Global Finance News
26 Oct 2026, 18:47
Verizon Falls 3.8% Despite Record Q3 Subscriber Growth and Higher 2026 Guidance
Verizon (NYSE: VZ) shares fell about 3.8% even after the company reported strong third-quarter 2026 subscriber growth, record adjusted EBITDA and another increase to full-year guidance.
Postpaid phone net additions reached 406,000, up more than 820% year over year and marking Verizon’s strongest third-quarter result in five years. The company also added 137,000 postpaid net accounts, its best performance in more than a decade, while broadband net additions totaled 314,000.
Financial performance was also solid. Total revenue increased 1.5% to $34.3 billion, while mobility and broadband service revenue rose 2.9% to $23.5 billion. Adjusted EBITDA climbed 8% to a record $13.8 billion, with adjusted EBITDA margin expanding to 40.2%. Adjusted EPS increased 8.3% to $1.31.
Cash generation remained strong, with operating cash flow of $11.5 billion and free cash flow of $7.8 billion, up 12.1% year over year. Verizon also reduced net unsecured debt to $123.7 billion from $128.7 billion in the prior quarter.
Management raised 2026 guidance for the third consecutive quarter. Verizon now expects 1.1 million to 1.2 million postpaid phone net additions, adjusted EPS of $5.04 to $5.06 and free cash flow growth approaching 12%. The company also expects mobility and broadband service revenue growth of about 4% in the fourth quarter.
Verizon additionally announced a commercial framework worth more than $2 billion with Amazon Web Services to support distributed computing and agentic and generative AI workloads.
The 3.8% decline therefore appears to reflect investor concerns outside the headline operating results, potentially including valuation, the still-heavy debt load and broader pressure on rate-sensitive telecom stocks. The quarter itself showed strong subscriber momentum, expanding margins and improving cash flow.
Verizon (NYSE: VZ) shares fell about 3.8% even after the company reported strong third-quarter 2026 subscriber growth, record adjusted EBITDA and another increase to full-year guidance.
Postpaid phone net additions reached 406,000, up more than 820% year over year and marking Verizon’s strongest third-quarter result in five years. The company also added 137,000 postpaid net accounts, its best performance in more than a decade, while broadband net additions totaled 314,000.
Financial performance was also solid. Total revenue increased 1.5% to $34.3 billion, while mobility and broadband service revenue rose 2.9% to $23.5 billion. Adjusted EBITDA climbed 8% to a record $13.8 billion, with adjusted EBITDA margin expanding to 40.2%. Adjusted EPS increased 8.3% to $1.31.
Cash generation remained strong, with operating cash flow of $11.5 billion and free cash flow of $7.8 billion, up 12.1% year over year. Verizon also reduced net unsecured debt to $123.7 billion from $128.7 billion in the prior quarter.
Management raised 2026 guidance for the third consecutive quarter. Verizon now expects 1.1 million to 1.2 million postpaid phone net additions, adjusted EPS of $5.04 to $5.06 and free cash flow growth approaching 12%. The company also expects mobility and broadband service revenue growth of about 4% in the fourth quarter.
Verizon additionally announced a commercial framework worth more than $2 billion with Amazon Web Services to support distributed computing and agentic and generative AI workloads.
The 3.8% decline therefore appears to reflect investor concerns outside the headline operating results, potentially including valuation, the still-heavy debt load and broader pressure on rate-sensitive telecom stocks. The quarter itself showed strong subscriber momentum, expanding margins and improving cash flow.
