Verizon announced a higher annual profit forecast, driven by a surprise increase in wireless subscribers during the first quarter. The company's shares saw a 3% rise in premarket trading following the announcement.
Revamped customer offers and bundled plans, including incentives for those switching from rivals like AT&T and T-Mobile, were key to attracting new subscribers. Verizon added 55,000 monthly bill-paying wireless subscribers in the quarter, marking the first net gain for the March-ended period in over a decade, defying analyst expectations of a decrease.
Verizon CEO Dan Schulman stated, "We are beginning to reclaim our market leadership by putting the customer at the center of everything we do." The company now anticipates total retail postpaid phone net additions for the year to be in the upper half of its 750,000 to 1 million forecast.
Verizon's strategy includes discounted bundles of high-speed internet and wireless plans, similar to AT&T, aimed at improving customer retention. The results also reflect the inclusion of Frontier's subscribers following a January 20 deal closure.
Total quarterly revenue was $34.4 billion, slightly below estimates. Wireless service revenue was impacted by customer credits issued after a 10-hour service outage in January.
The company now projects adjusted profit for 2026 between $4.95 and $4.99 per share, up from its previous forecast. First-quarter adjusted profit was reported at $1.28 per share, exceeding estimates of $1.20.