Verizon CEO: Pricing Mistakes & Strategic Turnaround

The wireless telecommunications sector has historically struggled with transparency, a challenge that T-Mobile effectively leveraged with its "Un-carrier" movement. This strategic pivot significantly disrupted the industry's traditional charging methods, compelling market leaders like Verizon and AT&T to re-evaluate their approaches. Prior to these shifts, consumers often paid for larger plans than necessary to mitigate potential overage charges, highlighting a systemic issue within the industry.

The Evolving Landscape of Wireless Competition

The competitive dynamics within the wireless industry have undergone profound changes over the last decade. What was once characterized by opaque billing practices and restrictive contracts has evolved, largely due to the disruptive influence of challenger brands.

T-Mobile's "Un-carrier" Disruption

T-Mobile's "Un-carrier" strategy was a pivotal moment, forcing incumbents to adopt more consumer-friendly policies. Key changes initiated by T-Mobile included the cessation of overage charges, simplified processes for customers to switch providers, the elimination of long-term contracts, and the introduction of unlimited texting and phone calls. These innovations were crucial for T-Mobile, then the fourth-largest carrier, to gain media attention and market traction, fundamentally altering customer expectations regarding wireless services.

The New "Big Three" Dynamic

The landscape further transformed with T-Mobile's acquisition of Sprint in 2018, consolidating the market into a "Big Three" – Verizon, AT&T, and T-Mobile. This heightened competition means that all three carriers must exercise extreme caution regarding pricing adjustments. The ability of customers to easily switch providers places immense pressure on companies to offer not only competitive pricing but also superior value and an impeccable customer experience.

Verizon's Recent Performance and Leadership Shift

Against this backdrop of intense competition and evolving consumer demands, Verizon has navigated a period of both strong operational performance and critical self-assessment regarding its market strategy.

Strong Q4 Results Amidst Challenges

Verizon concluded the fourth quarter of 2025 with robust financial results, indicating operational strength despite underlying strategic concerns. The company reported an EPS of $0.55, with an adjusted EPS of $1.09. Total operating revenue reached $36.4 billion, and consolidated net income was $2.4 billion, alongside a consolidated adjusted EBITDA of $11.9 billion. Notably, Verizon achieved 616,000 total postpaid phone net additions in Q4 2025, a significant increase from 504,000 in Q4 2024, marking its best performance in this metric since 2019. Wireless service revenue grew 1.1% year-over-year to $21.0 billion, while wireless equipment revenue saw a 9.1% increase to $8.2 billion.

CEO Schulman's Candid Admission and Strategic Pledge

Dan Schulman, Verizon's new CEO, who has been in his role for only a few months, candidly addressed the company's past pricing strategies. He openly admitted and apologized for Verizon's decision to raise prices four times in 2025, acknowledging this approach led to a high churn rate and market share losses. Schulman articulated a clear commitment to change, stating, "One of the reasons why we have such high churn rate, one of the reasons why we've been losing share over the last several years is because we keep raising our pricing without corresponding value. And that is the primary reason why our customers churn." He firmly pledged to discontinue this practice, emphasizing that "the #1 rule of getting out of a hole is stop digging. And we're just not going to do that again." The CEO promised a fundamental shift towards a value-based pricing strategy, driven by subscriber growth, convergence, superior value-added services, and a fully revamped end-to-end customer experience, steering away from "empty price increases to drive short-term revenue and earnings."

Analyst Perspectives on Verizon's Future

The strategic shift under CEO Schulman has drawn considerable attention from financial analysts, many of whom view the changes as both necessary and promising for Verizon's long-term trajectory.

Optimism for a Renewed Strategy

Max Greve, a Seeking Alpha contributor and long-term Verizon investor, expressed strong confidence in Schulman's leadership. He highlighted the immediate and fundamental resets implemented by the new CEO, particularly the alignment of pricing strategies with Verizon's C-Band spectrum deployment. Greve noted that "by resetting pricing to draw in more subscribers, Verizon is finally aligning pricing with its C-Band spectrum strategy." This proactive approach, coupled with plans to acquire a new tech stack to extend mmWave capabilities into urban cores, suggests a forward-looking strategy designed to enhance competitive advantage.

Balancing Growth and Financial Metrics

Other analysts echoed this sentiment, albeit with a pragmatic view on the immediate financial implications. Craig Moffett of MoffettNathanson, for instance, observed that while "unit metrics improved," financial metrics "weakened," indicating the initial trade-off of focusing on subscriber growth. Michael Rollins, a Citi analyst, shared a similar perspective, suggesting that Verizon's more aggressive posture on subscriber growth might lead to some dilution in Average Revenue Per User (ARPU). This suggests that while the strategic direction is sound, the transition period may involve balancing growth aspirations with profitability metrics, a common challenge during significant corporate turnarounds.

Verizon's Ambitious 2026 Outlook

Verizon's 2026 guidance provides a clear roadmap for the company's turnaround strategy under Schulman's leadership, outlining ambitious targets across key performance indicators.

Key Performance Indicators for Growth

The company projects total retail postpaid phone net additions of 750,000 to 1 million in 2026, representing a substantial increase of approximately 2 to 3 times the results reported in 2025. This aggressive target underscores Verizon's commitment to regaining market share through enhanced subscriber acquisition. Furthermore, total mobility and broadband service revenue growth is anticipated to be between 2.0 percent and 3.0 percent, translating to approximately $93 billion. Wireless service revenue growth is expected to be approximately flat in 2026, reflecting the transition towards a sustainable volume-based growth model. Adjusted EPS is forecasted to be between $4.90 and $4.95, representing a year-over-year growth of 4% to 5%, a significant acceleration compared to recent historical performance.

Investment in Infrastructure and Customer Experience

To support this ambitious growth trajectory, Verizon plans substantial investments. Cash flow from operations is projected to be between $37.5 billion and $38.0 billion. Capital expenditures are set at $16.0 billion to $16.5 billion, which includes an aggressive fiber build pace of at least 2 million passings in 2026. These investments are crucial for maintaining network excellence, expanding coverage, and enhancing the overall customer experience, all of which are central to Schulman's long-term strategy to ensure Verizon's competitive standing and foster sustainable financial success.

In conclusion, Verizon is embarking on a pivotal transformation under CEO Dan Schulman. By acknowledging past pricing missteps and committing to a value-based, customer-centric approach, the company aims to reverse its market share losses and build a sustainable growth model. The strong Q4 2025 results and ambitious 2026 guidance, coupled with strategic investments, signal a determined effort to reposition Verizon as a leader in the competitive wireless industry, prioritizing long-term subscriber growth and value delivery over short-term revenue gains.