Major U.S. Telecom Company Initiates 'Turnaround' with Subscriber Recovery, Dividends, and Growth Guidance

Verizon Communications Inc. reported roughly $138.2 billion in revenue and $4.06 in earnings per share for the fourth quarter and full year 2025, meeting its annual guidance and delivering its largest net additions of mobility and broadband subscribers since 2019. Looking ahead to 2026, the company plans to triple its retail postpaid phone net additions, grow its communications service revenue by 2–3%, and generate at least $21.5 billion in free cash flow. Verizon also expects to complete its acquisition of Frontier’s fiber assets on January 20, 2026, extending fiber access to more than 30 million U.S. homes and businesses, and has renegotiated MVNO agreements with major cable operators.

At the same time, Verizon granted two senior executives—heads of its Global Network & Technology division and its Enterprise & Business division—special restricted stock units vesting through the end of 2027. Valued at approximately $3.9 million based on recent share prices, these awards align executive incentives with long-term shareholder value and differ from public-market stock transactions as part of an internal compensation package.

Following its strong Q4 results, announced capex reductions, a $25 billion share-repurchase program and an increased dividend, Verizon’s shares have jumped by double digits in a short span and recently hit a 52-week high. However, a nationwide mobile outage in mid-January has drawn regulatory scrutiny and consumer complaints, leaving network reliability and regulatory matters as key challenges ahead.

As one of the U.S. wireless “Big 3” alongside AT&T and T-Mobile, Verizon has long been favored by institutional and dividend investors for its heavy 5G and fiber investments, high dividend yield and stable cash flow. Facing industry-wide headwinds—slowing subscriber growth, price competition and rising 5G investment costs—U.S. carriers are increasingly cutting capital expenditures and shifting toward fixed-mobile convergence, fiber expansion and fixed wireless broadband to bolster profitability.