Verizon (VZ) Goldman Sachs Communacopia + Technology Conference 2026 summary

Strategic transformation and operational focus

• Shifted from engineering-centric to customer-obsessed culture, emphasizing churn reduction and net add growth.

• Drove cultural change to foster a results-oriented, competitive mindset and reduce bureaucracy.

• Executed significant cost reductions, including 13,000 job cuts and $5B OpEx savings, with further efficiency targets for 2027-2028.

• Redefined business model to move away from device subsidies, focusing on sustainable, revenue-generating net adds.

• Prioritized shareholder returns after years of underperformance, targeting improved EPS and free cash flow.

Customer-centric initiatives and market strategy

• Launched Simplicity and Verizon One plans after extensive customer research, leading to record customer satisfaction and lower churn.

• Achieved best-ever launch results for new value propositions, with ARPA accretive net adds and no device subsidies.

• Cost of acquisition and retention reached three-year lows, supporting improved operational KPIs.

• Focused on quality net adds with real revenue, avoiding free lines and emphasizing sustainable growth.

• Enhanced segmentation using AI, targeting youth and value segments, and exceeding initial forecasts.

Financial performance and outlook

• Guided to 6%-7% adjusted EPS growth and 9%-10% free cash flow growth for the year.

• Mobile and broadband revenues projected to rise from 1.6% in Q1 to 4% in Q4.

• ARPA expected to grow sequentially, with potential for year-over-year growth as soon as Q4 and into 2027.

• Net adds and net accounts both growing, with record low cost of revenue and acquisition.