Verizon (VZ) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Transformation progress and strategic priorities

• Transformation is ahead of schedule, with momentum in turnaround efforts and a focus on customer-centricity over network-centricity.

• Four main priorities: customer focus, cultural shift to outcomes and speed, cost efficiency, and delivering shareholder value.

• $5 billion in OpEx and $4 billion in CapEx reductions underway, with reinvestment in customer experience and shareholder returns.

• Free cash flow growth guided at 7%+ and adjusted EPS growth raised to 5%-6% for the year.

• Revenue growth expected to accelerate, with guidance of 2%-3% for the year.

AI integration and operational impact

• Rapid transition to an AI-native organization, with AI redefining structure, productivity, and security.

• 85% of network issues are autonomously fixed, aiming for 100% automation.

• Four-level AI tech stack to be mostly complete by July and fully by November, impacting cost structure and value proposition.

• AI-driven improvements have led to a 1,280% increase in customer satisfaction at service locations.

• AI infrastructure seen as a multi-billion dollar top-line opportunity.

Customer experience and churn management

• Churn rate is the key metric for customer-centric success, with a 5 basis point reduction in Q1 and ongoing focus.

• Initiative "Every Customer Has a Name" drives individualized service and sophisticated churn analysis.

• Churn improvement is expected to contribute at least half of net add growth, with cost per gross add and retention costs down 35%.

• Highest customer satisfaction levels achieved, with micro-segmentation and targeted solutions reducing acquisition and retention costs.

• Value proposition refresh is ongoing, focusing on many small improvements rather than a single overhaul.