 2025 carrying $131.1 billion in total unsecured debt. Frontier’s integration might push leverage higher before it eases. Plus, more aggressive promotions risk compressing service revenue if competitors retaliate.
Capital spending remains a key concern. Verizon forecasted $16 billion to $16.5 billion in capex for 2026, with investors watching closely to see if that decline sticks amid ramping fiber builds and a growing focus on customer retention.
Traders are now zeroing in on the upcoming subscriber and churn figures, as well as the speed at which buybacks start appearing on the tape. Verizon’s next quarterly dividend will go out May 1 to shareholders recorded by April 10.
