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
-31.4%
TRAILING MARKET
TU -26.7% vs S&P +4.7%
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 YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
TU Revenue by Segment
With YoY comparisons, source: SEC Filings
TU Earnings Trends
TU vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
TU EPS Trend
Earnings per share: estimate vs actual
TU Revenue Trend
Quarterly revenue: estimate vs actual
TU Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.14 | $0.16 | +13.07% | $4.92B | -2.12% |
| Q1 26 BEAT | $0.16 | $0.23 | +45.57% | $5.01B | -0.89% |
| Q4 25 BEAT FY | $0.18 | $0.20 | +10.86% | $5.26B | -2.71% |
| FY Full Year | $0.70 | — | — | — | — |
| Q3 25 BEAT | $0.19 | $0.32 | +67.98% | $5.11B | -1.88% |
| Q2 25 MISS | $0.17 | $0.16 | -6.03% | $3.75B | -25.52% |