Verizon (VZ) MoffettNathanson's 2026 Media, Internet & Communications Conference summary

Leadership transition and strategic priorities

• New CEO identified a need for major change after years of market share loss and low growth expectations.

• Four main priorities: shift to customer-centricity, drive a culture change, achieve world-leading efficiency, and maximize shareholder returns.

• $5 billion in OpEx cuts and $4 billion in CapEx reductions are underway, with a focus on reinvesting in customer experience.

• Commitment to maintaining a strong dividend and launching a $25 billion buyback over three years.

• Adjusted EPS guidance raised to 5%-6% growth, with free cash flow expected to grow at least 7%.

Competitive differentiation and growth drivers

• Network superiority remains foundational, but customer experience is now central to differentiation.

• Differentiation is achieved through incremental improvements across hundreds of metrics, not a single initiative.

• Recent record-high customer satisfaction scores in care centers signal progress.

• Convergence (broadband + wireless) is important but not the sole growth driver; only 20% of wireless base has broadband, indicating room for penetration.

• AI infrastructure and edge data centers are seen as major future revenue opportunities.

Broadband and convergence strategy

• Fiber footprint expected to reach 32 million homes by year-end, with a medium-term target of 40–50 million.

• Fixed wireless access (FWA) complements fiber, with high satisfaction and a target of 8–9 million customers by 2028.

• Converged customers show 30% lower churn and higher ARPA; convergence is not just discounting but adds lifetime value.

• No plans to pursue a wireline footprint beyond what pencils out economically; rural expansion is limited.

• LEO satellite seen as complementary, not competitive, in urban/suburban markets.