Verizon stock jumps 5.72% on AI data-center deal, cash flow surge

Verizon Communications reported Q2 results that sent its stock up 5.72%, driven by a combination of strong subscriber additions and a landmark AI infrastructure partnership. The wireless carrier added 184,000 postpaid phone customers in the quarter, marking its biggest Q2 gain in lucrative postpaid consumer accounts in half a decade. On the broadband side, Verizon added 348,000 accounts, comprising 193,000 fixed wireless customers and 155,000 fiber clients. CEO Dan Schulman attributed these gains to the company's new flat-rate unlimited mobile plans and bundled offerings, which he said help attract and retain subscribers "based on real value rather than subsidized promotions." This strategy is also improving Verizon's financial efficiency: lower customer acquisition costs and churn rates are boosting profit margins and cash generation.

The financial metrics underscore the operational improvement. Adjusted earnings rose 6.6% to $1.30 per share in the quarter. Operating cash flow surged 16.3% to $10.4 billion（約1.7兆円）, while free cash flow jumped 24.4% to $6.4 billion（約1兆円）. These results prompted management to lift its full-year financial forecast, with the company now projecting adjusted earnings per share growth of 6% to 7%, to between $4.99 and $5.04 in 2026.

The catalyst for today's enthusiasm, however, was Schulman's disclosure of a more than $1 billion（約1600億円） deal with Alphabet's Google. Under the arrangement, Google will use Verizon's dark fiber—unused optical infrastructure available for lease or purchase—to connect its AI data centers. Schulman characterized this as "just the beginning" of a new AI-focused growth strategy and disclosed that "other deals that we expect to announce by year-end...are expected to be worth multiple billions of dollars in revenue over the next several years." The combination of solid operational execution and the emergence of a new infrastructure revenue stream appears to have convinced investors that Verizon has both stabilized its core business and positioned itself to benefit from the AI buildout.

Verizon's stock surge reflects two convergent tailwinds: strong operational momentum in core wireless and broadband, and a new revenue stream from AI infrastructure. The Q2 results—particularly the 184,000 postpaid phone additions (the largest in five years for Q2) and 348,000 broadband adds (including 193,000 fixed wireless accounts)—demonstrate that the company's value-based pricing strategy is working. CEO Schulman attributed this performance to flat-rate unlimited plans and bundles that appeal to subscribers without heavy promotions, a shift that is also lowering customer acquisition costs and churn. This operational efficiency is flowing directly to the bottom line: free cash flow jumped 24.4%, a metric closely watched by investors seeking returns.

The Google announcement, however, signals Verizon's pivot into the AI infrastructure gold rush. By leasing dark fiber to hyperscalers building AI data centers, Verizon monetizes existing infrastructure with minimal incremental capital. Schulman's statement that the Google deal is "just the beginning" and that multiple deals worth "multiple billions of dollars" are expected by year-end suggests management sees this as a material new growth vector. The company's decision to raise full-year earnings guidance (now 6% to 7% growth for 2026) reflects confidence that both subscriber growth and these infrastructure contracts will compound shareholder value.

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