Verizon CEO admits to and apologized for huge pricing mistake

Core Insights - The wireless industry has seen significant changes in competition and pricing strategies, particularly after T-Mobile's acquisition of Sprint, leading to a "big three" of carriers: T-Mobile, AT&T, and Verizon [2][15] - Verizon's new CEO, Dan Schulman, emphasizes a turnaround strategy focused on customer satisfaction and sustainable growth rather than short-term price increases [3][6][12] Financial Performance - In Q4 2025, Verizon reported an EPS of $0.55 and an adjusted EPS of $1.09, with total operating revenue of $36.4 billion and consolidated net income of $2.4 billion [8] - The company achieved total postpaid phone net additions of 616,000, marking the best quarter since 2019, and wireless service revenue increased by 1.1% year over year to $21.0 billion [8] Strategic Changes - Schulman has committed to avoiding price increases that do not correspond with added value, acknowledging that previous price hikes contributed to customer churn [5][6] - The company aims to enhance subscriber growth through a value-based pricing strategy and improved customer experience [4][12] Analyst Perspectives - Analysts express confidence in Schulman's strategy, noting that the reset in pricing aligns with Verizon's C-Band spectrum strategy and is expected to attract more subscribers [10][11] - Concerns remain about potential ARPU dilution as the company shifts focus towards unit growth, which may impact financial metrics in the short term [11][12] Future Guidance - Verizon's 2026 guidance indicates a focus on sustainable growth, projecting adjusted EPS of $4.90 to $4.95, representing a year-over-year growth of 4% to 5% [16] - The company anticipates total mobility and broadband service revenue growth of 2% to 3%, with wireless service revenue growth expected to be flat as it transitions to a volume-based growth model [16]