Verizon signs $2bn AWS deal for AI workloads, raises 2026 forecasts

Deal details and financial outlook

Verizon signed a more than $2 billion agreement with Amazon Web Services (AWS) to provide high-capacity network connections and distributed computing power for generative and agentic AI workloads. Agentic AI refers to systems capable of performing tasks autonomously. The partnership follows a $1 billion deal with Google in July, where Verizon connected Google’s data centres using unused fibre.

The company raised its 2026 financial forecasts after adding 406,000 postpaid phone subscribers in the third quarter, nearly double the 209,000 analysts expected. Verizon now projects 1.1 million to 1.2 million new postpaid phone customers for the year, up from its previous target of 750,000 to 1 million. Adjusted earnings per share are now forecast at $5.04 to $5.06, and free cash flow is expected to grow by almost 12%.

Quarterly performance and challenges

Verizon’s revenue rose 1.5% to $34.3 billion in the third quarter, missing analysts’ expectations of $34.74 billion. The company attributed the shortfall partly to fewer phone upgrades after reducing device discounts. Net income increased 5.2% to $5.3 billion, while adjusted earnings per share grew 8.3% to $1.31. Free cash flow climbed 12.1% to $7.8 billion.

Dan Schulman, Verizon’s chief executive, has overseen a restructuring since taking the role about a year ago. The company maintained its capital expenditure plan of $16 billion to $16.5 billion for 2026, focusing on network and asset investments. Verizon’s shares rose 2.4% in premarket trading following the announcements.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Verizon’s AWS deal is a bet on the growing intersection of telecommunications and AI infrastructure. By positioning itself as a critical enabler of distributed AI workloads—through high-capacity network connections and edge computing—Verizon is diversifying beyond traditional consumer subscriber growth. This mirrors a broader industry shift, where telecom operators seek to capitalize on enterprise and cloud-driven demand rather than rely solely on consumer markets.

The raised financial forecasts, driven by stronger-than-expected subscriber additions, suggest Verizon’s simplified pricing plans—introduced in June—are resonating with customers. However, the revenue miss highlights persistent challenges, including lower phone upgrades and pricing pressures. For founders in telecom-adjacent sectors, Verizon’s strategy underscores the importance of leveraging existing infrastructure for high-growth areas like AI, while remaining cautious about consumer demand volatility.

Key takeaways

• The AWS partnership signals Verizon’s push to monetize its network infrastructure for AI workloads, a potential model for telecom operators in emerging markets.
• The subscriber growth and raised forecasts suggest Verizon’s pricing and customer retention strategies are gaining traction, though revenue missed expectations.
• The deal aligns with Verizon’s broader strategy of leveraging high-capacity network connections for distributed computing, a trend also seen in its July deal with Google.

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