Verizon’s first quarter results were met with a positive market reaction, reflecting strong operational execution in customer retention and cost efficiency. Management attributed the quarter's momentum to improved postpaid phone net additions and significant reductions in acquisition and retention costs, despite the headwinds from a network outage in January. CEO Daniel Schulman noted, “We are purposely shifting our mix towards durable recurring service revenues and away from low-margin, highly promotional activity,” emphasizing the company’s focus on customer lifetime value and operational discipline.
Is now the time to buy VZ? Find out in our full research report (it’s free for active Edge members).
Verizon (VZ) Q1 CY2026 Highlights:
- Revenue: $34.44 billion vs analyst estimates of $34.95 billion (2.9% year-on-year growth, 1.5% miss)
- Adjusted EPS: $1.28 vs analyst estimates of $1.21 (5.8% beat)
- Adjusted EBITDA: $13.4 billion vs analyst estimates of $13.14 billion (38.9% margin, 1.9% beat)
- Operating Margin: 23.9%, in line with the same quarter last year
- Market Capitalization: $200.9 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Verizon’s Q1 Earnings Call
- Michael Rollins (Citi) asked about the outlook for accounts, ARPA, and how Verizon’s pricing and promotional strategies affect these metrics. CEO Daniel Schulman said the company is shifting focus from line growth to high-quality accounts, expecting ARPA (average revenue per account) and account net adds to improve as promotional amortization pressures subside.
- Michael Ng (Goldman Sachs) questioned device upgrade activity and the move away from device subsidies. Schulman explained that Verizon is using micro-segmentation to customize offers, reducing reliance on free handsets and focusing on profitability rather than blanket promotions.
- John Hodulik (UBS) inquired about the pace and impact of the $5 billion OpEx savings program and broadband growth strategy. CFO Anthony Skiadas detailed ongoing savings from network streamlining, workforce reductions, and digital channel adoption, while Schulman emphasized the acceleration of fiber and broadband market penetration.
- Sebastiano Petti (JPMorgan) asked about fixed wireless access (FWA) subscriber targets and the cadence of share buybacks. Schulman indicated continued aggressive broadband expansion, with a potential mix shift towards fiber, while Skiadas reiterated the commitment to at least $3 billion in buybacks, with flexibility to do more if excess cash is available.
- Sean Diffley (Morgan Stanley) pressed for tangible examples of AI implementation and its impact on costs and workforce. Schulman described a multi-layered AI stack already delivering significant improvements in customer satisfaction, network reliability, and operational efficiency.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will watch (1) the pace of fiber and broadband subscriber growth, as Verizon integrates Frontier and expands its footprint; (2) progress on the $5 billion operating expense savings target, particularly through AI and digital transformation initiatives; and (3) continued improvements in customer retention and satisfaction scores as new service offerings and operational enhancements roll out. Execution in these areas will shape the company’s ability to sustain margin expansion and free cash flow growth.
Verizon currently trades at $48.04, up from $46.38 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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