Verizon Communications (NYSE: VZ) reported a larger-than-expected decline in retail postpaid phone subscribers for the first quarter, as the telecom giant pulled back on promotional activity in an effort to protect profitability.
Retail postpaid phone subscribers declined by 289,000 during the quarter, a sharp reversal from the 114,000 additions recorded a year earlier and significantly worse than the consensus estimate for a 185,471 net loss. The decline reflects Verizon’s decision to scale back promotions following an incentive-heavy December quarter—a strategy not followed by peers, leading to rising competitive pressure.
In March, the company executives had warned that aggressive off-season rival promotions would challenge subscriber growth. U.S. telecom providers have increasingly leaned on device incentives to drive growth in a saturated market, fueling concerns over margin compression and weakening profitability.
Despite the subscriber miss, Verizon posted better-than-expected financial results. Adjusted EBITDA rose 4.1% year-over-year to $12.6 billion, exceeding estimates of $12.35 billion, while operating revenue came in at $33.50 billion, topping expectations.
The company reaffirmed its full-year outlook, forecasting 2.0% to 2.8% growth in total wireless service revenue and a 2.0% to 3.5% increase in adjusted core income. However, the forecast does not factor in potential impacts from evolving U.S. tariff policies.
Verizon (NYSE: VZ) stock is up by 0.44%, trading at $43.38 pre-market today, and has gained 7.63% over the past year.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
