Quarterly results and guidance update
Verizon posted third quarter revenue of 34.3 billion dollars, below the 34.74 billion dollars analysts expected, according to LSEG. Revenue took a hit from slower upgrade activity, with customers hanging onto handsets for longer periods following Verizon's move to reduce device subsidies. Sales were pressured by fewer upgrades, with customers holding onto handsets longer following Verizon's reductions in device subsidies.
Subscriber additions ran hotter than forecast. The carrier reported 406,000 postpaid wireless additions, almost twice Visible Alpha's projection of 209,439. Against that backdrop, Verizon's forecast calls for 1.1 million to 1.2 million postpaid phone subscriber additions this year, an increase from the earlier 750,000 to 1 million outlook.
The company also lifted its full-year adjusted EPS outlook to 5.04 to 5.06 dollars from 4.99 to 5.04. Against that backdrop, Verizon projects this year's postpaid phone net adds at 1.1 million to 1.2 million, versus a previous forecast of 750,000 to 1 million. The company also lifted its full-year adjusted EPS outlook to 5.04 to 5.06 dollars from 4.99 to 5.04.
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Strategy shakeup and simplified plans
Nearly one year after CEO Dan Schulman took over, Verizon has been revamping its operations, including a restructuring and simplification of its wireless portfolio. In June, it introduced the Simplicity plan with transparent pricing and unlimited data, a move aimed at making plan choices easier and boosting demand. Roughly one year after CEO Dan Schulman took the helm, Verizon has been reshaping its operations, including restructuring and streamlining its wireless lineup. In June, it introduced the Simplicity plan with transparent pricing and unlimited data, a move aimed at making plan choices easier and boosting demand.
Fiber deals aimed at AI demand
Verizon is leaning into AI-driven network demand as a new growth channel beyond wireless and broadband. In July, it unveiled a Google agreement exceeding 1 billion dollars to link data centers with dark-fiber routes. On Monday, Verizon signed an AI infrastructure agreement worth more than 2 billion dollars with Amazon Web Services to deliver high capacity fiber-optic links to AWS data centers, designed to speed up and improve reliability of data transfers as AI computing needs grow.
Verizon is leaning into AI-driven network demand as a new growth channel beyond wireless and broadband. In July, the company unveiled a Google agreement exceeding 1 billion dollars to link data centers via dark fiber. On Monday, Verizon signed an AI infrastructure agreement worth more than 2 billion dollars with Amazon Web Services to deliver high capacity fiber-optic links to AWS data centers, designed to speed up and improve reliability of data transfers as AI computing needs grow.
Why it matters for your money
The combination of stronger postpaid momentum and a higher EPS guide helps counter a revenue shortfall, while new fiber work with AWS and Google points to a potential revenue stream tied to AI infrastructure. For your portfolio, that signals a steadier core business with emerging upside in enterprise connectivity.
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