Full Breakdown
Verizon Raises 2026 Outlook After Record Q3 Phone Additions Amid SpaceX Threat
By Drooid · · How we work
Core Event: Record Phone Line Gains and Raised Guidance
Verizon Communications Inc. posted its strongest third-quarter wireless subscriber growth in five years, adding a net 406,000 monthly phone lines for the period that ended at the close of September—more than double Wall Street’s expectation of 202,000. The company lifted its full-year outlook to up to 1.2 million new monthly lines, up from the prior target of 1 million. Adjusted earnings per share rose 8.3 % year-over-year to $1.31, beating the consensus estimate of $1.28.
Background & Context
When Dan Schulman became CEO in October 2025, Verizon was grappling with slowing subscriber growth and a lagging share price. His overhaul has included cutting jobs, simplifying wireless plans, ending large handset subsidies, and launching a loyalty rewards program. The company also announced a multibillion-dollar artificial-intelligence infrastructure deal with Amazon Web Services, valued at more than $2 billion.
A parallel development is SpaceX’s push to become a “major wireless carrier.” Bloomberg reported that Elon Musk’s firm is seeking a large portfolio of tower sites and has secured low-band 800 MHz spectrum, a step that could enable direct-to-phone satellite service. Analysts see this as a potential new competitive pressure for the “Big 3” carriers.
Data & Statistics
- Phone net additions: 406,000 (vs. 202,000 expected)
- Broadband net additions: 314,000 (vs. 379,100 expected)
- Total operating revenue: $34.3 billion (analysts forecast $34.8 billion)
- Device upgrades: down >20 % YoY
- Customer-retention cost: down 30 % for the second consecutive quarter
- Adjusted EPS: $1.31 (vs. $1.28 consensus)
- AI-related contracts: approximately $4 billion in signed agreements, including the $2 billion AWS deal
Official Statements & Responses
Schulman told investors that the wireless landscape is changing rapidly and that Verizon must evolve “along with that.” He said he assumes SpaceX will “execute flawlessly” on its announced plans and that the company sees “absolutely no benefit” in granting SpaceX a network-rental shortcut.
CFO Tony Skiadas explained that the “Simplicity” plan and broader customer-choice strategy should keep upgrade rates low in the fourth quarter, reinforcing cost savings from reduced handset subsidies.
What’s Next
Verizon’s competitors will follow suit: T-Mobile is slated to release its third-quarter results on the Wednesday after the market close. SpaceX is expected to continue negotiating tower leases with infrastructure owners such as Crown Castle, and its low-band spectrum acquisition positions it for a potential direct-to-phone launch in the coming years.