Verizon Communications (NYSE: VZ) saw its stock drop by about 4.5% in premarket trading on April 22, 2025, following the release of its first-quarter earnings. While the company exceeded earnings estimates—posting an adjusted EPS of $1.19 on revenue of $33.49 billion—it reported a higher-than-expected loss of 289,000 retail postpaid phone subscribers. Analysts had anticipated a smaller decline of around 218,000. This larger drop raised concerns about Verizon’s ability to compete effectively in a market that’s becoming increasingly aggressive, with rivals like T-Mobile and AT&T stepping up promotions.
Part of the issue stems from a slowdown in new customer growth, something Verizon’s Chief Revenue Officer had previously warned about. The shift to 36-month financing plans means customers are holding onto their devices longer—now averaging over 41 months—resulting in fewer device upgrades and new subscriber sign-ups. Although Verizon maintained its full-year outlook, the subscriber losses sparked investor worries about the company’s future growth prospects in a highly competitive industry.