BCE (NYSE:BCE) Announces Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• BCE beat quarterly EPS expectations, reporting $0.47 per share versus the $0.46 consensus, while revenue rose 1.5% and adjusted EBITDA increased 1%.
• Wireless and fiber operations improved, with 41,594 postpaid phone additions, churn falling to 1.02%, and 45,271 residential fiber internet additions. Bell Media also posted strong growth, helped by advertising and Crave subscriber gains.
• BCE maintained its 2026 outlook but faces higher capital spending tied to Ziply Fiber and AI Fabric, with EPS guidance of $1.798–$1.919. The company declared a quarterly dividend of $0.4375 per share, implying an annualized yield of about 7.7%.

BCE (NYSE:BCE - Get Free Report) TSE: BCE released its quarterly earnings results on Thursday. The utilities provider reported $0.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.46 by $0.01, Zacks reports. BCE had a net margin of 25.66% and a return on equity of 13.87%. BCE updated its FY 2026 guidance to 1.798-1.919 EPS.

Here are the key takeaways from BCE's conference call:

• Q2 execution remained on plan: revenue rose 1.5%, adjusted EBITDA increased 1%, free cash flow exceeded CAD 1 billion, and net-debt leverage improved to approximately 3.7x. Management reconfirmed all 2026 guidance and remains targeted at 3.5x leverage by year-end 2027.
• Wireless and Canadian fiber trends improved, with 41,594 postpaid phone net adds, postpaid churn falling to a three-year low of 1.02%, and 45,271 residential FTTH internet additions. Management emphasized better pricing, reduced hardware discounting, and stronger product margins.
• Bell Media delivered strong growth, with revenue up 8.9% and adjusted EBITDA up 3.8%, supported by FIFA World Cup coverage and Crave. Crave subscribers increased 23% to 5.1 million, direct-to-consumer streaming subscribers grew 49%, and digital video advertising revenue rose 39%.
• Bell AI Fabric continues to advance, with approximately 335 MW of contracted capacity, construction progressing on the 300-MW Saskatchewan facility, and Winnipeg expected to enter service in the second half of 2026. Management said it has line of sight to 800 MW, although additional capacity depends on securing contracts and completing construction.
• Capital spending increased CAD 317 million year over year, primarily due to Ziply Fiber and AI Fabric, causing free cash flow to decline year over year; approximately CAD 1.3 billion of Saskatchewan data-center CapEx is expected in the second half of 2026. Ziply’s revenue remained broadly flat as fiber growth was offset by legacy copper, voice, wholesale declines, and near-term subscriber-acquisition costs.

BCE Trading Up 3.2%

Shares of NYSE BCE traded up $0.69 during trading hours on Thursday, reaching $22.75. The stock had a trading volume of 5,450,004 shares, compared to its average volume of 4,166,288. The company has a current ratio of 0.74, a quick ratio of 0.71 and a debt-to-equity ratio of 1.84. The firm has a market cap of $21.22 billion, a price-to-earnings ratio of 4.62 and a beta of 0.51. The business's fifty day moving average price is $22.61 and its two-hundred day moving average price is $24.15. BCE has a 52-week low of $20.87 and a 52-week high of $26.52.

BCE Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.4375 per share. This represents a $1.75 annualized dividend and a dividend yield of 7.7%. The ex-dividend date of this dividend is Tuesday, September 15th. BCE's payout ratio is currently 25.81%.

Key Stories Impacting BCE

Here are the key news stories impacting BCE this week:

• Positive Sentiment: Q2 earnings beat expectations. BCE reported adjusted earnings of $0.47 per share, up from $0.46 a year earlier and ahead of the $0.46 analyst consensus. BCE Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Revenue also topped Wall Street estimates. Bell Media benefited from increased advertising and broadcast activity associated with the FIFA World Cup, providing support for BCE’s media operations. FIFA World Cup Helps Lift Bell Media Revenues
• Positive Sentiment: The dividend remains a major attraction. BCE declared a quarterly dividend of $0.4375 per share, or $1.75 annualized, representing an indicated yield of approximately 7.7%. Investors of record on September 15 will be paid on October 15.
• Neutral Sentiment: Revenue guidance broadly aligns with expectations. BCE forecast fiscal 2026 revenue of $17.9 billion to $18.6 billion, a range that contains the $18.2 billion analyst consensus. BCE Reports Second Quarter 2026 Results
• Negative Sentiment: Profit declined year over year. Despite the EPS beat, BCE’s overall second-quarter profit fell, highlighting continued pressure on the business and limiting the positive impact of the earnings surprise.
• Negative Sentiment: Full-year EPS guidance is slightly cautious. BCE provided a 2026 EPS range of $1.798 to $1.919, below the $1.900 consensus at the low end and around 2% below consensus at the midpoint. BCE Q2 Earnings Key Metrics

Wall Street Analysts Forecast Growth

BCE has been the topic of a number of research reports. Barclays reduced their target price on shares of BCE from $26.00 to $25.00 and set an "equal weight" rating on the stock in a report on Thursday, July 16th. Raymond James Financial began coverage on shares of BCE in a report on Wednesday, July 15th. They issued a "market perform" rating for the company. TD Securities raised BCE from a "hold" rating to a "buy" rating in a research note on Wednesday, July 1st. Zacks Research downgraded BCE from a "hold" rating to a "strong sell" rating in a research report on Monday, July 13th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of BCE in a report on Friday, May 29th. Six analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $30.00.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of BCE. Geneos Wealth Management Inc. boosted its holdings in shares of BCE by 15.7% in the second quarter. Geneos Wealth Management Inc. now owns 3,581 shares of the utilities provider's stock valued at $79,000 after acquiring an additional 485 shares in the last quarter. Corient Private Wealth LLC lifted its position in BCE by 3.5% in the fourth quarter. Corient Private Wealth LLC now owns 17,601 shares of the utilities provider's stock worth $419,000 after purchasing an additional 599 shares during the period. Binnacle Investments Inc boosted its stake in BCE by 17.1% during the 3rd quarter. Binnacle Investments Inc now owns 4,164 shares of the utilities provider's stock valued at $97,000 after purchasing an additional 609 shares in the last quarter. Dynamic Technology Lab Private Ltd boosted its stake in BCE by 3.3% during the 4th quarter. Dynamic Technology Lab Private Ltd now owns 28,692 shares of the utilities provider's stock valued at $683,000 after purchasing an additional 926 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of BCE by 735.3% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,161 shares of the utilities provider's stock valued at $27,000 after purchasing an additional 1,022 shares during the period. 41.46% of the stock is currently owned by hedge funds and other institutional investors.

About BCE

BCE Inc NYSE: BCE is a Canadian communications, media and entertainment company that operates through its primary subsidiaries, including Bell Canada and Bell Media. As a large integrated telecommunications provider, BCE delivers a broad range of connectivity services and content to residential, business and wholesale customers across Canada. The company combines network infrastructure with media assets to offer bundled communications and entertainment solutions.

On the services side, BCE provides fixed-line and wireless voice services, mobile data, high-speed internet, fibre and broadband access, and television services through platforms such as Bell Fibe and Bell TV.

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