Verizon lifts annual forecasts, signs more than $2 billion AI infrastructure deal with AWS

What happened

Verizon raised its yearly forecast for wireless subscriber additions and signed an AI infrastructure deal worth more than $2 billion with Amazon Web Services. It now expects 1.1 million to 1.2 million postpaid phone subscribers this year.

Confirmed

Global impact / market context

More paying wireless subscribers and higher earnings guidance can support Verizon's revenue and share price. The AWS fiber deal gives Verizon a large new business customer for data-center connectivity, which may open more AI-related contracts and help offset weak device upgrade revenue.

Analyst inference

Verizon is simplifying its wireless plans and cutting device subsidies, which means fewer phone upgrades, so device revenue fell short. Investors are weighing stronger subscriber growth and the AWS deal against third-quarter revenue that missed analyst estimates at $34.3 billion.

Analyst inference

What to watch

1. Verizon's full-year adjusted earnings per share forecast is now $5.04 to $5.06, which is profit per share after certain adjustments, up from $4.99 to $5.04 earlier. Confirmed
2. Watch whether lower device upgrade volumes continue as customers keep phones longer after Verizon cut device subsidies, since that pressure helped push quarterly revenue below analyst estimates. Analyst inference
3. Track progress on the AWS fiber-optic connectivity rollout, because faster data transfers for AI computing could bring new business revenue and justify the more than $2 billion deal. Analyst inference

Evidence

• Original source link unavailable