Verizon Stock Soars 11.8% on Strong Earnings and Ambitious 2026 Outlook
Verizon Communications (NYSE: VZ) delivered a powerful jolt to the market on Friday, with its stock price soaring 11.8% to close at $44.52. The rally, extending a three-day winning streak, was fueled by a combination of robust annual earnings and a surprisingly optimistic long-term growth blueprint presented by management.
The company set ambitious targets for 2026, aiming to add between 750,000 and 1 million retail postpaid phone customers this year—a figure two to three times higher than its 2025 additions. This aggressive push is expected to drive total mobility and broadband service revenue growth of 2% to 3%, reaching approximately $93 billion.
"This isn't just a quarterly beat; it's a strategic pivot," said Michael Thorne, a telecom analyst at Crestwood Advisors. "Verizon is signaling it's ready to compete aggressively on customer growth again, which the market has been waiting for."
For the full year 2025, Verizon reported revenue of $138.19 billion, a 2.5% increase from the previous year. However, net income attributable to shareholders dipped slightly to $17.17 billion from $17.5 billion. The fourth quarter showed a steeper decline in net income, down 53.2% to $2.34 billion, which the company attributed to significant infrastructure investments and one-time charges. Despite the profit pressure, Q4 postpaid phone net additions hit 616,000, a 22% year-over-year increase and the segment's strongest performance since 2019.
The bullish outlook comes as the telecom industry grapples with intense competition and heavy capital expenditure demands for 5G and fiber network expansion. Verizon's guidance suggests confidence in its ability to not only retain but significantly expand its premium customer base.
Sarah Chen, Portfolio Manager at Horizon Capital: "The guidance is a clear win. It shows operational execution is improving and that their network investments are starting to translate into subscriber momentum. This could be the beginning of a re-rating for the stock."
David R. Miller, independent market commentator: "Let's not get carried away. A one-day pop on forward-looking promises? We've seen this before. Their net income is still contracting sharply quarter-over-quarter. This feels more like a relief rally in a beaten-down stock than a fundamental turnaround. I'll believe it when I see sustained execution."
Priya Sharma, Retail Investor: "As a long-term shareholder, it's a relief to finally see some positive momentum and a clear growth plan. The dividend safety seems more assured now, which is why many of us hold VZ."
The surge positions Verizon as one of the standout performers in the blue-chip sector this earnings season, potentially shifting investor perception of the telecom giant from a stable dividend payer to a company with renewed growth ambitions.