Verizon Shares Surge on Strong Subscriber Growth, Signaling Strategic Shift Under New Leadership
Shares of Verizon Communications (NYSE: VZ) surged more than 11% on Friday, marking their strongest single-day gain in recent memory. The rally followed the wireless leader's fourth-quarter earnings report, which showcased its highest net customer additions since 2019—a clear signal that the telecom titan's strategic pivot is gaining traction.
Under the leadership of new CEO Dan Schulman, who has urged the company to "play to win," Verizon is showing signs of shedding its historically conservative posture. The company added a net 616,000 postpaid phone subscribers and 372,000 broadband customers in Q4, outperforming rivals in a fiercely competitive market. "Verizon will no longer be a hunting ground for our competitors," Schulman declared in a statement, taking direct aim at AT&T and T-Mobile.
Financially, the quarter presented a mixed but ultimately bullish picture. Total operating revenue increased 2% year-over-year to $36.4 billion. While adjusted earnings per share saw a slight dip to $1.09, that figure still topped Wall Street's consensus estimate of $1.06. More importantly, the subscriber growth did not come at an unsustainable cost, assuaging investor fears about a price war eroding margins.
The company's cash flow outlook further bolstered confidence. Verizon generated $20.1 billion in free cash flow for 2025. Management projected that figure to rise approximately 7% to at least $21.5 billion in 2026, driven by an anticipated 750,000 to 1 million retail postpaid phone net additions. "We are exiting 2025 with strong momentum, delivered by a team that is intensely focused on winning through healthy volumes and fiscally responsible growth," Schulman added.
Analyst & Investor Commentary:
"This isn't just a beat on subscriber numbers; it's a validation of a new commercial strategy," said Michael Chen, a portfolio manager at Horizon Capital. "Schulman is proving that you can chase volume without setting profitability on fire. The guidance for 2026 suggests this is a sustainable trend, not a one-quarter wonder."
"Finally, some fight in the old giant," remarked Sarah J. Miller, an independent telecom analyst. "For years, Verizon ceded ground by being overly rigid on pricing. These numbers show a more nimble, customer-acquisition mindset. The broadband growth is particularly promising as it diversifies their revenue base."
"Let's not pop the champagne just yet," countered David R. Klein, a vocal critic on financial forums. "A one-quarter spike doesn't reverse a multi-year trend of lagging T-Mobile. This feels like a sugar rush from aggressive promotions. What happens when those discounts end? The EPS still declined—the market is celebrating mediocrity."
"As a long-term shareholder, I'm cautiously optimistic," shared Anya Desai, a retail investor. "The stock has been undervalued for ages. This report shows management is finally listening. The key will be if they can maintain this discipline as the competitive pressure from cable and wireless rivals intensifies."
The report underscores a shifting dynamic in the U.S. telecom sector, where the battle for premium subscribers is intensifying. Verizon's ability to post robust gains while maintaining financial discipline suggests the company may be entering a new phase of growth, potentially altering the competitive landscape for AT&T and T-Mobile in the quarters ahead.