Verizon Beats Q3 Profit Estimates with Record Subscriber Growth and Raises Full-Year Guidance After $2B AWS AI Deal

Verizon Communications reported third-quarter 2026 adjusted earnings per share of $1.31, beating the consensus estimate of $1.27 to $1.28 and representing 8.3% growth year-over-year. Operating revenue of $34.3 billion came in slightly below the $34.74 billion forecast, rising 1.5% from a year earlier, but adjusted EBITDA of $13.80 billion topped estimates of $13.71 to $13.73 billion, with the adjusted EBITDA margin expanding sharply to 40.2% from 37.8% a year ago.

The standout result was postpaid phone net additions of 406,000, more than double the 209,000 analysts expected. Broadband net additions reached 314,000, including 159,000 fixed wireless and 155,000 fiber adds, bringing total fixed wireless and fiber connections to approximately 17.4 million. Postpaid phone churn held at 0.94%. 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.

Verizon raised its full-year guidance across multiple metrics. The company now expects adjusted EPS of $5.04 to $5.06, up from its prior range of $4.99 to $5.04, implying growth of 7% to 7.5% versus the earlier 6% to 7% target. Full-year postpaid phone net additions guidance was lifted to 1.1 million to 1.2 million from the prior target of the upper half of 750,000 to 1 million. The company also raised its free cash flow growth outlook to approximately 12% from 9% to 10%, and its operating cash flow growth forecast to 3.5% to 5% from 2% to 4%. Full-year capital expenditure guidance was held steady at $16.0 billion to $16.5 billion.

Alongside its earnings, Verizon announced an expanded AI infrastructure partnership with Amazon Web Services valued at more than $2 billion. Verizon's stock rose following the report, with Wall Street focusing on the subscriber surge as the primary driver of positive sentiment. The company attributed its subscriber gains to customer-first offerings including its Simplicity plan and an expanded loyalty program, prioritizing high-value customers over heavy device subsidies.