Grading Dan Schulman’s First Year at Verizon: Customers, Cash and the Starlink Question
Verizon (VZ) reported strong Q3 2026 results, with 406,000 postpaid phone net additions (up 820% YoY) and record adjusted EBITDA margin of 40.2%. Adjusted EPS grew 8% to $1.31, and free cash flow reached $7.8B. The company raised guidance for EPS and free cash flow growth. Verizon also announced a $2B+ deal with Amazon Web Services and $4B in AI contracts. Shares rose 14.9% from early October 2025 but fell 6.5% in the past month. Competition from Starlink is noted as a concern.
How this was made
The 30-second read
Why it matters
The guidance lift is a fresh primary disclosure for a large-cap stock, likely prompting re‑rating by analysts and short‑term buying.
Market read
Verizon's earnings beat and guidance raise are material for telecom investors and may influence sector sentiment.
What to watch
Potential competition from Starlink and upcoming AI contract revenue uncertainty.
Background
Verizon's Q3 earnings call highlighted strong cash flow, EPS beat, and raised guidance, while noting competitive pressure from satellite providers.
Ticker impact
Verizon disclosed Q3 adjusted EPS $1.31, free cash flow $7.8B and raised FY EPS guidance to 7‑7.5% and free cash flow growth guidance to ~12% during its earnings call.
likely upward pressure as investors price in higher earnings and cash flow outlook
Guidance beats expectations for a large-cap telecom; market typically rewards such upgrades.
Market effects
Higher guidance may lift other telecom peers as investors reassess sector earnings potential.
U.S. telecom sector could see modest gains in the near term.
Limited to U.S. markets; no direct global macro impact.
Counterpoint
Rising debt level ($166.2B) and modest revenue growth could limit upside.
Key entities
- companyVerizon Communications Inc.
U.S. telecom operator reporting earnings and guidance.
