Verizon Lifts Profit Outlook on Premium Plans, Tax Windfall

Verizon increased its yearly profit projection during Monday because premium wireless plan sales remained strong and U.S. tax reform benefits the company. The telecom giant achieved a 3.5% share price increase following its successful second-quarter financial performance which exceeded Wall Street predictions.

The June quarter wireless service revenue increased by 2.2% because Verizon offered bundled broadband-wireless packages and price-lock promotions to combat competition from AT&T, T-Mobile and cable providers Comcast and Charter.

The company gained advantages from President Donald Trump’s newly passed tax law which enables complete capital investment tax deductions. CFO Tony Skiadas predicted that the tax reform would generate $1.5 billion to $2 billion in free cash flow throughout this year. The company raised its 2025 adjusted earnings growth prediction to 1–3% after initially forecasting 0–3%.

The positive outlook from Verizon did not prevent the company from reporting a 9,000 decline in postpaid wireless subscribers because January price increases caused customers to leave. The market research showed a predicted increase of 13,000 subscribers.

The company’s transition to internet services managed to counterbalance the negative subscriber growth. The company added 293,000 new broadband subscribers in Q2 and obtained regulatory approval to buy Frontier for $20 billion after ending its diversity initiatives.

Wells Fargo analysts pointed out that Verizon faces the highest cash tax burden among major U.S. carriers so the new tax rules will produce long-term benefits.