Verizon Signals Turnaround with Strong Q1 Earnings and Raised Guidance

Verizon Communications (NYSE: VZ) has demonstrated a significant recovery in its first-quarter 2026 results, posting the highest adjusted earnings per share (EPS) growth rate in over four years. The company reported adjusted EPS of $1.28, beating analyst expectations and marking a 7.6% year-over-year increase. While revenue growth remained modest at 2.9% to reach $34.4 billion, the company showed strong operating leverage. Net income rose 3.3% year-over-year, and adjusted EBITDA grew 6.7% to $13.4 billion. This efficiency suggests that management's disciplined execution is successfully translating into profitability. A key highlight was the return to growth in the subscriber base. Verizon added 55,000 total postpaid phone net additions in Q1, the first positive result for a first quarter since 2013. This is a stark contrast to the 289,000 net losses recorded in the same period last year, indicating a reduction in churn and improved customer economics. Looking ahead, Verizon raised its 2026 adjusted EPS guidance to a range of $4.95 to $4.99, implying year-over-year growth of 5% to 6%. The company also reaffirmed its free cash flow outlook of at least $21.5 billion, providing a strong cushion for its capital return strategies. Shareholders continue to benefit from a 6.1% dividend yield, with the company marking its 20th consecutive year of dividend increases. Additionally, Verizon is executing an aggressive share repurchase program, completing $2.5 billion in buybacks in the first quarter toward a minimum annual goal of $3 billion.