TELUS (NYSE:TU) Issues Quarterly Earnings Results

Key Points

• TELUS reported quarterly EPS of $0.17, narrowly beating expectations, but revenue of $3.60 billion came in slightly below forecasts and was down 0.6% year over year.
• The company highlighted strong operating momentum, including 262,000 net customer additions and free cash flow up 19% to CAD 583 million in Q1, supported by its PureFibre and 5G+ strategy.
• TELUS also reaffirmed long-term financial goals and a large asset-monetization plan, targeting about CAD 2.45 billion in free cash flow in 2026 and CAD 7 billion in asset sales to help reduce debt.

TELUS (NYSE:TU - Get Free Report) TSE: T announced its earnings results on Friday. The Wireless communications provider reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.01, Zacks reports. TELUS had a net margin of 5.42% and a return on equity of 8.42%. The company had revenue of $3.60 billion for the quarter, compared to analysts' expectations of $3.64 billion. During the same quarter in the previous year, the company posted $0.26 EPS. The firm's quarterly revenue was down .6% on a year-over-year basis.

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

• TELUS reported industry-leading customer growth with 262,000 net additions in Q1 (including a record 229,000 connected devices) and ~21,000 internet net adds, driven by its PureFibre and 5G+ bundled strategy.
• Free cash flow momentum is strong (Q1 FCF up 19% year‑over‑year to CAD 583m) and management targets ~CAD 2.45 billion FCF in 2026 with a minimum 10% CAGR through 2028, alongside a CAD 7 billion asset-monetization program to accelerate deleveraging.
• TELUS Health continues to scale: service revenue and adjusted EBITDA grew 11%, LifeWorks synergies reached CAD 431m (above target), revenue now >CAD 2bn, and management is pursuing strategic partnership/monetization interest via an active marketing process.
• TELUS Digital/AI is a growth engine — AI-enabled revenue rose 22%, the Rimouski sovereign AI factory is sold out (Kamloops coming online), and TELUS Digital privatization is delivering annual cash synergies (~CAD 150–200m) and meaningful cash generation.
• Near-term headwinds remain: consolidated adjusted EBITDA was flat in Q1, fixed data revenue grew <1%, and enterprise contract repricing plus ongoing industry pricing intensity are cited as key risks that could push results toward the lower end of guidance.

TELUS Stock Down 1.1%

TU traded down $0.15 on Friday, reaching $12.74. The company's stock had a trading volume of 6,967,263 shares, compared to its average volume of 4,979,771. The stock has a 50 day moving average of $12.89 and a two-hundred day moving average of $13.41. The company has a quick ratio of 0.81, a current ratio of 0.86 and a debt-to-equity ratio of 1.65. The company has a market capitalization of $19.73 billion, a price-to-earnings ratio of 24.50, a P/E/G ratio of 4.73 and a beta of 0.61. TELUS has a fifty-two week low of $11.69 and a fifty-two week high of $16.74.

TELUS Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Wednesday, June 10th will be issued a $0.4184 dividend. This represents a $1.67 dividend on an annualized basis and a yield of 13.1%. The ex-dividend date of this dividend is Wednesday, June 10th. TELUS's dividend payout ratio is 236.54%.

Analyst Ratings Changes

Several research analysts have recently weighed in on TU shares. Canaccord Genuity Group cut shares of TELUS from a "buy" rating to a "hold" rating in a research report on Thursday, April 9th. Bank of America raised shares of TELUS from a "neutral" rating to a "buy" rating and upped their target price for the company from $14.50 to $16.00 in a research report on Tuesday, March 10th. Wall Street Zen raised shares of TELUS from a "sell" rating to a "hold" rating in a research report on Saturday. Scotiabank lowered shares of TELUS from an "outperform" rating to a "sector perform" rating in a research note on Friday, April 10th. Finally, TD Cowen upgraded shares of TELUS from a "hold" rating to a "buy" rating in a research note on Tuesday, April 28th. Five analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $17.63.

TELUS News Roundup

Here are the key news stories impacting TELUS this week:

• Positive Sentiment: TELUS reported first-quarter adjusted earnings of $0.17 per share, slightly ahead of estimates, while free cash flow rose 19% to $583 million and the company added 262,000 mobile and fixed customers. TELUS reports operational and financial results for first quarter 2026
• Positive Sentiment: The company reaffirmed its full-year 2026 targets, signaling confidence in service revenue, EBITDA, and free cash flow growth. TELUS reports operational and financial results for first quarter 2026
• Positive Sentiment: TELUS announced a quarterly dividend of C$0.4184 per share, reinforcing its income profile and attractive yield for investors. TELUS Corporation - NOTICE OF CASH DIVIDEND
• Neutral Sentiment: TELUS named Gopi Chande as its next CFO, replacing Doug French on July 1 as part of a planned leadership transition. TELUS Announces Retirement of Chief Financial Officer Doug French and Appointment of Successor Gopi Chande
• Negative Sentiment: Revenue declined 0.6% year over year and earnings were below the prior-year quarter, suggesting slower top-line momentum and pressure versus last year. TELUS reports operational and financial results for first quarter 2026

Institutional Investors Weigh In On TELUS

Several large investors have recently modified their holdings of TU. FIL Ltd boosted its holdings in shares of TELUS by 112.9% in the fourth quarter. FIL Ltd now owns 30,300,204 shares of the Wireless communications provider's stock valued at $399,352,000 after acquiring an additional 16,066,539 shares during the period. The Manufacturers Life Insurance Company boosted its holdings in shares of TELUS by 258.3% in the fourth quarter. The Manufacturers Life Insurance Company now owns 19,816,565 shares of the Wireless communications provider's stock valued at $261,727,000 after acquiring an additional 14,285,486 shares during the period. Bank of Nova Scotia boosted its holdings in shares of TELUS by 19.0% in the fourth quarter. Bank of Nova Scotia now owns 17,536,356 shares of the Wireless communications provider's stock valued at $231,118,000 after acquiring an additional 2,798,034 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in shares of TELUS by 40.0% in the third quarter. Arrowstreet Capital Limited Partnership now owns 9,033,455 shares of the Wireless communications provider's stock valued at $142,387,000 after acquiring an additional 2,583,074 shares during the period. Finally, Invesco Ltd. boosted its holdings in shares of TELUS by 20.1% in the fourth quarter. Invesco Ltd. now owns 12,500,760 shares of the Wireless communications provider's stock valued at $164,635,000 after acquiring an additional 2,091,819 shares during the period. 49.40% of the stock is owned by institutional investors and hedge funds.

TELUS Company Profile

TELUS Corporation NYSE: TU is a Canadian telecommunications and technology company headquartered in Vancouver, British Columbia. It delivers a broad portfolio of consumer and business communications services across Canada, including mobile wireless, fixed-line voice, broadband internet, and television. TELUS also provides a range of enterprise services such as cloud and IT solutions, managed network services, cybersecurity and Internet of Things (IoT) offerings for business customers.

Beyond core connectivity, TELUS has expanded into health and digital services.

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