Verizon announces AWS AI agreement worth more than US$2 billion
The company also raised its 2026 outlook after adding 406,000 postpaid phone subscribers in the three months to September.
Verizon announced an agreement with Amazon Web Services (AWS) valued at more than US$2 billion to support artificial intelligence workloads, while increasing its 2026 forecasts following stronger-than-expected phone subscriber additions.
The company will supply high-capacity network links and help expand computing capacity across multiple locations under the AWS agreement. The work targets generative AI and agentic systems capable of performing tasks independently. In July, Verizon agreed to connect Google’s data centers using unused fiber in a separate deal exceeding US$1 billion.
During the three months to September, Verizon gained 406,000 postpaid phone subscribers, who receive monthly bills. That compared with an analyst estimate of about 209,000, Reuters reported, citing Visible Alpha data.
Verizon now forecasts 1.1 million to 1.2 million new postpaid phone customers for 2026, replacing its previous target in the upper half of a 750,000 to 1 million range. It also raised its adjusted earnings outlook to US$5.04 to US$5.06 per share and expects growth of almost 12% in free cash flow.
Quarterly revenue increased 1.5% to US$34.3 billion, below the US$34.74 billion analyst forecast reported by Reuters using LSEG data. Reuters said phone upgrades declined after Verizon reduced device discounts.
Net income increased 5.2% to US$5.3 billion, while adjusted per-share earnings rose 8.3% to US$1.31. Free cash flow reached US$7.8 billion, up 12.1%. Verizon left its planned spending on network infrastructure and other assets unchanged at US$16 billion to US$16.5 billion for the year.
