Business · NEWS EXPLAINER
Verizon signs $2 billion-plus AWS AI infrastructure deal as phone additions beat expectations
The carrier added 406,000 postpaid phone customers, raised its 2026 outlook and disclosed a multiyear AI infrastructure agreement with Amazon Web Services worth more than $2 billion.
Verizon reported 406,000 postpaid phone net additions in the third quarter, more than the 209,439 expected in a Visible Alpha consensus cited by Reuters. The company also raised its full-year forecast to 1.1 million–1.2 million additions.
Alongside the results, Verizon disclosed an agreement worth more than $2 billion to provide network infrastructure for Amazon Web Services. The companies said it will support generative and agentic AI workloads, but the available disclosures do not specify a complete revenue-recognition schedule.
A subscriber result well above expectations
Verizon’s 406,000 postpaid phone net additions were more than double the Visible Alpha consensus cited by Reuters. The issuer said the result was 820% higher than a year earlier and its strongest third quarter in five years; postpaid net account additions reached 137,000.
What the AWS agreement covers
Verizon said the strategic agreement exceeds $2 billion and will provide network infrastructure supporting generative and agentic AI workloads on AWS. It is an infrastructure commitment, not evidence that Verizon booked the full contract value as third-quarter revenue.
The financial scorecard
Mobility and broadband service revenue was $23.5 billion, up 2.9%. Operating cash flow was $11.5 billion, free cash flow was $7.8 billion, net income was $5.3 billion and adjusted EBITDA was $13.8 billion.
Guidance moved with customer growth
The company now expects 1.1 million–1.2 million postpaid phone net additions in 2026. Reuters reported an adjusted EPS outlook of $5.04–$5.06. The raised outlook should not be attributed solely to the new AWS agreement.
What remains undisclosed
The releases establish the minimum contract value and workload focus, but not a complete delivery timetable or quarterly revenue profile. Readers should watch later filings for deployment milestones, capital needs and recognized revenue.
