Verizon Communications shares surged 5.01% during Friday’s intraday session, as investors cheered a robust second-quarter earnings report that easily exceeded profit expectations and featured a notable upward revision to the company’s full-year financial guidance. The telecommunications giant posted adjusted earnings of $1.30 per share, topping consensus analyst estimates of $1.27, while simultaneously raising its 2026 adjusted EPS forecast to a range of $4.99 to $5.04. The results signaled that CEO Dan Schulman’s sweeping strategic overhaul—centered on simplified pricing, new loyalty programs, and disciplined cost management—is beginning to translate into sustainable financial momentum.

Adding to the bullish sentiment, Verizon disclosed a landmark deal with Google valued at over $1 billion to provide dark fiber connectivity for the search giant’s data centers. CEO Schulman indicated that additional multi-billion-dollar agreements are expected to be announced by year-end, positioning the company to capture a significant share of the accelerating AI infrastructure buildout. The dark fiber pact opens a high-margin revenue stream above Verizon’s core wireless business, with AI-related revenue expected to begin layering into results starting in 2027.

Underpinning the earnings beat was strong operational performance, as Verizon added 184,000 postpaid phone subscribers—nearly double the 103,900 consensus estimate—and achieved a step-change reduction in customer churn. The company also raised its free cash flow growth outlook to 9%-10% for the year, reinforcing confidence in its ability to maintain an industry-leading dividend while expanding share buybacks. The combination of accelerating subscriber growth, a rapidly emerging AI connectivity opportunity, and a credible path to sustained margin expansion provided a powerful catalyst for Friday’s outsized stock rally.