Verizon's stock jumped 4% in premarket trading following the release of its Q2 earnings report, driven by a strong surge in postpaid phone subscribers that exceeded analysts’ forecasts. The telecom giant added 184,000 net postpaid phone customers this quarter, nearly doubling Wall Street’s estimate of 106,000 and marking a sharp reversal from last year’s losses in the same category.

The company posted total revenue of $34.3 billion, a slight 0.7% decrease compared to the previous year and falling short of the $35.2 billion consensus. This dip was largely due to a steep 20% drop in equipment revenue, as customers held onto their devices longer and Verizon scaled back device subsidies. Despite the revenue shortfall, this trend reflects a deliberate shift away from costly promotions, a move championed by CEO Dan Schulman since he took the helm in October.

Adjusted earnings per share rose to $1.30, beating the expected $1.28 and up from $1.22 in the prior year. However, net income fell sharply to $3.95 billion, or 92 cents per share, down from $5.12 billion, or $1.18 per share, a year earlier. This decline was largely driven by $1.8 billion in pretax special charges, including a $746 million loss linked to Verizon’s new international partnership with BT Group. The two telecom giants combined their global operations under a joint venture announced last month, allowing both to focus more intensively on their core domestic markets.

Verizon also raised its full-year adjusted EPS outlook to a range of $4.99 to $5.04 while increasing its mobility and broadband revenue growth forecast to between 2.5% and 3%. The company’s mobility and broadband services revenue reached $23.4 billion, up 2.8% year over year, contributing positively to the overall financial picture.

The earnings release shows Verizon’s strategic balance between subscriber growth and margin management, a contrast to the aggressive promotional tactics seen in prior years. This approach could impact wireless sector investors who have been closely watching shifts in customer acquisition and revenue streams.