Verizon's Stock Growth May Depend on Customer Retention
Verizon Communications (VZ) has seen its stock rise over the past year, reaching a high of $50.59 in its 52-week range. A key factor behind this growth is improving customer retention rates, with postpaid phone churn declining for two consecutive quarters to 84 basis points as of Q2 2026. This marks a reversal from previous trends and suggests that new initiatives like simplified pricing plans and loyalty programs are helping retain customers. In addition to better retention, Verizon has also seen improvements in acquisition economics, with promotional costs declining by around 15% year-over-year for customer acquisition and nearly 17% for retention. Revenue growth is showing signs of acceleration as well, with mobility and broadband service revenue rising 2.8% year over year in Q2 2026 compared to 1.6% the previous quarter. Looking ahead, Verizon has raised its full-year guidance for free cash flow growth and expects further dark fiber deals worth billions in future revenues starting from 2027. However, wireless service revenue remains flat or slightly negative year over year, which could pose a challenge if churn improvements do not translate into stronger top-line performance.
Topics: customer retention dark fiber revenue growth stock performance Verizon