Verizon’s CEO Dan Schulman announced a shift in strategy on May 6, 2026, moving away from free handsets and aggressive promotions. The company will focus on customer retention and service revenue.
In the first quarter of 2026, Verizon reported a net gain of 55,000 postpaid phone customers. This marks the first increase since 2013. The total revenue for the quarter reached $34.4 billion, reflecting a 2.9% year-on-year increase.
Schulman emphasized the importance of retaining high-quality accounts over merely adding lines. He stated, “The era of just the free handset is over.” Verizon’s operating margin stood at 23.9%, exceeding expectations.
The company is implementing micro-segmentation strategies to tailor offers for specific demographics. This approach aims to enhance customer satisfaction and loyalty.
Verizon plans to reduce ongoing operating expenses by $5 billion. As part of its capital strategy, the company also announced a $3 billion buyback plan.
Anthony Skiadas noted that savings will come from network streamlining, workforce reductions, and digital channel adoption. Schulman’s comments reflect a broader trend in the telecommunications industry toward sustainable revenue growth.
Verizon’s stock price has remained stable around $47.34, with a market capitalization near $199.3 billion. The company’s shift in strategy is likely to reshape its competitive landscape.
