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VZ Gains From Solid Traction in the Consumer Segment: Will it Sustain?
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Key Takeaways
Verizon added 55,000 postpaid phone users in Q1 2026, a 340,000 year-over-year improvement.
VZ added 341,000 broadband users in Q1, lifting total broadband connections to 16.8 million.
Verizon said acquisition and retention costs in March fell about 35% from Q4 2025.
Verizon Communications, Inc. (VZ - Free Report) business has been witnessing healthy momentum in the Consumer segment. The company returned to positive first-quarter postpaid phone net additions for the first time since 2013. The company added 55,000 postpaid phone customers during the first quarter of 2026, representing a more than 340,000 improvement year over year. The growth is primarily attributed to better customer experience and improved go-to-market execution. VZ took steps to ensure faster issue resolution, improve customer support and streamline the onboarding experience.
Broadband is becoming one of the strongest long-term growth drivers for Verizon’s Consumer business. During the quarter, the company added 341,000 broadband subscribers, including 214,000 fixed wireless access subscribers and 127,000 fiber broadband customers. Total broadband connections reached 16.8 million.
The Frontier acquisition significantly strengthens Verizon’s consumer broadband footprint and is a key long-term growth catalyst. The buyout expanded the fiber footprint across 31 states and Washington, D.C. The buyout has improved Verizon’s ability to bundle multiple connectivity services, mainly wireless mobility, fiber broadband and fixed wireless access under one integrated ecosystem for consumers.
Such bundled services make it difficult for customers to switch service providers, thus improving customer retention. The company reported acquisition and retention costs in March were down roughly 35% versus the fourth quarter of 2025.
How Are Competitors Faring?
Verizon operates in a highly competitive and saturated U.S. wireless market. It faces significant competition from T-Mobile, US, Inc. (TMUS - Free Report) and AT&T, Inc. (T - Free Report) . AT&T continues to invest in fiber and 5G to expand advanced Internet reach and drive more households to buy wireless and home Internet together. In first-quarter 2026, the company reported 584,000 total fiber and fixed wireless advanced Internet customer net additions, including 512,000 consumer advanced home Internet net adds. Within that, AT&T added 273,000 fiber net adds and 239,000 AT&T Internet Air net adds. Postpaid phone net adds were 294,000, and postpaid phone churn was 0.89%.
T-Mobile continues to maintain a leadership position in the 5G market. The company’s 5G network covers 330 million people nationwide and its mid-band 2.5 GHz spectrum continues to provide a competitive advantage with broader coverage and faster speeds than mmWave-focused deployments. T-Mobile reported postpaid net account additions of 217,000 in the quarter, up 6% year over year, highlighting continued customer momentum. Total postpaid accounts reached 34.4 million at quarter-end.
VZ’s Price Performance, Valuation and Estimates
Verizon has gained 7% over the past year against the Wireless National industry’s decline of 13.4%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 9.22, down from 11.69 for the industry.
Image Source: Zacks Investment Research
VZ’s earnings estimates for 2026 have increased, and for 2027, it has declined over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
VZ Gains From Solid Traction in the Consumer Segment: Will it Sustain?
Key Takeaways
Verizon Communications, Inc. (VZ - Free Report) business has been witnessing healthy momentum in the Consumer segment. The company returned to positive first-quarter postpaid phone net additions for the first time since 2013. The company added 55,000 postpaid phone customers during the first quarter of 2026, representing a more than 340,000 improvement year over year. The growth is primarily attributed to better customer experience and improved go-to-market execution. VZ took steps to ensure faster issue resolution, improve customer support and streamline the onboarding experience.
Broadband is becoming one of the strongest long-term growth drivers for Verizon’s Consumer business. During the quarter, the company added 341,000 broadband subscribers, including 214,000 fixed wireless access subscribers and 127,000 fiber broadband customers. Total broadband connections reached 16.8 million.
The Frontier acquisition significantly strengthens Verizon’s consumer broadband footprint and is a key long-term growth catalyst. The buyout expanded the fiber footprint across 31 states and Washington, D.C. The buyout has improved Verizon’s ability to bundle multiple connectivity services, mainly wireless mobility, fiber broadband and fixed wireless access under one integrated ecosystem for consumers.
Such bundled services make it difficult for customers to switch service providers, thus improving customer retention. The company reported acquisition and retention costs in March were down roughly 35% versus the fourth quarter of 2025.
How Are Competitors Faring?
Verizon operates in a highly competitive and saturated U.S. wireless market. It faces significant competition from T-Mobile, US, Inc. (TMUS - Free Report) and AT&T, Inc. (T - Free Report) . AT&T continues to invest in fiber and 5G to expand advanced Internet reach and drive more households to buy wireless and home Internet together. In first-quarter 2026, the company reported 584,000 total fiber and fixed wireless advanced Internet customer net additions, including 512,000 consumer advanced home Internet net adds. Within that, AT&T added 273,000 fiber net adds and 239,000 AT&T Internet Air net adds. Postpaid phone net adds were 294,000, and postpaid phone churn was 0.89%.
T-Mobile continues to maintain a leadership position in the 5G market. The company’s 5G network covers 330 million people nationwide and its mid-band 2.5 GHz spectrum continues to provide a competitive advantage with broader coverage and faster speeds than mmWave-focused deployments. T-Mobile reported postpaid net account additions of 217,000 in the quarter, up 6% year over year, highlighting continued customer momentum. Total postpaid accounts reached 34.4 million at quarter-end.
VZ’s Price Performance, Valuation and Estimates
Verizon has gained 7% over the past year against the Wireless National industry’s decline of 13.4%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 9.22, down from 11.69 for the industry.
Image Source: Zacks Investment Research
VZ’s earnings estimates for 2026 have increased, and for 2027, it has declined over the past 60 days.
Image Source: Zacks Investment Research
Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.