On May 6, 2026, Verizon’s CEO Dan Schulman announced a major shift in company strategy, declaring an end to the era of free handsets. This decision aims to focus on customer retention and increasing service revenue.
Verizon recently reported a net gain of 55,000 postpaid phone customers in the first quarter of 2026—its first increase since 2013. The company’s total revenue for the quarter reached $34.4 billion, reflecting a 2.9% year-on-year revenue growth.
Schulman emphasized that Verizon would prioritize high-quality accounts over mere line growth. “We are no longer giving away lines for free,” he stated. The shift underscores a broader trend in the telecommunications industry toward sustainable business practices.
Key financial highlights:
- Adjusted earnings per share stood at $1.28, surpassing analyst estimates of $1.21.
- The operating margin during this period was reported at 23.9%.
- The company plans to reduce ongoing operating expenses by $5 billion.
- A $3 billion buyback plan is part of Verizon’s capital strategy.
Schulman also noted that Verizon is leveraging micro-segmentation to tailor offers to specific demographics, enhancing its focus on customer retention. Anthony Skiadas, another executive at Verizon, mentioned that “the savings are coming from network streamlining, workforce reductions, and digital channel adoption.” This indicates a commitment to efficiency while still enhancing customer experience.
As Verizon navigates this new chapter, its stock price has remained stable, hovering around $47.34, with a market capitalization near $199.3 billion. The company’s strategy reflects an industry-wide recognition of the importance of durable recurring service revenues over one-time promotions.
