Verizon Communications Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 27 April 2026: press release. Guidance figures: 2 raised, 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Adjusted EBITDA rose 6.7%: Consolidated adjusted EBITDA reached $13.4 billion. Management described it as the highest quarterly Adjusted EBITDA in company history. Source
• Adjusted EPS rose 7.6%: Adjusted EPS, excluding special items, was $1.28, up 7.6%, the best quarterly growth rate since 2021 per management. Diluted EPS was $1.20, up 4.3%. Source
• Business segment EBITDA rose 16.7%: Business segment EBITDA was $1,965 million, with a margin of 26.5% against 23.1%. Business operating income was $884 million, up 33.1%; revenue rose 1.8% to $7.4 billion. Source
• Postpaid phone net adds turned positive: Postpaid phone net additions were 55,000, against a net loss of 289,000 a year earlier. Management said it was the first positive first-quarter result since 2013, helped by a higher mix of new-to-Verizon gross additions. Source
• Net unsecured debt rose to $130.1 billion: Total unsecured debt was $142.5 billion, against $131.1 billion at year-end 2025. Net unsecured debt was $130.1 billion, against $110.1 billion. Source
• Turnaround described as gaining momentum: Management said results reflected healthier customer economics, including improvements in customer acquisition and churn, and operational efficiency. Source

“Our first-quarter 2026 results show that our turnaround is not only progressing, it is gaining momentum,”

Verizon CEO Dan Schulman

Guidance

What changed from last quarter

• Guidance raised: Adjusted EPS guidance for 2026 raised to $4.95 to $4.99 from $4.90 to $4.95. Source
• Guidance raised: Postpaid phone net additions guidance moved to the top half of the 750,000 to 1.0 million range. Source
• New: Segment revenue now split into mobility and broadband service, wireless equipment and other; prior periods recast; segment profit definition unchanged. Source
• New: Quarterly cash dividend declared per common share rose to $0.7075 from $0.6900. Source

Results and earnings growth

• Revenue and operating income grew: Total operating revenue reached $34.4 billion, up 2.9%, and net income $5.1 billion, up 3.3%. Operating income was $8.2 billion, up 3.3%. Source
• Adjusted EBITDA rose 6.7%: Consolidated adjusted EBITDA reached $13.4 billion. Management described it as the highest quarterly Adjusted EBITDA in company history. Source
• Adjusted EPS rose 7.6%: Adjusted EPS, excluding special items, was $1.28, up 7.6%, the best quarterly growth rate since 2021 per management. Diluted EPS was $1.20, up 4.3%. Source

Segment and revenue performance

• Business segment EBITDA rose 16.7%: Business segment EBITDA was $1,965 million, with a margin of 26.5% against 23.1%. Business operating income was $884 million, up 33.1%; revenue rose 1.8% to $7.4 billion. Source
• Consumer segment EBITDA rose 4.3%: Consumer revenue was $26.5 billion, up 3.3%. Segment EBITDA was $11.4 billion with a 43.3% margin against 42.8%; operating margin was 29.2% against 29.0%. Source
• Business mobility revenue fell slightly: Business mobility and broadband service revenue was $3.7 billion, down 0.8%, while business other revenue, which includes legacy wireline, rose 6.3%. Source

“We are beginning to reclaim our market leadership by putting the customer at the center of everything we do, reducing friction to increase loyalty and create genuine value.”

Verizon CEO Dan Schulman

Mobility and broadband revenue

• Mobility and broadband revenue up 1.6%: Mobility and broadband service revenue was about $22.9 billion, up 1.6% year-over-year, including the effect of the January network outage on wireless service revenue growth. Source
• March growth sat mid guidance range: Management said mobility and broadband service revenue grew in the middle of the 2.0 to 3.0 percent guidance range in March. Source
• Wireless equipment revenue up 5.2%: Wireless equipment revenue was $5.7 billion, up 5.2%; cost of wireless equipment was $6.5 billion, up 6.6%. Source

