TELUS (NYSE:TU) Issues Quarterly Earnings Results

Posted by George Bondi on Aug 1st, 2026

TELUS (NYSE:TU – Get Free Report) (TSE:T) released its earnings results on Friday. The Wireless communications provider reported $0.12 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.02), Zacks reports. TELUS had a net margin of 4.54% and a return on equity of 8.29%. The business had revenue of $3.47 billion during the quarter, compared to analysts’ expectations of $3.55 billion.

Here are the key takeaways from TELUS’s conference call:

TELUS reduced its 2026 outlook, now expecting consolidated service revenue to be flat to down 2% and adjusted EBITDA to decline 2% to 4%, versus its prior forecast of 2% to 4% growth. Full-year free cash flow guidance was also cut to approximately $1.8 billion from $2.45 billion.
TELUS Digital recorded a $2.1 billion non-cash impairment after faster-than-expected automation reduced demand for legacy content moderation and search-related services, while AI adoption has been slower and deal sizes smaller than previously modeled.
The quarterly dividend will be cut 55% to $0.1875 per share effective October 1, with the dividend reinvestment plan discount ending at the same time. Management expects the reset to generate approximately $2.7 billion in cumulative cash savings through 2028.
Management is targeting net debt to adjusted EBITDA of 3.0x or lower by the end of 2028, supported by dividend savings, lower capital intensity over time, asset monetizations, a moratorium on acquisitions, and tighter cost discipline.
Core telecom performance was relatively stable: mobile network revenue grew 1%, ARPU trends improved for a fifth consecutive quarter, and the promotional environment showed signs of moderating. However, lower immigration is constraining subscriber growth, while fixed-business results remain challenged.

TELUS Trading Down 11.3%

TELUS stock opened at $9.55 on Friday. The company has a debt-to-equity ratio of 1.59, a quick ratio of 0.63 and a current ratio of 0.67. The business’s 50-day simple moving average is $11.19 and its 200-day simple moving average is $12.46. The firm has a market capitalization of $15.04 billion, a PE ratio of 21.72, a PEG ratio of 8.36 and a beta of 0.63. TELUS has a 52 week low of $9.22 and a 52 week high of $16.72.

TELUS Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be given a $0.1875 dividend. This represents a $0.75 annualized dividend and a dividend yield of 7.8%. The ex-dividend date of this dividend is Thursday, September 10th. TELUS’s dividend payout ratio (DPR) is currently 275.00%.

Institutional Trading of TELUS

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Mackenzie Financial Corp increased its position in TELUS by 3.0% in the 4th quarter. Mackenzie Financial Corp now owns 33,318,398 shares of the Wireless communications provider’s stock worth $433,838,000 after buying an additional 955,779 shares during the period. FIL Ltd raised its stake in TELUS by 112.9% during the 4th quarter. FIL Ltd now owns 30,300,204 shares of the Wireless communications provider’s stock valued at $399,352,000 after purchasing an additional 16,066,539 shares during the last quarter. The Manufacturers Life Insurance Company boosted its holdings in TELUS by 258.3% in the 4th quarter. The Manufacturers Life Insurance Company now owns 19,816,565 shares of the Wireless communications provider’s stock valued at $261,727,000 after purchasing an additional 14,285,486 shares during the period. Scotia Capital Inc. grew its position in TELUS by 4.5% in the 3rd quarter. Scotia Capital Inc. now owns 19,687,766 shares of the Wireless communications provider’s stock worth $310,129,000 after purchasing an additional 845,682 shares during the last quarter. Finally, Bank of Nova Scotia increased its holdings in shares of TELUS by 19.0% during the 4th quarter. Bank of Nova Scotia now owns 17,536,356 shares of the Wireless communications provider’s stock worth $231,118,000 after purchasing an additional 2,798,034 shares during the period. Institutional investors and hedge funds own 49.40% of the company’s stock.

More TELUS News

Here are the key news stories impacting TELUS this week:

Positive Sentiment: TELUS outlined a plan to reduce leverage to 3.0 times or lower by the end of 2028, while prioritizing balance-sheet strength and long-term growth. The company also plans to remove the discount on its dividend reinvestment plan beginning October 1, which should reduce shareholder dilution. TELUS Reports Second-Quarter 2026 Results
Neutral Sentiment: The board declared a quarterly dividend of $0.1875 per share, payable October 1 to shareholders of record September 10. The payment represents an annualized yield of approximately 7.8%, although the dividend reset reduces the appeal for income-focused investors. TELUS Declares Quarterly Cash Dividend
Negative Sentiment: TELUS reported second-quarter adjusted earnings of $0.12 per share, below estimates ranging from $0.14 to $0.16 and down from $0.16 a year earlier. The company also missed revenue expectations, reinforcing concerns about operating performance and helping drive selling pressure. TELUS Lags Q2 Earnings and Revenue Estimates
Negative Sentiment: The dividend reset is a near-term setback for shareholders and signals that management is prioritizing debt reduction over maintaining the previous payout trajectory. TELUS reported a 4.54% net margin and 8.29% return on equity, highlighting limited profitability relative to its substantial leverage. TELUS Dividend Reset and Financial Results

Analysts Set New Price Targets

TU has been the subject of several research analyst reports. Canadian Imperial Bank of Commerce downgraded TELUS to a “neutral” rating in a research note on Friday. TD Securities upgraded shares of TELUS from a “buy” rating to a “buy” rating in a report on Tuesday, April 28th. Barclays set a $12.00 target price on TELUS and gave the company an “equal weight” rating in a report on Thursday, July 16th. Morgan Stanley downgraded TELUS to an “underweight” rating in a research note on Tuesday, July 21st. Finally, TD Cowen upgraded TELUS from a “hold” rating to a “buy” rating in a report on Tuesday, April 28th. Five investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, TELUS has a consensus rating of “Hold” and a consensus price target of $15.67.

View Our Latest Stock Analysis on TELUS

TELUS Company Profile

(Get Free Report)

TELUS Corporation (NYSE: TU) is a Canadian telecommunications and technology company headquartered in Vancouver, British Columbia. It delivers a broad portfolio of consumer and business communications services across Canada, including mobile wireless, fixed-line voice, broadband internet, and television. TELUS also provides a range of enterprise services such as cloud and IT solutions, managed network services, cybersecurity and Internet of Things (IoT) offerings for business customers.

Beyond core connectivity, TELUS has expanded into health and digital services.