New York, Jan 31, 2026, 16:43 EST — The market has closed.
- After Friday’s session, Verizon shares climbed 11.8%, closing at $44.52
- Strong Q4 subscriber growth and an improved cash forecast for 2026 have renewed attention on buybacks and dividends
- Next week’s focus: whether the rally holds, promo intensity levels, and insights from sector peers
Verizon shares climbed 11.8% to $44.52 on Friday, following a strong quarterly report that triggered a sharp rebound heading into the weekend.
U.S. markets are shut for the weekend, but when they reopen Monday (Feb. 2), all eyes will be on whether this surge holds or fizzles out. Verizon has been working for months to prove it can boost growth without relying heavily on price hikes.
Verizon’s holiday promotions—including a deal offering four phone lines for $100 a month—helped the company gain 616,000 postpaid phone subscribers in Q4 2025, surpassing FactSet estimates. Following its recent acquisition of Frontier Communications, MoffettNathanson analysts noted Verizon’s fiber network now nearly matches AT&T’s footprint. “With the closing of the Frontier acquisition just last week, Verizon has grown its fiber footprint to almost the size of AT&T’s,” they said. Verizon also unveiled a $25 billion buyback plan, its first in almost six years, alongside announcing more than 13,000 job cuts since October. (Reuters)
Verizon reported adjusted earnings of $1.09 per share for the fourth quarter, on revenue of $36.4 billion, while adding 372,000 broadband subscribers. Looking ahead to 2026, the company projects adjusted earnings between $4.90 and $4.95 per share, with free cash flow expected to hit at least $21.5 billion. Capital expenditures are forecasted in the range of $16.0 billion to $16.5 billion. “Verizon will no longer be a hunting ground for our competitors,” said Dan Schulman. The company closed 2025 carrying $131.1 billion in total unsecured debt. (Verizon)
A recent filing with the U.S. Securities and Exchange Commission revealed Verizon has raised its quarterly dividend to $0.7075 per share, payable on May 1 to shareholders of record on April 10. This marks a 2.5% annualized increase, or $0.07 more per share. The board also approved a share buyback program capped at $25 billion. Verizon plans to repurchase at least $3 billion of stock in 2026, aiming to return roughly $55 billion to shareholders by the end of 2028. (Securities and Exchange Commission)
Free cash flow — the cash remaining after capital expenditures — is crucial because it funds dividends and turns buybacks into actual returns, not just promises. Verizon argues that a cost reset combined with a larger fiber network can sustain both.
Fiber has moved beyond just wireline. Carriers are increasingly bundling mobile service with home internet, making it tougher for customers to switch—provided they can deliver on promises.
The setup can turn quickly. Aggressive promotions might grab customers fast but risk tightening margins if competitors push back; meanwhile, a rocky Frontier integration or rising interest rates could push debt concerns back into focus.
In the coming week, traders will focus on whether Verizon can maintain its position in the mid-$40s range and if fresh analyst reports push the narrative toward a “turnaround” or a “pull-forward.” The pace of first-quarter customer additions will be key, even before the next earnings date arrives.
T-Mobile US will hit a key milestone on Feb. 11, unveiling its quarterly results alongside a capital markets day update. Investors will be watching closely for signs of how fierce the promotional and switching battles remain heading into spring. (T Mobile)
