Verizon Communications outlined a “radical transformation” strategy at the Barclays Communications and Content Symposium on February 24, 2026, emphasizing network excellence, subscriber growth, and aggressive cost management as pillars of its 2026 plan.
The US-based telecom major detailed a sharpened capital allocation framework, ambitious free cash flow targets, and accelerated broadband expansion following the acquisition of Frontier Communications.
$16 Billion to $16.5 Billion Capex Envelope for 2026
Verizon has set an “all-in” capital spending plan of $16 billion to $16.5 billion for 2026, focused primarily on mobility and broadband programs.
The company expects free cash flow to grow by at least 7 percent to reach at least $21.5 billion in 2026, supported by disciplined capital deployment and large-scale cost reductions.
As part of its cost transformation initiative, Verizon is targeting $5 billion in operating expense savings for 2026. This includes efficiencies from a workforce reduction of 13,000 employees, with 80 percent already off payroll by late 2025, along with rationalization of IT systems and real estate assets.
Stronger Subscriber and Revenue Growth Outlook
For 2026, Verizon expects 750,000 to 1 million postpaid phone net additions, representing two to three times the volume growth delivered in 2025.
Mobility and broadband service revenue is projected to grow 2 percent to 3 percent, while adjusted earnings per share are expected to rise 4 percent to 5 percent.
Verizon described 2026 as a transitional year for wireless service revenue, prioritizing subscriber growth and volume expansion over aggressive pricing. A new consumer-focused value proposition is planned for launch in the first half of 2026 to improve customer retention and overall experience.
Frontier Integration Accelerates Fiber Push
Verizon completed its acquisition of Frontier on January 20, 2026, expanding its fiber footprint significantly. The integration is expected to deliver at least $1 billion in annual operating expense synergies by 2028.
Verizon now has more than 30 million premises passed with fiber and plans to add at least 2 million new passings in 2026. Its medium-term goal is to reach between 40 million and 50 million premises passed.
With the Frontier deal closed, Verizon intends to accelerate converged offerings that bundle fiber broadband and wireless services. Management emphasized that converged customers generate higher lifetime value and exhibit lower churn.
5G and C-Band Deployment Remain Core
Completing its C-Band deployment remains a top priority to sustain network excellence. Verizon views its 5G network leadership as a foundation for growth in both mobility and broadband segments.
Verizon has revealed that Fixed Wireless Access (FWA) continues to play a complementary role, offering customers additional connectivity options, though management reiterated that fiber remains the “gold standard” for convergence.
Despite modest U.S. population growth, Verizon characterized the connectivity market as robust and resilient, citing healthy payment trends and stable demand for premium wireless and broadband services.
Capital Allocation and Balance Sheet Focus
Verizon reaffirmed its capital allocation priorities, which include:
Investing in the business within the $16 billion to $16.5 billion Capex framework.
Maintaining its 20-year record of annual dividend increases.
Returning to long-term leverage targets by 2027 following the Frontier acquisition.
Executing at least $3 billion in share repurchases in 2026 under the new authorization.
With a streamlined cost base, expanded fiber reach, and disciplined capital management, Verizon is positioning 2026 as a pivotal year in its transformation toward sustainable subscriber growth and enhanced free cash flow generation.
SHAFANA FAZAL
