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BCE's Q3 EPS rose to C$0.79 on 1.3% higher revenue, driven by gains from Ziply Fiber integration.
The new Bell CTS U.S. unit lifted revenue, offsetting declines in Bell CTS Canada and Bell Media.
Free cash flow jumped 20.6% to C$1B as lower capex and costs strengthened BCE's financial position.
BCE Inc. ((BCE - Free Report) ) reported third-quarter 2025 adjusted earnings per share (EPS) of C$0.79 (57 cents) compared with C$0.75 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 52 cents.
BCE’s quarterly operating revenues rose 1.3% year over year to C$6.05 billion ($4.4 billion), driven by a 0.8% increase in service revenue to C$5.33 billion and a 5.1% rise in product revenue to C$720 million. The acquisition of Ziply Fiber contributed to the growth, partially offsetting declines in Bell CTS Canada and Bell Media. The top line beat the consensus mark by 1%.
The quarter marked the company’s first full reporting period, including Ziply Fiber, acquired on Aug. 1, 2025. The integration is part of BCE’s new Bell CTS U.S. segment, which is already delivering positive returns. BCE is now positioned to strengthen its North American presence, combining Ziply’s U.S. fiber operations with its existing Canadian assets for cross-border growth.
BCE’s board of directors declared a quarterly dividend of C$0.4375 per share, payable Jan.15, 2026, to shareholders on record as of Dec. 15, 2025. BCE remains committed to delivering consistent shareholder returns while balancing its capital structure amid higher interest rates and a reshaped investment environment.
Image Source: Zacks Investment Research
In response to the results, BCE’s shares gained 3.5% and closed the trading session at $23.17 on Nov. 6. Shares of the company have lost 18.3% in the past year against the Zacks Diversified Communication Services industry's growth of 3.1%.
Segmental Results
The newly structured Bell CTS segment, encompassing BCE’s wireless and wireline operations in Canada and the United States, delivered C$5.41 billion in revenue, up 2.4% year over year, backed by upside in both service and product revenue. The rise in service revenue was driven by the contribution from Bell CTS U.S., partially offset by lower revenue from Bell CTS Canada.
Within the Bell CTS unit, Bell CTS Canada’s operating revenue declined 0.6% year over year to C$5.2 billion, as lower service revenue outweighed growth in product sales. Service revenue fell 1.5% to C$4.5 billion, reflecting continued declines in legacy services, higher residential discounts and lower mobile ARPU, partly offset by subscriber growth in wireless and Internet, as well as increased demand for AI-driven solutions at Ateko and Bell Cyber.
Product revenue rose 5.1% to C$720 million, supported by higher wireless device sales from increased upgrades and activations.
Postpaid mobile phone net additions totaled 11,511, down 65.2% year over year, reflecting a 15.6% decline in gross activations amid a softer market, slower population growth from immigration policies and fewer bring-your-own-device activations due to a focus on higher-value customers. The decline was partly offset by improved customer retention, with churn down 15 basis points to 1.13%.
Prepaid mobile phone net additions totaled 56,507, down from 69,085 in the prior-year quarter, owing to a 7% decrease in gross activations due to slower population growth from immigration policies and higher churn, which rose to 5.10% from 4.66% a year earlier.
Bell CTS U.S. reported operating revenues of C$160 million, driven by Internet revenues from residential, business and wholesale broadband services delivered over Ziply Fiber’s expanding FTTP network and IP broadband revenues from commercial Ethernet, dedicated Internet and other data transport solutions.
Bell Media’s performance remained under pressure, with operating revenue down 6.4% to C$732 million, affected by weak advertising and subscriber revenues. Advertising revenue declined 11.5% year over year due to softer demand for traditional advertising, particularly on conventional and specialty channels and lower audio revenues following the divestiture of 45 radio stations. This was partly offset by growth in digital video advertising from Connected TV and Crave’s ad-supported tiers, as well as higher digital out-of-home revenues. Subscriber revenue declined 5.2%, primarily due to favorable retroactive adjustments in the prior-year quarter, partly offset by continued growth in Crave and sports direct-to-consumer streaming subscriptions.
Other Details
BCE’s adjusted EBITDA rose 1.5% year over year to C$2.76 billion, anchored by contributions from Bell CTS U.S., offsetting declines of 6.7% and 0.6% at Bell Media and Bell CTS Canada, respectively. The company’s adjusted EBITDA margin held steady at 45.7%, slightly above the 45.6% in the previous year quarter.
Operating expenses rose 1.2% due to Ziply Fiber’s integration, but were offset by reduced labor costs from workforce optimization and automation efficiencies. This operational strength continues to power BCE’s transformation efforts, driving long-term margin sustainability.
