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- Verizon boosts annual forecast on demand for premium plans, tax law benefit</p>
<p>July 21, 2025 at 7:58 PM</p>
<p>(Reuters) -U.S. wireless carrier Verizon raised the lower end of its annual profit forecast, riding on strong demand for its premium plans and benefits from the Trump administration's new tax law.</p>
<p>Shares of the company rose 3.5% on Monday as it also surpassed Wall Street estimates for June-quarter sales and profit, thanks to a 2.2% rise in wireless service revenue.</p>
<p>The telecom major has launched price-lock promotions and broadband-wireless bundles to retain users as competition intensifies from AT&T and T-Mobile, as well as broadband providers Comcast and Charter.</p>
<p>Verizon is also benefiting from favorable U.S. tax reform that allows companies to immediately write off the full cost of certain new equipment, finance chief Tony Skiadas said.</p>
<p>He estimated the legislation will boost free cash flow by $1.5 billion to $2 billion this year, prompting Verizon to raise its forecast for the metric to between $19.5 billion and $20.5 billion, up from $17.5 billion to $18.5 billion previously.</p>
<p>The company now expects 2025 adjusted profit to grow between 1% and 3%, compared with 0% to 3% previously.</p>
<p>Verizon pays the highest cash taxes among major U.S. telecoms, Wells Fargo analysts said earlier this month, adding the tax law will provide a big financial boost to the industry.</p>
<p>Shares of AT&T and T-Mobile were both up 2.3%.</p>
<p>However, Verizon posted a surprise drop of 9,000 monthly bill-paying wireless subscribers in the second quarter, reeling from user churn after price hikes in January. Analysts polled by FactSet were expecting an increase of 13,000 subscribers.</p>
<p>To drive growth, Verizon and its rivals have been bulking up on fiber-optic assets that can tap growing consumer data use.</p>
<p>Verizon in May won approval from the U.S. telecom regulator for its $20 billion acquisition of fiber-optic internet provider Frontier, after it agreed to end its diversity programs.</p>
<p>The sharper focus on internet services helped it posted 293,000 broadband net additions in the second quarter.</p>
<p>Overall, Verizon reported revenue of $34.5 billion, beating estimates of $33.74 billion, according to data compiled by LSEG. Its adjusted earnings per share of $1.22 also beat estimates.</p>
<p>(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur)</p>
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