Verizon raises 2026 outlook as third-quarter revenue misses expectations

Verizon's third-quarter revenue was $34.31 billion, against $35.79 billion expected. The company also raised several of its full-year 2026 targets.

It now expects postpaid phone net additions, meaning phone accounts added after cancellations, of 1.1 million to 1.2 million. That is up from the upper half of its earlier range of 750,000 to 1.0 million. Adjusted earnings per share are now expected at $5.04 to $5.06, growth of 7.0 to 7.5 per cent, up from 6.0 to 7.0 per cent.

Cash flow from operations is now expected to grow 3.5 to 5.0 per cent, up from 2.0 to 4.0 per cent. Free cash flow, the cash left after capital spending, is now expected to grow close to 12.0 per cent, up from 9.0 to 10.0 per cent. Mobility and broadband service revenue is now expected in the upper half of a 2.5 to 3.0 per cent annual range, with fourth-quarter growth of about 4.0 per cent.

Chief executive Dan Schulman said offerings such as Simplicity, which put customers first rather than relying on heavy subsidies, are winning high-value customers, widening margins, reducing churn and generating strong cash flow. He also said technology companies are increasingly choosing Verizon's fiber network for AI infrastructure.

The revision leaves capital spending of $16.0 billion to $16.5 billion and share buybacks of up to $4.5 billion unchanged. The higher subscriber and cash ranges therefore rest on the same spending plan. The revenue shortfall is the main point against the raised outlook. The higher earnings and cash flow ranges will have to be reconciled with a top line that came in below expectations. The claim that Simplicity and lower subsidies are lifting margins and cutting churn can now be tested, since the higher net additions range depends on it holding through the next reports.