New York, February 1, 2026, 16:32 EST — The market has closed.
- Verizon shares finished at $44.52, jumping 11.8% following a strong session sparked by the company’s updated outlook and its capital-return strategy.
- The carrier raised its profit and cash forecasts for 2026, citing a jump in higher-value wireless customers.
- Now the question is whether the rally holds once U.S. markets reopen Monday, and how soon buybacks begin to appear on the tape.
Verizon shares climbed 11.8% to close Friday at $44.52, setting a high bar to maintain when Wall Street reopens.
This shift is significant because telecom stocks have long stuck to a tight groove: steady dividends, heavy network investments, and relentless customer battles. When a major carrier backs a turnaround with concrete figures, traders usually jump in quickly to put it to the test.
The focus here is on the type of growth. “Postpaid” phone additions—those customers on monthly plans billed after service—draw close attention since they usually stick around longer than prepaid users and generate more cash over time. Free cash flow, a term often tossed about, means the cash remaining after capital expenditures, which can then support dividends, debt reduction, and share buybacks.
Verizon reported adding 616,000 postpaid phone subscribers in the fourth quarter, driven by aggressive holiday promotions that surpassed FactSet expectations. The company also launched a new $25 billion buyback program — its first in nearly six years — while raising its 2026 profit and free cash flow forecasts above consensus. Fiber is playing a bigger role, helping Verizon bundle home broadband with wireless services. “With the closing of the Frontier Communications acquisition just last week, Verizon has grown its fiber footprint to almost the size of AT&T’s,” noted analysts at MoffettNathanson. (Reuters)
In its earnings release, CEO Dan Schulman declared, “We are exiting 2025 with strong momentum,” and added a warning: “Verizon will no longer be a hunting ground for our competitors.” The company posted fourth-quarter revenue of $36.4 billion and adjusted earnings of $1.09 per share. Looking ahead, Verizon expects 2026 adjusted EPS between $4.90 and $4.95, alongside free cash flow of at least $21.5 billion. The firm also revealed its total unsecured debt hit $131.1 billion at the close of 2025. Additionally, Verizon announced it has updated and modernized its mobile virtual network operator (MVNO) agreement — a reseller deal using another carrier’s network — with Charter Communications and Comcast. (Verizon)
Verizon’s jump refocused investors on the wider U.S. telecom sector. On Friday, both AT&T and T-Mobile US saw their shares climb, even though the overall market ended the day in the red. (MarketWatch)
Looking ahead to the week, the key question is clear: will the stock hold the gap, or will investors sell off once the headlines settle? Broker notes typically arrive soon after a move like Friday’s, and they can quickly flip the story from “turnaround” to “one-quarter wonder.”
Still, the upside isn’t without risks. Verizon’s customer growth leaned heavily on promotions—and competitors can easily counter. If price pressure sticks around, boosting volumes might just squeeze margins tighter. Plus, the company must keep investing in network quality and juggle a hefty debt burden, cutting into flexibility if cash targets fall short.
A filing with the U.S. Securities and Exchange Commission revealed Verizon’s board approved share repurchases of up to $25 billion and plans to buy back at least $3 billion in 2026. The company also announced a quarterly dividend hike to $0.7075 per share, payable May 1 to shareholders of record on April 10. Investors will be looking closely for any early buyback activity as the stock heads into Monday’s session. (SEC)
