Verizon Communications Inc. (VZ) stock surged over 7% to $42.75 in early trading on January 30, 2026, following the release of stronger-than-expected fourth-quarter 2025 results and an optimistic outlook for 2026. The rally reflects renewed investor confidence that the telecom giant is entering a period of operational stabilization after several challenging years marked by subscriber losses and competitive pressures.
The company reported Q4 adjusted earnings per share of $1.09, slightly below the $1.10 from a year earlier but significantly beating analyst expectations of approximately $1.05. Revenue for the quarter climbed to $36.38 billion from $35.68 billion last year, also exceeding consensus estimates. A key highlight was Verizon's strongest combined wireless and broadband subscriber performance since 2019, with the addition of 616,000 postpaid phone customers—far surpassing Wall Street forecasts of around 417,000.
Wireless service revenue, Verizon's largest segment, reached $21.0 billion, marking a 1.1% year-over-year increase. Wireless equipment revenue jumped 9.1% to $8.2 billion. Broadband momentum remained strong with 372,000 net additions, including 319,000 fixed wireless access subscribers and 67,000 Fios internet customers.
Under new CEO Dan Schulman, who took over in October 2025, the company has pushed for aggressive cost discipline, including its largest-ever round of job cuts announced in November. Schulman described the quarter as a "critical inflection point" and expects to realize $5 billion in operating expense savings this year through streamlined operations.
Looking ahead, Verizon issued a confident forecast for 2026, projecting adjusted earnings per share between $4.90 and $4.95, well above analyst expectations near $4.75. The company expects total retail postpaid phone net additions of 750,000 to one million, compared with 362,000 added in 2025. Free cash flow is projected at no less than $21.5 billion, which would mark the company's strongest cash generation since 2020.
To underline confidence in its financial outlook, Verizon's board approved a new share repurchase authorization of up to $25 billion over the next three years, with at least $3 billion planned for 2026. The company also declared a quarterly dividend of $0.7075 per share, payable May 1, marking 22 consecutive years of dividend growth. The 2026 outlook includes the impact of Verizon's recently closed $9.6 billion acquisition of Frontier Communications, which expands its fiber footprint to more than 30 million homes and businesses.
