Verizon Communications Inc (NYSE:VZ) reported fourth-quarter and full-year 2025 results that delivered a mix of financial performance and strategic promise, with the market reacting positively to a robust subscriber turnaround and an optimistic forward outlook.
Earnings and Revenue Versus Estimates
For the critical fourth quarter, Verizon posted adjusted earnings per share (EPS) of $1.09, narrowly beating the analyst consensus estimate of $1.085. This represents a slight decline from the $1.10 adjusted EPS reported in the same quarter last year. On the top line, the company reported total operating revenue of $36.4 billion, which fell short of the $37.1 billion analysts had anticipated.
The market's pre-market reaction, showing a gain of approximately 1.73%, suggests investors are looking beyond the modest revenue miss and focusing on the underlying operational momentum and management's guidance for the coming year.
A Strategic Turnaround in Subscriber Growth
The most compelling narrative from the earnings release is the clear evidence of a subscriber turnaround, a key focus for the company under CEO Dan Schulman. Verizon reported its highest quarterly total net additions across mobility and broadband since 2019. Key subscriber metrics for Q4 2025 include:
- 616,000 postpaid phone net additions, up from 504,000 in Q4 2024 and the best result since 2019.
- 372,000 total broadband net additions.
- 319,000 fixed wireless access (FWA) net additions, bringing the total FWA subscriber base to over 5.7 million.
- 67,000 Fios internet net additions, the strongest fourth-quarter performance since 2020.
This surge in customer growth signals that strategic initiatives to compete more aggressively on value and service are beginning to gain traction, addressing a primary concern that has weighed on the stock in recent years.
2026 Guidance: A Step-Change in Expectations
Perhaps the most significant driver of the positive market sentiment is Verizon's financial guidance for 2026, which the company frames as "a step function change" from its historical average. The outlook, which includes the recently closed Frontier fiber acquisition, projects an acceleration in growth and cash generation.
The company's adjusted EPS guidance range of $4.90 to $4.95 for 2026 stands notably above the current analyst consensus estimate of $4.76. This bullish forecast, calling for 4% to 5% year-over-year growth, is underpinned by several factors:
- Expected postpaid phone net additions of 750,000 to 1.0 million, approximately 2 to 3 times the 2025 result.
- Projected free cash flow of $21.5 billion or more, which would be the highest since 2020.
- Total mobility and broadband service revenue growth of 2.0% to 3.0%.
This guidance provides a tangible benchmark for the promised turnaround, giving investors clear metrics to track progress against in the coming quarters.
Financial Health and Strategic Moves
The quarter also highlighted Verizon's ongoing balance sheet management and strategic expansion. The completion of the Frontier acquisition on January 20, 2026, significantly scales the company's fiber footprint to over 30 million homes and businesses, accelerating its convergence strategy. Financially, the company generated strong full-year free cash flow of $20.1 billion, even as total debt increased to fund strategic investments. Management emphasized a commitment to "fiscally responsible growth" and "investing wisely."
Market Reaction and Path Forward
The pre-market stock gain indicates that investors are rewarding Verizon for demonstrating tangible progress in subscriber growth and for setting a confident, elevated financial trajectory for 2026. The beat on bottom-line estimates and the substantial guidance raise appear to have overshadowed the quarterly revenue shortfall. The narrative has shifted from one of defensive stability to one of potential offensive growth, fueled by the Frontier integration and a reinvigorated competitive stance in the wireless market.
For a detailed breakdown of Verizon's historical earnings, future estimates, and analyst projections, you can review more data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The information presented is based on data provided and should not be the sole basis for any investment decision.
