VZ · Verizon Communications Inc.

Verizon's Q1 2026 results reflect accelerating momentum in its strategic transformation, delivering the strongest Adjusted EBITDA in company history at $13.4 billion, up 6.7% year-over-year, alongside Adjusted EPS growth of 7.6% to $1.28, the best quarterly increase since 2021. Total operating revenue rose 2.9% to $34.4 billion, supported by 2.4% service revenue growth to $28.8 billion and 5.2% wireless equipment revenue increase to $5.7 billion, despite disciplined promotional spending that moderated upgrade activity. Operating expenses grew 2.7%, with selling, general, and administrative expenses declining 3.1%, contributing to 3.3% operating income growth. CEO Dan Schulman highlighted healthier customer economics, improved acquisition mix, and lower churn driving the first positive Q1 postpaid phone net additions (55,000) since 2013, a 340,000 improvement YoY, plus 341,000 broadband adds including 214,000 fixed wireless access. Frontier acquisition results are included from January 20, 2026, boosting property, plant, and equipment by $16.5 billion and goodwill by $7.8 billion. Cash from operations increased 2.6% to $8.0 billion, supporting $3.8 billion free cash flow and $2.5 billion share repurchases. Management raised full-year guidance, targeting Adjusted EPS growth of 5.0-6.0% ($4.95-$4.99), upper-half retail postpaid phone adds of 750,000-1 million (2-3x 2025), 2-3% mobility/broadband service revenue growth to ~$93 billion, $37.5-38.0 billion operating cash flow, $16.0-16.5 billion capex, and free cash flow of $21.5 billion+, the highest since 2020. Verizon plans to repay substantially all Frontier debt by year-end, with net unsecured debt ratio at 2.6x Adjusted EBITDA.