Verizon lifts annual forecasts, signs more than $2 billion AI infrastructure deal with AWS
FILE PHOTO: A technician works at an Amazon Web Services AI data center in New Carlisle, Indiana, U.S., October 2, 2025. REUTERS/Noah Berger for AWS/File Photo
Oct 26 : Verizon raised its annual forecast for wireless subscriber additions on Monday, betting on strong demand for its simplified plans, and signed an AI infrastructure deal worth more than $2 billion with Amazon Web Services.
For the third quarter, the telecom carrier reported nearly double the analysts' estimate for gains in monthly-bill paying wireless subscribers at 406,000, against Visible Alpha expectations of 209,439.
• Verizon now expects to add between 1.1 million and 1.2 million postpaid phone subscribers this year compared with earlier projections of 750,000 to 1 million
• It also raised its full-year adjusted earnings per share forecast to $5.04 to $5.06, from $4.99 to $5.04 earlier
• However, third-quarter revenue of $34.3 billion fell short of analyst estimates of $34.74 billion, according to LSEG data
• Revenue was pressured by lower device upgrade volumes after Verizon began cutting device subsidies. Verizon expects this trend to continue in the fourth quarter.
• Verizon shares fell 2.5 per cent in early trading
• Under its deal with Amazon's cloud unit, Verizon will provide high-capacity fiber-optic connectivity for AWS data centers
• CEO Dan Schulman said in the post-earnings call the company was in talks with additional hyperscalers, neocloud providers and large enterprise clients to supply dark or lit fiber connectivity
• Meanwhile, commenting on SpaceX’s plans to enter the mobile market, Schulman said building a competing terrestrial network would take four to six years and cost $300 billion to $500 billion
• Verizon would be "ferociously competitive" once SpaceX enters the market, he added
