- Verizon reported $33.5B in Q1 revenue, up 1.5% year-over-year, but lost 289,000 postpaid phone subscribers.
- The company saw strong growth in broadband and prepaid segments, adding 339,000 broadband subscribers.
What happened: Verizon reports strong Q1 revenue despite postpaid subscriber losses
Verizon Communications Inc. reported a total operating revenue of $33.5B for the first quarter of 2025, a 1.5% increase year-over-year. Adjusted earnings per share were $1.19, surpassing analysts’ expectations of $1.15. However, the company experienced a net loss of 289,000 postpaid phone subscribers, more than double the 114,000 lost in the same period last year and exceeding analyst forecasts of 166,400 to 185,500 losses.
CEO Hans Vestberg attributed part of the decline to federal government spending cutbacks, which affected Verizon’s government accounts. Despite the subscriber losses, Verizon added 339,000 broadband subscribers in the quarter, citing continued market share gains.
Why it’s important
The unexpected postpaid phone losses have raised concerns among investors, leading to a 2.5% drop in Verizon’s stock price. However, the company’s strong performance in broadband and prepaid segments, along with its reaffirmed full-year guidance, indicates resilience in its business model. Verizon remains confident in achieving its wireless service revenue growth target of 2% to 2.8% for the year, despite the challenges faced in the first quarter.
