BCE Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did BCE Beat Earnings? Q4 2025 Results
BCE delivered a mixed but ultimately encouraging fourth quarter, with disciplined cost management driving an earnings beat even as revenue fell slightly short. The Canadian telecom giant posted adjusted EPS of $0.69, clearing the $0.62 consensus estimate by 11.29%, while revenue of $6.40 billion came in 1.91% below expectations and slipped 0.3% year over year. The standout story behind the EPS beat was a record Q4 adjusted EBITDA margin of 41.6%, the highest in over 30 years, achieved through a 2.0% reduction in operating costs via workforce reductions, lower product costs, and technology-driven efficiencies. The August 2025 Ziply Fiber acquisition added $232 million in quarterly revenue at a healthy 43.1% margin, partially offsetting softness in Canadian wireless activations and a 46% decline in domestic fibre internet net additions amid aggressive competitor promotions. Shares fell roughly 2.9% following the announcement, a reaction that may resonate with investors watching <a href="https://247wallst.com/investing/2026/02/04/alphabet-aims-for-12-consecutive-quarterly-earnings-beats-when-it-reports-today/">other earnings-season narratives</a> closely. Looking ahead, BCE's 2026 guidance targets 1-5% revenue growth and 4-10% free cash flow growth, while adjusted EPS is expected to decline 5-11% due to higher depreciation and interest costs.
- Ziply Fiber acquisition contributing incremental revenue and adjusted EBITDA
- Highest Q4 adjusted EBITDA margin in over 30 years at 41.6%
- 2.0% reduction in operating costs through workforce reductions and automation
- Postpaid churn improved 17 basis points to 1.49%, third consecutive quarter of YoY improvement
- Internet revenue growth of 16.6% driven by Ziply Fiber contribution
- AI-powered solutions revenue up 31% in Q4
- Crave subscriptions up 26% to 4.6 million
- Full-year free cash flow grew 10% to $3.2 billion
“Bell's disciplined focus on its four strategic priorities – putting the customer first; delivering the best fibre and wireless networks; leading in enterprise with AI-powered solutions; and building a digital media and content powerhouse – delivered strong results in 2025.”
BCE CEO, on the earnings call
Forward Guidance & Outlook
BCE's 2026 guidance targets 1-5% revenue growth, 0-4% adjusted EBITDA growth, capital intensity below 15%, adjusted EPS decline of 11% to 5%, free cash flow growth of 4-10%, and an annualized common dividend per share of $1.75. The company expects improvements in wireless pricing, increased wireless product sales, growth in AI-powered enterprise solutions, incremental financial contribution from Ziply Fiber, media revenue growth and cost efficiencies to support higher revenue and adjusted EBITDA. Higher depreciation and amortization, increased interest expense and lower tax adjustments are expected to result in lower adjusted EPS. BCE has a goal of $1.5 billion in cost savings by 2028. Considerable uncertainty remains around the impact of U.S. trade policy on the Canadian economy, with the Bank of Canada estimating 1.1% GDP growth in 2026, down from 1.7% in 2025.
BCE YoY Financials
BCE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.