Verizon

“Finally, we are using AI in our network deployment and maintenance as well as our customer and employee support services.”

“Enabling AI at scale for improved customer service is a key. We're also aggressively driving AI transformative potential with our businesses, something our network was built to support. We're already at several generative AI projects going live.”

“We're investing in our AI tech stack, we are growing our dividend, and we are paying down our debt.”

“We continue to build local fiber networks by adding fiber connectivity to premises, venues, cell tower locations and data centers.”

“And we do have the CapEx in there because, listen, some of these deals, what we'll have to do is spend some capital to edge out our fiber a little bit to go meet people at the right data centers and/or locations of business and then retrofitting technical space. So we have money in for that, but we're ready to go with that. It's all included in the envelope.”

“We also continue to deploy fiber at scale to capture growth opportunities, including AI infrastructure builds across the country. As Dan said, we expect the amount of revenue associated with these deals to be in the billions over the next several years.”

“All of this is success-based kind of capital that we are putting in, and we see this accelerating business plus our Verizon AI Connect infrastructure providing us with a very different revenue future than we've had in a long, long time.”

“Finally, we are using AI in our network deployment and maintenance as well as our customer and employee support services.”

“We are focused on achieving profitable growth as we continue to deliver strong revenues and undertake initiatives to reduce costs and improve efficiencies, including through AI-driven technologies.”

“Enabling AI at scale for improved customer service is a key. We're also aggressively driving AI transformative potential with our businesses, something our network was built to support. We're already at several generative AI projects going live.”

“Secondly, many of the larger sort of transactions and platform transactions we started already last year, the outsourcing, the HCL, the customer care changes we did, which are large transactions. Without any interruptions for our customers, we have done those.”

“Selling, general and administrative expense includes salaries and wages and benefits not directly attributable to a service or product, the provision for credit losses, taxes other than income taxes, advertising and sales commission costs, call center and information technology costs, regulatory fees, professional service fees and rent and utilities for administrative space.”

“Aggregate customer service costs, which include billing and service provisioning, are allocated between Cost of services and Selling, general and administrative expense.”

“A good example would be FastPass, which I've talked about before, which is deployed in our mobility call centers to intelligently pair customers with the best available care representative.”

“And then Hans mentioned the focus on cost transformation and the work we continue to do to make the business more efficient, whether it's customer care and the work that Sampath is doing, including AI, and you heard that upfront, as well as the managed services work.”

“We are focused on achieving profitable growth as we continue to deliver strong revenues and undertake initiatives to reduce costs and improve efficiencies, including through AI-driven technologies.”

“Secondly, many of the larger sort of transactions and platform transactions we started already last year, the outsourcing, the HCL, the customer care changes we did, which are large transactions. Without any interruptions for our customers, we have done those.”

“Selling, general and administrative expense includes salaries and wages and benefits not directly attributable to a service or product, the provision for credit losses, taxes other than income taxes, advertising and sales commission costs, call center and information technology costs, regulatory fees, professional service fees and rent and utilities for administrative space.”

“Finally, we are using AI in our network deployment and maintenance as well as our customer and employee support services.”

“We are focused on achieving profitable growth as we continue to deliver strong revenues and undertake initiatives to reduce costs and improve efficiencies, including through AI-driven technologies.”

“Our AI strategy focus on three priorities. First, optimizing internal processes and operation through machine learning, such as creating efficiencies in fuel consumption. AI is already central to our cost transformation program and will become even more important over time.”

“We're already using, for example, personalization in my Plan with AI, and we do using it in our in our network when it comes to performance or the capacity deployment as well as power consumption. So we are using AI and generative AI already now commercially.”

“Following the actions we took after the January event, our network performance metrics have improved sequentially every month as we embed sophisticated AI models that allow us to autonomously fix network issues in minutes as opposed to hours.”

“Fourth, the transformation workstreams I described last quarter are producing tangible results, and we are fully on track to deliver at least the $9 billion of OpEx and CapEx savings we said we would.”

“They are showing up as lower costs to serve, faster customer journeys, and a step change in productivity across the organization. We are rapidly becoming an AI-centric company in how we operate, and the operating leverage we are experiencing in our results reflect that.”

“Our networks leverage advanced technologies, including 5G wireless, fiber-based transport, cloud infrastructures, artificial intelligence (AI) and automation, private networks and IP routing solutions.”

“During both the three and six months ended June 30, 2026, we recorded pre-tax asset rationalization charges of $258 million predominately related to the decision to cease use of certain real estate and network assets as part of our transformation initiatives.”

“an increase of $79 million in building and facility costs primarily due to maintaining additional buildings and facilities associated with the acquisition of Frontier in 2026 along with higher utility rates”

“We are focused on achieving profitable growth as we continue to deliver strong revenues and undertake initiatives to reduce costs and improve efficiencies, including through AI-driven technologies.”

“Our AI strategy focus on three priorities. First, optimizing internal processes and operation through machine learning, such as creating efficiencies in fuel consumption. AI is already central to our cost transformation program and will become even more important over time.”

“We're already using, for example, personalization in my Plan with AI, and we do using it in our in our network when it comes to performance or the capacity deployment as well as power consumption. So we are using AI and generative AI already now commercially.”

“We are balancing increased energy needs from ongoing expansion and densification of our networks with initiatives to effectively manage energy consumption, including using more energy-efficient equipment, discontinuing or migrating legacy services and pursuing opportunities to use renewable energy sources.”

