Verizon's New Strategy Slashes Costs, Boosts Customers

Verizon is demonstrating the impact of prioritizing customer experience as a growth strategy, a key component of its multi-year transformation towards an AI-driven model. The company reported its first positive first-quarter postpaid phone net adds since 2013, adding 55,000 subscribers.

Consumer postpaid phone churn saw a notable improvement, falling below 85 basis points in March. This reduction in churn allows marketing investments to be more effective, building upon a stable customer base rather than merely replacing lost customers. The company is moving away from reliance on expensive promotions toward a more fiscally responsible growth method.

Under CEO Dan Schulman, Verizon is focusing on customer-centric metrics like churn, acquisition, and customer lifetime value (CLV). By March, the cost of acquisition and retention had decreased by approximately 35% compared to the end of Q4, a trend expected to continue. These improvements are positively affecting CLV and free cash flow.

Financially, Verizon's Q1 total operating revenue was $34.4 billion, up 2.9% year-over-year. Adjusted EPS was $1.28, beating estimates and marking the highest growth rate in over four years. The company also raised its 2026 adjusted EPS growth forecast to 5%-6%.