Verizon posts best subscriber growth in six years under new CEO Schulman
Q4 delivers 616K postpaid phone additions, signaling turnaround is gaining traction
Verizon Communications delivered its strongest quarterly subscriber growth in six years, adding 616,000 postpaid phone customers in the fourth quarter of 2025 as new chief executive Dan Schulman's turnaround strategy begins to show early results.
The carrier reported more than 1 million total net additions across mobility and broadband in the final three months of last year, marking its highest quarterly net adds since 2019, according to the company's earnings announcement. The performance represents a significant rebound for a company that has struggled to maintain market share in an intensely competitive wireless landscape dominated by T-Mobile and AT&T.
Schulman, who took the helm in October 2025 succeeding Hans Vestberg, has implemented what executives describe as a "full reboot" of the telecommunications giant. The strategy centers on three pillars: a customer-first approach, aggressive cost transformation, and convergence across the company's wireless, broadband, and media properties.
"We are taking bold action to position Verizon for sustainable growth," Schulman said in a statement accompanying the results. "This quarter's performance demonstrates that our customer-centric strategy is resonating in the marketplace."
The subscriber gains come as Verizon moves to execute on a $1 billion annual cost-savings program that began in 2026, which includes approximately 15,000 non-union management layoffs. The company is also pursuing convergence through strategic acquisitions, most notably the pending purchase of Frontier Communications expected to close in the first quarter of 2026.
The market response has been measured despite the subscriber momentum. Verizon shares, which trade around $39.81, remain below both their 50-day moving average of $40.32 and 200-day average of $42.10, reflecting investor caution about the broader telecommunications sector and macroeconomic headwinds. The stock's relative strength index of 35 indicates oversold conditions that could present an opportunity for value-focused investors.
From a valuation perspective, Verizon offers what some analysts consider an attractive risk-reward profile. The company trades at approximately 8.4 times earnings, significantly below the global telecommunications sector average of 16.6 times, while providing a dividend yield of nearly 7%. The company's next quarterly dividend payment of $0.69 per share is scheduled for February 2.
Wall Street remains cautiously optimistic. The average analyst price target ranges between $43.75 and $47.43, representing potential upside of 10-19% from current levels, though most firms maintain "Hold" or "Moderate Buy" ratings. Wells Fargo lowered its price target to $41 on January 26 while keeping an "Equal Weight" rating, citing ongoing macroeconomic challenges that could pressure consumer spending on wireless services.
"The subscriber momentum is encouraging, but we need to see sustained improvements in revenue growth and profitability before becoming more constructive," analysts at Morgan Stanley noted in a recent research report.
Verizon faces significant execution risks as it attempts to balance cost cuts with customer experience improvements. The layoffs and restructuring could create operational disruptions during the integration period, while the competitive environment shows no signs of easing. T-Mobile continues to pressure the market with aggressive pricing, and AT&T has made investments to improve its network positioning.
Looking ahead, investors will focus on several key catalysts: the close of the Frontier Communications acquisition, the full-year 2026 financial guidance expected to reflect the impact of cost-cutting measures, and evidence that the customer gains translate into improved average revenue per user metrics.
The first quarter under Schulman's leadership has delivered evidence that the turnaround is gaining traction, but the telecommunications veteran faces a long road ahead as he works to restore Verizon's growth profile and convince skeptical investors that the strategy can deliver sustained outperformance in a maturing market.