Verizon Communications on Tuesday reported first-quarter adjusted earnings and revenue that topped Wall Street targets but the telecom firm lost more postpaid phone subscribers than expected amid intensified wireless competition. Verizon stock reversed up in morning trading as the Nasdaq composite also climbed.
For the period ended March 31, Verizon earnings came in at $1.19 per share on an adjusted basis, excluding one-time items, up 4 cents from a year earlier. Revenue rose 1.5% to $33.5 billion.
Analysts had predicted Verizon earnings of $1.15 per share, with revenue at $33.3 billion. Also, wireless service revenue climbed 2.7% to $20.8 billion, versus estimates of $20.44 billion.
Earnings before interest, taxes, depreciation and amortization came in at $12.6 billion, compared to estimates of $12.34 billion.
The outlook for Verizon's consumer wireless business has been key for investors. Competition has intensified in early 2025 with more aggressive promotions, analysts say. On April 3, Verizon rolled out a new three year price lock-in offer aiming to boost plan upgrades.
In Q1, the company said it lost 289,000 wireless postpaid phone business and consumer subscribers, versus estimates for a loss of 197,000 subscribers. Billed monthly, postpaid phone subscribers are the highest spending wireless subscribers. In Q1 2024, Verizon lost 114,000 postpaid phone subscribers.
Craig Moffett, analyst at MoffettNathanson, said Verizon's recent price hikes have boosted revenue at the expense of higher customer turnover.
"The story of the quarter is relatively clear," he said in a report. "Verizon's higher prices triggered higher churn. Verizon didn't just lose post-paid phone subscribers in Q1 – weakness in the government segment of their business wireless unit accounts for some of the softness – it lost whole accounts."
In Q1, Verizon said it added 308,000 fixed wireless broadband customers, giving it 4.8 million overall.
Verizon Stock Reverses Up
On the stock market today, Verizon stock initially fell in early trading, then reversed up. VZ stock was up a fraction to 36.95 in morning action.
Heading into the Verizon earnings report, Verizon shares had gained 7% in 2025. Verizon stock holds a Relative Strength Rating of 88 out of a possible 99, according to IBD Stock Checkup.
Further, AT&T reports earnings on Wednesday. T-Mobile US follows on Thursday.
"Wireless has been a safe place to hide in the market's current tariff and recession risk storm," added Moffett. "But over-reliance on pricing, in a softening market, (have) now stretched valuations for the whole group."
In September, Verizon announced plans to acquire Frontier Communications for $20 billion in cash. The deal is expected to close in approximately 18 months, the company said.
Meanwhile, Frontier is the largest pure play fiber provider in the U.S. with 10 million home passings expected by the end of 2026. The company has 2.2 million fiber network subscribers currently across 25 states.
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