Verizon Communications 8-K

Summary

Q3 2026 results with raised FY2026 guidance. Verizon reported record third-quarter postpaid phone additions and its strongest postpaid account growth in more than a decade, while lower device subsidies and operational efficiency supported margins and cash generation. It also signed a $2B+ commercial framework with Amazon Web Services to scale distributed compute for agentic and generative AI workloads.

Key Figures

• Postpaid phone net additions were 406,000, up more than 820% Y/Y; postpaid account additions were 137,000. Postpaid phone churn improved 4 bp to 0.94%. Verizon added 314,000 broadband connections—159,000 fixed wireless and 155,000 fiber—and ended the quarter with 17.4M broadband connections.
• Mobility and broadband service revenue was $23.5B, up 2.9% Y/Y, with growth improving from 1.6% in Q1 and 2.8% in Q2. Total revenue growth was partly offset by a 9.0% decline in wireless equipment revenue as customers upgraded less often and Verizon reduced device subsidies. Consolidated adjusted EBITDA (non-GAAP) rose 8.0% to $13.8B; its margin increased to 40.2% from 37.8%. Consumer segment EBITDA rose 6.5% to $12.0B, and Business segment EBITDA rose 13.0% to $1.94B.
• 9M capital returns were $12.8B: $8.8B of dividends and $4.0B of share repurchases. Shares outstanding fell to 4.145B from 4.217B at year-end 2025. Unsecured debt was $136.1B, versus $136.5B at Q2-end; net unsecured debt was $123.7B, versus $128.7B. 9M capital expenditures were $11.9B.

Guidance

Guidance changes, derived from earlier filings

Metric	Period	Earlier guidance	Guidance now	Change
Mobility and broadband service revenue	FY2026	2.5%-3.0%	Upper half of 2.5%-3.0% growth guidance	reaffirmed
Mobility and broadband service revenue	Q4 2026	≈4.0%	≈4.0% growth Y/Y	reaffirmed
Adjusted EPS (non-GAAP)	FY2026	$4.99-$5.04; 6%-7% Y/Y growth	$5.04-$5.06; 7.0%-7.5% Y/Y growth	raised
Postpaid phone net additions	FY2026	Upper half of 750,000-1.0M	1.1M-1.2M	raised
Capital expenditures	FY2026	$16.0B-$16.5B	$16B-$16.5B, including success-based AI Connect investments	reaffirmed

Investor Takeaways

• Q4 mobility and broadband service revenue growth near 4.0%, alongside postpaid additions and churn, will test whether customer momentum continues.
• Fiber passings are expected to exceed 32M by year-end; progress toward the medium-term target of 40M-50M will show whether Verizon’s fiber expansion is on track.