Verizon signed a commercial framework agreement with Amazon Web Services valued at more than $2 billion to scale distributed compute for agentic and generative AI workloads, the carrier said Monday alongside its third-quarter 2026 results. Verizon described the AWS deal as an expansion of the two companies' strategic partnership.
“technology leaders are choosing our fiber network to power the next generation of AI infrastructure.”— Dan Schulman, Verizon CEO
Verizon did not disclose the agreement's term, start date or specific deliverables. CEO Dan Schulman tied it to the carrier's fiber network, which Verizon says is on track to pass more than 32 million locations by the end of 2026, with a medium-term target of up to 50 million.
AI also shows up in Verizon's spending plan. The company held its 2026 capital expenditure guidance at $16.0 billion to $16.5 billion, a range that includes success-based investments for AI Connect.
Key facts
- 01Verizon signed a commercial framework agreement with AWS valued at more than $2 billion.
- 02The deal scales distributed compute for agentic and generative AI workloads.
- 03Verizon raised 2026 adjusted EPS guidance to $5.04 to $5.06, its third straight guidance increase.
- 04Q3 2026 revenue was $34.3 billion, up 1.5%, with adjusted EPS of $1.31, up 8.3%.
- 05Verizon added 406,000 postpaid phone subscribers in the quarter.
Verizon raised its full-year guidance for the third consecutive quarter. Adjusted EPS is now expected at $5.04 to $5.06, growth of 7.0% to 7.5%, up from a prior range of 6.0% to 7.0%. Free cash flow growth is now seen approaching 12%, up from 9% to 10%, and cash flow from operations is expected to grow 3.5% to 5.0%, up from 2.0% to 4.0%.
Third-quarter revenue was $34.3 billion, up 1.5% from a year earlier. EPS was $1.25, up from $1.17, and adjusted EPS was $1.31, up 8.3%. Adjusted EBITDA rose 8% to $13.8 billion, a 40.2% margin.
The subscriber numbers drove the raise. Verizon added 406,000 postpaid phone subscribers and 137,000 postpaid accounts, the strongest quarterly account growth in more than a decade, and now expects 1.1 million to 1.2 million postpaid phone net additions for 2026. Postpaid phone churn fell 4 basis points to 0.94%.
“We are continuing to raise the bar and we are only one year into a multi-year growth story.”— Dan Schulman, Verizon CEO
Broadband added 314,000 connections in the quarter, split between 159,000 fixed wireless and 155,000 fiber, for a total of 17.4 million. More than half of new fiber customers chose download speeds above 1 Gbps.
Schulman credited the subscriber gains to the Simplicity plans and an expanded loyalty program rather than heavy device subsidies. Promotional acquisition costs fell 41% from a year earlier, and equipment revenue fell 9%, reflecting lower device subsidies and longer upgrade cycles.
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