NEW YORK CITY, New York: Verizon raised its annual adjusted profit forecast on July 24 after reporting stronger-than-expected wireless subscriber growth and announcing a more than $1 billion agreement with Google to provide dark fiber connectivity for the technology company's data centers.

The telecom operator said additional agreements could be signed before the end of the year that may generate several billion dollars in revenue over the next few years, according to CEO Dan Schulman during a post-earnings call.

The rapid expansion of AI infrastructure is creating new opportunities for telecom companies to generate revenue from their fiber networks as hyperscale technology firms seek high-capacity links between data centers.

Verizon is also continuing its strategic overhaul under Schulman, introducing simplified wireless plans, a new loyalty program and bundled wireless and broadband offerings to improve subscriber growth after trailing rivals in recent years.

The company added 184,000 monthly bill-paying wireless subscribers during the second quarter, comfortably exceeding analysts' expectations of 103,900 additions, according to FactSet.

In June, Verizon revamped its wireless offerings with the launch of Simplicity, an unlimited wireless plan that replaces its more complex lineup with transparent pricing while providing access to the company's fastest 5G network and mobile hotspot data.

Verizon now expects adjusted earnings for the year of $4.99 to $5.04 per share, compared with its previous forecast of $4.95 to $4.99 per share.

The company also raised its free cash flow growth outlook to between 9% and 10% this year from its earlier forecast of about 7% or more.

Second-quarter revenue totaled $34.3 billion, below analysts' estimate of $35.16 billion, according to LSEG data, as equipment revenue declined amid slower smartphone upgrade activity, with customers keeping their devices for longer.

Adjusted earnings of $1.30 per share, however, exceeded analysts' expectations of $1.27, helped by cost controls and lower spending on device subsidies.