Verizon shares surged nearly 15% in a single session following a fourth-quarter report that topped analyst estimates on both the top and bottom lines. Revenue growth was driven by stronger-than-expected wireless service results and broadband additions, while adjusted EPS beat consensus forecasts. However, the stock quickly ran into selling pressure near its prior peak, illustrating the classic Wall Street adage that shares often meet resistance at former highs as remorseful buyers seek breakeven exits.

Management reported the best quarterly subscriber performance in six years, with 616,000 postpaid phone net additions (including 551,000 consumer units), core prepaid adds of 109,000 marking a sixth consecutive quarter of growth, and broadband net additions of 372,000 (319,000 fixed wireless access and 67,000 Fios Internet). Despite these strong inflows, postpaid phone churn remains above historical norms, prompting Verizon to prioritize investments in customer experience and convergence to drive retention improvements in 2026.

The closing of the Frontier transaction adds over 9 million fiber passings to Verizon’s network and creates cross-sell opportunities in underpenetrated wireless markets. Management now counts more than 30 million total fiber passings and expects to deploy at least 2 million additional passings this year, targeting 40–50 million over the medium term. Synergy estimates have doubled to over $1 billion of annual run-rate operating cost savings by 2028, reflecting network integration, third-party contract efficiencies and streamlined go-to-market spend.

Full-year 2025 free cash flow reached $20.1 billion on operating cash flow of $37.1 billion and capital expenditures of $17 billion, while consolidated adjusted EBITDA totaled $50 billion and adjusted EPS was $4.71. Verizon ended the year with net unsecured debt of $110.1 billion (2.2x EBITDA) and expects to reduce leverage by paying down Frontier debt. For 2026, the company guides to 750,000–1 million postpaid phone net adds, 2–3% mobility and broadband service revenue growth, adjusted EPS of $4.90–4.95, capex of $16–16.5 billion and free cash flow of at least $21.5 billion. The board approved a 2.5% dividend increase and authorized up to $25 billion of share repurchases over three years, including a minimum of $3 billion in 2026.