Verizon Q1 2025 Earnings Top Estimates, But Subscriber Decline Triggers Stock Drop

The largest U.S. wireless provider said it lost 289,000 monthly phone subscribers in the first quarter, in contrast to a gain of 568,000 subscribers in the prior quarter.

Verizon Communications (VZ) stock dropped as much as 6% in pre-market trade on Tuesday, after the company reported a significant loss in wireless subscribers that overshadowed stronger-than-forecast earnings and stable guidance for the full year.

The largest U.S. wireless provider said it lost 289,000 monthly phone subscribers in the first quarter (Q1). That compares with a gain of 568,000 subscribers in the prior quarter and marks more than twice the decline from the same period a year ago. 

Total operating revenue rose 1.5% from a year ago to $33.5 billion, edging above the consensus estimate of $33.3 billion, according to Koyfin. Earnings per share came in at $1.19, topping the analyst average of $1.15.

Verizon executives had signaled in advance that subscriber trends could be under pressure. “We’re probably going to be soft,” Chief Revenue Officer Frank Boulben said in March, pointing to an “elevated level of competitive intensity.” 

Earlier this month, the company introduced new offers, including a three-year price guarantee and free phone trade-ins, across both mobile and home internet plans.

Broadband remained a growth area, with Verizon adding 339,000 internet customers during the quarter, supported by demand for fixed wireless and fiber connections.

The company reaffirmed its 2025 financial outlook, which includes total wireless service revenue growth of 2% to 2.8%, adjusted earnings per share growth of 0% to 3%, and cash flow from operations of between $35 billion and $37 billion. 

Capital expenditures are projected to range from $17.5 billion to $18.5 billion. Verizon stated that its forecast does not account for potential impacts from tariff changes.

The remaining two major U.S. telecom providers are scheduled to report their first-quarter results later this week, with AT&T set to report on Wednesday and T-Mobile to release its earnings on Thursday.

Verizon’s stock has gained more than 7% year-to-date and remains up by 3% over the past 12 months. 

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