Verizon lifts outlook and seals $2B+ AWS deal

Verizon raised its full-year 2026 forecast for wireless subscriber additions after a strong third quarter for its postpaid phone business. The company said it added 406,000 postpaid phone subscribers in the third quarter, nearly double analysts’ expectations of 209,439. This performance led Verizon to increase its outlook for full-year postpaid phone additions to a range of 1.1 million to 1.2 million, up from a prior range of 750,000 to 1 million.

Management linked the improved outlook to demand for simplified wireless offerings such as the Simplicity plan, which emphasizes transparent pricing and unlimited data over heavy device subsidies. The company also said it nudged up its adjusted earnings forecast for the year, reflecting the contribution from subscriber growth and cost discipline.

For the third quarter of 2026, Verizon reported total operating revenue of $34.3 billion. Mobility and broadband service revenue reached approximately $23.5 billion, a 2.9 percent increase year-over-year, continuing a pattern of sequential improvement through 2026. Overall revenue growth was constrained by a 9.0 percent year-over-year decline in equipment revenue, driven mainly by lower device upgrade volumes as customers kept their phones longer and Verizon reduced spending on device subsidies.

Verizon reported that net unsecured debt at the end of the third quarter was $123.7 billion, down from $128.7 billion at the end of the second quarter of 2026. The company’s ratio of unsecured debt to consolidated net income over the last twelve months stood at 8.1 times, and its net unsecured debt to consolidated adjusted EBITDA ratio was 2.3 times. In the first nine months of 2026, Verizon returned $12.8 billion of capital to shareholders, an increase of 49.0 percent year-over-year.

Alongside its guidance increase, Verizon announced an AI infrastructure agreement worth more than $2 billion with Amazon (AMZN) Web Services. Under the arrangement, Verizon will provide high-capacity fiber-optic connectivity for AWS data centers, aiming to support faster and more reliable data transfers for growing AI computing workloads. The deal extends the existing strategic partnership between the two companies and links Verizon’s network investments to rising AI-related demand.

The AWS contract follows Verizon’s July announcement of a data-center connectivity agreement with Google (GOOGL) valued at more than $1 billion. That arrangement focuses on using dark fiber to connect data centers and underscores how Verizon is developing revenue streams beyond traditional wireless and broadband services. Together, these long-term fiber connectivity deals with major cloud providers are intended to complement the company’s consumer wireless growth.

Verizon characterized the third quarter of 2026 as another record-breaking period, one year into a broader transformation effort. The company highlighted that its strategy of prioritizing customer-first offerings and reduced device subsidies is designed to win high-value customers while expanding margins, lowering churn, and supporting sustained cash flow. Reflecting this momentum, Verizon raised its full-year 2026 guidance for the third consecutive quarter.