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FY2026 Q1
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Verizon Communications Inc. earnings call
Buzzberg read
CapEx guided down to $16-$16.5 billion with $4B savings
Verizon management discussed the transformation under new CEO Dan Schulman, emphasizing cost cuts, volume growth, and convergence with the closed Frontier acquisition. Forward guidance for 2026 points to material improvements in postpaid phone net adds, service revenue growth, EPS growth, and free cash flow, alongside a disciplined capital allocation strategy. Targeting 750k-1M postpaid phone net adds in 2026 (2-3x 2025), driven primarily by churn reduction.
Buzzberg read CapEx guided down to $16-$16.5 billion with $4B savings Verizon management discussed the transformation under new CEO Dan Schulman, emphasizing cost cuts, volume growth, and convergence with the closed Frontier acquisition. Forward guidance for 2026 points to material improvements in postpaid phone net adds, service revenue growth, EPS growth, and free cash flow, alongside a disciplined capital allocation strategy. Targeting 750k-1M postpaid phone net adds in 2026 (2-3x 2025), driven primarily by churn reduction. Read full analysisCollapse analysis
Verizon management discussed the transformation under new CEO Dan Schulman, emphasizing cost cuts, volume growth, and convergence with the closed Frontier acquisition. Forward guidance for 2026 points to material improvements in postpaid phone net adds, service revenue growth, EPS growth, and free cash flow, alongside a disciplined capital allocation strategy. Targeting 750k-1M postpaid phone net adds in 2026 (2-3x 2025), driven primarily by churn reduction.
- Service revenue (mobility & broadband) guided to 2%-3% growth; adjusted EPS growth of 4%-5%; free cash flow at least $21.5B.
- CapEx reduced to $16-16.5B with a focus on C-band completion (90% done) and fiber builds (2M new premises passed this year).
- Cost-out program of $5B is under way, with workforce reductions and network decommissioning contributing.
Revenue$34.44B-5% QoQ
EPS$1.20+10% QoQ
Gross margin60.3%Reported
Operating margin23.93%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Capex
Fiber build to pass 40-50 million homes medium-term, 2M this year
Demand
Churn reduction of 5bps would deliver more than half of net add target
Show 3 more callouts
AI
AI Connect signed deals with hyperscalers, more in funnel
Guidance
2026 transitional year for wireless service revenue
Buybacks
Return to leverage target by 2027, at least $3B buybacks in 2026
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $34.44B | -5% QoQ |
| EPS | $1.20 | +10% QoQ |
| Gross margin | 60.3% | Reported |
| Operating margin | 23.93% | Reported |
| Free cash flow | $3.783B | -13% QoQ |
| Capex | $4.201B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $16B–$16.5B | $16.25B | Guided |
| EPS | FY2026 | 4%–5% | 4.5% | Guided |
| Free cash flow | FY2026 | $21.5B | $21.5B | Guided |
| RevenueMOBILITY_BROADBAND_SERVI | FY2026 | 2%–3% | 2.5% | Guided |
| UnitsPOSTPAID_PHONE | FY2026 | 750000–1e+06 | 875000 | Guided |
| UnitsFIBER_PASSINGS | FY2026 | 2e+06 | 2e+06 | Guided |
AI, capex & demand read
Management read
Upbeat
Management expressed renewed optimism and confidence, highlighting strong execution, significant cost savings, and a clear growth strategy, with repeated emphasis on momentum and urgency.
Management AI read
Management discussed AI Connect, its fiber-based product for hyperscalers and other customers, seeing significant demand and signed deals, with more in the funnel, positioning it as a potential offset to legacy wireline declines.
Investment and capacity
CapEx is guided lower to $16-$16.5 billion, with $4 billion in savings, as the C-band build is nearly complete (90% done) and focus shifts to small cells and efficient fiber builds. Investment is targeted at mobility and broadband growth, rationalizing or eliminating non-core areas.
Methodology & coverage
Management-only analysis. All 0 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.