Verizon Raises 2026 Subscriber and EPS Guidance, Signs $2 Billion-Plus AWS AI Infrastructure Deal

Verizon raised its annual forecast for wireless subscriber additions on Monday and signed an artificial intelligence infrastructure agreement worth more than $2 billion with Amazon Web Services, according to CNBC. The move follows a third quarter in which the carrier's postpaid phone subscriber gains nearly doubled analyst expectations, even as total revenue came in below Wall Street forecasts.

Postpaid Subscriber Gains Beat Estimates

For the third quarter, Verizon reported 406,000 monthly-bill-paying (postpaid phone) wireless subscriber gains, according to CNBC, which cited Visible Alpha estimates of 209,439 for the period. By our calculation, based on those two figures, actual additions exceeded the analyst estimate by roughly 196,561 subscribers, consistent with CNBC's characterization of the result as nearly double expectations.

CNBC reported that Verizon lifted the forecast while betting on strong demand for its simplified plans. The carrier launched its Simplicity plan in June, introducing transparent pricing and unlimited data, part of a broader operational overhaul that CNBC reported has unfolded a year into CEO Dan Schulman's tenure, including restructuring of operations and simplification of its wireless offerings.

Raised Full-Year Guidance

On the strength of the quarter, Verizon now expects to add between 1.1 million and 1.2 million postpaid phone subscribers this year, up from its earlier projection of 750,000 to 1 million, CNBC reported. Using those figures, our calculation shows the low end of guidance rose by 350,000 subscribers (1.1 million minus 750,000) and the high end rose by 200,000 subscribers (1.2 million minus 1 million).

Verizon also raised its full-year adjusted earnings-per-share forecast to a range of $5.04 to $5.06, up from $4.99 to $5.04 previously, according to CNBC. By our calculation, that reflects an increase of $0.05 at the low end and $0.02 at the high end of the prior range.

The AWS AI Infrastructure Agreement

Under the new deal with Amazon's cloud unit, Verizon will provide high-capacity fiber-optic connectivity for AWS data centers, a step CNBC reported is intended to enable faster, more reliable data transfers to support growing AI computing workloads. The report did not specify a contract duration, geographic scope, or payment structure beyond the headline value of more than $2 billion.

This is not Verizon's first infrastructure arrangement tied to AI demand. CNBC noted that in July, Verizon announced a separate agreement worth more than $1 billion with Google to connect data centers using dark fiber. Taken together, these deals illustrate what CNBC described as rising AI demand opening a new revenue stream beyond traditional wireless and broadband services for telecom operators. We view this as an emerging pattern rather than a confirmed strategic pivot, since the available reporting does not detail how either agreement will affect Verizon's capital spending or margins beyond the current fiscal year.

Revenue Fell Short Despite Subscriber Strength

Even with the subscriber beat, Verizon's top line lagged expectations. Third-quarter revenue of $34.3 billion fell short of analyst estimates of $34.74 billion, according to LSEG data cited by CNBC. By our calculation, that is a shortfall of approximately $440 million relative to consensus.

CNBC attributed the revenue pressure to lower device upgrade volumes, as customers held on to their phones longer after Verizon began cutting device subsidies. Separately, Seeking Alpha's market news coverage reported that total revenue growth was primarily driven by increases in mobility and broadband service revenue, with an expansion in adjusted EBITDA margin supported by higher subscriber additions and improved operational efficiency. That growth was partially offset by a 9% decline in wireless equipment revenue, per Seeking Alpha.

Read together, the two threads point to a quarter in which Verizon's core service business strengthened while equipment sales, tied to the subsidy cuts CNBC described, acted as a drag on the headline revenue figure. This is our interpretation of how the attributed facts fit together, not a projection of future results.

Bottom Line

Verizon's raised subscriber and EPS guidance, paired with a second multibillion-dollar AI infrastructure agreement in a matter of months, signals that the carrier's postpaid momentum and its push into data-center connectivity are both contributing to a more upbeat full-year outlook, according to CNBC's reporting. At the same time, the revenue miss tied to slower device upgrades is a reminder that top-line growth and subscriber growth are not moving in lockstep. The available reporting does not address how the AWS deal's revenue or cost impact will carry into 2027, nor does it provide a direct comparison with subscriber results at other major carriers, so those remain open questions for future disclosures.