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TELUS Q3 Earnings Down Y/Y, Health & Digital Units Drive Revenues
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Key Takeaways
TELUS reported Q3 EPS of C$0.24 on C$5.1B revenue, with modest 1% adjusted EBITDA growth.
Health revenue surged 19% on acquisitions and strong digital health solutions momentum.
New ventures like Terrion and full TELUS Digital ownership aim to enhance AI, efficiency, and cash flow.
TELUS Corporation (TU - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of C$0.24, down from C$0.28 a year ago.
Quarterly total operating revenues remained almost flat year over year at C$5,106 million.
The company’s operating revenues (from contracts with customers) were C$5,067 million, compared with C$5,042 million in the same period last year.
TELUS delivered total mobile and fixed customer growth of 288,000 during the third quarter, driven by 82,000 additions in mobile phones, 40000 additions in Internet customers and 169,000 connected device additions.
TELUS’ board declared a quarterly dividend of C$0.4184 per share, payable on Jan. 2, 2026, to shareholders of record as of Dec. 11, 2025. This represents a 4% increase from the C$0.4023 per share dividend declared in the same quarter last year.
In September, TELUS finalized its partnership with La Caisse to form Terrion, Canada’s largest dedicated wireless tower operator. This collaboration enhances national wireless connectivity, strengthens TELUS’ balance sheet and accelerates its deleveraging efforts. Terrion, with 3,000 sites nationwide, is already operational and has begun building its first multi-carrier tower in Nanaimo, B.C., with more projects underway.
In October, TELUS acquired full ownership of TELUS Digital, integrating its AI and digital experience capabilities into core operations. This move will drive AI-powered transformation, expand SaaS growth opportunities and deliver about $150 million in annual cash synergies through operational efficiencies, further boosting shareholder value.
In the third quarter, TTech revenues and other income decreased 3% year over year to C$3,877 million. TTech operating revenues (arising from contracts with customers) declined 2% year over year to $3,842 million due to lower mobile equipment revenue.
Mobile network revenues decreased 1% year over year to C$1,755 million due to a decline in mobile phone ARPU, partially offset by higher mobile phone subscriber count and strength in IoT connections.
Mobile equipment and other service revenues fell 12% to C$518 million due to lower contracted volumes and intense competitive pricing, partially offset by a greater share of higher-value smartphones in the sales mix.
TELUS Corporation Price, Consensus and EPS Surprise
Fixed data service revenues increased 1% to C$1,185 million, driven by an expanding Internet and security and automation subscriber base, with Internet revenue further boosted by higher revenue per customer. However, these gains were partially offset by lower B2B data service revenues and slower TV revenue growth, as more customers opted for smaller TV bundles and shifted toward alternative technologies.
Fixed voice services revenues declined 7% year over year to C$167 million as a result of the ongoing fall in legacy voice revenues due to technological substitution and evolving consumer preferences. The decrease was partly offset by the company’s retention efforts.
Fixed equipment and other service revenues increased around 7% to C$125 million, driven by an increase in security premises equipment sales.
Agriculture and consumer goods services revenues decreased 8% year over year to C$92 million due to the divestiture of non-core assets, partially balanced by stronger organic growth across various revenue streams.
The segment’s adjusted EBITDA of C$1,685 million increased 2.1% year over year. This was driven by cost reductions, TELUS Digital efficiencies and subscriber and Internet revenue growth. These gains were partly offset by lower mobile ARPU and equipment margins, reduced other income, weaker non-core asset margins and higher cloud and licence costs.
TELUS Health’s operating revenues and other income revenues increased 19% year over year to C$528 million.
Health services revenues increased 18% year over year to C$516 million, driven by global acquisitions in employer solutions, including the May 2025 acquisition of Workplace Options and growth in payor and provider solutions, supported by strong collaborative health records performance and higher recurring revenues from electronic medical records and virtual pharmacy offerings. These gains were partially offset by a decline in retirement and benefits solutions.
Health equipment revenues fell 67% to C$1 million, mainly due to lower revenue from a pharmacy hardware upgrade in the payor and provider solutions segment.
TELUS Health’s adjusted EBITDA grew 24% to C$91 million, driven by revenue growth, cost-reduction initiatives and ongoing acquisition integration synergies. This was partly offset by higher indirect costs from global acquisitions and scaling digital capabilities.
