The Stock of Verizon Rises After It Posts Its Biggest Subscriber Gain in Five Years

Verizon Communications Inc. has achieved its most significant postpaid phone subscriber growth in five years, surpassing analysts’ expectations.

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The company added a net total of 568,000 new postpaid phone subscribers during the fourth quarter, significantly exceeding the 488,000 anticipated by analysts surveyed by FactSet. Of these additions, 426,000 came from the retail consumer business, which also experienced its highest growth in five years, as stated in Verizon’s report on Friday.

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Postpaid subscribers are customers who pay for their plans after using the service, distinguishing them from prepaid subscribers.

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A contributing factor to Verizon’s recent subscriber gains is its Second Number program, which allows users to add an additional phone number to eligible devices. Excluding the impact of this program, Verizon reported a net addition of 367,000 retail postpaid phone subscribers for the quarter.

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The fourth quarter is traditionally a strong period for wireless subscriber growth. This is partly due to the first full quarter following the launch of Apple Inc.’s iPhone and the added boost from the holiday shopping season.

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Wall Street responded positively to Verizon’s results. Shares of the company rose by 3.5% in Friday’s premarket trading, reflecting investor confidence in the company’s performance.

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Verizon reported a 1.6% increase in operating revenue, reaching $35.7 billion for the fourth quarter. This result exceeded analysts’ expectations, which were set at $35.3 billion.

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One of the key drivers of this upside was wireless equipment revenue, which totaled $7.5 billion, outperforming the $7.0 billion forecast by analysts. Additionally, wireless service revenue came in at $20.0 billion, aligning with market expectations.

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The company also posted adjusted earnings per share (EPS) of $1.10 for the quarter, narrowly beating the consensus estimate of $1.09.

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Verizon’s broadband business also saw significant growth during the fourth quarter. The company recorded 408,000 net additions in this segment, with 373,000 of these coming from its fixed-wireless service. This service enables customers to access broadband through Verizon’s wireless network, offering a convenient alternative to traditional broadband solutions.

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Verizon provided its 2025 financial outlook on Friday. The company anticipates wireless service revenue growth of 2% to 2.8%, in line with analyst expectations of about 2.4%. Similarly, Verizon projects flat to 3% growth in adjusted earnings per share, compared to analysts’ estimates of 2.8%.

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In terms of free cash flow, Verizon is targeting a range of $17.5 billion to $18.5 billion, while analysts forecasted $18.05 billion.

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Verizon’s strong performance in the fourth quarter reflects its ability to capture new postpaid subscribers and leverage its broadband offerings for additional growth. The company’s focus on innovative programs, such as the Second Number feature, and its strong execution during a seasonally robust period, have positioned it well for continued success.

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Looking ahead, Verizon’s 2025 guidance indicates steady growth in wireless service revenue and earnings, supported by its robust cash flow generation. Investors and analysts will likely keep a close eye on its ability to sustain momentum in an increasingly competitive telecommunications market.

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