New York, Feb 2, 2026, 05:30 EST — Premarket
- Verizon shares slipped slightly before the market opened, following a rally last week.
- Investors are weighing if subscriber growth can continue without eating into margins.
- Key signals to watch include capital returns, pricing discipline, and how the quarter kicks off.
Shares of Verizon Communications Inc slipped 0.7% to $44.22 in U.S. premarket trading Monday, following a Friday close of $44.52. (Public)
The slow kickoff follows a steep repricing late last week, leaving one key question: can Verizon grow its customer base without breaking the bank? Telecom isn’t exactly known for rapid expansion. Instead, subtle moves in churn and pricing carry the day.
Verizon beat Wall Street expectations in its fourth-quarter report, delivering adjusted earnings per share of $1.09 on $36.4 billion in revenue, according to Barron’s. The telecom giant also gained 616,000 postpaid phone subscribers. (Barron’s)
Verizon projects adjusted earnings per share between $4.90 and $4.95 in 2026, alongside free cash flow hitting at least $21.5 billion. Capital expenditures are expected to range from $16.0 billion to $16.5 billion. For this year, the company anticipates adding between 750,000 and 1 million retail postpaid phone customers. The Frontier Communications deal, which closed on Jan. 20, boosts Verizon’s fiber reach to over 30 million homes and businesses. “Verizon will no longer be a hunting ground for our competitors,” CEO Dan Schulman said. (Verizon)
Postpaid refers to monthly, bill-paying subscribers—the ones carriers are keenest to retain. Free cash flow is what remains after covering expenses and network investments, the cash that fuels dividends, buybacks, and debt reduction.
Investors are also eyeing Verizon’s wholesale wireless deals with cable giants. Light Reading revealed that Comcast and Charter Communications have secured “modernized” MVNO agreements with Verizon. Roger Entner at Recon Analytics suggested the cable firms likely scored “better rates” from Verizon. Meanwhile, Craig Moffett of MoffettNathanson called the core MVNO agreement “perpetual and irrevocable.” (Light Reading)
That cable angle is crucial since bundled home broadband and mobile plans remain one of the few areas in the U.S. telecom sector with noticeable activity. Verizon is pushing hard on “convergence,” aiming to sell multiple services to the same household, as it competes with AT&T and T-Mobile US for phone subscribers.
Not everyone buys the numbers. Moffett pointed out in a note, highlighted by Fierce Network, that while postpaid phone net adds got better, ARPU—average revenue per user—plus margins and EBITDA actually slipped.
The risk is clear-cut. Verizon might gain lines through heavy promotions but still take a hit on value, which would hit margins and cash flow down the road. Adding a bigger fiber footprint only complicates execution, especially as investors keep a tight watch on leverage.
A filing with the U.S. Securities and Exchange Commission revealed Verizon has greenlit a share repurchase program capped at $25 billion. The company plans to buy back no less than $3 billion in stock during 2026. It also announced a quarterly dividend of $0.7075 per share, payable May 1 to shareholders recorded by April 10 — the next key date. (Securities and Exchange Commission)