TELUS Digital's operating revenues (arising from contracts with customers) increased 5% to C$708 million, driven by favorable foreign exchange impacts from the stronger U.S. dollar and euro against the Canadian dollar, boosting TELUS Digital’s results, along with increased services to existing clients, including social media platforms and new client additions since the prior year. This growth was partially offset by lower revenues from certain technology and e-commerce clients.
TELUS Digital's operating revenues and other income grew 7% to C$957 million. The segment’s adjusted EBITDA of C$105 million decreased 18% from the year-ago quarter.
Other Details
Adjusted EBITDA increased a modest 1% year over year to C$1,862 million.
Cash Flow & Liquidity
In the third quarter, TELUS generated C$1,493 million of cash from operating activities compared with C$1,432 million in the year-ago quarter. The free cash flow increased 8% to C$611 million.
Capital expenditures (excluding spectrum licenses) decreased 2% year over year to C$652 million.
2025 Guidance
For 2025, TTech operating revenue, including the Health segment, is expected to be at the lower end of the 2%–4% target range, reflecting variability in mobile handset equipment revenue heading into a high-volume fourth quarter.
TELUS reaffirmed its other financial targets for 2025. TTech adjusted EBITDA is still expected to grow 3-5%, while free cash flow is projected to still reach nearly C$2.15 billion. Capital expenditures are estimated at C$2.5 billion, excluding C$100 million allocated for real estate development initiatives.
Recent Performance of Other Companies in the Utilities Space
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. LUMN reported adjusted loss per share of 13 cents in the prior-year quarter.
Quarterly total revenues of Lumen were $3.087 billion, down 4.2% year over year but beat the Zacks Consensus Estimate by 1.4%.
Telefonica, S.A. (TEF - Free Report) reported a third-quarter net income of €271 million stemming from continuing operations, which plummeted 45.1% year over year. It generated €5 million from discontinued ones (Argentina, Peru, Uruguay and Ecuador). Furthermore, basic 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). On an organic basis, revenues grew 0.4%, underscoring steady operational performance across markets. However, reported revenues fell 1.6%, primarily due to adverse foreign exchange effects. The figure missed the consensus mark by 0.35%.
Rogers Communications (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%.
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.
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TELUS Q3 Earnings Down Y/Y, Health & Digital Units Drive Revenues
Key Takeaways
TELUS Corporation (TU - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of C$0.24, down from C$0.28 a year ago.
Quarterly total operating revenues remained almost flat year over year at C$5,106 million.
The company’s operating revenues (from contracts with customers) were C$5,067 million, compared with C$5,042 million in the same period last year.
TELUS delivered total mobile and fixed customer growth of 288,000 during the third quarter, driven by 82,000 additions in mobile phones, 40000 additions in Internet customers and 169,000 connected device additions.
TELUS’ board declared a quarterly dividend of C$0.4184 per share, payable on Jan. 2, 2026, to shareholders of record as of Dec. 11, 2025. This represents a 4% increase from the C$0.4023 per share dividend declared in the same quarter last year.
In September, TELUS finalized its partnership with La Caisse to form Terrion, Canada’s largest dedicated wireless tower operator. This collaboration enhances national wireless connectivity, strengthens TELUS’ balance sheet and accelerates its deleveraging efforts. Terrion, with 3,000 sites nationwide, is already operational and has begun building its first multi-carrier tower in Nanaimo, B.C., with more projects underway.
In October, TELUS acquired full ownership of TELUS Digital, integrating its AI and digital experience capabilities into core operations. This move will drive AI-powered transformation, expand SaaS growth opportunities and deliver about $150 million in annual cash synergies through operational efficiencies, further boosting shareholder value.
TELUS has lost 6% in the past year against the Zacks Diversified Communication Services industry’s growth of 3.7%.
Image Source: Zacks Investment Research
Quarterly Segmental Results
In the third quarter, TTech revenues and other income decreased 3% year over year to C$3,877 million. TTech operating revenues (arising from contracts with customers) declined 2% year over year to $3,842 million due to lower mobile equipment revenue.
Mobile network revenues decreased 1% year over year to C$1,755 million due to a decline in mobile phone ARPU, partially offset by higher mobile phone subscriber count and strength in IoT connections.
Mobile equipment and other service revenues fell 12% to C$518 million due to lower contracted volumes and intense competitive pricing, partially offset by a greater share of higher-value smartphones in the sales mix.
