Verizon Posts Record Adjusted EBITDA, Raises 2026 Outlook as Subscribers Grow

Verizon said Friday that it posted record adjusted EBITDA in the second quarter and raised its full-year outlook for the second straight quarter, adding to signs that its push to improve customer retention is translating into stronger service revenue and subscriber growth.

The stronger operating picture came with a mixed headline result. According to Verizon’s July 24 earnings release and financial tables, total operating revenue slipped 0.7% from a year earlier to $34.3 billion, while net income under generally accepted accounting principles, or GAAP, fell 22.9% to $3.9 billion. Earnings per share on that basis dropped to 92 cents from $1.18, largely because of nearly $1.8 billion in pretax special items tied to restructuring and a planned reshaping of its international enterprise business.

The company’s core customer metrics improved. Verizon reported 184,000 postpaid phone net additions in the quarter, which it called its best consumer second-quarter postpaid phone net addition result in five years. It also added 73,000 core prepaid subscribers, extending its streak to eight straight quarters of positive prepaid net adds. Broadband net additions rose 12.3% from a year earlier to 348,000, including 193,000 fixed wireless access additions and 155,000 fiber broadband additions. Mobility and broadband service revenue rose 2.8% to about $23.4 billion.

Profitability was the clearest bright spot. Verizon said consolidated adjusted EBITDA — a closely watched measure of operating earnings — rose 7.2% year over year to a record $13.7 billion, the highest adjusted EBITDA the company has ever reported. Adjusted EBITDA margin widened to 40.1% from 37.1% a year earlier. Adjusted earnings per share rose to $1.30 from $1.22.

One reason total revenue still declined was a sharp drop in wireless equipment sales. Equipment revenue fell 19.7% to $5.024 billion after dropping by more than $1.2 billion from a year earlier, which Verizon said reflected lower upgrade volumes and reduced device subsidies.

The hit to GAAP earnings was driven in part by a portfolio move announced last month. Verizon recorded a $746 million loss on disposition of business after classifying its international wireline connectivity and managed network services unit as held for sale. That followed Verizon’s June 29 announcement with BT Group that the companies plan to combine their international enterprise operations in a 50:50 joint venture, subject to regulatory approvals and expected to close in 2027. Verizon also recorded $397 million in severance charges and $258 million in asset rationalization charges.

“We’re putting customers at the center of every decision we make,” CEO Dan Schulman, who took over in October 2025, said in the release.

Verizon’s updated 2026 outlook now calls for mobility and broadband service revenue growth of 2.5% to 3.0%, adjusted EPS of $4.99 to $5.04, cash flow from operations growth of about 2% to 4%, and free cash flow growth of about 9% to 10%. It now expects retail postpaid phone net additions in the upper half of its prior 750,000 to 1 million range.

Cash generation also improved in the quarter. Operating cash flow rose 16.3% to $10.4 billion, and free cash flow increased 24.4% to $6.4 billion. Verizon repurchased $1 billion of shares in the quarter, bringing year-to-date buybacks to $3.5 billion, and raised its full-year repurchase target to as much as $4.5 billion. It reiterated capital spending guidance of $16 billion to $16.5 billion for the year.

The quarter offers an early test of Schulman’s customer-first strategy, which has centered on simpler plans, bundled offers and loyalty programs rather than heavier promotions. Verizon’s emphasis on fiber growth also reflects its expanded footprint after closing its Frontier acquisition in January.