Verizon (VZ) Citi’s 2026 Global TMT Conference summary

Strategic priorities and transformation

• Focused on growing mobility and broadband responsibly, investing in customer experience, delivering on full-year guidance, and generating strong cash flows while reducing debt and returning capital to shareholders.

• Achieved over 1 million net adds in mobility and broadband, with phone net adds up by 500,000 year-over-year.

• Highest ever adjusted EBITDA margin of 40.1% in Q2, adjusted EPS up 6.6%, and cash flows up 24% in Q2 and 16% for the first half.

• Returned $9.4 billion to shareholders, up 60% year-over-year.

• Transformation is growth-driven, with a focus on customer-centricity, retention, and segmentation, resulting in churn down 5 basis points year-over-year.

Revenue growth and opportunities

• Mobility and broadband service revenue grew 2.8% in Q2, with sequential acceleration expected to reach 4% in Q4.

• Wireless service revenue expected to grow in the second half of the year, supported by improved volume and easing promo amortization headwinds.

• Perks revenue is growing at 40%, contributing to both revenue and margin expansion.

• Simplicity plan decouples device and service pricing, driving efficiency and customer choice, especially in single and two-line accounts.

• AI Connect, including a $1B+ Google deal, is a new revenue stream with more deals in the pipeline, expected to be meaningful by 2027.

Cost management and efficiency

• $9 billion cost program underway: $5 billion in OpEx savings and $4 billion in CapEx savings, with progress on track.

• Major savings from network modernization, copper removal, and Frontier integration; advertising and marketing efficiencies also contribute.

• Cost of acquisition down 15% and cost of retention down 17% year-over-year in Q2.

• AI and tech stack investments are ongoing to further reduce costs and improve customer care.

• Cost cuts fund investments in customer experience, support transitional revenue year, and enable capital returns.