“Secondly, enhancing product experiences with AI capabilities like the personalized plan recommendation on myPlan, which is producing good early results.”

“And thirdly, we're laser-focused to churn management. I mean, the team with Sampath, the AI tools we have, so, so we actually spend on the right customers when we see they have a churn.”

“We're already using, for example, personalization in my Plan with AI, and we do using it in our in our network when it comes to performance or the capacity deployment as well as power consumption. So we are using AI and generative AI already now commercially.”

“A great product here would be Segment of Me, which is a tool that uses AI to personalize customer experience with unique offers and products.”

“And thirdly, establishing an AI-based revenue stream by commercializing our network's unique low latency, high bandwidth, and robust Mobile Edge Compute capabilities. Generative AI workloads represent a great long-term opportunity for us.”

“We continue to build local fiber networks by adding fiber connectivity to premises, venues, cell tower locations and data centers.”

“This is creating an opportunity for us and has already created an opportunity as we had revenue and EBITDA impact in the fourth quarter. We're now looking into how we can use our assets and our capability to serve this market when it comes to the next step of generative AI. I'm very proud and excited to introduce Verizon AI Connect today.”

“You know, Verizon AI Connect is the name of our strategy and suite of offerings that are intended to meet the growing demand for AI applications from both our ecosystem partners and end user customers. It's a vision that allows us to utilize existing assets in new ways to service this technology revolution.”

“We already have a funnel of over $1 billion simply leveraging our existing infrastructure. Major players such as Google and Meta have purchased capacity on our network with the intent of using it for their AI workloads.”

“Some of these deals are reflected in our fourth quarter results and are contributing to the margin improvements you saw in the quarter.”

“It's basically lit services, Wave, and dark fiber, but that's why we're happy today to announce that we're going to add the power space and cooling to the portfolio as well.”

“and in terms of RevRec, we already booked revenue in this regard in the fourth quarter, and that was certainly helpful for me in our EBITDA trajectory. So we intend to drive more of that to the bottom line going through 2025, and we look forward to driving more business here.”

“And to Hans' point, so most of the things that we're going to be using to get into this market, things we've already done. So it's the assets we already have, tweaked a little bit.”

“I think the revenue we booked that helped with EBITDA as far as AI Connect is small. That was our first quarter that we booked revenue there, so that did have a little impact,”

“We recently signed an agreement with Google, valued at over $1 billion, to use Verizon dark fiber to connect their data centers. We have other deals that we expect to announce by year-end that, taken together, are expected to be worth multiple billions of dollars in revenue over the next several years.”

“The build-out of AI infrastructure across the United States is one of the largest capital cycles of our lifetime, Verizon is uniquely positioned to participate in it. We own one of the most extensive long-haul and metro fiber footprints in North America.”

“We expect this initiative to noticeably contribute to our revenue growth starting next year, to grow substantially from there.”

“That acceleration is independent of the incremental AI infrastructure revenue that begins to layer into our results starting in 2027.”

“We also continue to deploy fiber at scale to capture growth opportunities, including AI infrastructure builds across the country. As Dan said, we expect the amount of revenue associated with these deals to be in the billions over the next several years.”

“We have, as we mentioned in the remarks, that we have some early wins on AI Connect that Dan will get into in a second. That's an opportunity for us above the core business, and we expect it to become meaningful in 2027.”

“Mike, let me go into what we call AI Connect, our initiative inside the company. Look, this is the first time we're talking about it publicly.”

“They've got margins that are equal to or greater than our existing margin structures, they will begin to impact our revenues and margins beginning next year and grow substantially over the next 5- 10 years.”

“All of this is success-based kind of capital that we are putting in, and we see this accelerating business plus our Verizon AI Connect infrastructure providing us with a very different revenue future than we've had in a long, long time.”

“Our core connectivity business is gaining momentum, and with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon’s growth trajectory.”

“Behind the scenes, it was clear that there was a kind of once in a generation opportunity for Verizon to participate in the massive AI infrastructure build-out. As we talked to hyperscalers, alternative cloud providers, enterprises, there is a need for ever-increasing compute power.”

“And thirdly, establishing an AI-based revenue stream by commercializing our network's unique low latency, high bandwidth, and robust Mobile Edge Compute capabilities. Generative AI workloads represent a great long-term opportunity for us.”

“And we already have mobile edge compute in many of our sites across the country in order to be able to, to meet that compute and storage.”

“You know, Verizon AI Connect is the name of our strategy and suite of offerings that are intended to meet the growing demand for AI applications from both our ecosystem partners and end user customers. It's a vision that allows us to utilize existing assets in new ways to service this technology revolution.”

“We have thousands of distributed telco facilities, many of which already have power space and cooling available for this compute at the edge.”

“We have facilities across the United States that either have spare power, space, and cooling, or can be retrofitted. As we sit here today, we have two to 10+ MW of usable power across many of our sites.”

“It's basically lit services, Wave, and dark fiber, but that's why we're happy today to announce that we're going to add the power space and cooling to the portfolio as well.”

“We are also in the early stages of retrofitting many of our central offices into data centers for inference edge computing, with multiple conversations underway with partners who are eager to utilize these power-ready and permitted locations.”

“That acceleration is independent of the incremental AI infrastructure revenue that begins to layer into our results starting in 2027.”

“We have thousands of central offices, many of which we're taking copper out of, and we are retrofitting them to be remote data centers that are power ready, permitted, fully redundant infrastructure. We did a small trial on that and sold out capability in 24 hours, so we're seeing large demand for that as well.”