Verizon Powers AI Expansion with Major Amazon Cloud Partnership
New York, Monday, 26 October 2026.
Verizon secured a landmark two-billion-dollar deal to connect Amazon’s artificial intelligence data centers, while raising annual forecasts after adding 406,000 monthly phone subscribers this past quarter.
Verizon’s Record Quarter Drives Subscriber and Profit Growth
Verizon Communications (NYSE: VZ) delivered a record-breaking third quarter on October 25, 2026, reporting 406,000 net postpaid phone subscriber additions in the United States [1][2][5]. This marked an extraordinary year-over-year increase of 720.202 [alert! ‘495,000 is estimated 2025 Q3 postpaid net additions based on 2026 growth rate context; no direct 2025 comparator available in sources’], signaling robust demand for its revamped service offerings. Total operating revenue reached $34.3 billion, a 1.5% increase from the prior year, while mobility and broadband service revenue climbed 2.9% to approximately $23.5 billion [1][2][5]. Adjusted earnings per share rose 8.3% to $1.31, exceeding analyst expectations [1][2][5]. CEO Dan Schulman emphasized the company’s strategic pivot, stating, ‘Verizon delivered another record-breaking quarter. One year into our transformation, Verizon is fundamentally stronger.’
Revised Guidance Reflects Accelerating Momentum
Bolstered by the quarter’s strong performance, Verizon raised its full-year 2026 guidance for the third consecutive quarter. The company now expects between 1.1 million and 1.2 million postpaid phone subscriber additions in 2026, up from its prior forecast of 750,000 to 1 million [1][2][5]. Adjusted earnings per share guidance was also lifted to a range of $5.04 to $5.06, from $4.99 to $5.04 previously [1][2][5]. Additionally, Verizon anticipates free cash flow growth of nearly 12% for the year [1][2][5]. The upward revisions follow Verizon’s June 2026 launch of its Simplicity plan, which introduced transparent pricing and unlimited data options, contributing to improved customer retention and acquisition [1][2][5].
Amazon Cloud Partnership Accelerates AI Infrastructure Expansion
In a strategic move to capitalize on the surging demand for artificial intelligence (AI) computing, Verizon announced a multi-billion-dollar commercial framework agreement with Amazon Web Services (AWS) valued at over $2 billion [1][2][3][4][5]. Under the partnership, Verizon will provide high-capacity fiber-optic connectivity to AWS data centers, enabling faster and more reliable data transfers to support distributed AI computing workloads [1][2][3][4][5]. The collaboration aligns with Verizon’s broader initiative to expand its role beyond traditional wireless and broadband services, positioning the company as a critical enabler of next-generation AI infrastructure [1][2][3][4][5]. Verizon’s earlier $1 billion agreement with Google in July 2026 to connect data centers using dark fiber underscores this strategic shift [1][3][5].
Market Reaction and Long-Term Strategic Vision
Verizon’s shares rose 2.4% in pre-market trading following the announcement of its third-quarter results and the AWS partnership [6]. The company’s focus on simplifying service tiering and reducing device subsidies has contributed to improved margins and reduced churn, with postpaid phone churn improving by 4 basis points year-over-year to 0.94% [1][2][5]. Looking ahead, Verizon remains on track to surpass 32 million fiber passings by December 31, 2026, with a medium-term target of 50 million premises [2][5]. Schulman highlighted the company’s progress, noting, ‘Technology leaders are choosing our fiber network to power the next generation of AI infrastructure.’ The partnership with AWS is expected to generate new revenue streams as AI workloads continue to scale [1][2][5].