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Telus

Telus (TU) Q2 2026 Earnings

Reported Jul 31, 2026 at 7:12 AM ET · SEC Source

Q2 26 EPS

$0.16

BEAT +13.07%

Est. $0.14

Q2 26 Revenue

$4.92B

MISS 2.12%

Est. $5.03B

vs S&P Since Q2 26

-16.1%

TRAILING MARKET

TU -12.6% vs S&P +3.5%

Market Reaction

Did TU Beat Earnings? Q2 2026 Results

TELUS Corp. Delivered a bruising second quarter of 2026, with a $2.13 billion non-cash impairment charge tied to its TELUS Digital unit overwhelming an otherwise operational period and driving a net loss of $1.83 billion. Revenue slipped 2.2% year-ov… Read more TELUS Corp. Delivered a bruising second quarter of 2026, with a $2.13 billion non-cash impairment charge tied to its TELUS Digital unit overwhelming an otherwise operational period and driving a net loss of $1.83 billion. Revenue slipped 2.2% year-over-year to $4.92 billion, weighed down by a 10% decline in TELUS Digital's external revenue from client ramp-downs and an unfavorable currency swing from a stronger Canadian dollar. On an adjusted basis, EPS came in at $0.16, down 27% from a year earlier. The quarter's most consequential development was a 55% dividend reset, cutting the annualized payout to $0.75 per share from $1.67, with management projecting roughly $2.70 billion in cumulative cash savings through 2028 directed entirely at debt reduction. New CEO Victor Dodig laid out a refocused strategy centered on deleveraging, cost discipline, and concentrated investment in wireless, PureFibre, and sovereign AI infrastructure. Looking ahead, TELUS revised full-year guidance sharply lower, now targeting service revenue of flat to negative 2% and free cash flow of approximately $1.80 billion, down from a prior forecast of $2.45 billion.

Key Takeaways

  • • Mobile subscriber base growth with 10.3 million mobile phone subscribers
  • • Connected device net additions of 187,000, up 75,000 year-over-year
  • • TELUS Health revenue growth driven by Workplace Options acquisition and payor/provider solutions
  • • ARPU decline decelerating to 0.4%, supported by premium brand loading focus
  • • Lower income taxes paid and reduced lease payments boosting operating cash flow
  • • Cost reduction efforts including workforce reductions and TELUS Digital privatization synergies

TU Forward Guidance & Outlook

TELUS significantly revised its full-year 2026 guidance downward. Consolidated service revenue growth is now expected to be flat to negative 2% (previously 2-4% growth). Consolidated Adjusted EBITDA is now expected to decline 2-4% (previously 2-4% growth). Capital expenditures increased to approximately C$2.6 billion (from C$2.3 billion) reflecting sovereign AI data centre investment, supply chain inflation and customer base management. Free cash flow is now expected to be approximately C$1.8 billion (from C$2.45 billion), reflecting lower EBITDA, higher capex, and incremental C$100 million in cash restructuring charges. Restructuring costs assumption nearly doubled to approximately C$900 million from C$500 million. TELUS targets net debt to Adjusted EBITDA of 3.0x or lower by year-end 2028 (previously year-end 2027), supported by the dividend reset, asset monetization and organic free cash flow growth. The company remains committed to a 10% capital intensity target and will provide further strategy details with Q3 2026 results.

24/7 Wall St

TU YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

TU Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“TELUS is built on a foundation of genuine strength – leading networks, sustained customer loyalty and growing expertise in health and AI-enabling capabilities that are increasingly central to how Canadians live and work. The macro environment has shifted and we are responding with clarity and discipline. Today we are announcing three strategic priorities that will strengthen our financial foundation, sharpen our operational focus and concentrate our resources on the opportunities where TELUS is best positioned to win – all in service of delivering long-term, profitable and sustainable growth.”

— Victor Dodig, Q2 2026 Earnings Press Release

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