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TELUS Q1 Earnings & Revenues Decrease Y/Y, Dividend Announced
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Key Takeaways
TU posted Q1 EPS of C$0.23, down from C$0.26, while total operating revenues slipped 1% Y/Y.
TELUS added 262,000 mobile and fixed customers, led by connected devices and internet growth.
TU reiterated 2026 targets for 2%-4% EBITDA growth and about 10% free cash flow growth.
TELUS Corporation (TU - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of C$0.23, down from C$0.26 a year ago.
Quarterly total operating revenues decreased around 1% year over year at C$5,013 million.
The company’s operating revenues (from contracts with customers) were C$4,989 million, compared with C$5,081 million in the same period last year.
TELUS delivered total mobile and fixed customer growth of 262,000 during the first quarter, driven by 12,000 additions in mobile phones, 21,000 additions in Internet customers and 229,000 connected device additions.
TELUS’ board declared a quarterly dividend of C$0.4184 per share, payable on July 2, 2026, to shareholders of record as of June 10, 2026.
Management highlighted that TELUS adopted a measured response to wireless promotional discounting during the first quarter, with a continued focus on preserving its premium brand positioning. This strategy contributed to positive network revenue growth of 1% and continued sequential improvement in ARPU, reinforcing the effectiveness of the company’s go-to-market approach. Management added that TELUS will continue executing with precision throughout 2026, maintaining a differentiated strategy that supports long-term wireless industry health.
Management further emphasized that TELUS remains well-positioned to deliver sustainable long-term growth, supported by its strong asset mix, diversified business portfolio and operational execution capabilities. The company continues to focus on strong free cash flow generation through EBITDA growth, moderation in capital expenditure intensity, and ongoing efficiency and synergy realization.
As part of its disciplined capital allocation strategy, TELUS is maintaining its dividend at the current level while gradually reducing the discount on its dividend reinvestment plan, which was lowered to 1.75% starting in the first quarter of 2026. Management also mentioned its target of at least 10% compounded annual free cash flow growth through 2028.
In the first quarter, TTech revenues and other income decreased 2% year over year to C$3,790 million. TTech operating revenues (arising from contracts with customers) declined 2% year over year to C$3,772 million, primarily due to lower mobile equipment revenues.
Mobile network revenues increased 1% year over year to C$1,750 million, largely driven by growth in the mobile phone subscriber base, supported by ARPU declining at a decelerating rate.
Mobile equipment and other service revenues decreased 10% year over year to C$474 million due to lower contracted volumes, partially offset by the impact of higher-value smartphones in the sales mix.
Fixed data service revenues increased 1% year over year to C$1,175 million, driven by residential Internet subscriber growth, higher revenue per customer and growth in security, automation and TV subscriber bases. These gains were partially offset by lower B2B data services revenue.
Fixed voice services revenues declined 5% year over year to C$161 million, reflecting continued declines in legacy voice revenues due to technological substitution and shifts in consumer purchasing decisions, partially offset by successful customer retention efforts.
Fixed equipment and other service revenues decreased 13% year over year to C$124 million, primarily driven by lower premises equipment sales.
TELUS Corporation Price, Consensus and EPS Surprise
Agriculture and consumer goods services revenues declined 10% year over year to C$88 million, largely due to the planned divestiture of non-core assets and unfavorable foreign exchange impacts from the strengthening Canadian dollar against the U.S. dollar. These factors were partially offset by organic growth in animal agriculture.
The segment’s adjusted EBITDA of C$1,682 million remained relatively unchanged year over year. Results reflected subscriber growth across mobile, residential internet, security and automation and TV services, along with cost reduction efforts, workforce reductions, synergies achieved from the privatization of TELUS Digital, lower marketing and administrative costs, and lower bad debt expense. These benefits were offset by lower other income, continued mobile ARPU pressure, lower mobile equipment margins, lower agriculture and consumer goods margins following non-core asset divestitures, lower B2B data services revenue, higher subscription-based license and cloud usage costs, and ongoing declines in fixed legacy voice margins.