Subscriber growth and broadband adds

• Postpaid phone net adds turned positive: Postpaid phone net additions were 55,000, against a net loss of 289,000 a year earlier. Management said it was the first positive first-quarter result since 2013, helped by a higher mix of new-to-Verizon gross additions. Source
• Broadband net adds reached 341,000: Fixed wireless access added 214,000 and fiber 127,000. Total broadband connections reached about 16.8 million, up 34.9% year-over-year. Source
• Core prepaid adds extended growth run: Core prepaid net additions were 115,000, down 16.1% from 137,000 a year earlier. Management described it as the seventh consecutive quarter of growth. Source

“This disciplined approach is already delivering healthier economics, lower churn, and the first positive first-quarter postpaid phone net adds we've seen in over a decade.”

Verizon CEO Dan Schulman

Churn, upgrades and account values

• Postpaid phone churn edged higher: Postpaid phone churn was 0.97%, against 0.95%. Core prepaid churn was 3.45%, against 3.47%. Source
• Postpaid upgrade rate rose: The wireless retail postpaid upgrade rate was 3.0%, against 2.8% a year earlier. Source
• Postpaid account value fell 1.9%: Postpaid ARPA was $166.66, down 1.9%; core prepaid ARPU was $33.31, up 4.4%. Postpaid accounts totalled 34,369 thousand, down 0.9%. Source

Costs, margins and charges

• Selling and admin costs fell 3.1%: Selling, general and administrative expense was $7.6 billion, down 3.1%. Depreciation and amortization rose 6.9% to $4.9 billion. Source
• Interest expense rose 18.9%: Interest expense was $1.94 billion, up 18.9%. Other income, net was $477 million against $121 million a year earlier. Source
• Acquisition charges excluded from Adjusted EPS: Acquisition and integration related charges were $261 million pre-tax and $329 million after tax, excluded from Adjusted EPS alongside $240 million of amortization and $237 million of pension credits, pre-tax. Source

Capital, cash and returns

• Free cash flow rose 4.0%: Free cash flow was $3.8 billion, up 4.0%, after operating cash flow of $8.0 billion, up 2.6%, and capital expenditures of $4.2 billion. Source
• Net unsecured debt rose to $130.1 billion: Total unsecured debt was $142.5 billion, against $131.1 billion at year-end 2025. Net unsecured debt was $130.1 billion, against $110.1 billion. Source
• Acquisition cash outflow of $9.5 billion: Cash paid for acquisitions, net of cash acquired, was $9.5 billion. Cash and equivalents ended the quarter at $8.4 billion, against $19.0 billion at year-end. Source
• Treasury stock purchases of $2.5 billion: Purchases of common stock for treasury totalled $2.5 billion in the quarter. Source

Strategy and turnaround

• Turnaround described as gaining momentum: Management said results reflected healthier customer economics, including improvements in customer acquisition and churn, and operational efficiency. Source
• Frontier results consolidated from closing: Frontier results have been included in Verizon's financial and operating results since the January 20, 2026 closing date. Source
• Total employees rose to 99.6 thousand: Total employees on a full-time equivalent basis were 99.6 thousand at quarter end, against 89.9 thousand at year-end 2025. Common shares outstanding were 4,176 million. Source

Coming up, as management said on 27 April 2026

• Frontier debt to be repaid by year-end: About half of the Frontier debt has been paid down since the January 20 closing; management expects substantially all of it repaid by the end of the year. Source

Figures management reported

Risks management discussed

• Operational: The January network outage reduced wireless service revenue growth by 80 basis points in the quarter, per management. Source
• Demand: Management said its disciplined promotional approach moderated upgrade activity, which lowered wireless equipment revenue. Source
• Financial: Leverage ratios rose from year-end: unsecured debt to LTM net income was 8.0 times, and net unsecured debt to LTM adjusted EBITDA was 2.6 times. Source

Earlier plans management reported on

• On track: Management said the full-year share repurchase target remains on track after $2.5 billion in the quarter. Source
• On track: Management said capital expenditures reflected network build pace that remains on track. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.