Verizon Communications stock surged after the telecom giant reported strong second-quarter earnings and disclosed a dark fiber agreement with Google worth more than $1 billion. The deal, revealed during the earnings call by CEO Dan Schulman, will connect Google’s AI data centers as hyperscalers race to expand computing capacity.
Record EBITDA and Raised Guidance
Verizon posted adjusted EBITDA of $13.7 billion, a 7.2% year-over-year increase and the highest margin in company history at 40.1%. Adjusted earnings per share came in at $1.30, beating the $1.28 consensus. Free cash flow surged 24.4% to $6.4 billion in the quarter, while total shareholder returns reached $9.4 billion in the first half of 2026. The company lifted its full-year adjusted EPS outlook to $4.99–$5.04 and expects free cash flow growth of 9–10%.
The strong operational results were driven by mobility and broadband growth. Postpaid phone net additions hit 184,000 – the best consumer Q2 in five years – and total broadband net adds reached 348,000, including 193,000 fixed wireless and 155,000 fiber connections.
Google Deal Pushes Verizon into AI Infrastructure
The dark fiber agreement, valued at over $1 billion, will see Verizon provide long-haul and metro fiber connectivity for Google’s expanding AI data center network. Schulman called the buildout of AI infrastructure “one of the largest capital cycles of our lifetime” and hinted that Verizon expects to announce additional multi-billion dollar deals by year-end. The pact positions Verizon as a direct beneficiary of the AI boom, adding a new revenue stream beyond traditional telecom services.
Despite the positive news, the market’s initial reaction was mixed as overall revenue slipped 0.7% to $34.3 billion, missing estimates, due to a nearly 20% drop in equipment sales. However, the adjusted metrics and the Google deal ultimately lifted the stock by 4.47% to $45.78.
