Verizon Q1 EPS beats; first positive Q1 postpaid net adds in 13 years

Transcript intelligence

What changed

Verizon followed a strong Q4 2025 (over 1 million net adds, guided higher for 2026) with a Q1 2026 beat: adjusted EPS rose 7.6% YoY to $1.28 versus the $1.22 consensus, and full-year EPS guidance was raised to 5-6% growth. Q1 marked the first positive postpaid phone net adds in 13 years (55,000) with churn below 85 bps, alongside free cash flow of $3.8 billion, a $2.5 billion buyback and a 2.5% dividend increase. The market reaction was modestly positive, with the stock up about 1.4% versus the event session and a subsequent drift of roughly +2.9%.

Guidance delta

raised

Key takeaways

• Adjusted EPS rose 7.6% YoY to $1.28 versus $1.22 estimated, and full-year EPS guidance was raised to 5-6%.
• Postpaid phone net adds reached 55,000, the first positive Q1 in 13 years, as churn fell below 85 bps.
• Free cash flow reached $3.8 billion, supporting a $2.5 billion share repurchase and a 2.5% dividend increase.
• Transformation targeting $5 billion of OpEx savings in 2026 is delivering early benefits, including lower acquisition and retention costs.
• Fiber footprint is on track to exceed 32 million passings with broadband net adds accelerating (+341k).

Management priorities

• Substantially complete the four-layer AI stack by July and fully by November to drive cost reductions and personalization.
• Accelerate fiber build-out beyond 32 million passings and grow broadband net adds.
• Integrate Frontier assets and reach $1 billion run-rate cost synergies by 2028.
• Maintain disciplined capital spending of $16-$16.5 billion focused on wireless and fiber.
• Sustain dividend growth and reduce leverage toward a 2.0-2.25x net-unsecured target by 2027.