Verizon raised its annual forecasts on October 26 and announced an infrastructure agreement worth more than $2 billion with Amazon Web Services, according to its results release and Reuters. The New York-based telecoms company reported stronger mobile customer growth as it expanded its business supplying networks for artificial intelligence.
Verizon added a net 406,000 postpaid phone subscribers in the third quarter, compared with the 209,439 expected by analysts tracked by Visible Alpha, Reuters reported. These are customers billed monthly. The company described the gain as its strongest third-quarter performance in five years and said it also added 137,000 postpaid accounts.
The financial results were mixed. Revenue rose 1.5% from a year earlier to $34.3 billion, but fell below the $34.74 billion analyst estimate cited by Reuters. Verizon reported adjusted earnings of $1.31 per share, compared with $1.21 a year earlier. Equipment revenue declined 9% as customers replaced phones less frequently and the company reduced device subsidies.
Chief executive Dan Schulman attributed progress to simpler customer offerings and lower reliance on subsidies, according to the company. Reuters reported that Verizon introduced its Simplicity plan in June. The results show service growth alongside weaker equipment sales, as the carrier changes how it attracts and retains customers.
Under the AWS agreement, Verizon will provide high-capacity fiber connections for data centers, Reuters reported. The company said the agreement supports distributed computing and real-time AI workloads. It follows a separate agreement worth more than $1 billion with Google announced in July, extending a potential source of business beyond conventional mobile and broadband services.
Verizon now expects 1.1 million to 1.2 million net postpaid phone additions in 2026, against its earlier range of 750,000 to 1 million, Reuters reported. Its adjusted earnings forecast rose to $5.04-$5.06 per share from $4.99-$5.04. The company said this was its third consecutive quarterly increase in annual guidance; those targets remain forecasts rather than completed results.
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