TELUS Corporation Price, Consensus and EPS Surprise
TELUS Corporation price-consensus-eps-surprise-chart | TELUS Corporation Quote
Fixed data service revenues increased 1% to C$1,185 million, driven by an expanding Internet and security and automation subscriber base, with Internet revenue further boosted by higher revenue per customer. However, these gains were partially offset by lower B2B data service revenues and slower TV revenue growth, as more customers opted for smaller TV bundles and shifted toward alternative technologies.
Fixed voice services revenues declined 7% year over year to C$167 million as a result of the ongoing fall in legacy voice revenues due to technological substitution and evolving consumer preferences. The decrease was partly offset by the company’s retention efforts.
Fixed equipment and other service revenues increased around 7% to C$125 million, driven by an increase in security premises equipment sales.
Agriculture and consumer goods services revenues decreased 8% year over year to C$92 million due to the divestiture of non-core assets, partially balanced by stronger organic growth across various revenue streams.
The segment’s adjusted EBITDA of C$1,685 million increased 2.1% year over year. This was driven by cost reductions, TELUS Digital efficiencies and subscriber and Internet revenue growth. These gains were partly offset by lower mobile ARPU and equipment margins, reduced other income, weaker non-core asset margins and higher cloud and licence costs.
TELUS Health’s operating revenues and other income revenues increased 19% year over year to C$528 million.
Health services revenues increased 18% year over year to C$516 million, driven by global acquisitions in employer solutions, including the May 2025 acquisition of Workplace Options and growth in payor and provider solutions, supported by strong collaborative health records performance and higher recurring revenues from electronic medical records and virtual pharmacy offerings. These gains were partially offset by a decline in retirement and benefits solutions.
Health equipment revenues fell 67% to C$1 million, mainly due to lower revenue from a pharmacy hardware upgrade in the payor and provider solutions segment.
TELUS Health’s adjusted EBITDA grew 24% to C$91 million, driven by revenue growth, cost-reduction initiatives and ongoing acquisition integration synergies. This was partly offset by higher indirect costs from global acquisitions and scaling digital capabilities.
TELUS Digital's operating revenues (arising from contracts with customers) increased 5% to C$708 million, driven by favorable foreign exchange impacts from the stronger U.S. dollar and euro against the Canadian dollar, boosting TELUS Digital’s results, along with increased services to existing clients, including social media platforms and new client additions since the prior year. This growth was partially offset by lower revenues from certain technology and e-commerce clients.
TELUS Digital's operating revenues and other income grew 7% to C$957 million. The segment’s adjusted EBITDA of C$105 million decreased 18% from the year-ago quarter.
Other Details
Adjusted EBITDA increased a modest 1% year over year to C$1,862 million.
Cash Flow & Liquidity
In the third quarter, TELUS generated C$1,493 million of cash from operating activities compared with C$1,432 million in the year-ago quarter. The free cash flow increased 8% to C$611 million.
Capital expenditures (excluding spectrum licenses) decreased 2% year over year to C$652 million.
2025 Guidance
For 2025, TTech operating revenue, including the Health segment, is expected to be at the lower end of the 2%–4% target range, reflecting variability in mobile handset equipment revenue heading into a high-volume fourth quarter.
TELUS reaffirmed its other financial targets for 2025. TTech adjusted EBITDA is still expected to grow 3-5%, while free cash flow is projected to still reach nearly C$2.15 billion. Capital expenditures are estimated at C$2.5 billion, excluding C$100 million allocated for real estate development initiatives.
TU’s Zacks Rank
TELUS 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 in the Utilities Space
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. LUMN reported adjusted loss per share of 13 cents in the prior-year quarter.
Quarterly total revenues of Lumen were $3.087 billion, down 4.2% year over year but beat the Zacks Consensus Estimate by 1.4%.
Telefonica, S.A. (TEF - Free Report) reported a third-quarter net income of €271 million stemming from continuing operations, which plummeted 45.1% year over year. It generated €5 million from discontinued ones (Argentina, Peru, Uruguay and Ecuador). Furthermore, basic 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). On an organic basis, revenues grew 0.4%, underscoring steady operational performance across markets. However, reported revenues fell 1.6%, primarily due to adverse foreign exchange effects. The figure missed the consensus mark by 0.35%.
Rogers Communications (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%.
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.