Verizon Stock Gains on Customer Retention Amid AI Fiber Push

Verizon Communications ($VZ+WL) shares are trading near the top of their $36.56-to-$50.59 52-week range, marking a 22.7% increase over the past twelve months. The company is experiencing improved customer retention, with postpaid phone churn declining to 84 basis points in Q2 2026 from 90 basis points in Q1 2026. This stabilization, coupled with strategic pricing changes like the $45 Simplicity plan and the $70 Verizon One bundle, is beginning to offset declines in wireless service revenue. Mobility and broadband service revenue grew 2.8% year over year in Q2 2026, up from 1.6% in the prior quarter, with management guiding for approximately 3% growth in Q3 and 4% in Q4 2026. Free cash flow guidance has been raised to 9% to 10% growth. A significant tailwind is the company's dark fiber segment, with a recently signed agreement valued at over $1 billion in contract revenue and expectations for further multi-billion dollar deals contributing to revenue growth from 2027.