In a bold move, Verizon’s CEO Dan Schulman has declared an end to the era of free handsets, shifting the company’s focus towards customer retention and sustainable service revenue. This announcement came during a conference in New York on May 6, 2026.
Under Schulman’s leadership, Verizon reported a net gain of 55,000 postpaid phone customers in the first quarter of 2026—the first increase since 2013. Total revenue reached $34.4 billion, marking a 2.9% year-on-year growth.
The adjusted earnings per share stood at $1.28, surpassing analyst expectations of $1.21. Verizon’s operating margin during this period was a solid 23.9%. These figures reflect a significant turnaround for the company.
The shift away from aggressive promotions and free devices aligns with Schulman’s emphasis on high-quality accounts rather than sheer line growth—this is about building lasting relationships with customers. He stated simply, “We are no longer giving away lines for free.” With this strategy, Verizon aims to enhance its operating margins by focusing on durable recurring service revenues.
Key elements of Verizon’s new strategy:
- Utilizing micro-segmentation to tailor offers for specific demographics
- Aiming to reduce ongoing operating expenses by $5 billion
- Implementing a $3 billion buyback plan as part of its capital strategy
Anthony Skiadas, another key figure in this transition, highlighted that savings will come from network streamlining and workforce reductions. The company is clearly positioning itself for a more stable financial future.
As Schulman shifts the narrative at Verizon, the market is watching closely; the company’s stock price has remained steady around $47.34, with a market capitalization nearing $199.3 billion. Investors are keen to see how this strategic pivot unfolds in the coming quarters.