Verizon To Build New Fiber Network For Amazon's Expanding AI Data Centers
Verizon Communications Inc (NYSE:VZ) and Amazon.com, Inc (NASDAQ:AMZN) Amazon Web Services (AWS) partnered to combine Verizon’s 5G network with AWS’s comprehensive mobile edge computing (MEC) and cloud services.
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Verizon will construct new long-haul fiber pathways linking AWS data centers, enabling AWS to expand and scale its secure, high-performance cloud services for customers building advanced AI applications.
The collaboration deepens Verizon's strategic relationship with AWS, which already includes Verizon's use of AWS as its preferred cloud provider and joint development of private mobile edge computing solutions.
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Third Quarter: How Did Verizon, Amazon Do?
Verizon posted mixed third-quarter results and reaffirmed its 2025 outlook on Wednesday. Revenue grew 1.5% year-over-year to $33.8 billion, missing analyst estimates, while adjusted EPS of $1.21 beat expectations.
Verizon added 306,000 broadband subscribers, including 261,000 fixed wireless access and 61,000 Fios internet additions, bringing total broadband connections to 13.2 million, up 11.1% year-over-year. Wireless service revenue rose 2.1% to $21 billion.
Verizon reaffirmed 2025 guidance, projecting 2%-2.8% wireless service revenue growth, adjusted EPS of $4.64–$4.73, and free cash flow of $19.5–$20.5 billion.
Amazon reported strong third-quarter results Thursday, with net sales rising 13% year-over-year to $180.2 billion, beating estimates of $177.8 billion.
North America sales grew 11% to $106.3 billion, and AWS revenue jumped 20% to $33 billion. The company posted earnings per share of $1.95, topping expectations of $1.57.
Looking ahead, Amazon expects fourth-quarter net sales between $206 billion and $213 billion — a 10%–13% increase year-over-year — and operating income between $21 billion and $26 billion, up from $21.2 billion a year earlier.
VZ, AMZN Price Actions: Verizon Communications shares were down 0.99% at $39.35; Amazon was up 4.79% at $255.92 on Monday at publication.
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