Verizon Stock Strategy 2026: Workforce Reductions, Fiber Expansion, and Earnings Outlook

Verizon’s stock has been a standout in the telecom sector in early 2026, driven by strategic shifts and significant operational overhauls. The company, under new leadership, has executed one of the largest workforce reductions in its history, eliminating over 13,000 positions to drive efficiency and improve margins. This has pushed revenue per employee to a market-leading $1.35 million, helping to stabilize and grow profitability according to analysis.

What Is Driving VZ Stock’s Recent Rally in 2026?

Verizon’s recent stock performance reflects a broader strategic pivot toward fiber expansion and operational efficiency. The company has shifted from focusing solely on 5G mobile to a convergence of fixed and mobile services, a trend that is reshaping the telecom industry. Its recent $20 billion acquisition of Frontier Communications is central to this strategy. With all regulatory approvals in place, the deal is expected to close on January 20.

The merger will significantly boost Verizon’s fiber capabilities, giving it access to nearly 30 million homes and businesses across 31 states and Washington, D.C. This expansion supports the company’s national fiber strategy and positions it to offer a unique combination of mobility and home broadband services.

Why Is VZ Stock Attracting Investor Attention Amid 2026 Changes?

Verizon’s aggressive approach has caught the attention of investors for several reasons. The company has launched new pricing strategies, including three-year price locks and multi-line family discounts, to retain customers. These moves have started to show results, with the company adding 44,000 monthly bill-paying phone subscribers in the early stages of the strategy.

Additionally, the pending earnings report on January 30 will be a key moment for the company. Analysts expect earnings of $1.06 per share, slightly down year-over-year, but with revenue projected to grow by 0.66%. This report will be the first major test of the 'Schulman Strategy' in terms of bottom-line impact. If the cost-cutting and efficiency gains translate into solid financial performance, it could further fuel the stock’s rally .

Beyond the near-term earnings report, Verizon is investing in the future. The company is preparing to launch a 6G Innovation Forum and dedicated 6G Lab in Los Angeles,

. Meanwhile, regulatory bodies like the California Public Utilities Commission are pushing for rural broadband expansion, adding complexity to Verizon’s strategy but also highlighting the long-term potential of fiber-based services.

What Should Investors Watch Next in VZ Stock’s 2026 Outlook?

The coming weeks will offer key insights into whether the market views the 'Schulman Strategy' as a success. The January 30 earnings report will provide the first concrete data on whether the company’s cost-cutting and efficiency measures have improved profitability. Additionally, the company’s ability to integrate Frontier’s network and launch new customer offers will be crucial to long-term growth.

Investors should also watch regulatory developments, especially around rural broadband requirements. Verizon has been forced to balance its urban fiber expansion with rural obligations, which could affect its long-term capital allocation and growth pace. Finally, the company’s progress in Fixed Wireless Access (FWA) and low-power IoT connectivity will shape its ability to capture new markets and drive innovation beyond traditional telecom services.

At the end of the day, Verizon’s 2026 transformation is still in its early stages. The stock’s current valuation, while attractive in some metrics like the Forward P/E ratio, may reflect overoptimism given the company’s modest earnings growth projections. That said, if the fiber-first strategy and cost-cutting measures continue to yield results, VZ stock could see further upside in the months ahead.