Verizon Communications NYSE:VZ, the largest U.S. wireless provider, reported second-quarter earnings above analysts' expectations and raised parts of its full-year forecast as Chief Executive Officer Dan Schulman's turnaround plan began to show early progress. The company added 184,000 postpaid phone customers during the quarter, while mobility and broadband service revenue, including wireless service, Fios and 5G home internet, increased 2.8% from a year earlier to approximately $23.4 billion. This result was well above analysts' average estimate of $19.5 billion. Adjusted earnings reached $1.30 per share, also exceeding projections, while adjusted EBITDA rose to a record level. Verizon's shares gained 2.9% on Friday morning in New York, bringing their increase for the year to 11%, compared with declines at T-Mobile US NASDAQ:TMUS, a U.S. wireless provider, and AT&T NYSE:T, a U.S. telecommunications company.
Schulman, who became Verizon's CEO in late 2025, has focused on rebuilding the company's brand by simplifying its offerings and shifting attention back toward customers. Verizon introduced a simplified wireless plan in June and launched a loyalty rewards program offering discounts and giveaways to existing subscribers. Schulman said the company was experiencing strong growth in new accounts, including greater demand from younger customers and people seeking one- or two-line plans. Management also expects positive new-account growth during the third quarter, suggesting that recent changes may be helping Verizon address years of stagnant growth and wireless market-share losses, particularly against T-Mobile. However, not every quarterly figure improved, as operating revenue declined 0.7% from a year earlier to $34.3 billion, below analysts' estimates of approximately $35 billion. Net income fell 23% to $3.9 billion after Verizon recorded $1.8 billion in pretax charges, including a $746 million loss connected to its agreement with BT Group, a UK telecommunications company, to combine their international operations.
Verizon is also seeking to benefit from growing demand for artificial intelligence infrastructure by using its network to connect businesses with data centers. The company signed a $1 billion agreement with Alphabet NASDAQ:GOOGL, Google's parent company, to provide Verizon dark fiber linking Google data centers. Schulman said Verizon expects to announce additional agreements by the end of the year that could collectively generate multiple billions of dollars in revenue over the next several years. He described these contracts as long-duration, high-quality revenue streams and suggested that the U.S. artificial intelligence infrastructure expansion could represent a significant opportunity for Verizon. Schulman also said satellite providers have not affected Verizon's broadband penetration or capabilities, addressing Wall Street concerns about possible competition linked to Elon Musk's interest in the satellite market. Following the quarter, Verizon raised its adjusted full-year earnings outlook to between $4.99 and $5.04 per share, compared with its previous forecast of as much as $4.99. Schulman expects the second half of 2026 to be stronger than the first half and 2027 to be stronger than 2026, while Verizon's board extended his contract through the end of 2028.