BCE (NYSE:BCE) Announces Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• BCE reported EPS of $0.53, beating the $0.49 consensus by $0.04. However, adjusted EPS and free cash flow declined year over year, while revenue rose 2.2%; the company reaffirmed its 2026 guidance.
• Wireless postpaid churn improved to 1.06%, and Bell Media revenue grew 9.7%, with Crave subscribers up 21% to 5.15 million. Wireless service revenue and ARPU remained down year over year.
• BCE agreed to sell a 49.9% stake in TowerCo for C$2.45 billion, while its initial 300 MW Bell AI Fabric capacity in Saskatchewan is fully contracted. The company also declared a C$0.44 quarterly dividend, indicated as an approximately 8.1% yield.

BCE (NYSE:BCE - Get Free Report) TSE: BCE released its earnings results on Thursday. The utilities provider reported $0.53 earnings per share for the quarter, topping the consensus estimate of $0.49 by $0.04, Zacks reports. BCE had a net margin of 25.49% and a return on equity of 12.90%.

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

• Q3 revenue grew 2.2% and adjusted EBITDA rose 0.9%, while adjusted EPS fell CAD 0.05 and free cash flow declined year over year amid higher capital spending. BCE reaffirmed its 2026 financial guidance.
• Wireless postpaid churn improved to 1.06%, its lowest third-quarter level since 2022, with more than 24,000 postpaid phone net additions. Service revenue and ARPU remained down year over year, but management said improving pricing trends could bring both to growth by mid-2027.
• Bell AI Fabric’s initial 300 MW in Saskatchewan is fully contracted and on track for its first data hall in the first half of 2027; BCE says 335 MW is contracted across its plans and cites a further 900 MW Saskatchewan expansion pipeline. Management also reported 41% growth in AI-powered solutions revenue, while noting that expansion depends on securing power, land and customers.
• Bell Media revenue increased 9.7% and adjusted EBITDA rose 8%, supported by Crave growth: subscribers reached 5.15 million, up 21% year over year. Digital video advertising revenue increased 41%.
• BCE agreed to sell La Caisse a 49.9% stake in TowerCo for CAD 2.45 billion, providing added financial flexibility while retaining control of the tower business. The company reiterated its goal of reaching 3.5 times net debt leverage by the end of 2027.

BCE Stock Performance

NYSE BCE traded down $0.41 on Friday, reaching $21.61. 5,877,052 shares of the company's stock traded hands, compared to its average volume of 3,849,578. BCE has a fifty-two week low of $18.68 and a fifty-two week high of $26.52. The company has a debt-to-equity ratio of 1.79, a quick ratio of 0.69 and a current ratio of 0.73. The firm has a market cap of $20.16 billion, a price-to-earnings ratio of 4.42, a P/E/G ratio of 6.36 and a beta of 0.53. The stock has a 50 day moving average price of $21.25 and a 200-day moving average price of $23.38.

BCE Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Tuesday, December 15th will be given a dividend of C$0.44 per share. The ex-dividend date is Tuesday, December 15th. This represents a $1.75 dividend on an annualized basis and a yield of 8.1%. BCE's payout ratio is currently 25.77%.

Analyst Ratings Changes

A number of brokerages have recently weighed in on BCE. Canaccord Genuity Group raised shares of BCE from a "hold" rating to a "buy" rating in a report on Tuesday, October 13th. Bank of America upgraded BCE from an "underperform" rating to a "buy" rating and raised their target price for the stock from $24.50 to $27.00 in a research note on Tuesday, August 11th. Raymond James Financial started coverage on BCE in a research report on Wednesday, July 15th. They set a "market perform" rating for the company. Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of BCE in a research note on Thursday, October 8th. Finally, Weiss Ratings raised BCE from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, October 23rd. Seven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $29.00.

More BCE News

Here are the key news stories impacting BCE this week:

• Positive Sentiment: BCE reported Q3 EPS of $0.53, above the $0.49 consensus, and revenue also topped estimates. The earnings beat may support the view that the shares are undervalued. BCE Surpasses Q3 Earnings and Revenue Estimates
• Neutral Sentiment: BCE declared a quarterly dividend of C$0.44 per share, equivalent to about C$1.75 annually and an indicated yield of 8%. That is attractive to income-focused investors, though the yield alone does not establish the dividend’s safety. BCE Stock Still Looks Reasonable
• Negative Sentiment: EPS was below the $0.57 reported a year earlier. Some coverage also characterized the quarter as a major miss and highlighted a larger AI investment, pointing to possible concerns about other performance measures and whether the spending will generate adequate returns despite the consensus-beating headline figures. BCE Q3 Earnings: A Big Miss Funded by a Bigger AI Bet

About BCE

BCE Inc is a Canadian communications and media company headquartered in Montréal, Québec. Through its Bell Canada operations, the company provides wireless and wireline telecommunications services, including mobile voice and data, high-speed internet, local and long-distance voice, and digital television. Bell serves residential, small-business, enterprise and government customers across Canada.

BCE also operates a media business through Bell Media, which includes television networks, digital platforms, radio stations and related content operations.

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