TELUS Health operating revenues and other income increased 11% year over year to C$526 million.
Health services revenues increased 11% year over year to C$522 million, driven by global business acquisitions, including the Workplace Options acquisition completed in May 2025, as well as growth in payor and provider solutions, collaborative health records, electronic medical records solutions, patient health records, health benefits management and virtual pharmacy solutions. These gains were partially offset by an organic decline in retirement and benefits solutions and EFAP.
Health equipment revenues remained stable at C$1 million year over year.
TELUS Health’s adjusted EBITDA increased 11% year over year to C$93 million, reflecting revenue growth and continued realization of acquisition integration synergies. These benefits were partially offset by higher indirect costs related to global acquisitions, scaling digital and security capabilities, digital transformation initiatives and higher regional marketing expenses.
TELUS Digital operating revenues (arising from contracts with customers) decreased 3% year over year to C$694 million, primarily attributable to unfavorable foreign exchange impacts from the strengthening Canadian dollar against the U.S. dollar, as well as lower volumes from certain technology clients in trust and safety and AI and data solutions service lines. These declines were partially offset by revenue growth from acquisitions and higher service volumes within digital solutions.
TELUS Digital’s operating revenues and other income remained relatively unchanged year over year at C$813 million. The segment’s adjusted EBITDA increased 2% year over year to C$81 million, while adjusted EBITDA margin improved 20 basis points to 10%, supported by stabilized operating expenses and operational efficiencies.
Other Details
Adjusted EBITDA remained almost flat year over year to C$1,837 million.
Cash Flow & Liquidity
In the first quarter, TELUS generated C$1,050 million of cash from operating activities compared with C$1,077 million in the year-ago quarter. The free cash flow increased 19% to C$583 million.
Capital expenditures (excluding spectrum licenses) increased 11% year over year to C$651 million.
2026 Guidance
TELUS reiterated its 2026 financial targets. For 2026, the company still expects consolidated service revenues and consolidated adjusted EBITDA to grow between 2% and 4%.
The company continues targeting approximately 10% growth in consolidated free cash flow to about $2.45 billion, while planning to reduce consolidated capital expenditures by roughly 10% to approximately $2.3 billion, reflecting a continued focus on profitable growth, strong cash generation and disciplined capital allocation.
Recent Performance of Other Companies in the Utilities Space
Rogers Communications Inc (RCI - Free Report) reported first-quarter 2026 adjusted earnings of 74 cents per share, beating the Zacks Consensus Estimate by 1.37% and up 7.2% year over year. RCI’s revenues of $4 billion beat the consensus mark by 1.39% and increased 15.3% year over year.
In domestic currency (Canadian dollar), adjusted earnings increased 2% year over year to C$1.01 per share. Total revenues increased 10.2% year over year to C$5.48 billion, primarily driven by growth in the Media businesses. Total service revenues increased 10.5% year over year to $4.91 billion in the quarter. Shares for RCI are up 43.6% in the past year.
Verizon Communications (VZ - Free Report) reported adjusted earnings of $1.28 per share for the first quarter of 2026, which jumped 7.6% year over year and beat the Zacks Consensus Estimate of $1.22 by 4.9%. Verizon’s total operating revenues rose 2.9% from the year-ago quarter to $34.44 billion but missed the consensus mark of $35.03 billion by 1.7%. The quarter featured 341,000 broadband net additions, led by fixed wireless access growth. Shares for VZ are up 7.8% in the past year.
Lumen Technologies, Inc. (LUMN - Free Report) reported a first-quarter 2026 adjusted loss (excluding special items) of 47 cents per share, significantly wider than the Zacks Consensus Estimate of a loss of 6 cents. The company reported adjusted loss per share of 13 cents in the prior-year quarter. Quarterly total revenues were $2.899 billion, down 9% year over year, but topped the Zacks Consensus Estimate by 2.1%.
