TLDR
- Verizon stock closed at $45.78, up 4.47% on July 24.
- Verizon signed a dark fiber deal with Google worth more than $1 billion.
- The deal will connect Google data centers as AI infrastructure demand grows.
- Verizon reported adjusted earnings of $1.30 per share, beating estimates.
- Verizon raised its 2026 EPS outlook to $4.99-$5.04 and lifted free cash flow guidance.
VZ stock climbed after Verizon signed a more than $1 billion dark fiber agreement with Google to support AI data center connectivity.
Verizon Secures Google Dark Fiber Deal
Verizon Communications stock closed at $45.78 on July 24, rising 4.47%, or $1.96, during the session. The rally followed news that the telecom company secured a dark fiber deal with Alphabet’s Google worth more than $1 billion.
Chief Executive Dan Schulman disclosed the agreement during Verizon’s second-quarter earnings call. Under the deal, Verizon will provide dark fiber connectivity for Google’s data centers as AI infrastructure demand expands across the United States.
Schulman said, “The build out of AI infrastructure across the United States is one of the largest capital cycles of our lifetime.” He added that Verizon is well positioned to support that buildout through its fiber network.
The agreement places Verizon deeper inside the AI infrastructure supply chain. Google is expanding data center capacity, while telecom carriers are seeking new revenue from hyperscalers that need fast, reliable, and long-distance connectivity.
AI Data Centers Add New Revenue Path
Dark fiber refers to unused fiber-optic cables that customers can lease and operate for private data transmission. Large technology firms often use dark fiber to connect data centers, compute clusters, and cloud regions.
Verizon is using its long-haul and metro fiber assets to serve that demand. Schulman said the network was built for an earlier technology era but now fits the needs of AI data center links.
The company also expects more AI infrastructure agreements. Schulman said Verizon plans to announce other deals by year-end that could be worth multiple billions of dollars in revenue over the next several years.
He described those future contracts as long-term arrangements with technically demanding customers. Schulman also called the Google announcement “consequential,” saying it points to the direction of Verizon’s revenue trajectory.
The deal comes as hyperscalers race to expand AI computing capacity. Data centers require large connectivity networks to move data between regions and support AI training, cloud services, and enterprise workloads.
Earnings Beat Supports VZ Stock
Verizon also reported second-quarter adjusted earnings of $1.30 per share, beating the $1.28 analyst estimate. Revenue came in at $34.3 billion, down 0.7% and below the $35.16 billion forecast.
The revenue shortfall came mainly from equipment sales, which fell nearly 20%, or more than $1.2 billion. Customers kept phones longer, while Verizon reduced spending on device subsidies.
Net income dropped 22.9% to $3.9 billion after $1.8 billion in pre-tax special items. Those items included a $746 million loss tied to the planned sale classification of its international wireline business.
Adjusted EBITDA rose 7.2% to $13.7 billion, with a 40.1% margin. Verizon said that margin was the highest in the company’s history.
VERIZON $VZ Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $34.3B (Est. $35.28B) 🟢; -0.7% YoY
🔹 Adj. EPS: $1.30 (Est. $1.27) 🟢; +6.6% YoY
🔹 Mobility & Broadband Service: $23.4B; +2.8% YoY
🔹 Postpaid Phone Net Additions: 184,000 (Est. 103,900) 🟢
🔹 Adj EBITDA: $13.7B; +7.2% YoY… pic.twitter.com/tczfwp2VAZ— Wall St Engine (@wallstengine) July 24, 2026
The company added 184,000 postpaid phone customers, its best consumer second quarter in five years. Broadband net additions reached 348,000, showing continued demand across fixed wireless and fiber services.
Free cash flow rose 24.4% to $6.4 billion during the quarter. Verizon returned $9.4 billion in total capital to shareholders in the first half of 2026.
Verizon also raised its outlook for a second straight quarter. The company now expects adjusted earnings per share of $4.99 to $5.04 and free cash flow growth of 9% to 10%.
Schulman said the results show “a structural inflection point across our entire business.”
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