Verizon Stock Jumps After Q4 Beat and $25B Buyback Plan

Capital return is becoming part of the market’s growth narrative again.

Verizon Communications (VZ) reported better-than-expected fourth-quarter earnings and revenue, driven by stronger subscriber additions, and paired the results with a new multi-year stock buyback authorization. The combination helped push the stock higher as investors weighed operating momentum against a flat 2026 wireless revenue outlook.

Key Points

• Verizon beat fourth-quarter earnings and revenue expectations and delivered a large postpaid phone subscriber gain.
• The company authorized up to $25 billion in share repurchases over the next three years, including at least $3 billion in 2026.
• Verizon guided 2026 adjusted EPS to $4.90 to $4.95, while expecting wireless service revenue growth to be flat.

Verizon’s Q4 Beat Was About More Than the Headline Numbers

Verizon posted adjusted earnings of $1.09 per share on revenue of $36.4 billion, exceeding analysts’ expectations for $1.05 and $36.1 billion, respectively. The upside was modest on the surface, but investors focused on where the strength came from: customer adds.

The company reported 616,000 postpaid phone subscriber additions in the fourth quarter, beating expectations of 417,000 and topping the 504,000 additions from the same quarter a year earlier. Verizon also reported a postpaid churn rate of 1.3%, a measure of how many customers left during the period.

Broadband metrics also showed momentum. Verizon added 372,000 net broadband connections in the quarter, including 319,000 net fixed-wireless connections. Fios internet net additions were 67,000, the company’s highest in five years.

The Buyback Was a Clear Market Signal

A central driver of the stock’s reaction was Verizon’s newly authorized stock repurchase plan: up to $25 billion over the next three years, with at least $3 billion targeted for 2026.

Buybacks matter to markets because they are a direct form of capital return. When a company repurchases shares, it reduces the number of shares outstanding, which can mechanically lift per-share metrics such as earnings per share, all else equal. In Verizon’s case, the buyback announcement added a new “shareholder return” layer to the earnings story that investors weren’t getting from topline growth alone.

Management positioned the repurchase authorization as part of a broader plan to increase total returns of capital to shareholders.

What Verizon Said About 2026 Growth and Profitability

Verizon guided 2026 adjusted earnings to $4.90 to $4.95 per share, a range described as well above Wall Street’s midpoint expectations cited in the provided material. At the same time, Verizon said it expects wireless service revenue growth to remain flat in 2026 “as the company transitions to sustainable volume-based growth.”

That combination—flat wireless service revenue but higher EPS guidance—put the spotlight on execution: customer volumes, cost control, and operating efficiency.

The quarter was also notable as Verizon’s first under new CEO Dan Schulman. On a call with analysts, Schulman described the company as being “just at the beginning” of an efficiency push, emphasizing actions designed to make Verizon “faster and more focused.”

What’s the Market Context for Verizon Right Now?

Verizon’s quarter landed in a competitive telecom landscape where churn, promotions, and customer acquisition are heavily monitored by investors.

The provided information also highlights other areas that have been front of mind for markets: competition with AT&T (T) and T-Mobile (TMUS), macro uncertainty, and Verizon’s debt load. Verizon’s total unsecured debt stood at $131.1 billion at quarter-end, up from $117.9 billion a year earlier, while net unsecured debt was $110.1 billion compared with $113.7 billion in 2024.

There was also a one-time cost item referenced in the content: $20-per-customer rebates offered after a sweeping mid-January service outage. Assuming roughly 32 million consumer postpaid wireless accounts receive a credit, the estimate cited was a nearly $650 million one-time cost.

What It Means for Investors

Verizon’s market reaction suggests investors saw the quarter as a mix of operational traction and clearer capital allocation. The strong postpaid phone adds and broadband momentum provided evidence of customer growth, which can be especially important in a mature industry where pricing and churn often dominate headlines.

The buyback authorization changed the tone of the story. Rather than relying only on incremental revenue growth, Verizon highlighted a large, multi-year repurchase plan—an action markets often interpret as a sign of confidence in cash generation and balance-sheet plans, even as competition remains intense.

Still, Verizon’s own outlook frames the challenge: wireless service revenue is expected to be flat, meaning the market may continue to focus on how effectively Verizon can grow volumes, manage costs, and sustain retention trends.

Conclusion

Verizon’s Q4 beat, standout subscriber additions, and a new $25 billion share repurchase plan helped lift the stock, giving investors a clearer picture of how the company is pairing operating execution with capital return going into 2026.

FAQs

Why did Verizon (VZ) stock rise after earnings?
Verizon shares rose after it beat earnings and revenue expectations, reported stronger-than-expected postpaid subscriber additions, and announced a new $25 billion buyback authorization.

What is Verizon’s buyback plan?
Verizon authorized up to $25 billion of share repurchases over the next three years, with at least $3 billion planned for 2026.

How did Verizon’s subscriber additions compare with expectations?
Verizon added 616,000 postpaid phone subscribers in Q4, above the 417,000 analysts expected.

What is Verizon guiding for 2026 earnings?
Verizon guided 2026 adjusted EPS to $4.90 to $4.95 per share.

What is Verizon expecting for 2026 wireless service revenue growth?
Verizon expects wireless service revenue growth to remain flat in 2026.

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