Verizon lifts 2026 outlook after solid Q2

Verizon (VZ) reported adjusted earnings per share of $1.30 for the second quarter of 2026, a result some market commentary described as modestly above analyst expectations of roughly $1.27. The company highlighted that performance in its core wireless and broadband businesses underpinned the earnings outcome despite pressure in other revenue lines.

Postpaid phone net additions reached 184,000 in the quarter. Verizon (VZ) described this as its best Consumer second-quarter postpaid phone performance in five years and noted that the figure surpassed analyst expectations. The strong additions were presented as evidence of improving momentum in its core wireless franchise.

Management linked the subscriber gains to product and plan changes introduced in June. The company cited simplified Simplicity unlimited wireless plans as a driver of improved customer traction, aiming to make plan choices clearer and more attractive for consumers.

Verizon also pointed to the Verizon One bundled offering, which combines services in a converged package, and a new rewards and loyalty program as contributing to lower churn and better net additions. These initiatives were described as enhancing the value proposition across wireless and broadband services.

Total operating revenue for the quarter was $34.3 billion, down about 0.7% year over year. The decline was largely tied to equipment revenue, which fell nearly 20%, representing a reduction of more than $1.2 billion compared with the prior-year period.

The company indicated that slower upgrade volumes drove the equipment revenue decline. In contrast, mobility and broadband service revenue, which sits at the core of Verizon’s strategy, grew and helped offset part of the weakness in device sales, though a specific service revenue figure was not detailed in the verified facts.

On the back of the quarter’s operating performance, Verizon raised its full-year 2026 adjusted EPS guidance to a range of $4.99 to $5.04. The company framed the change as reflecting stronger unit economics and operational improvements in its core businesses.

Verizon also increased its free cash flow growth outlook for 2026 to roughly 9% to 10%. Alongside the higher cash flow expectations, it expanded its full-year share buyback target, signaling confidence in cash generation even as reported revenue faces headwinds from lower equipment sales.

Some coverage of the results differed on whether the $1.30 adjusted EPS should be viewed as a clear beat or broadly in line with consensus, but there was broad agreement that wireless and broadband execution had improved. Verizon acknowledged special items that weighed on GAAP net income, while stressing the underlying operational trends that supported the upgraded outlook.