Verizon Communications shares closed higher on July 24 after the company disclosed a dark fiber agreement with Alphabet’s Google valued at more than $1 billion, adding to investor attention around telecom infrastructure tied to artificial intelligence data centers.

VZ stock ended the session at $45.78, up 4.47%, or $1.96. The move followed Verizon’s second-quarter earnings call, where Chief Executive Dan Schulman said the company had secured the Google agreement to provide dark fiber connectivity for Google data centers as demand for AI infrastructure expands across the United States.

“The build out of AI infrastructure across the United States is one of the largest capital cycles of our lifetime,” Schulman said. He added that Verizon is positioned to support that buildout through its fiber network.

The agreement gives Verizon a larger role in the AI infrastructure supply chain as Google expands data center capacity. Telecom carriers are also seeking additional revenue from hyperscalers that require fast, reliable and long-distance connectivity between data centers, cloud regions and compute clusters. For Verizon, the deal also highlights how existing wireline assets can be used beyond traditional telecom services, at a time when carriers are looking for growth areas outside mature wireless markets.

Verizon Details Google Dark Fiber Agreement

Dark fiber refers to unused fiber-optic cable that a customer can lease and operate for private data transmission. Large technology companies commonly use dark fiber to connect data centers, cloud regions and computing infrastructure because it can give them greater control over capacity, routing and network operations.

Verizon is using its long-haul and metro fiber assets to meet that demand. Schulman said the network was built for an earlier technology era but now fits the requirements of AI data center connectivity.

The company also expects further AI infrastructure agreements. Schulman said Verizon plans to announce additional deals by year-end that could be worth multiple billions of dollars in revenue over the next several years. He described the expected contracts as long-term arrangements with technically demanding customers.

Schulman also called the Google deal “consequential,” saying it points to the direction of Verizon’s revenue trajectory. The announcement comes as hyperscalers continue expanding AI computing capacity, which requires large connectivity networks to move data between regions and support AI training, cloud services and enterprise workloads.

Second-Quarter Earnings Beat Estimates

Verizon also reported second-quarter adjusted earnings of $1.30 per share, above the $1.28 analyst estimate. Revenue was $34.3 billion, down 0.7% and below the $35.16 billion forecast.

The revenue shortfall was mainly tied to equipment sales, which fell nearly 20%, or more than $1.2 billion. Customers held on to phones for longer periods, while Verizon reduced spending on device subsidies.

Net income declined 22.9% to $3.9 billion after $1.8 billion in pre-tax special items. Those items included a $746 million loss connected to the planned sale classification of Verizon’s international wireline business.

Adjusted EBITDA increased 7.2% to $13.7 billion, with a 40.1% margin. Verizon said that margin was the highest in the company’s history.

VERIZON $VZ Q2’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $34.3B (Est. $35.28B) 🟢; -0.7% YoY 🔹 Adj. EPS: $1.30 (Est. $1.27) 🟢; +6.6% YoY 🔹 Mobility & Broadband Service: $23.4B; +2.8% YoY 🔹 Postpaid Phone Net Additions: 184,000 (Est. 103,900) 🟢 🔹 Adj EBITDA: $13.7B; +7.2% YoY… pic.twitter.com/tczfwp2VAZ — Wall St Engine (@wallstengine) July 24, 2026

https://x.com/wallstengine/status/2080610769553785153?ref_src=twsrc%5Etfw

Verizon added 184,000 postpaid phone customers during the quarter, its best consumer second quarter in five years. Broadband net additions totaled 348,000, reflecting continued demand across fixed wireless and fiber services.

Free cash flow rose 24.4% to $6.4 billion in the quarter. Verizon returned $9.4 billion in total capital to shareholders during the first half of 2026.

The company raised its outlook for a second consecutive quarter. Verizon now expects adjusted earnings per share of $4.99 to $5.04 and free cash flow growth of 9% to 10%.

Schulman said the results show “a structural inflection point across our entire business.” Future updates on the timing, scale and margin contribution of additional AI infrastructure contracts will help show how much these deals add to Verizon’s broader service revenue base.