Verizon Adds 406,000 Phone Lines, Raises 2026 Target to 1.2 Million
Key Facts
Verizon reported third-quarter 2026 results on October 26, posting operating revenue of $34.3 billion and net income of $5.3 billion. Revenue rose 1.5% year over year, while net income increased 5.2%. In a sign of strong customer acquisition, the company added 406,000 postpaid phone lines, an increase of more than 820% from a year earlier. Verizon raised its full-year target for these additions to between 1.1 million and 1.2 million, from the upper half of its previous range of 750,000 to 1 million. The results combine an improving subscriber base with higher profitability, as operating revenue grew more slowly than net income.
Postpaid phone performance was the strongest for a third quarter in five years, according to the company’s statement, while postpaid account additions reached 137,000, their highest quarterly level in more than a decade. In the first nine months of 2026, Verizon attracted nearly 1.7 million mobility and broadband subscribers, compared with 879,000 in the same period of 2025. Mobility and broadband service revenue totaled $23.5 billion in the third quarter, up 2.9% year over year. Growth accelerated from 1.6% in the first quarter to 2.8% in the second quarter, before reaching 2.9% in the third quarter. The company expects growth in this revenue to approach 4.0% in the fourth quarter.
Growth in mobility and broadband services coincided with a 9.0% year-over-year decline in equipment revenue. Verizon attributed the decrease mainly to lower device upgrade volumes, alongside reduced spending on subsidies. Chief Executive Dan Schulman said the company is prioritizing customer-focused offers such as “Simplicity” and an expanded loyalty program over large device subsidies. He added that this approach helps it “win loyal, high-value customers while expanding margins and reducing churn.” The postpaid phone churn rate fell 4 basis points year over year to 0.94%. Promotional customer acquisition costs fell 41%, while promotional retention costs improved 30% year over year.
In broadband, the company recorded 314,000 net additions in the third quarter, comprising 159,000 fixed wireless access connections and 155,000 fiber connections. Total broadband connections reached 17.4 million at the end of the quarter. Verizon expects fiber to pass more than 32 million locations by the end of 2026 and is targeting 40 million to 50 million locations over the medium term. The quarterly additions show continued growth in fixed connectivity services alongside mobile. The coverage target reflects the company’s plans to expand its fiber network in the coming period.
Cash flow from operations totaled $11.5 billion, up 2.2% year over year, while free cash flow reached $7.8 billion, an increase of 12.1%. The company expects free cash flow growth in 2026 to approach 12.0% and kept its expected capital expenditure range at $16.0 billion to $16.5 billion. It also raised its adjusted earnings per share outlook to between $5.04 and $5.06, equivalent to annual growth of 7.0% to 7.5%. Verizon expects full-year mobility and broadband service revenue growth to come in at the upper half of its 2.5% to 3.0% range. The updated guidance sets the company’s financial and investment targets for the year against a backdrop of cash flow growth and improving service performance.
In a deal linking its network to demand for artificial intelligence infrastructure, Verizon signed an agreement worth more than $2 billion with “Amazon Web Services.” The agreement establishes a commercial framework to expand distributed computing and meet the real-time needs of generative and agentic AI workloads. The company announced the deal on October 26, alongside its quarterly results and updated 2026 outlook. The deal comes alongside plans to expand fiber coverage, while the company kept expected capital spending for the year at $16.0 billion to $16.5 billion. In the fourth quarter, the company expects growth of about 4.0% in mobility and broadband service revenue.