Verizon Communications Inc (NYSE:VZ) stock rose 0.21% (As on April 28, 11:19:30 AM UTC-4, Source: Google Finance) after the company reported first-quarter results that exceeded earnings expectations while revenue fell short of analyst estimates, though the company raised its full-year earnings guidance. The telecommunications company posted its first positive first-quarter postpaid phone net additions since 2013. The company reported total postpaid phone net additions of 55,000, a YoY improvement of over 340,000. Both consumer and business had significant improvements in postpaid phone net adds. Overall, VZ delivered almost 500,000 net adds across the mobility and broadband platforms. VZ now have approximately 16.8 million broadband subscribers. Consolidated adjusted EBITDA grew 6.7% YoY to $13.4 billion, while cash flow from operating activities reached $8.0 billion, up 2.6% from the prior year period. Free cash flow was approximately $3.8 billion, up 4% year-over-year.

Moreover, Consumer postpaid phone churn in the quarter was 90 basis points, a sequential improvement of 5 basis points from Q4. Importantly, churn improved throughout the quarter. The cost of acquisition and retention in March was down approximately 35% relative to the end of Q4, and the company expects to maintain a lower cost of acquisition and retention as the company look forward.

VZ in the first quarter of FY 26 has reported the adjusted earnings per share of $1.28, beating the analysts’ estimates for the adjusted earnings per share of $1.21. The company had reported the adjusted revenue growth of 2.9 percent to $34.4 billion in the first quarter of FY 26, missing the analysts’ estimates for revenue of $34.82 billion. The revenue shortfall was attributed to the company’s disciplined approach to promotional spending and moderated upgrade activity, which impacted wireless equipment revenue. Additionally, first-quarter results included an 80 basis point impact to wireless service revenue growth due to a January network outage.

Verizon raised its fiscal 2026 adjusted EPS guidance to a range of $4.95 to $4.99, representing YoY growth of 5.0% to 6.0%. The midpoint of $4.97 exceeds the analyst consensus of $4.91. The company also raised its total retail postpaid phone net additions guidance to the upper half of the 750,000 to 1 million range. The company anticipate Q1 mobility and broadband service revenues will be the low point of 2026, and forecast the mobility and broadband service revenue growth to be in line with the 2%-3% guidance for the year.