Shares of Verizon rose after the telecommunications giant reported Q4 earnings that surpassed analyst expectations. Adjusted earnings per share hit $1.09, exceeding the $1.06 estimate, while revenue reached $36.4 billion, beating the $36.1 billion consensus. The company's fourth-quarter performance showed strong mobility and broadband volume growth, signaling a potential turnaround.

Verizon's wireless service revenue increased 1.1% year-over-year to $21 billion, and wireless equipment revenue climbed 9.1% to $8.2 billion. The company added 372,000 broadband subscribers, including 319,000 fixed wireless access customers. These results indicate a successful strategy to attract new customers and grow revenues, which is crucial in a competitive market.

Looking ahead to 2026, Verizon projects adjusted EPS between $4.90 and $4.95, far exceeding the $4.76 analyst consensus. The company anticipates strong growth in postpaid phone net additions and total mobility and broadband service revenue. The recent Frontier acquisition is expected to boost its fiber footprint, supporting its national mobility and broadband convergence strategy.

Verizon's optimistic outlook for 2026 includes free cash flow of at least $21.5 billion, marking 7% growth from 2025. This positive guidance and the Q4 performance suggest Verizon is successfully navigating the competitive telecom market. Investors are likely to watch how Verizon integrates Frontier and continues its subscriber growth.