Verizon
Verizon runs the wireless network and fiber lines that carry America's calls, data, and cloud traffic.
On the record
Checkpoint: Schulman's promised additional AI Connect hyperscaler deals
The call
Verizon is losing some phone customers to T-Mobile while renting its fiber and spectrum to the AI buildout that everyone else is racing to serve.
Verizon runs the wires and wireless towers that connect most Americans, owns special radio frequencies the government hands out rarely, and has fiber cables buried under cities for decades. T-Mobile is winning new customers faster right now by offering better service and prices, which is the real threat to Verizon's profits and job count. The one thing that could flip the picture: if big companies like Google and Amazon keep paying Verizon billions to use its network cables for artificial intelligence work, that new money could offset the customer losses and stop the layoffs.
Why
01
AI pressure: None apparent. AI data centers need connectivity, not replacement: Google, AWS and Meta are paying Verizon for dark fiber and capacity, not competing with it. Could AI do the core job? Unlikely.
02
Bigger players: T-Mobile. T-Mobile out-added Verizon by roughly 1M postpaid customers in Q3 2025, though Verizon posted its first Q1 gain since 2013 in early 2026. Could a giant copy it? No, they are blocked.
03
What protects it. Spectrum licenses and ~30M fiber passings are government-rationed and decades in the building, nothing a rival or an AI model can replicate quickly.
What would change this call
Verizon postpaid phone net adds for Q3 and Q4 2026. Whether 2026's positive adds are a real trend or a temporary rebound before losing share to T-Mobile again.
New hyperscaler AI Connect contracts announced by Verizon through year-end 2026. Whether Schulman's promised billions in AI-driven fiber deals materialize or stall.
T-Mobile's quarterly postpaid net adds compared to Verizon's over the same period. Whether T-Mobile continues outpacing Verizon in subscriber growth within the wireless oligopoly.
New hyperscaler AI Connect contracts announced by Verizon through year-end 2026. Whether Schulman's promised billions in AI-driven fiber deals materialize or stall.
T-Mobile's quarterly postpaid net adds compared to Verizon's over the same period. Whether T-Mobile continues outpacing Verizon in subscriber growth within the wireless oligopoly.
Key numbers
- Q2 2026 revenue $34.3B, down 0.7% year over year
- 184,000 postpaid phone net adds in Q2 2026
- $1B+ Google dark-fiber AI deal, revenue starts 2027
Named risks
- T-Mobile's subscriber momentum could outpace Verizon's recent net-add recovery.
- 13,000+ layoffs (Nov 2025) risk execution and morale disruption during Frontier integration.
- BT joint venture regulatory approval and 2027 close could be delayed or altered.
- FCC scrutiny over Frontier-deal contractor commitments and active rate complaint through Sept 2026.
- Rural Wireless Association challenge to UScellular/Array spectrum deal approval pending.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| T-Mobile | gaining on | Added 7.8M postpaid subscribers in FY2025 vs Verizon's loss of 7,000 in Q3 2025 |
| AT&T | contesting | Added ~405,000 postpaid subscribers in Q3 2025 while Verizon lost customers |
| Lumen Technologies / Zayo | contesting | Also monetizing dark fiber for hyperscalers, competing with Verizon's AI Connect business as of 2026-07 |
| Comcast / Charter | contesting | Compete via bundled broadband+mobile, cited in FCC review of Verizon-Array spectrum deal, 2026-06-15 |
| SpaceX Starlink | contesting | Referenced as emerging satellite competitor on carrier earnings calls through mid-2026 |
Questions people ask
- Is Verizon profitable in 2026?
- Yes. Verizon posted FY2025 net income of $17.6 billion on $138.2 billion revenue, and Q2 2026 adjusted EPS of $1.30 beat consensus with a record 40.1% adjusted EBITDA margin, prompting management to raise FY2026 EPS guidance to $4.99 to $5.04 as of July 24, 2026.
- Is Verizon doing layoffs?
- Yes. Verizon confirmed on November 20, 2025 it would cut over 13,000 jobs, about 13% of its workforce, scaled back from an initially reported 15,000, following roughly 20,000 prior cuts over three years, and set up a $20 million career-transition fund citing 'the age of AI'.
- Who is Verizon's biggest competitor?
- T-Mobile is the sharpest threat, adding 7.8 million postpaid subscribers in FY2025 and leading Ookla speed tests, while Verizon actually lost 7,000 postpaid customers in Q3 2025 before recovering with 184,000 adds in Q2 2026.
- Could AI replace Verizon?
- No. Verizon's moat is physical: spectrum licenses, roughly 30 million fiber passings, and long-haul dark fiber routes that are capital-intensive and government-licensed. AI demand is instead a tailwind, evidenced by a $1 billion-plus dark-fiber deal with Google disclosed July 24, 2026.
- Who owns Verizon?
- Verizon Communications Inc. is a publicly traded company on NYSE/Nasdaq under ticker VZ with no controlling parent, formed in 2000 from the merger of Bell Atlantic and GTE. Dan Schulman became CEO on October 6, 2025 and Mark Bertolini became Chairman.
- Is Verizon stock worth buying for the dividend?
- Verizon offers a dividend yield around 6 to 7% as of July 29, 2026, alongside a turnaround story: FY2026 guidance was raised (EPS $4.99 to $5.04) and Q2 2026 delivered a record 40.1% adjusted EBITDA margin, though revenue was still down 0.7% year over year.
Timeline
- 2026-07-24Q2 2026 earnings beat, EBITDA margin record 40.1%, Google $1B+ dark-fiber deal disclosed
- 2026-06-29Verizon and BT Group announce 50:50 international enterprise wireline joint venture
- 2026-06-04Supreme Court upholds FCC forfeiture authority, Verizon owes $47M penalty
- 2026-06-01Verizon closes $1B UScellular/Array spectrum acquisition
- 2026-04-27Q1 2026 postpaid phone adds of 55,000, first positive Q1 since 2013
- 2026-01-20Verizon closes $20B Frontier Communications acquisition, fiber footprint hits ~30M passings
- 2025-11-20Verizon confirms layoffs of 13,000+ employees, about 13% of workforce
- 2025-10-06Dan Schulman named CEO, replacing Hans Vestberg; Mark Bertolini becomes Chairman
Revision history
30 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- T-Mobile US outpaces rivals as broadband becomes new battleground (2026-03-25)
- Verizon Announces CEO Transition (2025-10-06)
- Verizon Completes $38.50 Per Share Cash Acquisition of Frontier Communications (2026-01-20)
- Verizon Beats With 55,000 Postpaid Phone Additions (2026-04-27)
- Verizon and BT form joint venture (2026-06-29)
- FCC approves $1 billion spectrum deal that will enhance Verizon's wireless network (2026-05-21)
- VZ Q2 Earnings Beat Estimates on Strong Margins, Outlook Lifted (2026-07-24)
- Verizon Confirms Mass Layoffs, Will Eliminate 13,000+ Jobs (2025-11-20)
- Verizon lands $1B AI data center connectivity deal with Google (2026-07-24)
- Verizon (2024)
- Verizon CEO Dan Schulman says the company is cutting 13,000 jobs (2025-11-20)
- Verizon confirms plans to lay off 13,000 employees (2025-11-20)