Verizon Communications Inc. raised its 2026 subscriber and earnings targets after third-quarter net postpaid phone additions reached a five-year high, while announcing a deal worth $2 billion or more with Amazon Web Services (AWS).
Verizon recorded 406,000 net postpaid phone additions in the quarter, more than 820% above the year-earlier figure and its strongest third-quarter result in five years. Reuters, citing Visible Alpha, reported that analysts expected 209,439 net additions.
The company now expects 1.1 million to 1.2 million net postpaid phone additions in 2026. Its previous forecast was 750,000 to 1 million, with results expected in the upper half of that range. Verizon also raised its adjusted earnings-per-share outlook to $5.04-$5.06 from $4.99-$5.04 after its second-quarter update.
Third-quarter operating revenue reached $34.3 billion, up 1.5% from a year earlier. Reuters, citing LSEG data, said analysts had expected $34.74 billion. Net income rose 5.2% to $5.3 billion, while adjusted earnings per share increased 8.3% to $1.31.
Verizon raised its expected 2026 growth in cash flow from operations to 3.5%-5% from 2%-4%. It expects free cash flow growth to approach 12%, compared with its previous 9%-10% outlook. The company kept its capital-spending forecast at $16 billion to $16.5 billion, including success-based investments for AI Connect.
Equipment revenue fell 9% year over year, which Verizon attributed mainly to less frequent phone upgrades and lower device subsidies. Postpaid phone churn declined four basis points from a year earlier to 0.94%, and promotional acquisition costs fell 41%.
Verizon said the AWS arrangement is designed to supply distributed computing for AI applications that need real-time processing, including agentic and generative systems. Its Oct. 26 release did not specify the agreement’s term or delivery schedule. In November 2025, Verizon announced plans for long-haul fiber pathways connecting AWS data center locations; that announcement did not disclose a project value.
Verizon attributed its results to its broader transformation strategy. CEO Dan Schulman cited the Simplicity plan and expanded loyalty program as customer-focused initiatives. Launched in June 2026, Simplicity removes network tiers and includes unlimited 5G Ultra Wideband data, the company said. Verizon expects mobility and broadband service revenue to grow about 4% in the fourth quarter.
