The performance was raised, and the stock price plummeted! The trillion-dollar giant in the U.S. stock market announces big moves
The super giant suddenly surged. Stimulated by positive performance and orders, the stock price of the US telecommunications giant Verizon has surged. As of the close of the US stock market on Friday, it has increased by nearly 6%, and its total market value has risen to US$193.7 billion (approximately RMB 1.3 trillion). The company previously announced a more than $1 billion agreement with Google to provide dark fiber connection services to Google data centers.
The super giant suddenly surged. Stimulated by positive performance and orders, the stock price of the US telecommunications giant Verizon has surged. As of the close of the US stock market on Friday, it has increased by nearly 6%, and its total market value has risen to US$193.7 billion (approximately RMB 1.3 trillion). The company previously announced a more than $1 billion agreement with Google to provide dark fiber connection services to Google data centers. At the same time, Verizon raised its full-year performance guidance and expected adjusted earnings per share in 2026 to reach $4.99 to $5.04, higher than the previous forecast of $4.95 to $4.99. Company management said the expansion of artificial intelligence (AI) infrastructure in the United States could present significant opportunities for the company. U.S. telecom giants surge On July 25, Eastern Time, during the U.S. stock market, Verizon's stock price continued to strengthen. As of the close, it rose 5.84% to US$46.38 per share. On the news, the company raised its full-year performance guidance and announced an agreement with Google worth more than $1 billion to provide dark fiber connection services to Google data centers. Verizon CEO Dan Schulman said on the earnings call that the company expects to sign more similar agreements by the end of this year, which is expected to bring billions of dollars in new revenue in the next few years. Dan Schulman also revealed that the company is currently in the early stages of transforming some communication network equipment rooms into data centers. New revenue related to AI infrastructure is a new business and is expected to be gradually reflected in the company's performance starting next year. Dan Schulman, who takes over as CEO of Verizon in late 2025, has been working to reshape the company's brand by simplifying its products and services and refocusing on customers. Verizon's board of directors also announced on the same day that Dan Schulman's CEO term would be extended by one year, with the contract valid until the end of 2028. As AI infrastructure construction continues to heat up, large cloud service providers have increasing demands for high-speed, high-capacity interconnection between data centers. This has also provided telecom operators with new monetization opportunities, allowing them to use existing optical fiber networks to create more revenue. Under the leadership of Dan Schulman, Verizon is advancing strategic transformation, including launching simpler and easier-to-understand mobile communication plans, a new customer loyalty program, and wireless communication and broadband bundling sales plans to improve user growth performance. Previously, the company had lagged behind its main rivals in adding new users. Verizon said on Friday that it added 184,000 postpaid wireless customers (that is, you use the service first and then settle your bill monthly) in the second quarter of this year, significantly higher than the average analyst estimate of 103,900. In June this year, Verizon made a comprehensive adjustment to its wireless business and launched an unlimited traffic package called Simplicity, which replaced the previous more complex product system with transparent pricing and included access to the company's fastest 5G network and mobile hotspot data services. In terms of performance guidance, Verizon expects adjusted earnings per share in 2026 to reach $4.99 to $5.04, higher than the previous forecast of $4.95 to $4.99. It was also raised from about 7% to 9% to 10%. At the same time, the company raised its free cash flow growth forecast for this year to 9%-10%, which is also higher than the previous forecast of at least a 7% increase. Verizon management expects positive new subscriber growth in the third quarter as well, suggesting the recent changes could help the company reverse years of stagnant growth and declining wireless market share, especially as it competes with T-Mobile. The financial report shows that Verizon achieved revenue of US$34.3 billion in the second quarter of 2026, which was lower than analysts' average forecast of US$35.16 billion. This was mainly due to declining equipment sales revenue, slowing demand for mobile phone upgrades, and more and more consumers extending their mobile phone use cycles. Verizon's net profit in the second quarter was US$3.95 billion, compared with US$5.12 billion in the same period last year. The company said the profit decline was mainly due to special one-time expenses of US$1.8 billion before tax, including a loss of US$746 million caused by the integration of both parties' international businesses with British Telecom.
Thanks to cost control measures and reduced terminal equipment subsidy expenses, Verizon's second-quarter adjusted earnings per share were $1.30, higher than market expectations of $1.27. Currently, Verizon is promoting business transformation through measures such as cutting costs, improving user growth, and increasing customer retention rates. This quarter's results also reflect a series of initiatives taken by the company to enhance future competitiveness, including the establishment of new joint ventures, layoffs of employees and the launch of new products and services. Verizon said it has seen significant acceleration in its fixed wireless access business, which has become a cornerstone of its growth strategy. Some analysts pointed out that by successfully converting huge 5G capital expenditures into a stable, high-profit recurring revenue stream, Verizon has proven to investors its ability to compete effectively in mature telecommunications markets. Morningstar said it raised its fair value estimate for Verizon to $54 per share from $53. Although Verizon has taken steps to bring its wireless prices in line with its competitors, the intensity of competition in the market has not increased as a result.
Thanks to cost control measures and reduced terminal equipment subsidy expenses, Verizon's second-quarter adjusted earnings per share were $1.30, higher than market expectations of $1.27. Currently, Verizon is promoting business transformation through measures such as cutting costs, improving user growth, and increasing customer retention rates. This quarter's results also reflect a series of initiatives taken by the company to enhance future competitiveness, including the establishment of new joint ventures, layoffs of employees and the launch of new products and services. Verizon said it has seen significant acceleration in its fixed wireless access business, which has become a cornerstone of its growth strategy. Some analysts pointed out that by successfully converting huge 5G capital expenditures into a stable, high-profit recurring revenue stream, Verizon has proven to investors its ability to compete effectively in mature telecommunications markets. Morningstar said it raised its fair value estimate for Verizon to $54 per share from $53. Although Verizon has taken steps to bring its wireless prices in line with its competitors, the intensity of competition in the market has not increased as a result.