Verizon Raises 2026 Outlook After Q3 Adjusted EPS Rises 8.3%

Verizon Communications Inc. (NYSE: VZ) raised several parts of its 2026 guidance after reporting higher third-quarter service revenue, adjusted EBITDA and adjusted earnings per share, alongside improved wireless customer volumes and stronger cash generation.

The company now expects 1.1 million to 1.2 million retail postpaid phone net additions in 2026, compared with its previous target of the upper half of a 750,000-to-1 million range. Verizon also increased its adjusted EPS growth outlook to 7% to 7.5% from 6% to 7% and said free cash flow growth is approaching 12%, versus its previous forecast of 9% to 10%.

Mobility and Broadband Service Revenue growth is expected to finish in the upper half of the existing 2.5% to 3% range. Capital expenditure guidance remains unchanged at $16.0 billion to $16.5 billion. The outlook includes results from Frontier Communications Parent Inc. beginning January 20, 2026, when Verizon completed the acquisition.

Service revenue and adjusted earnings increase

For the third quarter, Mobility and Broadband Service Revenue increased 2.9%, while adjusted EBITDA rose 8.0%. Adjusted EPS advanced 8.3%. Adjusted EBITDA and adjusted EPS are non-GAAP measures.

Verizon recorded 137,000 wireless retail postpaid account net additions, an improvement of 313,000 from the year-earlier period. Retail postpaid phone churn was 0.94%, down four basis points year over year, indicating improved customer retention.

Wireless postpaid upgrades totaled 3.3 million, a 20.3% decline from a year earlier. The lower upgrade volume is a potential constraint on device-related activity even as postpaid account volumes and churn improved.

Free cash flow rises as debt increases

Cash flow from operations reached $29.9 billion for the first nine months of 2026, up from $28.0 billion in the comparable 2025 period. Capital expenditures declined to $11.9 billion from $12.3 billion.

Free cash flow increased to $18.0 billion from $15.8 billion. Verizon paid $8.8 billion in dividends and spent $4.0 billion on share repurchases during the nine-month period.

The company ended the period with total debt of $166.2 billion, compared with $146.8 billion a year earlier. Unsecured debt increased to $136.1 billion from $119.7 billion, while net unsecured debt rose to $123.7 billion from $112.0 billion. Net unsecured debt to adjusted EBITDA stood at 2.3 times, up from 2.2 times.

Management said the stronger free cash flow supports the company’s investment priorities. However, the higher debt balance and leverage remain important financial considerations as Verizon funds capital spending, dividends and repurchases.

The presentation identified competition, pricing and promotional pressure, changing consumer preferences, economic conditions, tariffs, cybersecurity incidents and network disruptions among the factors that could affect future results. Verizon also cited regulatory changes, environmental liabilities, financing conditions, its significant debt load and risks related to strategic transactions, including the ability to achieve expected cost savings and other benefits.