Verizon shocks analysts: q1 gains eke out subscriber growth amidst price holds

Verizon defied expectations in Q1 2026, adding a surprising 55,000 postpaid phone subscribers – the first positive net gain in a first quarter since 2013. The results, spearheaded by new CEO Dan Schulman, represent a significant shift away from the subscriber losses that have plagued the carrier.

A calculated gamble: schulman’s strategy takes shape

Typically a weak period for telecom giants, Q1 saw Verizon buck the trend, fueled by fresh sign-ups, a reduction in churn, and demonstrably improved operational efficiency. Looking ahead, the company is projecting a substantial boost in retail postpaid phone net additions, anticipating a range of 750,000 to 1 million for 2026 – potentially double or triple last year’s performance. This aggressive target hinges on maintaining a strategy of targeted deals rather than blanket price increases.

Prepaid subscribers also contributed positively, adding 115,000 in the quarter, marking a continued growth trajectory. Furthermore, consolidated broadband additions were robust, with 341,000 net adds split between fixed wireless access (214,000) and fiber (127,000), pushing Verizon’s total broadband connections to 16.8 million. The narrative here is clear: a renewed commitment to customer-centricity, aiming to streamline processes and build genuine value.

Despite the positive momentum, Verizon’s financial performance remained solid, with operating revenue climbing 2.9% year-over-year to $34.4 billion, largely due to a more disciplined approach to promotional spending. Net income rose 3.3% to $5.1 billion, even after accounting for compensation credits stemming from the January outage. The acquisition of Frontier’s fiber assets, finalized in January, also contributed to the bottom line.

However, Verizon isn’t running away with the lead. AT&T outperformed in Q1, adding 294,000 net postpaid phone subscribers. While T-Mobile’s results are still pending, the competitive landscape remains fiercely contested. Schulman’s strategy – essentially a focused rollout of attractive offers – appears to be working, but the margin for error is shrinking.

“What did Verizon do to win your heart in Q1?” The answer, according to one subscriber, was simple: better deals, a lowered bill as a former AT&T or T-Mobilecustomer, and the absence of rate increases. This strategic recalibration represents a deliberate choice to prioritize subscriber acquisition over short-term profit maximization – a bold move in a notoriously price-sensitive market. The company’s focus now is on regaining market leadership, not through aggressive pricing, but through demonstrable value.