Verizon raises 2026 outlook after strong postpaid subscriber growth, strikes $2B AWS AI deal

What happened

Verizon reported third-quarter revenue and adjusted earnings below analysts' estimates, but stronger subscriber additions and higher margins helped it raise its full-year 2026 guidance. It also struck a $2 billion AWS artificial intelligence deal.

Confirmed

Global impact / market context

Raising guidance for a third straight quarter signals Verizon expects subscriber growth and cost control to keep lifting profit, which may support its dividend and free cash flow, money left after running and investing in the business.

Analyst inference

Verizon is balancing weak revenue against improving profit per sale and subscriber retention, while its $2 billion AWS deal adds artificial intelligence spending that could shape future costs and services in telecom.

Analyst inference

What to watch

1. Verizon raised its full-year adjusted earnings per share forecast to $5.05 at the midpoint and lifted its postpaid phone net additions target to 1.15 million. Confirmed
2. Verizon expects free cash flow growth of 11.5% to 12%, up from its previous 9% to 10% forecast, which means more cash available after expenses. Confirmed
3. Watch whether the $2 billion AWS artificial intelligence deal turns into new services or capital spending that affects Verizon's costs and profit per sale over coming quarters. Analyst inference

Evidence

• seekingalpha.com