Verizon raises subscriber forecast, signs $2 billion AI infrastructure deal with AWS

Quarterly wireless subscriber gains nearly double analyst estimates as carrier bets on simplified plans and data-center connectivity

By LineZotpaper AI staff

Published26 October 2026

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Illustration: Verizon raises subscriber forecast, signs $2 billion AI infrastructure deal with AWS

Verizon lifted its annual forecast for wireless subscriber additions on Monday and said it had signed an AI infrastructure deal worth more than $2 billion with Amazon Web Services, as the carrier bets on strong demand for its simplified plans.

Verizon reported 406,000 net additions of monthly-bill-paying wireless subscribers in the third quarter, nearly double the 209,439 expected by analysts surveyed by Visible Alpha. It now expects to add between 1.1 million and 1.2 million postpaid phone subscribers this year, up from an earlier projection of 750,000 to 1 million.

The company also raised its full-year adjusted earnings per share forecast to $5.04 to $5.06, from $4.99 to $5.04. Third-quarter revenue came in at $34.3 billion, short of the $34.74 billion analysts expected, according to LSEG data. Revenue was pressured by lower device upgrade volumes as customers held on to phones longer after Verizon began cutting device subsidies.

Under the deal with Amazon's cloud unit, Verizon will provide high-capacity fiber-optic connectivity for AWS data centers, enabling faster, more reliable data transfers to support growing AI computing workloads. In July, Verizon announced a more than $1 billion agreement with Google to connect data centers using dark fiber, highlighting how rising AI demand could open a new revenue stream beyond traditional wireless and broadband services.

The announcements come a year into CEO Dan Schulman's tenure, during which Verizon has pursued a broad overhaul of its business, restructuring operations and simplifying its wireless offerings. It launched its Simplicity plan in June, introducing transparent pricing and unlimited data.

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Analysis

Why This Matters

Verizon's connectivity deals with AWS and Google signal that AI's surging computing needs are becoming a new revenue stream for telecom carriers beyond consumer wireless and broadband.
The raised subscriber and earnings guidance suggests the company's strategy of simplifying plans and cutting device subsidies is gaining traction even as quarterly revenue misses expectations.
The update offers a read on the US wireless market and on how telecom infrastructure is being repurposed for the AI buildout.

Background

Verizon is one of the largest US telecommunications carriers, competing with AT&T and T-Mobile in mobile and broadband services. Amazon Web Services is the cloud computing arm of Amazon, and growing AI workloads require large data-center capacity and high-speed connections between facilities. Telecom operators have begun marketing their fiber networks as critical infrastructure for the AI boom, and Verizon's back-to-back agreements with AWS and Google reflect that shift.

What to Watch

Whether Verizon's full-year postpaid phone subscriber additions land within its new 1.1 million to 1.2 million range, signaling whether the Simplicity plan sustains its momentum.
Whether further AI infrastructure deals follow the AWS and Google agreements, as investors gauge how large this new revenue stream can become.
How the decline in device upgrade volumes affects revenue in coming quarters, given customers are holding on to phones longer.

Sources

Verizon lifts annual forecasts, signs more than $2 billion AI infrastructure deal with AWS · CNBC

Checked

12 claims in this story checked against 1 source: 10 supported.

Show each claim

Partly supportedThe headline describes the AWS deal as a $2 billion deal, dropping the source’s “more than” qualifier.US Top News and Analysis: “signed an AI infrastructure deal worth more than $2 billion”
Partly supportedThe summary says the carrier is betting on data-center connectivity.US Top News and Analysis: “Verizon will provide high-capacity fiber-optic connectivity for AWS data centers, enabling faster, more reliable data transfers to support growing AI computing workloads”
SupportedThe summary says quarterly wireless subscriber gains were nearly double analyst estimates.US Top News and Analysis: “reported nearly double the analysts' estimate for monthly-bill-paying wireless subscriber gains at 406,000, against Visible Alpha expectations of 209,439”
SupportedVerizon lifted its annual forecast for wireless subscriber additions on Monday.US Top News and Analysis: “Verizon raised its annual forecast for wireless subscriber additions on Monday”
SupportedVerizon signed an AI infrastructure deal worth more than $2 billion with AWS.US Top News and Analysis: “signed an AI infrastructure deal worth more than $2 billion with Amazon Web Services”
SupportedVerizon reported 406,000 monthly-bill-paying wireless subscriber additions in the third quarter, versus Visible Alpha expectations of 209,439.US Top News and Analysis: “For the third quarter, the telecom carrier reported nearly double the analysts' estimate for monthly-bill-paying wireless subscriber gains at 406,000, against Visible Alpha expectations of 209,439.”
SupportedVerizon now expects 1.1 million to 1.2 million postpaid phone additions this year, up from 750,000 to 1 million.US Top News and Analysis: “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”
SupportedVerizon raised its full-year adjusted EPS forecast to $5.04 to $5.06, from $4.99 to $5.04.US Top News and Analysis: “It also raised its full-year adjusted earnings per share forecast to $5.04 to $5.06, from $4.99 to $5.04 earlier”
SupportedThird-quarter revenue was $34.3 billion, below the $34.74 billion analyst estimate, according to LSEG data.US Top News and Analysis: “third-quarter revenue of $34.3 billion fell short of analyst estimates of $34.74 billion, according to LSEG data”
SupportedRevenue was pressured by lower device-upgrade volumes as customers held on to phones longer after Verizon began cutting device subsidies.US Top News and Analysis: “Revenue was pressured by lower device upgrade volumes as customers held on to their phones longer after Verizon began cutting device subsidies”
SupportedUnder the AWS deal, Verizon will provide high-capacity fiber-optic connectivity for data centers to support AI workloads.US Top News and Analysis: “Under its deal with Amazon's cloud unit, Verizon will provide high-capacity fiber-optic connectivity for AWS data centers, enabling faster, more reliable data transfers to support growing AI computing workloads”
SupportedVerizon announced a more than $1 billion Google dark-fiber agreement in July, with AI demand potentially opening a new revenue stream beyond wireless and broadband.US Top News and Analysis: “Verizon in July announced a more than $1 billion agreement with Google to connect data centers using dark fiber, highlighting how rising AI demand could open a new revenue stream beyond traditional wireless and broadband services for telecom operators”