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Telus

Telus (TU) Q1 2026 Earnings

Reported May 8, 2026 at 7:09 AM ET · SEC Source

Q1 26 EPS

$0.23

BEAT +45.57%

Est. $0.16

Q1 26 Revenue

$5.01B

MISS 0.89%

Est. $5.06B

vs S&P Since Q1 26

-20.1%

TRAILING MARKET

TU -19.0% vs S&P +1.1%

Market Reaction

Did TU Beat Earnings? Q1 2026 Results

TELUS Corporation delivered a mixed first quarter for fiscal 2026, posting adjusted earnings per share of $0.23 that cleared the $0.16 consensus estimate by 45.57%, even as revenue of $5.01 billion came in just shy of the $5.06 billion analysts had e… Read more TELUS Corporation delivered a mixed first quarter for fiscal 2026, posting adjusted earnings per share of $0.23 that cleared the $0.16 consensus estimate by 45.57%, even as revenue of $5.01 billion came in just shy of the $5.06 billion analysts had expected, a gap of 0.89% and a near-flat 0.1% decline from the year-ago period. The earnings beat, however, masked significant pressure beneath the surface: operating income fell to $534 million from $752 million a year earlier, driven largely by restructuring and other costs ballooning to $315 million from $97 million, including $130 million in non-cash employee benefits expense tied to the TELUS Digital privatization. Free cash flow offered a brighter note, rising 19% to $583 million, while the net debt to EBITDA ratio improved to 3.5x. Looking ahead, TELUS revised its 2026 restructuring cost assumption upward to roughly $600 million and has paused its dividend growth program, signaling that the company's operational effectiveness push will weigh on near-term results even as management targets a net debt to EBITDA ratio of approximately 3.0x by 2027.

Key Takeaways

  • • TELUS Health revenue growth from business acquisitions including Workplace Options and growth in payor and provider solutions
  • • Higher employee benefits expense and restructuring costs of CAD 315 million pressuring profitability
  • • Spectrum licence acquisitions of CAD 318 million impacting investing cash flows
  • • Net debt to EBITDA improvement to 3.5x from 3.9x driven by junior subordinated notes equity credit and subsidiary equity issuance
  • • Decline in equipment revenues across the mobile segment due to reduced contracted volumes
  • • Mobile phone ARPU declining at a decelerating rate to CAD 56.56
  • • Subscriber base growth across mobile, residential internet, security and automation and TV
  • • Cost reduction efforts including workforce reductions and TELUS Digital privatization synergies
  • • Free cash flow increase of 19% to CAD 583 million driven by lower net income taxes paid
  • • AI-enabling capabilities delivered growth of 22% in Q1 2026

TU Forward Guidance & Outlook

TELUS targets a net debt to EBITDA ratio of circa 3.0 times in 2027 and has a long-term objective range of 2.2-2.7 times. The company's dividend payout ratio objective range is 60%-75% of free cash flow on a prospective basis. TELUS has initiated an active programme to identify potential strategic partners for its TELUS Health business. The 2026 restructuring and other costs assumption has been revised upward to approximately CAD 600 million from CAD 500 million, reflecting expanded operational effectiveness programs. Cash income tax payments assumption revised downward to CAD 360-460 million from CAD 540-620 million due to higher refunds and Canadian Bill C-15. The company has paused its dividend growth program while continuing to pay the quarterly dividend at CAD 0.4184 per share.

24/7 Wall St

TU YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

TU Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26
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