Verizon shocks analysts: q1 gains defy subscriber losses

Dan Schulman’s Verizon is sending a clear message: the carrier isn’t conceding ground in the fiercely competitive US market. Despite trailing AT&T in postpaid gains, Verizon delivered a surprisingly robust first quarter, posting 55,000 net additions – the highest in over a decade – and setting ambitious targets for the remainder of 2026.

A turnaround driven by aggressive deals

Q1 marked Schulman’s first full quarter at the helm, and the results were undeniably strong. Typically a weak period for carriers, Verizon defied predictions with these postpaid phone additions. This surge, fueled by fresh subscriber sign-ups and a significant reduction in churn, represents a tangible shift in strategy – a deliberate pivot away from the costly promotional pushes that plagued the company last year.

Looking ahead, Verizon is now forecasting a substantial boost in retail postpaid phone net additions, anticipating between 750,000 and 1 million for 2026 – potentially doubling or even tripling last year’s performance. Prepaid additions also contributed positively, adding 115,000 subscribers, marking a seventh consecutive quarter of growth.

Beyond the core mobile Business, Verizon is actively expanding its broadband footprint. Consolidated broadband net adds totaled 341,000, split evenly between fixed wireless access and fiber, bringing their total connected customer base to 16.8 million. The company’s stated goal: to reclaim market leadership by prioritizing the customer experience and streamlining operations.

Financials paint a surprisingly positive picture

Unlike the previous quarter’s lackluster performance, this quarter’s financials demonstrate a more measured and effective approach. Operating revenue climbed 2.9 percent to $34.4 billion, largely thanks to a strategic moderation of promotions, which helped maintain a stable level of upgrades. Net income rose 3.3 percent to $5.1 billion, even after factoring in compensation credits related to the January outage. The acquisition of Frontier, finalized in January, also contributed to these results, adding significant revenue streams.

However, the victory isn’t entirely without rivals. While Verizon gained ground, AT&T’s 294,000 net new postpaid phone subscribers in Q1 presented a notable challenge. T-Mobile’s results, scheduled for release tomorrow, will undoubtedly be scrutinized in the context of this ongoing battle for market share.

Ultimately, Schulman’s strategy – deploying aggressive deals and prioritizing customer retention – appears to be yielding results. It’s a simple equation: lower prices, reduced friction, and increased loyalty. There's no grand, revolutionary vision here, just a pragmatic response to a demanding market. But the numbers don't lie. Verizon is demonstrating that it's not ready to relinquish its position as the nation’s top carrier.”n