Verizon Communications (VZ) stock plummeted 5.03% in pre-market trading on Tuesday following the release of its first-quarter earnings report. The telecom giant's shares fell to $41.40 as investors reacted to disappointing subscriber numbers, despite the company beating earnings expectations.

Verizon reported a loss of 289,000 monthly bill-paying wireless subscribers in the first quarter, significantly higher than the 166,400 subscriber loss analysts had anticipated according to FactSet data. This substantial decline in subscribers was attributed to recent price hikes and aggressive promotions from competitors. The company raised monthly prices for its customizable myPlan accounts with five lines or more by $3 per line, while customers on the New Verizon Plan faced a $4 per line increase for single mobile lines.

Despite the subscriber losses, Verizon's financial performance showed some positive signs. The company reported adjusted earnings of $1.19 per share, surpassing analysts' expectations of $1.15 per share. Total revenue grew 1.5% year-over-year to $33.5 billion, slightly above the estimated $33.24 billion. Wireless service revenue also increased by 2.7% to $20.8 billion. However, these financial gains were overshadowed by concerns about customer retention and market competition. Verizon reaffirmed its full-year 2025 guidance, expressing confidence in its business plans amid economic uncertainty, but noted that the forecast does not reflect potential impacts from the evolving tariff environment.