Verizon shares rose 3.7% on Monday after the company reported strong first-quarter results. Wireless carriers are now pulling ahead of cable operators. This signals a change in the ongoing competition for broadband and phone customers.

Verizon reported adjusted earnings per share of $1.28. This beat the analyst’s estimate of $1.21. Revenue grew 2.9% to $34.4 billion and slightly missed expectations. More importantly, Verizon added 55,000 net postpaid phone customers in the first quarter. This was its first positive result for this period since 2013. Analysts had expected a loss of over 88,000 subscribers. The company also gained 341,000 new wireless and fiber broadband customers.

These results stand in contrast to Charter Communications. Charter reported larger subscriber losses on Friday, which sent cable stocks lower. This difference highlights the growing gap between wireless and cable companies. They compete to attract customers with bundled packages that include mobile service, 5G home internet, and fiber broadband. Wireless carriers like Verizon, AT&T, and T-Mobile seem to be gaining the upper hand over cable operators.

A Citi analyst warned that as more companies bundle services, cable companies could see their average revenue per broadband user stall or drop. This could happen as customer numbers fall each year. This ongoing decline might lead to more mergers. On Sunday, a Wolfe Research analyst suggested that T-Mobile and Verizon should consider buying Charter. The current regulatory environment under the Trump administration is seen as especially open to large telecom mergers.

Verizon increased its full-year 2026 earnings forecast to between $4.95 and $4.99 per share. The midpoint is higher than earlier analyst predictions. This strong performance supports the early progress of new CEO Dan Schulman. He started in October and has focused on growing the subscriber base and cutting costs to strengthen Verizon’s market position.