Capital Efficiency & Cash Flow Strength
BCE’s capital expenditures decreased 6.6% to C$891 million, consistent with its strategy to scale back fiber expansion in Canada amid regulatory headwinds that dent network investment. The company’s capital intensity dropped to 14.7% from 16% in the prior-year quarter. In the United States, BCE invested C$128 million in Ziply Fiber’s FTTP (fiber-to-the-premises) network, signaling ongoing infrastructure development south of the border.
Cash flow from operating activities rose 3.9% to C$1.91 billion, driven by improved working capital and reduced severance costs. Free cash flow surged 20.6% to C$1 billion, due to lower capex, lower preferred dividend payments and stronger operating performance.
BCE Reiterates 2025 Guidance
For 2025, management anticipates revenue growth of 0-2%. Adjusted EBITDA is expected to grow in the 0-2% range. Free cash flow is forecasted in the band of 6% to 11%.
Adjusted EPS growth is now likely to be between (13%) and (10%).
Earlier, management adjusted the annual dividend to C$1.75 per share from C$3.99, reinforcing the balance sheet while preserving flexibility amid economic uncertainty.
Lumen Technologies, Inc. ((LUMN - Free Report) ) reported a third-quarter 2025 adjusted loss (excluding special items) of 20 cents per share, which was significantly narrower than the Zacks Consensus Estimate of a loss of 31 cents. The company reported adjusted loss per share of 13 cents in the prior-year quarter. Quarterly total revenues were $3.087 billion, down 4.2% year over year but beat the Zacks Consensus Estimate by 1.4%. Driven by significant AI-fueled connectivity demand, Lumen secured a total of $10 billion in PCF deals.
Rogers Communications Inc ((RCI - Free Report) ) reported third-quarter 2025 adjusted earnings of 99 cents per share, which beat the Zacks Consensus Estimate by 7.61% but decreased 3.5% year over year. Revenues of $3.88 billion beat the consensus mark by 1.16% and increased 4.3% year over year. In domestic currency (Canadian dollar), adjusted earnings declined 3.5% year over year to C$1.37 per share. Total revenues increased 4.3% year over year to C$5.35 billion, primarily driven by growth in the Media businesses.
Telefonica, S.A. ((TEF - Free Report) ) reported a third-quarter 2024 net income of €271 million stemming from continuing operations, which plummeted 45.1% year over year. Furthermore, basic earnings per share (EPS) were €0.09 (11 cents) compared with €0.12 in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate by 22.2%. Telefonica’s revenues for the third quarter were €8.96 billion ($10.47 billion). The figure missed the consensus mark by 0.35%.
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BCE's Q3 Earnings & Revenues Beat Estimates, Up Y/Y, Stock Gains
Key Takeaways
BCE Inc. ((BCE - Free Report) ) reported third-quarter 2025 adjusted earnings per share (EPS) of C$0.79 (57 cents) compared with C$0.75 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 52 cents.
BCE’s quarterly operating revenues rose 1.3% year over year to C$6.05 billion ($4.4 billion), driven by a 0.8% increase in service revenue to C$5.33 billion and a 5.1% rise in product revenue to C$720 million. The acquisition of Ziply Fiber contributed to the growth, partially offsetting declines in Bell CTS Canada and Bell Media. The top line beat the consensus mark by 1%.
The quarter marked the company’s first full reporting period, including Ziply Fiber, acquired on Aug. 1, 2025. The integration is part of BCE’s new Bell CTS U.S. segment, which is already delivering positive returns. BCE is now positioned to strengthen its North American presence, combining Ziply’s U.S. fiber operations with its existing Canadian assets for cross-border growth.
BCE’s board of directors declared a quarterly dividend of C$0.4375 per share, payable Jan.15, 2026, to shareholders on record as of Dec. 15, 2025. BCE remains committed to delivering consistent shareholder returns while balancing its capital structure amid higher interest rates and a reshaped investment environment.
Image Source: Zacks Investment Research
In response to the results, BCE’s shares gained 3.5% and closed the trading session at $23.17 on Nov. 6. Shares of the company have lost 18.3% in the past year against the Zacks Diversified Communication Services industry's growth of 3.1%.
Segmental Results
The newly structured Bell CTS segment, encompassing BCE’s wireless and wireline operations in Canada and the United States, delivered C$5.41 billion in revenue, up 2.4% year over year, backed by upside in both service and product revenue. The rise in service revenue was driven by the contribution from Bell CTS U.S., partially offset by lower revenue from Bell CTS Canada.
Within the Bell CTS unit, Bell CTS Canada’s operating revenue declined 0.6% year over year to C$5.2 billion, as lower service revenue outweighed growth in product sales. Service revenue fell 1.5% to C$4.5 billion, reflecting continued declines in legacy services, higher residential discounts and lower mobile ARPU, partly offset by subscriber growth in wireless and Internet, as well as increased demand for AI-driven solutions at Ateko and Bell Cyber.
Product revenue rose 5.1% to C$720 million, supported by higher wireless device sales from increased upgrades and activations.
