Verizon Communications (NYSE:VZ) reported third-quarter 2026 revenue of $34.3 billion, up 1.5% year over year, supported by stronger customer growth and improved operating efficiency. Adjusted earnings per share rose 8.3% to $1.31, while adjusted EBITDA increased 8% to $13.8 billion.
The company added 406,000 postpaid phone customers, an 820% increase from the prior year, and generated $7.8 billion in quarterly free cash flow, its highest level since 2020.
These results prompted Verizon to raise its full-year earnings and cash flow guidance.
Verizon is also seeing new business opportunities from demand for AI infrastructure. The company has secured approximately $4 billion in AI Connect contracts, including agreements with major cloud providers seeking fiber connectivity for AI workloads. Its technology efforts extend to gigabit fixed wireless service and the use of AI to improve network performance and customer service.
CEO Dan Schulman expects the AI infrastructure business to begin contributing meaningfully to revenue in 2027.
Why It Matters: Growing demand for AI computing is reshaping enterprise connectivity and infrastructure requirements. Verizon’s investments in fiber and edge computing demonstrate how existing networks can support distributed AI workloads, while its use of automation in network operations offers opportunities to improve reliability and reduce costs. Its plans for agentic commerce also raise important considerations around identity verification, data security, and customer authorization.
- AI Connect Gains Momentum With Major Cloud Contracts: Verizon’s AI Connect business has secured approximately $4 billion in signed agreements, including a dark-fiber contract with Amazon Web Services worth more than $2 billion and an earlier agreement with Google. Demand is also coming from neocloud providers and enterprises building AI infrastructure, creating opportunities for Verizon to supply connectivity across distributed computing environments. Schulman described the interest, stating, “Customer demand across dark fiber, lit fiber, our edge compute locations is exceptionally strong.”
- Gigabit Wireless Opens Another Path to High-Speed Connectivity: Verizon is preparing to introduce a fixed wireless service that uses its millimeter-wave spectrum to deliver gigabit download speeds without requiring new fiber connections to every location. The technology could extend high-speed coverage to an additional 10 million to 15 million premises, complementing the company’s ongoing fiber expansion. It also creates more capacity across Verizon’s existing wireless network by reducing traffic carried on C-band spectrum. Deployment is scheduled to begin in the fourth quarter, with expansion continuing through 2027.
- AI Becomes Part of Everyday Network Operations: Verizon is using its newly completed AI technology stack to improve network performance and customer service while reducing operational expenses. One application involves identifying network problems before customers experience disruptions, allowing the company to address service issues earlier. These efforts are contributing to Verizon’s $9 billion cost-reduction program, which includes network modernization and the retirement of legacy copper infrastructure.
- Edge Computing Creates New Uses for Verizon’s Network Facilities: Verizon is expanding the commercial use of its network hubs to support AI inference, responding to demand for computing resources distributed across multiple locations. Initial long-term contracts are expected to generate hundreds of millions of dollars in revenue over their terms, with management citing AI agents as a factor contributing to demand for distributed processing. The company is also securing additional fiber capacity through a multiyear agreement with Corning covering more than 80 million miles of fiber through 2032.
- Agentic AI Brings Security and Commerce Into Focus: Verizon is exploring how AI agents could manage subscriptions and support purchasing decisions through its digital services. Schulman discussed opportunities to connect these capabilities with the company’s loyalty program, potentially allowing automated transactions using Verizon Dollars. Customer authorization remains a priority, with Schulman stating, “We’ll be sure that we won’t allow agents to access our platforms unless we’re 100% certain that it’s truly a customer and not a rogue agent.” Verizon is also evaluating how increased traffic from AI applications could influence future connectivity services and pricing.
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