$VZ · VERIZON COMMUNICATIONS INC
Verizon reported Q3 2026 results with total operating revenue of $34.3B (up 1.5% YoY), net income of $5.3B (up 5.2% YoY), and GAAP EPS of $1.25. Adjusted EPS was $1.31, up 8.3% YoY. The company raised full-year 2026 guidance for the third consecutive quarter, including Adjusted EPS to $5.04–$5.06 and free cash flow growth approaching 12%.
- 406,000 postpaid phone net additions, up over 820% YoY — strongest Q3 in five years
- 137,000 postpaid net account additions — best quarterly performance in over a decade
- Consolidated Adjusted EBITDA of $13.8B, up 8.0% YoY — highest quarterly result ever reported
- Free cash flow of $7.8B, up 12.1% YoY; nine-month FCF of $18.0B, up 14.3% YoY
- Full-year 2026 Adjusted EPS guidance raised to $5.04–$5.06, up from 6.0–7.0% growth to 7.0–7.5%
Extended-hours trading shows VZ at $44.85, up 0.43% from the regular-session close of $44.66. The modest after-hours gain suggests the record results and third consecutive guidance raise were largely anticipated, though the magnitude of postpaid phone net adds (406K vs. prior guidance implying ~250K/quarter) and the $2B+ AWS AI infrastructure deal provide fresh upside catalysts.
Verizon's transformation is producing its strongest operating metrics in over a decade — record subscriber growth, record EBITDA, and a third straight guidance raise — while a $2B+ AWS deal opens a new AI infrastructure revenue stream.
Verizon's 406K postpaid phone net adds and sub-1% churn (0.94%) widen the competitive gap vs. T-Mobile and AT&T, both of which have leaned heavily on device subsidies. The $2B+ AWS AI infrastructure deal positions Verizon's fiber network as a backbone for distributed AI compute, a new revenue vector beyond traditional telecom.
Interest expense rose 17.2% YoY to $1.95B in Q3 and 19.0% for the nine-month period, reflecting the impact of Verizon's $136.1B unsecured debt load in a higher-rate environment. Promotional cost discipline could be tested if competitors escalate device subsidies.