Verizon Shifts Strategy to Combat Customer Churn
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 01 2026
0mins
Source: NASDAQ.COM
- Strategy Shift: Verizon's previous reliance on price hikes to drive revenue has led to increased churn, with CEO Dan Schulman emphasizing that empty price increases without corresponding value have contributed to market share losses.
- Significant Churn Impact: Over the past three years, Verizon's churn rate has risen by 0.25 percentage points, which, while seemingly small, translates to a loss of approximately 2.25 million net additions, significantly affecting the company's market performance.
- Future Growth Expectations: Although wireless revenue is expected to remain flat in the short term, Verizon aims to achieve between 750,000 and 1 million postpaid net phone additions in 2025, which is projected to be 2 to 3 times higher than the previous year, indicating confidence in future growth.
- Investor Confidence Restored: Following months of weakness, Verizon's stock surged as investors reacted positively to the turnaround strategy, with the guidance for postpaid net additions overshadowing the weak wireless revenue forecast, suggesting a potential recovery in market sentiment.
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Analyst Views on VZ
Wall Street analysts forecast VZ stock price to fall
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 49.390
Low
43.00
Averages
46.42
High
51.00
Current: 49.390
Low
43.00
Averages
46.42
High
51.00
About VZ
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, technology, information and streaming products and services to consumers, businesses and government entities. Its Consumer segment provides wireless and wireline communications services. It also provides fixed wireless access (FWA) broadband through its 5G or 4G Long-Term Evolution (LTE) networks portfolio. The Company's Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products. It provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Acquisition Expansion: Verizon's acquisition of Frontier Communications has expanded its fiber access to over 30 million homes and businesses, further solidifying its position in the telecommunications market and driving future growth potential.
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- Significant User Growth: In Q4 2025, Verizon reported 616,000 postpaid phone net additions, the highest quarterly net additions since 2019, indicating strong market demand and customer acquisition.
- Acquisition Expands Network: Verizon's acquisition of Frontier Communications has expanded its fiber access to over 30 million homes and businesses, enhancing its competitive position and service capabilities in the telecommunications market.
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- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs experiencing significant inflows or outflows can provide investors with critical information regarding market sentiment and potential investment opportunities.
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