Verizon delivered an important shift in investor sentiment after reporting its first positive first-quarter postpaid phone net additions in 13 years, reinforcing the view that the company’s operational reset is beginning to gain traction.
The telecoms group added 55,000 postpaid phone customers during the quarter, reversing a long-running pattern of first-quarter subscriber losses.
Management has increasingly focused on improving customer quality rather than relying heavily on promotional activity. Consumer postpaid phone churn fell to 0.90%, with March improving further to below 0.85%, indicating that Verizon is retaining higher-value customers more effectively. Lower churn reduces the cost of replacing subscribers and supports more predictable recurring cash flow.
Financial performance also improved. Revenue rose 2.9% to $34.4 billion, while adjusted earnings per share increased 7.6% to $1.28. Adjusted EBITDA climbed 6.7% to $13.4 billion, with margins expanding to 38.9%. The margin improvement is particularly relevant because Verizon is attempting to demonstrate that growth can be delivered alongside tighter cost control rather than through aggressive customer acquisition spending.
Broadband continued to provide an additional growth driver. Verizon added 341,000 broadband subscribers in the quarter, supported by both fixed wireless access and fibre growth.
The improving operational picture has also attracted attention from value-focused investors. Global Opportunities Trust currently holds Verizon Communications within its portfolio, with the position representing around 2% of net assets as at 31 March 2026, reflecting the appeal of Verizon’s defensive cash generation and improving execution within a volatile market backdrop.
Global Opportunities Trust plc LON:GOT) invests globally in undervalued asset classes without reference to the composition of any stock market index.
