Verizon Jumps in Premarket, Boosting Dow Jones After Strong Q2 and Raised Outlook

Verizon Lifts Profit Outlook as Premium Plan Demand Offsets Subscriber Dip

Verizon Communications raised the lower end of its annual profit forecast on Monday, helped by strong demand for its premium plans and growing broadband business. The company topped second-quarter earnings expectations, despite a surprise decline in wireless subscribers. Total service revenue improved as more users signed up for higher-priced tiers and bundled services.

How Did Verizon Perform in the Second Quarter?

Adjusted earnings per share came in at $1.22, beating analyst estimates. Revenue rose to $34.5 billion, ahead of the $33.74 billion forecast. Wireless service revenue grew 2.2% from a year ago, boosted by customers choosing premium plans that include streaming add-ons like Netflix.

However, Verizon reported a net loss of 9,000 postpaid phone subscribers. That missed expectations for a 13,000 gain and reflected churn following price hikes introduced in January. Despite this setback, total subscriber revenue remained stable due to higher-value customer plans.

What’s Driving Revenue Growth for Verizon?

Verizon is making progress with its bundling strategy, combining wireless and broadband offerings. The company added 293,000 broadband subscribers in the second quarter, reflecting strong demand for high-speed internet. This growth aligns with its fiber expansion efforts, bolstered by the recent $20 billion acquisition of Frontier’s fiber-optic assets.

That deal, approved in May, is expected to accelerate Verizon’s position in data services. Promotional tools like price locks and multi-service bundles have also helped reduce customer churn and counter competitive pressure.

How Are Rivals and Market Conditions Shaping Verizon’s Moves?

Competition remains fierce, with AT&T and T-Mobile continuing to roll out aggressive offers. Comcast and Charter are also expanding into wireless with broadband bundles, intensifying market pressure. To defend its share, Verizon is doubling down on infrastructure investments and bundling premium content as added value.

This shift reflects the telecom sector’s move toward services that support growing data usage, rather than relying solely on traditional wireless growth.

What’s the Outlook for Verizon and Its Investors?

Verizon now expects 2025 adjusted profit to grow between 1% and 3%, narrowing the previous forecast of 0% to 3%. It also raised its annual free cash flow guidance to between $19.5 billion and $20.5 billion, up from $17.5 billion to $18.5 billion.

Shares climbed to $42.28 in pre-market trading, their highest level since early July. Investors will watch how effectively Verizon integrates Frontier’s assets and whether price hikes continue to weigh on subscriber numbers. Attention also turns to upcoming earnings from AT&T and T-Mobile, which will offer a broader read on telecom sector momentum.

More Information in our Economic Calendar.