Verizon's Q4 2025 Performance and 2026 Outlook

Verizon announced annual profit and free cash flow forecasts that exceeded market expectations, following its highest quarterly wireless subscriber additions in six years. This growth was attributed to aggressive promotions during the peak holiday season.

Financial and Subscriber Highlights

Verizon's shares rose 9% after the company revealed a share repurchase program totaling up to $25 billion over three years. At least $3 billion is allocated for the current year.

In the fourth quarter of 2025, Verizon added 616,000 monthly bill-paying wireless phone subscribers, significantly surpassing the expected 417,250 additions. Promotions, such as four phone lines for $100 per month, were instrumental in this increase.

For 2026, the company projects adding between 750,000 and 1 million retail postpaid phone subscribers. This marks a significant increase from 362,000 additions in 2025.

Verizon forecasts adjusted profit for 2026 to be between $4.90 and $4.95 per share, exceeding the $4.76 estimates. Annual free cash flow for 2026 is expected to be at least $21.5 billion, which is above the $20.96 billion anticipated.

Strategic Focus

Verizon is concentrating on wireless and broadband convergence to drive subscriber growth. This strategy is bolstered by its acquisition of Frontier, which expanded its fiber infrastructure.

CEO Dan Schulman stated that Verizon intends to strengthen its competitive position. Since taking office in October, Schulman has also initiated measures to streamline Verizon, including over 13,000 job cuts to reduce costs and restructure operations.