Verizon Raises Profit Outlook After Landing $1 Billion-Plus Google Agreement

Verizon raised its full-year adjusted earnings forecast after reporting solid second-quarter results and announcing a strategic agreement worth more than $1 billion with Google to provide dark fiber connectivity for the technology company's expanding network of data centers.

The announcement helped lift Verizon shares by about 3%, as investors welcomed both the improved financial outlook and the company's growing role in supporting artificial intelligence infrastructure.

During the earnings conference call, CEO Dan Schulman said the Google agreement is expected to be the first of several large-scale infrastructure partnerships. He noted that Verizon anticipates securing additional contracts before the end of the year that could generate billions of dollars in revenue over the coming years.

As technology companies continue investing heavily in artificial intelligence, demand for high-capacity fiber connections between data centers has accelerated, creating new growth opportunities for telecommunications providers with extensive fiber networks.

The agreement also highlights Verizon's broader strategy under Schulman's leadership. Since taking over as CEO, he has introduced simplified wireless plans, enhanced customer loyalty programs and expanded bundled wireless and broadband offerings in an effort to strengthen subscriber growth and improve the customer experience.

Those initiatives showed positive momentum during the second quarter. Verizon added 184,000 postpaid wireless subscribers, significantly exceeding analysts' expectations of approximately 104,000 net additions, according to FactSet.

In June, the company also introduced its Simplicity wireless plan, replacing a more complicated lineup with transparent pricing while providing customers access to Verizon's fastest 5G network and mobile hotspot capabilities.

Reflecting confidence in its business outlook, Verizon increased its full-year adjusted earnings guidance to $4.99 to $5.04 per share, up from its previous forecast of $4.95 to $4.99.

The company also raised expectations for free cash flow growth, now projecting an increase of 9% to 10% in 2026, compared with its earlier forecast of approximately 7% or more.

For the second quarter, Verizon reported revenue of $34.3 billion, slightly below Wall Street estimates of $35.16 billion. The shortfall was primarily driven by weaker equipment sales, as many consumers delayed upgrading their smartphones and continued using existing devices for longer periods.

Despite the softer revenue performance, Verizon delivered adjusted earnings of $1.30 per share, exceeding analysts' expectations of $1.27. The stronger-than-expected profit reflected disciplined cost controls and lower spending on device subsidies, demonstrating the company's focus on improving operational efficiency while continuing to invest in long-term growth initiatives.

With growing demand for AI infrastructure, expanding fiber-network opportunities and an improving subscriber base, Verizon believes it is well positioned to benefit from the next wave of digital connectivity. Company executives indicated that additional large-scale agreements similar to the Google partnership could further strengthen revenue growth over the next several years as hyperscale technology companies continue expanding their data center operations.