Verizon shares surged roughly 15% on Friday following a better-than-expected earnings report for the most recent quarter. The company reported adjusted earnings per share growth of 8% year-over-year and free cash flow of $5.2 billion, driven by strong service revenue across both wireless and broadband segments. Volume growth was particularly notable in postpaid phone net additions, which reached 551,000 in the quarter—the highest quarterly total in several years. The spike in share value pushed the stock back to its prior peak near $44, a level that has historically acted as resistance, raising concerns among technical traders about a potential reversal.

On its fourth quarter earnings call, Verizon outlined a broad turnaround strategy focused on enhancing reliability, simplifying the customer experience and driving operational efficiency. Management admitted a recent network outage fell short of customer expectations and committed to ‘‘relentlessly’’ improving uptime. Cost actions, including headcount reductions and real estate rationalization, are expected to generate an ‘‘in-year war chest’’ to reinvest in marketing and network upgrades. The company also highlighted record quarterly subscriber momentum, with total net adds surpassing 1 million for mobility and broadband combined—the strongest performance in six years.

The closing of the Frontier transaction was described as ‘‘crucial’’ to Verizon’s converged strategy. The combined business now passes over 30 million fiber locations, with plans to add at least 2 million additional fiber passings in the current year and target a medium-term footprint of 40–50 million. Synergy projections have been doubled, with expected run-rate operating cost savings exceeding $1 billion by 2028, up from initial guidance. Frontier contributed 125,000 fiber net additions in the fourth quarter—29% higher than a year ago—and deployed 1.3 million new fiber passings in 2025.

For the coming year, management guided to 750,000–1 million postpaid phone net additions and 2%–3% growth in combined mobility and broadband service revenue, implying roughly $93 billion in service revenues. Adjusted earnings per share are expected to rise to $4.90–$4.95, a 4%–5% year-over-year increase. Capital expenditures are forecast at $16.0–$16.5 billion, down $4 billion from combined 2025 levels, while free cash flow is targeted at $21.5 billion or more. The board also approved a 2.5% dividend increase—the 20th consecutive annual raise—and authorized up to $25 billion in share repurchases over three years, including at least $3 billion in 2026.