Verizon reclaims momentum: can schulman halt the subscriber bleed?
Verizon, long considered the titan of US wireless, delivered a Q1 2026 that surprised even the most seasoned analysts. After a shaky 2025 marked by subscriber losses, the company, now under the leadership of CEO Dan Schulman, appears to be turning a corner, posting a net gain of 55,000 postpaid phone subscribers – a victory not seen in the first quarter in over a decade.
Schulman's first full quarter: a calculated reset
The results, revealed last week, aren't just a fleeting blip. They represent a deliberate shift in strategy under Schulman, who took the helm just prior to the previous quarter's disappointing performance. The typical first quarter is a soft period for carriers, often plagued by subscriber churn. Yet, Verizon defied expectations, signaling a potential stabilization and even renewed growth.
But the numbers tell a more complete story. Compared to Q1 2025, Verizon’s subscriber base surged by a considerable 340,000, fueled by new sign-ups, a noticeable reduction in customer churn, and efficiencies gained through streamlined operations. The company’s revised forecast now anticipates between 750,000 and 1 million total retail postpaid phone net additions for the entirety of 2026 – a potentially staggering doubling or tripling of the figures seen in 2025. This is a far cry from last year's struggles.
The momentum extends beyond postpaid subscribers. Prepaid net additions reached 115,000, marking the seventh consecutive quarter of growth. Furthermore, Verizon’s broadband division saw a significant boost of 341,000 net adds, split between its burgeoning fixed wireless access (214,000) and fiber offerings (127,000), bringing the total broadband connections to a substantial 16.8 million.
“We are beginning to reclaim our market leadership by putting the customer at the center of everything we do, reducing friction to increase loyalty and create genuine value,” Schulman stated, a sentiment echoed in the company's surprisingly robust financial performance.
Beyond subscribers: a financial resurgence
Unlike the previous quarter, the subscriber gains didn’t come at a significant cost. Operating revenue climbed 2.9% year-over-year to $34.4 billion, thanks to a more disciplined approach to promotional offers that stabilized upgrades. Net income also saw a healthy increase of 3.3% to $5.1 billion, even after accounting for compensation credits related to the disruptive January outage – a stark reminder of the vulnerabilities that still linger.
The reported financials also incorporated those of Frontier, following Verizon’s acquisition of the fiber company in January. What's particularly noteworthy is that Verizon appears to have learned from its past mistakes. Last year’s poor performance was largely self-inflicted, a consequence of aggressive price hikes that alienated customers without a corresponding increase in value. The current strategy, prioritizing subscriber acquisition over short-term margin gains, is a clear pivot.
While Verizon’s Q1 performance is encouraging, it’s not an outright victory. The company lagged behind rival AT&T, which reported 294,000 net new postpaid phone subscribers during the same period. T-Mobile’s results, due to be released tomorrow, will offer a further gauge of the competitive landscape, though the company is expected to withhold its postpaid net figures.
The schulman effect: deals, not disruptions
Schulman’s approach so far hasn't been revolutionary; it’s been pragmatic. His strategy revolves around offering aggressive deals, attracting former AT&T and T-Mobile subscribers with lower bills, and extending loyalty discounts – a classic playbook for regaining market share. But the real test will be sustaining this momentum in the face of increased competition.
The company anticipates wireless service revenue growth to remain flat for the remainder of the year, a signal that further price hikes are off the table. Verizon’s Q1 demonstrates that a customer-centric approach, coupled with a willingness to prioritize growth over immediate profits, can still yield impressive results in a fiercely competitive market. The question now isn’t whether Verizon can bounce back, but whether it can maintain this upward trajectory and decisively reclaim its position at the top.