Verizon Beats Q3 Profit Estimates, Doubles Subscriber Additions and Raises Full-Year Guidance on AWS AI Deal

Verizon reported third-quarter 2026 adjusted earnings per share of $1.31, topping the consensus estimate of $1.27-$1.28, while operating revenue of $34.3 billion came in slightly below the $34.74-$34.76 billion forecast. Adjusted EBITDA of $13.80 billion beat estimates of $13.71-$13.73 billion, and the adjusted EBITDA margin expanded to 40.2% from 37.8% a year earlier. Free cash flow rose 12.1% year-over-year to $7.8 billion, and capital expenditure of $3.72 billion for the quarter came in well under the $4.03 billion estimate.

The standout operational result was postpaid phone net additions of 406,000, more than double the 209,000 expected, prompting Verizon to raise its full-year postpaid phone net adds guidance to 1.1 million to 1.2 million from the prior target of the upper half of 750,000 to 1.0 million. Broadband net additions reached 314,000, including 159,000 fixed wireless and 155,000 fiber subscribers, bringing total fixed wireless and fiber connections to approximately 17.4 million.

Verizon also announced an expanded AI infrastructure partnership with Amazon Web Services valued at over $2 billion, the largest deal highlight of the report. The company raised its full-year adjusted EPS guidance to $5.04-$5.06 from $4.99-$5.04, implying growth of 7% to 7.5% versus the prior 6% to 7% range. Full-year capital expenditure guidance was held steady at $16.0 billion to $16.5 billion. Cash flow from operations growth guidance was lifted to approximately 3.5%-5.0% from 2.0%-4.0%, and free cash flow growth guidance rose to approximately 12% from 9%-10%.