Why Verizon Stock Climbed Today
Key Points
Customer gains and lower costs are driving Verizon's cash flow sharply higher.
AI data centers could light up the wireless leader's dark fiber.
- 10 stocks we like better than Verizon Communications ›
Shares of Verizon Communications (NYSE: VZ) rose on Friday after the telecom giant highlighted its new AI-fueled expansion plans.
Image source: Verizon Communications.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Robust subscriber growth and surging free cash flow
Verizon added 184,000 postpaid phone customers in the second quarter, including its biggest Q2 gains in lucrative postpaid consumer accounts in half a decade.
The wireless carrier also added 348,000 broadband accounts, including 193,000 fixed wireless customers and 155,000 fiber clients.
CEO Dan Schulman said Verizon's new flat-rate unlimited mobile plans and bundled offerings are helping it attract and retain subscribers "based on real value rather than subsidized promotions."
Lower customer acquisition costs and churn rates are also boosting Verizon's profit margins and cash flow generation.
The telecom titan's adjusted earnings rose 6.6% to $1.30 per share. Its operating and free cash flow surged 16.3% and 24.4%, respectively, to $10.4 billion and $6.4 billion.
Artificial intelligence could boost Verizon's profits
These solid results prompted Verizon to lift its full-year financial forecast. Management now sees adjusted earnings per share growing by 6% to 7% to between $4.99 and $5.04 in 2026.
During a conference call with analysts, Schulman disclosed that Verizon recently signed a deal with Alphabet's Google valued at more than $1 billion. The search giant will use Verizon's dark fiber -- unused optical infrastructure that's available for lease or purchase -- to connect its AI data centers.
Schulman said that the deal with Google was "just the beginning" of its new AI-focused growth strategy.
"We have other deals that we expect to announce by year-end that, taken together, are expected to be worth multiple billions of dollars in revenue over the next several years," Schulman said.
Should you buy stock in Verizon Communications right now?
Before you buy stock in Verizon Communications, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Verizon Communications wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,519!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,281,302!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 24, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
Recommended Articles