Postpaid mobile phone net additions totaled 11,511, down 65.2% year over year, reflecting a 15.6% decline in gross activations amid a softer market, slower population growth from immigration policies and fewer bring-your-own-device activations due to a focus on higher-value customers. The decline was partly offset by improved customer retention, with churn down 15 basis points to 1.13%.
BCE, Inc. Price, Consensus and EPS Surprise
BCE, Inc. price-consensus-eps-surprise-chart | BCE, Inc. Quote
Prepaid mobile phone net additions totaled 56,507, down from 69,085 in the prior-year quarter, owing to a 7% decrease in gross activations due to slower population growth from immigration policies and higher churn, which rose to 5.10% from 4.66% a year earlier.
Bell CTS U.S. reported operating revenues of C$160 million, driven by Internet revenues from residential, business and wholesale broadband services delivered over Ziply Fiber’s expanding FTTP network and IP broadband revenues from commercial Ethernet, dedicated Internet and other data transport solutions.
Bell Media’s performance remained under pressure, with operating revenue down 6.4% to C$732 million, affected by weak advertising and subscriber revenues. Advertising revenue declined 11.5% year over year due to softer demand for traditional advertising, particularly on conventional and specialty channels and lower audio revenues following the divestiture of 45 radio stations. This was partly offset by growth in digital video advertising from Connected TV and Crave’s ad-supported tiers, as well as higher digital out-of-home revenues. Subscriber revenue declined 5.2%, primarily due to favorable retroactive adjustments in the prior-year quarter, partly offset by continued growth in Crave and sports direct-to-consumer streaming subscriptions.
Other Details
BCE’s adjusted EBITDA rose 1.5% year over year to C$2.76 billion, anchored by contributions from Bell CTS U.S., offsetting declines of 6.7% and 0.6% at Bell Media and Bell CTS Canada, respectively. The company’s adjusted EBITDA margin held steady at 45.7%, slightly above the 45.6% in the previous year quarter.
Operating expenses rose 1.2% due to Ziply Fiber’s integration, but were offset by reduced labor costs from workforce optimization and automation efficiencies. This operational strength continues to power BCE’s transformation efforts, driving long-term margin sustainability.
Capital Efficiency & Cash Flow Strength
BCE’s capital expenditures decreased 6.6% to C$891 million, consistent with its strategy to scale back fiber expansion in Canada amid regulatory headwinds that dent network investment. The company’s capital intensity dropped to 14.7% from 16% in the prior-year quarter. In the United States, BCE invested C$128 million in Ziply Fiber’s FTTP (fiber-to-the-premises) network, signaling ongoing infrastructure development south of the border.
Cash flow from operating activities rose 3.9% to C$1.91 billion, driven by improved working capital and reduced severance costs. Free cash flow surged 20.6% to C$1 billion, due to lower capex, lower preferred dividend payments and stronger operating performance.
BCE Reiterates 2025 Guidance
For 2025, management anticipates revenue growth of 0-2%. Adjusted EBITDA is expected to grow in the 0-2% range. Free cash flow is forecasted in the band of 6% to 11%.
Adjusted EPS growth is now likely to be between (13%) and (10%).
Earlier, management adjusted the annual dividend to C$1.75 per share from C$3.99, reinforcing the balance sheet while preserving flexibility amid economic uncertainty.
BCE’s Zacks Rank
BCE currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies
Lumen Technologies, Inc. ((LUMN - Free Report) ) reported a third-quarter 2025 adjusted loss (excluding special items) of 20 cents per share, which was significantly narrower than the Zacks Consensus Estimate of a loss of 31 cents. The company reported adjusted loss per share of 13 cents in the prior-year quarter. Quarterly total revenues were $3.087 billion, down 4.2% year over year but beat the Zacks Consensus Estimate by 1.4%. Driven by significant AI-fueled connectivity demand, Lumen secured a total of $10 billion in PCF deals.
Rogers Communications Inc ((RCI - Free Report) ) reported third-quarter 2025 adjusted earnings of 99 cents per share, which beat the Zacks Consensus Estimate by 7.61% but decreased 3.5% year over year. Revenues of $3.88 billion beat the consensus mark by 1.16% and increased 4.3% year over year. In domestic currency (Canadian dollar), adjusted earnings declined 3.5% year over year to C$1.37 per share. Total revenues increased 4.3% year over year to C$5.35 billion, primarily driven by growth in the Media businesses.
Telefonica, S.A. ((TEF - Free Report) ) reported a third-quarter 2024 net income of €271 million stemming from continuing operations, which plummeted 45.1% year over year. Furthermore, basic earnings per share (EPS) were €0.09 (11 cents) compared with €0.12 in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate by 22.2%. Telefonica’s revenues for the third quarter were €8.96 billion ($10.47 billion). The figure missed the consensus mark by 0.35%.