Verizon Stock Rises on Subscriber Growth and AI Expansion Plans
Shares of Verizon Communications (VZ) climbed by more than 5.7% after the company reported strong subscriber growth in its second quarter, including a record number of postpaid phone customers for Q2 in five years. The telecom giant also added significant broadband accounts across fixed wireless and fiber services. Verizon's CEO highlighted new unlimited mobile plans as key to attracting value-conscious subscribers while reducing churn rates and customer acquisition costs. This led to improved profit margins, with adjusted earnings rising 6.6% year-over-year and free cash flow increasing by nearly a quarter to $6.4 billion. The company raised its full-year financial forecast for 2026. Verizon also announced an AI-focused growth strategy, including a multi-billion-dollar deal with Alphabet's Google involving dark fiber infrastructure. CEO Dan Schulman indicated more such deals are expected before year-end.
Topics: ai_expansion free_cash_flow subscriber_growth telecom