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TELUS Q1 Earnings & Revenues Decrease Y/Y, Dividend Announced
Key Takeaways
TELUS Corporation (TU - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of C$0.23, down from C$0.26 a year ago.
Quarterly total operating revenues decreased around 1% year over year at C$5,013 million.
The company’s operating revenues (from contracts with customers) were C$4,989 million, compared with C$5,081 million in the same period last year.
TELUS delivered total mobile and fixed customer growth of 262,000 during the first quarter, driven by 12,000 additions in mobile phones, 21,000 additions in Internet customers and 229,000 connected device additions.
TELUS’ board declared a quarterly dividend of C$0.4184 per share, payable on July 2, 2026, to shareholders of record as of June 10, 2026.
Management highlighted that TELUS adopted a measured response to wireless promotional discounting during the first quarter, with a continued focus on preserving its premium brand positioning. This strategy contributed to positive network revenue growth of 1% and continued sequential improvement in ARPU, reinforcing the effectiveness of the company’s go-to-market approach. Management added that TELUS will continue executing with precision throughout 2026, maintaining a differentiated strategy that supports long-term wireless industry health.
Management further emphasized that TELUS remains well-positioned to deliver sustainable long-term growth, supported by its strong asset mix, diversified business portfolio and operational execution capabilities. The company continues to focus on strong free cash flow generation through EBITDA growth, moderation in capital expenditure intensity, and ongoing efficiency and synergy realization.
As part of its disciplined capital allocation strategy, TELUS is maintaining its dividend at the current level while gradually reducing the discount on its dividend reinvestment plan, which was lowered to 1.75% starting in the first quarter of 2026. Management also mentioned its target of at least 10% compounded annual free cash flow growth through 2028.
TELUS has lost 13% in the past year against the Zacks Diversified Communication Services industry’s growth of 18.8%.
Image Source: Zacks Investment Research
Quarterly Segmental Results
In the first quarter, TTech revenues and other income decreased 2% year over year to C$3,790 million. TTech operating revenues (arising from contracts with customers) declined 2% year over year to C$3,772 million, primarily due to lower mobile equipment revenues.
Mobile network revenues increased 1% year over year to C$1,750 million, largely driven by growth in the mobile phone subscriber base, supported by ARPU declining at a decelerating rate.
Mobile equipment and other service revenues decreased 10% year over year to C$474 million due to lower contracted volumes, partially offset by the impact of higher-value smartphones in the sales mix.
Fixed data service revenues increased 1% year over year to C$1,175 million, driven by residential Internet subscriber growth, higher revenue per customer and growth in security, automation and TV subscriber bases. These gains were partially offset by lower B2B data services revenue.
Fixed voice services revenues declined 5% year over year to C$161 million, reflecting continued declines in legacy voice revenues due to technological substitution and shifts in consumer purchasing decisions, partially offset by successful customer retention efforts.
Fixed equipment and other service revenues decreased 13% year over year to C$124 million, primarily driven by lower premises equipment sales.
TELUS Corporation Price, Consensus and EPS Surprise
TELUS Corporation price-consensus-eps-surprise-chart | TELUS Corporation Quote
Agriculture and consumer goods services revenues declined 10% year over year to C$88 million, largely due to the planned divestiture of non-core assets and unfavorable foreign exchange impacts from the strengthening Canadian dollar against the U.S. dollar. These factors were partially offset by organic growth in animal agriculture.
The segment’s adjusted EBITDA of C$1,682 million remained relatively unchanged year over year. Results reflected subscriber growth across mobile, residential internet, security and automation and TV services, along with cost reduction efforts, workforce reductions, synergies achieved from the privatization of TELUS Digital, lower marketing and administrative costs, and lower bad debt expense. These benefits were offset by lower other income, continued mobile ARPU pressure, lower mobile equipment margins, lower agriculture and consumer goods margins following non-core asset divestitures, lower B2B data services revenue, higher subscription-based license and cloud usage costs, and ongoing declines in fixed legacy voice margins.
