Verizon shares rose on Friday after the wireless carrier reported earnings that beat expectations and raised its full-year outlook. This suggests that CEO Dan Schulman’s turnaround plan is beginning to pay off.
The stock climbed 3.2% in early trading, doing better than the small gain seen in the S&P 500.
Verizon reported adjusted earnings of $1.30 per share for the second quarter, even though revenue fell 0.7% from last year to $34.3 billion. Analysts surveyed by FactSet had expected earnings of $1.28 per share on revenue of $35.2 billion.
The company also raised its full-year forecast, now expecting adjusted earnings of $4.99 to $5.04 per share for 2026. The midpoint is just above Wall Street’s earlier estimate of $4.98 per share. Verizon also added 184,000 net postpaid subscribers in the quarter, beating analyst expectations.
The strong earnings suggest Verizon’s turnaround is gaining momentum. Schulman plans to cut $5 billion in operating costs this year through major layoffs and by selling company-owned retail stores.
These cost cuts have helped Verizon do better than its competitors this year. The stock is up 7.6% so far, while AT&T and T-Mobile US have both lost ground. Verizon was the last of the three big U.S. wireless carriers to report earnings this week. Both AT&T and T-Mobile beat earnings estimates but missed on revenue.
