Verizon raised its 2026 postpaid phone subscriber forecast after adding 406,000 in the third quarter. Revenue missed estimates; a separate deal worth more than $2 billion calls for fiber connections to AWS data centers.
Verizon raised its 2026 forecasts for phone subscribers and adjusted earnings on 26 October after adding 406,000 postpaid phone customers in the third quarter, nearly twice the analyst estimate of 209,439. Postpaid customers pay a monthly bill. Revenue came in below estimates.
In its 26 October newsletter, RCR Wireless said Verizon had signed $4 billion in superintelligence (SI) infrastructure contracts over six months. The newsletter expects revenue to begin in 2027, modestly at first, over the contracts’ lifetimes; it does not present the $4 billion as annual recurring revenue.
| Measure | Result or new forecast | Estimate or earlier forecast |
|---|---|---|
| Q3 postpaid phone additions | 406,000 | 209,439 analyst estimate from Visible Alpha |
| Q3 revenue | $34.3 billion | $34.74 billion analyst estimate cited by LSEG |
| 2026 postpaid phone additions | 1.1 million–1.2 million | 750,000–1 million |
| 2026 adjusted earnings per share | $5.04–$5.06 | $4.99–$5.04 |
The satellite operator expects access to more than twice OneWeb’s current bandwidth in return for spending in 2027–2034, with initial IRIS² services expected from 2030.
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The newsletter says the contracts cover dark and lit fiber, as well as edge-computing locations. Dark fiber is supplied without the equipment that sends data through it; lit fiber provides an active connection. Edge computing processes data close to where it is used rather than only in central data centers.
The distinction between signed contracts and annual revenue matters: the $4 billion describes business secured over six months, while payments contribute revenue over the agreements’ lifetimes. The newsletter describes SI infrastructure as a prospective source of growth, not an immediate revenue contribution of that size.
Verizon launched its Simplicity plan in June and is betting its simplified wireless offerings will support demand. CNA Business said revenue was pressured by fewer device upgrades: customers kept their phones longer after Verizon began cutting subsidies toward new devices. Subscriber gains and the revenue shortfall therefore reflect different parts of the business.
Verizon’s agreement worth more than $2 billion with Amazon Web Services (AWS), Amazon’s cloud business, calls for high-capacity fiber-optic connections to AWS data centers. These links carry data as pulses of light and are intended to make transfers faster and more reliable for SI computing workloads. The agreement’s stated value is a contract figure, not part of Verizon’s reported $34.3 billion in third-quarter revenue.
The AWS agreement follows a separate deal worth more than $1 billion that Verizon announced with Google in July to connect data centers using fiber. The contracts could bring revenue beyond Verizon’s wireless and broadband services.
The newsletter puts the start of revenue from the broader infrastructure contracts in 2027, with a modest initial contribution.
Microsoft reported $33.17 billion in Azure revenue and a 22% year-over-year decline in Windows OEM and devices revenue. Its reporting overhaul brings quarterly disclosure of Azure’s dollar contribution.
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The US wireless carrier’s third-quarter service revenue rose 6% to $19.4 billion as it raised its expectations for the full year.
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