Verizon Communications Inc. (NYSE: VZ) shares edged higher Wednesday after the telecom giant reported stronger-than-expected third-quarter earnings and subscriber growth, even as revenue fell short of Wall Street expectations. The stock was recently trading at $39.32, up about 0.2% in midday trading, as investors weighed the company's mixed results and leadership transition.
Verizon posted adjusted earnings per share of $1.21, topping analysts' consensus estimate of $1.19, according to Reuters. The company added 44,000 postpaid wireless phone subscribers, more than double the roughly 19,000 additions expected by analysts. Verizon also reaffirmed its full-year financial guidance, signaling confidence in its operations despite a challenging competitive environment.
Quarterly revenue totaled $33.8 billion, missing expectations of around $34.2 billion. The company cited ongoing pricing pressure in the wireless market and some customer attrition in legacy segments. Still, investors found comfort in resilient profit margins and stable free cash flow, as noted by Investor's Business Daily.
The earnings release came as Verizon undergoes a major leadership change. Former PayPal CEO Dan Schulman officially took the helm, succeeding Hans Vestberg. Analysts say Schulman's appointment could mark a more aggressive push toward digital transformation and operational efficiency. MarketWatch described the leadership shift as "the biggest highlight" of Verizon's report, noting that Schulman's experience may help accelerate growth initiatives.
Despite the revenue shortfall, investors appeared to welcome the combination of profit strength, subscriber gains, and the potential for strategic renewal under Schulman. "The report was mixed, but the beat on earnings and subscriber growth are encouraging signs," said one analyst cited by Barron's. "If Schulman can deliver operational improvements and control costs, the stock could continue to gain."
Verizon's dividend yield—among the highest in the S&P 500—remains attractive for income-focused investors. However, growth prospects are still constrained by intense competition from AT&T and T-Mobile. The coming quarters will test whether Verizon's new leadership can stabilize its core business and return the company to sustainable growth.
