Verizon CEO Says ‘Diverse Portfolio’ Will Shield Carrier Through Tariffs, Macroeconomic Challenges

‘It’s very hard to say where the tariff is going to go and what’s going to happen. But in general, if the tariff is going to be as high as they say for the handset, we’re not planning on covering that … that’s just not going to be possible,’ Verizon CEO Hans Vestberg said during the carrier’s first-quarter 2025 earnings call.

The uncertainty being brought on by the evolving U.S. tariff policy is being closely watched by the telecom industry and while the tariffs are still “a moving target,” any large price increases will be passed along to the customer, Verizon CEO Hans Vestberg said during the carrier’s first-quarter 2025 earnings call.

However, Vestberg said that the carrier is working closely with its suppliers and is not experiencing any supply chain issues, nor does the CEO expect tariffs to change the company’s investment plans.

“Our business has demonstrated remarkable strength given the importance and essential nature of connectivity services, the size and quality of our customer base and the strength of our balance sheet. Our diverse portfolio of offerings serves all market segments and positions us for success in any economic environment, and with our bias for action and position of strength, we expect that we will not only weather the current environment, but thrive in it,” he told investors Tuesday morning.

Still, Vestberg noted that the impact of tariffs on customers is still largely unknown.

“It’s very hard to say where the tariff is going to go and what’s going to happen. But in general, if the tariff is going to be as high as they say for the handset, we’re not planning on covering that … that’s just not going to be possible. We will continue with financial discipline in whatever promotions we have, but we will not cover any enormous increase on tariffs on handsets,” he said.

Despite tariffs potentially having an impact on customer behavior down the line, Tony Skiadas, Verizon’s CFO, said that the demand and priority for connectivity are still high for consumers and businesses.

First-Quarter 2025 Results

Total operating revenue for Verizon Business, which includes the company’s Enterprise, Business Markets, and public sector and wholesale businesses, continued to trend downward, slipping 1.2 percent on revenue of $7.29 billion during the first quarter compared with $7.38 billion in the year-ago quarter.

Enterprise and public sector continued to decline, falling 3.6 percent during first-quarter 2025 to $3.46 billion compared with $3.59 billion a year ago.

Business Markets and other revenue rose 3.7 percent during the first quarter to $3.31 billion compared with $3.20 billion in the year-ago period. Wholesale revenue fell 13.3 percent to $515 million during first-quarter 2025 from $594 million one year before.

“The focus and the target is clear for us: to continue to grow our Verizon Business bottom line,” Vestberg said.

Verizon Business wireless service revenue in first-quarter 2025 came in at $3.57 billion, an increase of 2.8 percent year over year, which the company attributed to continued strong net additions for mobility and fixed wireless access, as well as pricing actions implemented in recent quarters. Verizon Business reported 67,000 postpaid phone net additions and 109,000 fixed wireless net additions during the quarter.

Wireless, which is typically a bright spot for Verizon, was impacted by intensified competition in first-quarter 2025. The company said it lost 289,000 wireless postpaid phone business and consumer subscribers during the quarter.

At the same time, Verizon also said it added 308,000 fixed wireless broadband customers, growing this base to about 4.8 million overall.

Vestberg called fixed wireless a “very attractive” offering for consumer and business customers of all sizes.

For the first quarter that ended March 31, Verizon reported operating revenue of $33.49 billion, a 1.5 percent increase compared with first-quarter 2024’s result. The carrier’s net income was $4.98 billion, a 5.5 percent increase compared with $4.72 billion a year ago. Verizon reported diluted earnings per share of $1.15 compared with $1.09 in first-quarter 2024. The Basking Ridge, N.J.-based carrier beat Wall Street’s expectations of $33.3 billion in revenue during the quarter.

Vestberg mentioned that the company is working to close the acquiston of Frontier Communications in an all-cash deal valued at $20 billion that the company announced in September as Verizon continues to make investments in its wireless footprint. The telecom giant in October also agreed to buy up a portion of U.S Cellular Corp.’s spectrum licenses for $1 billion.