Oct 26 : Verizon raised its annual forecast for wireless subscriber additions on Monday, betting on strong demand for its simplified plans, and signed an AI infrastructure deal worth more than $2 billion with Amazon Web Services.
For the third quarter, the telecom carrier reported nearly double the analysts' estimate for monthly-bill paying wireless subscriber gains at 406,000, against Visible Alpha expectations of 209,439.
Shares of the New York-based company rose 2.4 per cent in premarket trading.
• Verizon now expects to add between 1.1 million and 1.2 million postpaid phone subscribers this year compared with earlier projections of 750,000 to 1 million
• It also raised its full-year adjusted earnings per share forecast to $5.04 to $5.06, from $4.99 to $5.04 earlier
• However, third-quarter revenue of $34.3 billion fell short of analyst estimates of $34.74 billion, according to LSEG data
• Revenue was pressured by lower device upgrade volumes as customers held on to their phones longer after Verizon began cutting device subsidies
• A year into CEO Dan Schulman's tenure, Verizon has pursued a broad overhaul of its business, restructuring operations and simplifying its wireless offerings
• It launched its Simplicity plan in June, introducing transparent pricing and unlimited data
• Under its deal with Amazon's cloud unit, Verizon will provide high-capacity fiber-optic connectivity for AWS data centers, enabling faster, more reliable data transfers to support growing AI computing workloads
• Verizon in July announced a more than $1 billion agreement with Google to connect data centers using dark fiber, highlighting how rising AI demand could open a new revenue stream beyond traditional wireless and broadband services for telecom operators