TLDR
- Verizon stock closed at $45.78, up 4.47% on July 24.
- Verizon has signed a dark fiber deal with Google worth more than $1 billion.
- The deal will connect Google’s data centers as demand for AI infrastructure grows.
- Verizon reported adjusted earnings of $1.30 per share, beating estimates.
- Verizon raised its 2026 earnings per share forecast to $4.99-$5.04 and raised its free cash flow guidance.
VZ stock rose after Verizon signed a dark fiber agreement worth more than $1 billion 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 rise came after news that the telco had secured a dark fiber deal with Alphabet’s Google worth more than $1 billion.
CEO Dan Shulman It has been detected The agreement was made during Verizon’s second quarter earnings call. Under the deal, Verizon will provide dark fiber connectivity to Google’s data centers as demand for AI infrastructure expands across the United States.
“Building AI infrastructure across the United States is one of the largest capital cycles of our lifetime,” Schulman said. He added that Verizon is well-positioned to support this buildout with its fiber network.
The agreement places Verizon deeper into the AI infrastructure supply chain. Google is expanding data center capacity, while telecom companies seek new revenue from hyperscalers that need fast, reliable, long-range connectivity.
AI data centers add a new revenue path
Dark fiber refers to unused fiber optic cables that customers can rent and run to transmit private data. Dark fiber is often used by large technology companies to connect data centers, computing clusters and cloud regions.
Verizon is using its long-haul and metro fiber assets to meet this demand. The network was designed for an earlier technology era but now fits the needs of AI data center links, Shulman said.
The company also expects more AI infrastructure agreements. Verizon plans to announce other deals by the end of the year that could amount to billions of dollars in revenue over the next few years, Schulman said.
He described those futures contracts as long-term arrangements with technically demanding customers. Schulman also called Google’s announcement “consequential,” saying it indicates the direction of Verizon’s revenue trajectory.
The deal comes as hyperscalers race to expand AI computing power. Data centers require large communication networks to move data between regions and support AI training, cloud services, and enterprise workloads.
Earnings beat supports VZ shares
Verizon also reported second-quarter adjusted earnings of $1.30 per share, beating analysts’ estimates of $1.28. Revenue was $34.3 billion, down 0.7% and below expectations of $35.16 billion.
The revenue shortfall came mainly from equipment sales, which fell by about 20%, or more than $1.2 billion. Customers kept phones longer, while Verizon cut spending on hardware support.
Net income fell 22.9% to $3.9 billion after $1.8 billion of pre-tax special items. These items included a $746 million loss associated with the planned sale classification of its international wireline business.
Adjusted EBITDA rose 7.2% to $13.7 billion, a margin of 40.1%. Verizon said this margin was the highest in the company’s history.
Verizon $VZ Highlights of the second quarter earnings results of 2026
🔹Revenues: $34.3 billion (approximately $35.28 billion) 🟢; -0.7% on an annual basis
🔹Adjective. EPS: $1.30 ($1.27) 🟢; +6.6% YoY
🔹 Mobility and broadband service: $23.4 billion; +2.8% YoY
🔹Postpaid phone network additions: 184,000 (estimate 103,900) 🟢
🔹 EBITDA: $13.7 billion; +7.2% YoY… pic.twitter.com/tczfwp2VAZ– Wall Street Engine (@wallstengine) July 24, 2026
The company added 184,000 postpaid phone customers, its best second-quarter consumer consumption in five years. Net broadband additions reached 348,000, demonstrating continued demand across fixed wireless and fiber services.
Free cash flow increased 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 It also raised its forecasts for the second quarter in a row. The company now expects adjusted EPS of $4.99 to $5.04 and free cash flow growth of 9% to 10%.
The results show “a structural inflection point across our entire business,” Schulman said.
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