TELUS Health operating revenues and other income increased 11% year over year to C$526 million.
Health services revenues increased 11% year over year to C$522 million, driven by global business acquisitions, including the Workplace Options acquisition completed in May 2025, as well as growth in payor and provider solutions, collaborative health records, electronic medical records solutions, patient health records, health benefits management and virtual pharmacy solutions. These gains were partially offset by an organic decline in retirement and benefits solutions and EFAP.
Health equipment revenues remained stable at C$1 million year over year.
TELUS Health’s adjusted EBITDA increased 11% year over year to C$93 million, reflecting revenue growth and continued realization of acquisition integration synergies. These benefits were partially offset by higher indirect costs related to global acquisitions, scaling digital and security capabilities, digital transformation initiatives and higher regional marketing expenses.
TELUS Digital operating revenues (arising from contracts with customers) decreased 3% year over year to C$694 million, primarily attributable to unfavorable foreign exchange impacts from the strengthening Canadian dollar against the U.S. dollar, as well as lower volumes from certain technology clients in trust and safety and AI and data solutions service lines. These declines were partially offset by revenue growth from acquisitions and higher service volumes within digital solutions.
TELUS Digital’s operating revenues and other income remained relatively unchanged year over year at C$813 million. The segment’s adjusted EBITDA increased 2% year over year to C$81 million, while adjusted EBITDA margin improved 20 basis points to 10%, supported by stabilized operating expenses and operational efficiencies.
Other Details
Adjusted EBITDA remained almost flat year over year to C$1,837 million.
Cash Flow & Liquidity
In the first quarter, TELUS generated C$1,050 million of cash from operating activities compared with C$1,077 million in the year-ago quarter. The free cash flow increased 19% to C$583 million.
Capital expenditures (excluding spectrum licenses) increased 11% year over year to C$651 million.
2026 Guidance
TELUS reiterated its 2026 financial targets. For 2026, the company still expects consolidated service revenues and consolidated adjusted EBITDA to grow between 2% and 4%.
The company continues targeting approximately 10% growth in consolidated free cash flow to about $2.45 billion, while planning to reduce consolidated capital expenditures by roughly 10% to approximately $2.3 billion, reflecting a continued focus on profitable growth, strong cash generation and disciplined capital allocation.
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
Rogers Communications Inc (RCI - Free Report) reported first-quarter 2026 adjusted earnings of 74 cents per share, beating the Zacks Consensus Estimate by 1.37% and up 7.2% year over year. RCI’s revenues of $4 billion beat the consensus mark by 1.39% and increased 15.3% year over year.
In domestic currency (Canadian dollar), adjusted earnings increased 2% year over year to C$1.01 per share. Total revenues increased 10.2% year over year to C$5.48 billion, primarily driven by growth in the Media businesses. Total service revenues increased 10.5% year over year to $4.91 billion in the quarter. Shares for RCI are up 43.6% in the past year.
Verizon Communications (VZ - Free Report) reported adjusted earnings of $1.28 per share for the first quarter of 2026, which jumped 7.6% year over year and beat the Zacks Consensus Estimate of $1.22 by 4.9%. Verizon’s total operating revenues rose 2.9% from the year-ago quarter to $34.44 billion but missed the consensus mark of $35.03 billion by 1.7%. The quarter featured 341,000 broadband net additions, led by fixed wireless access growth. Shares for VZ are up 7.8% in the past year.
Lumen Technologies, Inc. (LUMN - Free Report) reported a first-quarter 2026 adjusted loss (excluding special items) of 47 cents per share, significantly wider than the Zacks Consensus Estimate of a loss of 6 cents. The company reported adjusted loss per share of 13 cents in the prior-year quarter. Quarterly total revenues were $2.899 billion, down 9% year over year, but topped the Zacks Consensus Estimate by 2.1%.