Verizon’s CEO Dan Schulman has declared an end to the era of free handsets, focusing instead on customer retention and service revenue. This announcement came on May 6, 2026, during a press briefing in New York.
Under Schulman’s leadership, Verizon reported a net gain of 55,000 postpaid phone customers in the first quarter of 2026. This marks the first increase since 2013—a noteworthy shift in a market long dominated by aggressive promotions.
The company’s total revenue reached $34.4 billion, reflecting a 2.9% year-on-year growth. Additionally, Verizon’s adjusted earnings per share were $1.28, surpassing analyst estimates of $1.21. These figures suggest that the new strategy may be yielding early results.
Schulman emphasized a strategic pivot towards customer retention rather than mere line growth. He stated, “We are no longer giving away lines for free.” This approach aligns with broader industry trends where sustaining high-quality accounts becomes crucial for long-term profitability.
Key financial metrics:
- Operating margin: 23.9%
- Planned reduction in operating expenses: $5 billion
- Capital strategy includes a $3 billion buyback plan
The shift also involves utilizing micro-segmentation to tailor offers to specific demographics—an innovative approach designed to enhance customer engagement. Anthony Skiadas noted that savings would be achieved through network streamlining and digital channel adoption.
This strategic change comes as Verizon faces increasing competition in the telecommunications sector. By prioritizing durable recurring service revenues over one-time handset giveaways, Verizon aims to strengthen its market position.
The initial reactions from analysts remain cautiously optimistic, acknowledging that while the strategy is promising, execution will be key. The market will be watching closely as Verizon adjusts its offerings and marketing strategies in this evolving landscape.
