Highlights

  • Verizon reported 406,000 postpaid phone net additions in the September quarter, alongside lower churn and strongest account growth in years.
  • Mobility and broadband service revenue increased 2.9% YoY, while lower equipment revenue moderated growth in the company's total operating revenue.
  • Nine-month free cash flow increased to USD 18.0bn, supporting investment, shareholder distributions and a lower sequential net unsecured debt balance.
  • The company raised annual guidance on 26 October while continuing fibre expansion and participating in a satellite connectivity joint venture.

Stronger customer additions and cash generation have prompted another guidance increase at Verizon Communications (NYSE:VZ). The mobility, broadband and network services provider released its September-quarter results on 26 October, reporting lower churn and higher service revenue. Verizon shares closed at USD 43.10, down 3.49%, after the market session ended on 26 October 2026. The operating update combines near-term customer growth with continuing fibre investment and a satellite joint venture intended to extend connectivity where terrestrial coverage is limited.

Customer Additions Improve as Equipment Sales Decline

Verizon added 406,000 postpaid phone connections in 3QFY26, its strongest third-quarter result in five years. Postpaid account net additions reached 137,000, the best quarterly performance in more than a decade.

Postpaid phone churn improved four basis points YoY to 0.94%. Broadband net additions totalled 314,000, comprising 159,000 fixed wireless and 155,000 fibre connections. Total broadband connections reached 17.4 million.

Mobility and broadband service revenue increased 2.9% YoY to approximately USD 23.5bn. Total operating revenue rose 1.5% to USD 34.3bn, as equipment revenue fell 9%. Verizon attributed that decline to lower upgrade volumes, longer device replacement cycles and reduced device subsidy spending.

Net income increased 5.2% to USD 5.3bn. Adjusted EBITDA rose 8.0% to USD 13.8bn, with the adjusted margin increasing to 40.2% from 37.8%. Adjusted earnings were USD 1.31 per share, up 8.3%.

Cash Flow Supports Investment and Shareholder Distributions

Operating cash flow for the first nine months reached USD 29.9bn, compared with USD 28.0bn a year earlier. Free cash flow increased 14.3% to USD 18.0bn, while capital expenditure totalled USD 11.9bn.

At quarter-end, net unsecured debt was USD 123.7bn, compared with USD 128.7bn at the end of June. The ratio of net unsecured debt to adjusted EBITDA was 2.3 times, a separate leverage measure from total unsecured debt relative to net income.

Verizon returned USD 12.8bn to shareholders during the nine months, including USD 8.8bn of dividends and USD 4.0bn of repurchases. It continued to expect up to USD 4.5bn of share repurchases for the year.

The company expects fibre passings to exceed 32 million by year-end, with a medium-term target of 40 million–50 million. Those infrastructure targets accompany the ongoing operating investment programme.

Higher Guidance Accompanies Wider Connectivity Plans

Verizon raised FY26 postpaid phone net addition guidance to 1.1 million–1.2 million. It now expects adjusted earnings of USD 5.04–5.06 per share and free cash flow growth approaching 12% YoY. Capital expenditure guidance remains USD 16.0bn–16.5bn.

Separately, an October joint venture agreement with AT&T and T-Mobile aims to extend satellite-enabled coverage in underserved US areas. The venture plans to combine limited spectrum resources and support common technical specifications, complementing the partners' terrestrial networks.

A board with representatives from each founding company will oversee the venture, while existing carrier-satellite agreements remain in place. Its intended coverage improvements are future objectives. Customer growth, fibre buildout and the satellite programme consequently retain their own delivery milestones within Verizon's wider network strategy.