Driven by growing demand for AI infrastructure, Verizon has raised its annual profit forecast after signing a fiber connectivity deal worth more than $1 billion with Google to support the technology company’s expanding data center network.
The agreement will see Verizon provide dark fiber connectivity for Google’s data centers, opening a new revenue opportunity as hyperscale technology companies continue investing heavily in AI infrastructure. Speaking during a post-earnings call, CEO Dan Schulman said the company expects to announce more agreements by the end of the year that could generate multiple billions of dollars in revenue over the coming years.
Verizon is also undergoing a strategic transformation under Schulman’s leadership, introducing simplified mobile plans, a revamped loyalty programme and bundled wireless and broadband services to strengthen customer growth.
During the 2nd quarter, the telecom operator added 184,000 postpaid wireless subscribers, significantly exceeding analysts’ expectations of 103,900 additions. In June, the company also introduced Simplicity, an unlimited wireless plan featuring transparent pricing, access to Verizon’s fastest 5G network and mobile hotspot data.
Reflecting the strong momentum, Verizon increased its annual adjusted earnings forecast to $4.99-$5.04 per share, up from its earlier guidance of $4.95-$4.99. The company also expects free cash flow to grow between 9% and 10% this year, compared with its previous forecast of 7% or more.
For the 2nd quarter, Verizon reported revenue of $34.3 billion, slightly below analysts’ estimate of $35.16 billion, as equipment sales declined due to slower smartphone upgrade activity, with customers keeping their devices for longer periods.
However, adjusted earnings came in at $1.30 per share, beating analysts’ expectations of $1.27, supported by cost-control measures and lower spending on device subsidies.
Following the announcement, Verizon’s shares rose approximately 3%, reflecting investor confidence in the company’s improved financial outlook and its growing role in supporting AI-driven digital infrastructure.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.