Verizon is finding its way back while T-Mobile slips
Verizon is back on track.
It can't keep relying on the cost lever. | Image by 360 magazine
Verizon has been plummeting for years, but the tables are turning. Nearly a year after bringing in CEO Dan Schulman, its shares are up 21%. Meanwhile, AT&T has managed just a 1% gain, and T-Mobile has dropped 19%.
The overhaul seems to be working, but is Schulman building a durable foundation?
New Street Research analyst David Barden believes that investors are buying Verizon because the company is improving at a faster rate under Schulman. On the other hand, they are dumping AT&T and T-Mobile over perceived threats from satellite companies like Starlink.
While Schulman may look like he has a magic wand, the truth is that Verizon was losing fewer postpaid customers by the end of 2023 and had nearly stopped losing subscribers when Schulman was brought in.
Schulman ratcheted things up, but that doesn't mean Verizon has stopped losing market share to rivals. Only the pace has slowed.
Since he took the reins, customer additions have approached double-digit growth, while postpaid churn has dropped by 5 bps, or 0.05 percentage points.
The hard-charging turnaround is mostly built on cost-cutting. Verizon has been axing jobs and cutting operating expenses. Naturally, this is going to bolster profit. While Barden called this strategy unsustainable, he commended the company for pressing the brakes on enormous price increases. Ultimately, the company will need to find a balanced approach.
Regardless of the route he has taken, Schulman has put an end to net customer losses. To reward a job well done, Verizon has extended his contract from December 31, 2027, to December 31, 2028. He could also receive at least $25 million in incentives in 2028.
Sweeping cost cuts were the easy part. As Schulman exhausts that leeway, he will have to devise real growth strategies. He is already on it with a host of recent announcements, including the new Simplicity Plan and loyalty programs. The company is also cooking up more ways to upend the industry.
The overhaul seems to be working, but is Schulman building a durable foundation?
The bright side
New Street Research analyst David Barden believes that investors are buying Verizon because the company is improving at a faster rate under Schulman. On the other hand, they are dumping AT&T and T-Mobile over perceived threats from satellite companies like Starlink.
Maybe this is because investors love a good second derivative turnaround. Maybe (probably) this is because no one owned Verizon for all the reasons Dan is the new CEO and the telecoms they did own (T-Mobile and AT&T) were jettisoned (wrong in our view) for fear of the dawning of a new LEO threat.
David Barden , New Street Research analyst , August 2026
While Schulman may look like he has a magic wand, the truth is that Verizon was losing fewer postpaid customers by the end of 2023 and had nearly stopped losing subscribers when Schulman was brought in.
It is no secret that Verizon has been a market share donor but the y/y decline in market share had been improving before Dan took over. The y/y change in Verizon’s share of the retail wireless market was improving at a slow pace, but the improvement has been more pronounced since Dan took the reins. We aren’t underwriting an increase in market share in the near future but we do expect share donation to narrow.
David Barden , New Street Research analyst , August 2026
Since he took the reins, customer additions have approached double-digit growth, while postpaid churn has dropped by 5 bps, or 0.05 percentage points.
How's the new CEO doing?
The caveats
The hard-charging turnaround is mostly built on cost-cutting. Verizon has been axing jobs and cutting operating expenses. Naturally, this is going to bolster profit. While Barden called this strategy unsustainable, he commended the company for pressing the brakes on enormous price increases. Ultimately, the company will need to find a balanced approach.
We view these as necessary but at the same time, we believe EBITDA growth driven by cost cuts is unsustainable in the long term. No one can cut their way to greatness.
David Barden , New Street Research analyst , August 2026
MoffettNathanson analyst Craig Moffett echoed those sentiments, calling Average Revenue Per User (ARPU) and Average Revenue Per Account (ARPA) concerning.
Verizon is a turnaround story that is still mid-stream, but one that has made some genuine strides over the past few quarters.
MoffettNathanson, July 2026
Here's what CEO Dan Schulman has been up to:
Schulman is delivering
Regardless of the route he has taken, Schulman has put an end to net customer losses. To reward a job well done, Verizon has extended his contract from December 31, 2027, to December 31, 2028. He could also receive at least $25 million in incentives in 2028.
The real test
Sweeping cost cuts were the easy part. As Schulman exhausts that leeway, he will have to devise real growth strategies. He is already on it with a host of recent announcements, including the new Simplicity Plan and loyalty programs. The company is also cooking up more ways to upend the industry.
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