Record volumes mark a strategic shift
Verizon closed 2025 with its strongest operational momentum in years, delivering its highest quarterly mobility and broadband volumes since 2019. Management described the fourth quarter as a turning point, reflecting a renewed focus on disciplined growth, customer retention, and execution efficiency.
The company’s strategy centers on winning volume without sacrificing profitability, moving away from purely defensive positioning toward a more assertive but financially controlled approach.
Improving financial performance
For the full year, Verizon reported earnings per share of $4.06, with adjusted EPS reaching $4.71. Total operating revenue rose to $138.2 billion, up from $134.8 billion in 2024. Free cash flow increased to $20.1 billion, supported by steady operating cash generation and controlled capital spending.
In the fourth quarter, adjusted EPS reached $1.09, while operating revenue totaled $36.4 billion. Adjusted EBITDA stood at $11.9 billion, confirming improving profitability despite continued investment in network infrastructure.
Mobility and broadband regain momentum
The most visible progress came from Verizon’s core connectivity businesses. Postpaid phone net additions reached 616,000 in the fourth quarter, the strongest quarterly result since 2019. Wireless equipment revenue surged more than 9% year over year, while service revenue continued to show stability.
Broadband growth also accelerated. Verizon added 372,000 broadband subscribers during the quarter, driven largely by fixed wireless access. Fios internet additions reached their highest fourth-quarter level since 2020, reinforcing the company’s multi-platform broadband strategy.
Frontier deal reshapes network scale
The January closing of the Frontier acquisition significantly expanded Verizon’s fiber footprint. Following the transaction, the company now serves more than 30 million homes and businesses with fixed wireless and fiber broadband connections, strengthening its long-term infrastructure position.
Management views the expanded network as a foundation for durable growth rather than a short-term earnings boost.
2026 guidance points to acceleration
For 2026, Verizon expects postpaid phone net additions between 750,000 and 1 million, representing a sharp improvement over recent years. Mobility and broadband service revenue is projected to grow between 2% and 3%.
Adjusted EPS is expected to rise to a range of $4.90 to $4.95, while free cash flow is forecast to exceed $21.5 billion, which would mark the company’s highest level since 2020. Capital expenditures are expected to moderate slightly while still supporting a robust fiber build.
A leaner organization takes shape
Management emphasized that the turnaround extends beyond financial metrics. Faster decision-making, more selective capital allocation, and a sharper focus on customer experience are central to Verizon’s transformation as it seeks to regain leadership in a highly competitive telecom market.
While industry pressures remain intense, Verizon’s latest results suggest the company is entering a new phase driven by execution rather than retrenchment.
