Verizon Communications reported operating revenue of $34.4 billion in Q1 2026, marking a 2.9 percent year-over-year increase, supported by disciplined promotional spending and improved customer economics.
The company’s strategy to moderate device upgrade activity impacted wireless equipment sales but contributed to stronger profitability and reduced churn.
Net income of Verizon rose to $5.1 billion, reflecting a 3.3 percent increase compared to the same period last year.
The company maintained disciplined capital spending, with capital expenditures totaling $4.2 billion during the quarter. Verizon said it remains on track with its network investments across 5G and fiber, and expects full-year 2026 capex in the range of $16.0 billion to $16.5 billion.
Verizon CEO Dan Schulman said the company is regaining market leadership by focusing on customer experience, reducing friction, and enhancing long-term value. This approach has already resulted in healthier financial performance and the first positive first-quarter postpaid phone net additions in more than a decade.
Verizon posted 55,000 postpaid phone net additions in Q1 2026, representing a significant turnaround with an improvement of more than 340,000 year-over-year. Growth was supported by a higher mix of new customer additions. The company also reported 115,000 prepaid net additions, marking its seventh consecutive quarter of growth in this segment.
Mobility and broadband service revenue reached approximately $22.9 billion, up 1.6 percent year-over-year. However, wireless service revenue growth was impacted by around 80 basis points due to a network outage in January. Despite this, performance improved in March, aligning with the company’s guidance range of 2.0 percent to 3.0 percent growth.
Wireless equipment revenue increased 5.2 percent to $5.7 billion, reflecting steady demand despite lower promotional intensity. Verizon continued to expand its broadband footprint, adding 341,000 broadband customers during the quarter. This included 214,000 fixed wireless access additions and 127,000 fiber broadband net additions, bringing total fixed wireless and fiber connections to approximately 16.8 million.
The company integrated results from Frontier Communications starting January 20, 2026, following the completion of its acquisition.
Verizon reported stable customer metrics in Q1 2026, with churn remaining low as the company focuses on improving customer experience and reducing reliance on aggressive promotions. Postpaid phone churn held at around 0.97 percent, reflecting stronger retention, while prepaid churn was higher at about 3.46 percent, consistent with the more price-sensitive nature of that segment.
Average revenue per account showed a slight decline, with postpaid ARPA at approximately $177.55 compared to about $179.31 a year earlier. This modest dip reflects Verizon’s strategic shift toward volume-driven growth and reduced promotional intensity rather than pricing pressure.
Broadband continued to be a key growth driver for Verizon, with total connections reaching around 16.7 million. The company added roughly 341,000 broadband subscribers in the quarter, including 214,000 fixed wireless access additions and 127,000 fiber broadband net additions. This expansion highlights Verizon’s increasing focus on scaling fixed wireless access alongside fiber deployment to strengthen its position in the U.S. home broadband market.
Looking ahead, Verizon expects full-year 2026 capital expenditures in the range of $16.0 billion to $16.5 billion, reflecting continued investment in 5G and fiber deployment. The company forecasts total mobility and broadband service revenue growth of 2.0 percent to 3.0 percent, equating to approximately $93 billion for the year.
Wireless service revenue is expected to remain broadly flat in 2026 as Verizon transitions toward sustainable, volume-driven growth, prioritizing customer retention, network quality, and long-term profitability.
BABURAJAN KIZHAKEDATH
