Verizon signed a $2 billion-plus AI deal with Amazon as it raised its annual forecast

The agreement establishes a commercial framework to scale distributed computing for generative and agentic AI workloads across Verizon’s fiber network. “Technology leaders are choosing our fiber network to power the next generation of AI infrastructure,” Verizon CEO Dan Schulman said in a statement. The AWS partnership follows a similar deal struck earlier in 2026 with Alphabet $GOOGL’s Google, valued at over $1 billion, to supply dark fiber connecting hyperscale data centers.

Verizon expects 1.1 million to 1.2 million postpaid phone net additions for 2026, up from guidance of the upper half of 750,000 to 1.0 million. It forecasts adjusted EPS between $5.04 and $5.06, representing growth of 7.0% to 7.5%, up from the earlier outlook of 6.0% to 7.0%.

The company expects cash flow from operations to grow 3.5% to 5.0%, up from 2.0% to 4.0%. It expects free cash flow growth to approach 12.0%, up from 9.0% to 10.0%. Growth in service revenue from mobility and broadband is projected to land in the top half of the 2.5% to 3.0% annual range, with about 4.0% growth in the fourth quarter. Capital expenditures are still expected to total $16.0 billion to $16.5 billion, including success-based investments for AI Connect.

In its third-quarter results, Verizon reported 406,000 postpaid phone net additions, more than 820% above a year earlier and the strongest third-quarter total in five years. It added 137,000 postpaid net accounts and 314,000 broadband net additions.

Total operating revenue was $34.3 billion, up 1.5% from a year earlier. Revenue from mobility and broadband service climbed 2.9% to $23.5 billion, while equipment revenue fell 9.0% on fewer upgrades and smaller device subsidies.

Net income was $5.3 billion, up 5.2%, or $1.25 a share. Adjusted EPS came to $1.31, an 8.3% increase from $1.21 a year earlier. Free cash flow was $7.8 billion, up 12.1%.