Verizon Raises Annual Forecasts, Signs $2 Billion AI Deal with AWS

Verizon has raised its annual forecast for wireless subscriber additions after reporting stronger-than-expected customer growth in the third quarter, while signing an artificial intelligence infrastructure deal worth more than $2 billion with Amazon Web Services (AWS). The US telecom operator added 406,000 monthly-bill-paying wireless subscribers, nearly double analysts’ expectations of 209,439. Its shares rose 2.4% in premarket trading following the announcement.

The company now expects to add between 1.1 million and 1.2 million postpaid phone subscribers this year, up from its earlier forecast of 750,000 to 1 million. Verizon also increased its full-year adjusted earnings-per-share outlook to $5.04–$5.06, compared with the previous range of $4.99–$5.04. However, third-quarter revenue stood at $34.3 billion, below analysts’ estimate of $34.74 billion, as fewer customers upgraded their devices following reductions in device subsidies. Under CEO Dan Schulman, Verizon has been restructuring its operations and simplifying wireless plans, including the launch of its Simplicity plan in June, which offers transparent pricing and unlimited data.

Under the agreement with AWS, Verizon will provide high-capacity fibre-optic connectivity to data centres, enabling faster and more reliable data transfers to support growing AI computing demands. The deal highlights the expanding role of telecom operators in the AI infrastructure market, creating opportunities beyond traditional wireless and broadband services. In July, Verizon also announced an agreement worth more than $1 billion with Google to connect data centres using dark fibre, underscoring its strategy to capitalise on rising demand for AI-driven computing infrastructure.

Pic Courtesy: google/ images are subject to copyright