Verizon (NYSE: VZ) reported 406,000 postpaid phone subscriber additions in the third quarter, nearly twice the 209,439 expected by analysts surveyed by Visible Alpha, prompting the telecommunications company to raise its annual customer growth forecast.

The company reported quarterly revenue of $34.3 billion, below the $34.74 billion anticipated by analysts, according to LSEG data. Lower device upgrade volumes weighed on revenue as customers held on to their phones longer following Verizon's reductions in device subsidies.

Alongside its quarterly results, Verizon announced an agreement worth more than $2 billion with Amazon Web Services to provide fiber-optic connectivity between AWS data centers.

The arrangement will supply high-capacity network connections designed to support faster and more reliable data transfers for AI computing workloads.

The AWS contract adds to Verizon's growing involvement in data-center connectivity. In July, the company announced a separate agreement valued at more than $1 billion with Google to connect data centers through dark fiber infrastructure. The agreements represent an expansion of Verizon's infrastructure business beyond its traditional wireless and broadband services.

Following its third-quarter subscriber performance, Verizon increased its full-year forecast for postpaid phone additions to between 1.1 million and 1.2 million, up from its previous projection of 750,000 to 1 million.

The company also revised its annual adjusted earnings guidance to $5.04 to $5.06 per share, compared with its earlier forecast of $4.99 to $5.04.

The updated outlook comes as Verizon continues an operational restructuring under CEO Dan Schulman, who is approximately one year into his tenure. The company has been reorganizing its business and simplifying its wireless service offerings. As part of those changes, Verizon introduced its Simplicity plan in June, offering unlimited data and a more transparent pricing structure.

About Verizon

Verizon Communications Inc., (NYSE: VZ) formed in 2000 and headquartered in New York City, is a U.S. telecommunications company providing wireless, broadband and enterprise connectivity services.

At the time of publishing, Stocks.News holds positions in Verizon as mentioned in the article.