Verizon Communications Inc. (VZ) Stock: Drops as Revenue Hits $34.3B and Guidance Rises

TLDR

• Verizon stock falls 3.15% to $43.25 despite stronger third-quarter earnings.
• Verizon posts $34.3B in quarterly revenue as service sales climb 2.9% annually.
• Postpaid phone additions surge above 820% to 406,000, a new five-year Q3 high.
• Verizon raises adjusted EPS guidance to 5.04–5.06 for the full year 2026.
• Verizon signs a $2B-plus AWS agreement to expand distributed AI computing demand.

Verizon stock fell 3.15% to $43.25 despite stronger quarterly revenue and another increase in annual guidance. The shares lost $1.41 as selling erased early gains and pushed trading toward session lows. Meanwhile, Verizon reported $34.3 billion in revenue and stronger subscriber growth during the third quarter of 2026.

Verizon Communications Inc., VZ

Verizon Stock Falls Despite Higher Customer Additions

Verizon added 406,000 postpaid phone customers during the quarter, an increase exceeding 820% from last year. That marked its strongest third-quarter performance in five years. Verizon stock nevertheless declined as the company disclosed better customer growth and lower churn.

The company added 137,000 postpaid accounts, its best quarterly result in over a decade. Overall postpaid phone churn improved four basis points to 0.94%, while consumer churn reached 0.87%. At the same time, promotional acquisition costs fell 41%, reflecting reduced spending on customer incentives.

Broadband net additions reached 314,000, including 159,000 fixed wireless customers and 155,000 fiber subscribers. Verizon ended the quarter with 17.4 million broadband connections and maintained its fiber expansion targets. These additions supported service growth, although shares remained under pressure during the session.

Verizon Stock Slides as Earnings and Cash Flow Grow

Total operating revenue rose 1.5% annually to $34.3 billion, supported by expanding mobility and broadband services. Those services generated $23.5 billion, up 2.9%, while equipment revenue declined 9% following fewer upgrades. Verizon stock moved lower despite the improvement in its core service business.

Quarterly net income increased 5.2% to $5.3 billion, while adjusted EBITDA rose 8% to $13.8 billion. The EBITDA result set a company record, and its adjusted margin improved to 40.2%. Meanwhile, adjusted earnings per share climbed 8.3% to $1.31, against reported earnings of $1.25.

Operating cash flow reached $11.5 billion, while free cash flow increased 12.1% to $7.8 billion. Over nine months, Verizon generated $18 billion in free cash flow and returned $12.8 billion to shareholders. The company also reduced net unsecured debt to $123.7 billion, although Verizon stock still posted losses.

Verizon Stock Declines Following Guidance Increase and AWS Deal

Verizon raised its annual postpaid phone additions forecast to between 1.1 million and 1.2 million. It also increased adjusted earnings guidance to $5.04–$5.06 per share after its stronger quarterly performance. This marked the third consecutive quarterly guidance increase, even as Verizon stock traded lower.

The company now expects annual free cash flow growth approaching 12%, compared with its previous 9%–10% forecast. It also projects operating cash flow growth of 3.5%–5% and maintains capital spending plans of $16–$16.5 billion. Verizon stock therefore faces a contrast between higher company forecasts and its latest trading decline.

Verizon signed an AWS agreement exceeding $2 billion to support distributed computing for advanced AI workloads. The framework uses Verizon’s network infrastructure to support growing business computing demands. Shares finished lower despite the agreement and stronger financial targets.

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