NEW YORK, Jan 30, 2026, 13:36 EST — Regular session
- Verizon shares jumped almost 10% on Friday following strong subscriber growth and optimistic 2026 guidance from the company
- The carrier expects higher adjusted profit and free cash flow as it pivots toward volume-driven growth
- A fresh $25 billion share repurchase program now joins the list of catalysts
Shares of Verizon Communications climbed 9.8% to $43.73 Friday afternoon, recovering from a low of $39.70 earlier in the session.
Verizon reported adding 616,000 postpaid phone subscribers in the fourth quarter, with adjusted earnings hitting $1.09 per share on $36.4 billion in revenue. Net additions also included 372,000 broadband connections. The company closed 2025 carrying $131.1 billion in unsecured debt. Looking ahead, Verizon expects adjusted earnings between $4.90 and $4.95 per share for 2026, alongside free cash flow of at least $21.5 billion. CEO Dan Schulman asserted the company “will no longer be a hunting ground for our competitors.” (Verizon)
The Frontier deal Schulman finalized earlier this month fits into that strategy. Verizon said the merger boosts its fiber “passings” to around 30 million — the number of locations where it can hook up customers to fiber broadband. (Verizon)
This is crucial now as Wall Street seeks clearer evidence the carrier can attract customers without relying solely on raising prices. In U.S. telecom, subscriber growth—and the cash flow it generates—remain the primary indicators.
A regulatory filing revealed that Verizon’s board has greenlit a share buyback program totaling up to $25 billion and announced a quarterly dividend of $0.7075 per share. The company anticipates repurchasing at least $3 billion of stock in 2026 but noted the schedule will hinge on market conditions. (SEC)
During the earnings call, Schulman acknowledged a recent network outage, saying bluntly, “We let our customers down.” He also outlined plans for a stronger cost-cutting effort, while boosting spending on network reliability and expanding the fiber footprint. (The Motley Fool)
The company’s guidance signals the recovery won’t be smooth. Verizon projects wireless service revenue to stay roughly flat in 2026, despite aiming for more customers. It’s a clear sign that pricing and promotions remain key factors in the industry.
AT&T and T-Mobile continue to battle fiercely, leaning on aggressive deals to hold their ground. Investors will be alert for any hint that the market might slide back into a deeper discount spiral.
The picture could change if churn jumps after promotions end or service problems resurface. Adding Frontier into the mix brings extra execution risks, and with a hefty spending plan in place, there’s little wiggle room for unexpected setbacks.
Traders are also eyeing the U.S. employment report for January, set for release on Feb. 6, looking for signals on interest rates and risk appetite. (Bureau of Labor Statistics)
T-Mobile is set to report on Feb. 4, marking the next key sector checkpoint. Investors will get an updated look at wireless demand and promotional activity. (T Mobile)
