Verizon’s CEO Dan Schulman has declared an end to the era of free handsets, shifting the company’s focus towards customer retention and recurring service revenue. This announcement came during a press conference in New York on May 6, 2026.
As of midday, Verizon reported a net gain of 55,000 postpaid phone customers in the first quarter of 2026. This marks the first increase in postpaid customers since 2013.
The company also reported total revenue of $34.4 billion, reflecting a 2.9% year-on-year growth. Adjusted earnings per share stood at $1.28, surpassing analyst estimates of $1.21.
Schulman emphasized a strategic pivot towards high-quality accounts instead of merely increasing line counts. He stated, “We are no longer giving away lines for free.” This shift aims to enhance Verizon’s operating margin, which was reported at 23.9%.
To achieve these goals, Verizon plans to reduce ongoing operating expenses by $5 billion. The company is also implementing micro-segmentation strategies to tailor offers for specific demographics.
Verizon has initiated a $3 billion buyback plan as part of its capital strategy. This move is seen as a way to bolster shareholder confidence while focusing on durable revenue sources.
Analysts have noted that this strategy could reshape the competitive landscape in the telecommunications market. Schulman’s approach prioritizes sustainable revenue growth over aggressive promotions.
Anthony Skiadas, Verizon’s Chief Financial Officer, added that savings will come through network streamlining and digital channel adoption. He noted that workforce reductions may also play a role in achieving financial targets.
The stock price hovered around $47.34, with a market capitalization nearing $199.3 billion. Investors are closely monitoring how this new strategy will impact overall performance.
This significant shift represents a departure from traditional practices in the telecom industry, where free handsets have been common incentives for attracting new customers.
The next quarterly report is anticipated with great interest as stakeholders evaluate the effectiveness of these changes.
