Verizon Communications (VZ) saw its shares surge on Friday morning following a blockbuster fourth-quarter earnings report that handily beat Wall Street expectations. The telecommunications giant added 616,000 new postpaid phone subscribers, significantly outperforming the 420,500 additions analysts had predicted. These results mark a major turning point for the New York-based carrier, representing its highest quarterly growth in mobility and broadband since 2019.
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Schulman’s Efficiency Drive Delivers Early Wins
The strong numbers provide the first full look at the impact of new Chief Executive Officer Dan Schulman, who took the helm in October. Schulman, the former head of PayPal (PYPL), has moved quickly to overhaul Verizon’s massive operations by cutting roughly 13,000 jobs and promising a “leaner, scrappier” business model. His focus on simplifying the company’s complex promotional offers and leveraging AI to reduce customer churn appears to be paying off. In a statement on Friday, Schulman noted that the team is “intensely focused on winning through healthy volumes and fiscally responsible growth.”
Aggressive Promos Fuel Subscriber Surge
The holiday season saw Verizon pivot to a much more aggressive marketing strategy to steal customers from rivals like T-Mobile (TMUS) and AT&T (T). The company’s recent switcher campaigns included offers for four lines of unlimited service for $100 a month, paired with free high-end devices like the iPhone 17 Pro. This promotional push helped drive fourth-quarter revenue to $36.4 billion, edging past the consensus estimate of $36.1 billion.
Turnaround Guidance Lifts 2026 Outlook
Investors were particularly encouraged by Verizon’s optimistic forecast for the coming year. The company issued 2026 earnings guidance of $4.90 to $4.95 per share, which is well above the $4.76 that analysts had expected. Management also projects it will add between 750,000 and 1 million new phone customers this year. The closing of the Frontier (FYBR) acquisition on January 20 is expected to further accelerate this momentum by expanding Verizon’s fiber footprint to over 30 million homes and businesses.
Is Verizon a Good Stock to Buy Now?
On TipRanks, Verizon stock (VZ) has a Moderate Buy consensus rating based on four Buy and eight Hold ratings. The average 12-month VZ price target of $46.10 implies 15.8% upside potential from current levels.
