Verizon Signs $2B+ AI Infrastructure Deal with AWS, Raises Annual Forecast on Subscriber Growth

Verizon Secures Multi-Billion-Dollar Deal with AWS for AI Infrastructure

Verizon has signed a deal with Amazon Web Services valued at more than $2 billion to support the infrastructure needed for agentic and generative AI workloads1

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. Under the Verizon AI infrastructure deal, the telecom carrier will provide high-capacity fiber-optic connectivity for AWS data centers, enabling faster and more reliable data transfers to support growing AI computing workloads1

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. This partnership marks a strategic move for Verizon to tap into AI infrastructure as a lucrative revenue stream beyond its traditional wireless and broadband services.

Strong Postpaid Subscriber Growth Drives Annual Forecast Revision

Verizon reported exceptional postpaid subscriber growth in its third-quarter financial results, adding a net 406,000 postpaid phone connections—nearly double the analyst estimate of 209,439 and marking its strongest third-quarter performance on this metric in five years1

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. The company now expects to add between 1.1 million and 1.2 million postpaid phone subscribers this year, up from earlier projections of 750,000 to 1 million1

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. Verizon also raised its full-year adjusted earnings per share forecast to $5.04 to $5.06, from $4.99 to $5.04 earlier1

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. The company added 137,000 postpaid net accounts, its best performance in more than a decade, along with 314,000 net broadband connections2

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Dan Schulman's Transformation Strategy Takes Hold

One year into CEO Dan Schulman's tenure, Verizon has pursued a comprehensive overhaul of its business, restructuring operations and simplifying its wireless offerings1

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. The company launched its Simplicity plan in June, introducing transparent pricing and unlimited data to attract high-value customers1

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. Schulman emphasized that the company is gaining loyal, high-value customers as it shifts away from heavy subsidies to focus on customer loyalty programs and its expanded Simplicity plan2

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. "One year into our transformation, Verizon is fundamentally stronger - operationally, financially and competitively," Schulman stated2

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AI Demand Opens New Revenue Opportunities

The deal with Amazon Web Services follows a similar agreement Verizon announced in July with Google, valued at more than $1 billion, to connect data centers using dark fiber1

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. These partnerships highlight how rising AI demand could open a new revenue stream for telecom operators beyond traditional services1

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. "Technology leaders are choosing our fiber network to power the next generation of AI infrastructure," Schulman said2

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. Watch for additional partnerships as tech giants race to build out generative AI workloads infrastructure.

Mixed Third-Quarter Financial Results Show Strategic Shifts

Verizon's third-quarter profit came in at $5.3 billion, or $1.25 a share, compared with $5.06 billion, or $1.17 a share, a year earlier2

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. Adjusted earnings per share were $1.31, exceeding analyst estimates of $1.272

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. However, third-quarter revenue of $34.3 billion fell short of analyst estimates of $34.74 billion1

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. Revenue was pressured by lower device upgrade volumes as customers held onto their phones longer after Verizon began cutting device subsidies1

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. Mobility and broadband service revenue rose 2.9% to $23.5 billion, while equipment revenue declined 9%2

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. The company now projects mobility and broadband service revenue growth to be in the upper half of its prior forecast of 2.5% to 3% for the year2

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