Verizon Communications gained a net 184,000 postpaid phone connections in the second quarter, beating Wall Street's expectations on a closely watched metric that gauges new lucrative customers.

However, the mobile carrier's quarterly profit declined due to costs related to forming a new joint venture, while revenue ticked down 0.7% year over year to $34.25 billion, slightly below analyst estimates of $35.16 billion.

Verizon attributed the decrease to a nearly 20% decline in equipment revenue as customers hold onto their mobile devices longer and longer before upgrading. The company also pointed to its decision to cut back spending on new device subsidies.

Verizon's second-quarter profit came in at $3.95 billion, or 92 cents a share, down from $5.12 billion, or $1.18 a share, a year earlier.

The profit decline was driven primarily by $1.8 billion in pretax special items, the company said, including a $746 million loss related to its agreement with Britain's BT Group to combine their respective international operations. The joint venture, which was announced last month, would allow the telecom companies to focus more on their domestic businesses.

Adjusted earnings per share were $1.30, compared with estimates of $1.28 a share according to analysts polled by FactSet.

Meanwhile, mobility and broadband service revenue, which makes up the bulk of the company's top line, rose 2.8% to $23.4 billion.

Chief Executive Dan Schulman said the company is working to earn long-term retention based on value, rather than subsidized promotions.

He pointed to a number of new offerings, including a new plan unveiled last month that offers a line with unlimited data at $45 a month for current customers, or $30 for those who switch from another carrier, which is less than its $55-a-month starting price for a single connection. The new offering could make it more appealing for consumers to leave family plans.

Schulman said the latest quarterly results show the company's strategy is driving an inflection point across its entire business. Verizon is looking to improve subscriber growth and trim costs under Schulman, who took the helm of the company last October.

"We are accelerating across our key metrics, achieving a step-change in churn reduction while lowering our customer acquisition and retention costs," Schulman said.

The company also added 348,000 net broadband connections in the quarter.

Last week, the company disclosed plans to cut roughly 3,000 workers, including about 500 corporate employees, as part of a move to divest hundreds of its retail stores to franchise owners. The move follows a previous round of layoffs and store divestitures last fall.

For the full year, the company now expects adjusted earnings per share of $4.99 to $5.04, up from its prior range of $4.95 to $4.99. It continues to project total full-year retail postpaid phone net additions of about 875,000 to one million.

Write to Kelly Cloonan at kelly.cloonan@wsj.com and Patience Haggin at patience.haggin@wsj.com

(END) Dow Jones Newswires

July 24, 2026 07:15 ET (11:15 GMT)

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