BCE (NYSE:BCE) Releases Earnings Results, Beats Estimates By $0.04 EPS

BCE (NYSE:BCE) (TSE:BCE) announced its quarterly earnings results on Thursday. The utilities provider reported $0.46 EPS for the quarter, beating analysts’ consensus estimates of $0.42 by $0.04, Zacks reports. BCE had a return on equity of 14.35% and a net margin of 25.66%.The company had revenue of $4.43 billion during the quarter, compared to analysts’ expectations of $4.38 billion. During the same period in the prior year, the company earned $0.69 EPS. BCE’s revenue was up 4.0% compared to the same quarter last year. BCE updated its FY 2026 guidance to 1.790-1.910 EPS.

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

• Bell is aggressively scaling its AI strategy — a fully contracted 300 MW Saskatchewan AI data center is under construction and at full run rate is expected to contribute roughly CAD 500M revenue, CAD 400M EBITDA and >CAD 250M free cash flow at ~20% IRR; management says it has line-of-sight to monetize about 800 MW over time and raised its AI-powered solutions 2028 target to ~CAD 2B.
• Q1 financials were mixed — consolidated revenue grew 4% and adjusted EBITDA +2.9%, but adjusted EPS fell CAD 0.06 (higher D&A and interest), free cash flow edged up 0.8% to CAD 804M, margins dipped ~40 bps and net debt leverage was ~3.8x with a target to reach 3.5x by end-2027.
• Customer metrics show momentum — ~43,000 residential FTTH net adds in Canada (total fiber net adds ~50,000 including Ziply), internet revenue on North American fiber platforms +15% YoY, Crave subscribers +25% to 4.7M (D2C +59%), and improved video and postpaid wireless net adds despite a promotional Q1.
• Management is simplifying and reallocating capital — completed high-return disposals (MLSE, Bell Smart Home) and announced the CAD 675M Land Mobile Radio sale, cut legacy Canadian telecom CapEx by >CAD 2B since 2022, and is redeploying funds into higher-return AI Fabric and U.S. fiber growth initiatives.

BCE Trading Down 1.7%

NYSE:BCE traded down $0.42 during trading hours on Friday, hitting $24.15. 3,425,862 shares of the company were exchanged, compared to its average volume of 2,906,118. The stock has a market capitalization of $22.52 billion, a price-to-earnings ratio of 4.91 and a beta of 0.48. The company has a current ratio of 0.58, a quick ratio of 0.55 and a debt-to-equity ratio of 1.74. BCE has a one year low of $21.09 and a one year high of $26.52. The company has a fifty day simple moving average of $24.91 and a 200 day simple moving average of $24.30.

BCE Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Monday, June 15th will be given a dividend of $0.4375 per share. This represents a $1.75 annualized dividend and a yield of 7.2%. The ex-dividend date of this dividend is Monday, June 15th. BCE’s dividend payout ratio (DPR) is currently 26.02%.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd raised its position in BCE by 735.3% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,161 shares of the utilities provider’s stock worth $27,000 after purchasing an additional 1,022 shares during the last quarter. Smartleaf Asset Management LLC grew its holdings in BCE by 1,642.0% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,411 shares of the utilities provider’s stock worth $33,000 after acquiring an additional 1,330 shares during the period. Colonial Trust Co SC acquired a new stake in BCE during the 4th quarter worth about $60,000. Geneos Wealth Management Inc. grew its holdings in BCE by 64.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 3,096 shares of the utilities provider’s stock worth $71,000 after acquiring an additional 1,217 shares during the period. Finally, Arax Advisory Partners grew its holdings in BCE by 61.2% during the 4th quarter. Arax Advisory Partners now owns 3,333 shares of the utilities provider’s stock worth $79,000 after acquiring an additional 1,265 shares during the period. 41.46% of the stock is owned by institutional investors.

Key BCE News

Here are the key news stories impacting BCE this week:

• Positive Sentiment: BCE said Q1 revenue rose 4% year over year, helped by stronger Bell CTS U.S./Ziply and Media performance, and free cash flow improved despite higher capital spending. Article title
• Positive Sentiment: Management pointed to AI-driven demand and said BCE is expanding its Bell Business Markets offering, highlighting a growth area that could support future revenue. Article title
• Neutral Sentiment: The company also announced a quarterly dividend of C$0.4375 per share, which keeps BCE attractive for income-focused investors. Article title
• Neutral Sentiment: Shareholders approved the election of directors at the annual meeting, with all nominees receiving strong support. Article title
• Negative Sentiment: Adjusted EPS declined from a year earlier, and the company’s revenue and earnings guidance for FY2026 came in below consensus, which is likely pressuring the stock. Article title
• Negative Sentiment: Reports of employee firings tied to alleged attendance-policy violations may add to near-term headline risk, though the operational impact appears limited. Article title

Analyst Upgrades and Downgrades

BCE has been the subject of a number of research reports. Scotiabank reiterated an “outperform” rating on shares of BCE in a research note on Monday, January 12th. Weiss Ratings upgraded BCE from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, February 4th. Barrington Research upgraded BCE from an “underperform” rating to an “equal weight” rating and increased their price target for the company from $21.00 to $26.00 in a research note on Tuesday, January 27th. TD Securities cut BCE from a “buy” rating to a “hold” rating in a research note on Thursday, April 2nd. Finally, Royal Bank Of Canada increased their price target on BCE from $38.00 to $39.00 and gave the company an “outperform” rating in a research note on Tuesday, March 17th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $28.67.

BCE Company Profile

BCE Inc (NYSE: BCE) is a Canadian communications, media and entertainment company that operates through its primary subsidiaries, including Bell Canada and Bell Media. As a large integrated telecommunications provider, BCE delivers a broad range of connectivity services and content to residential, business and wholesale customers across Canada. The company combines network infrastructure with media assets to offer bundled communications and entertainment solutions.

On the services side, BCE provides fixed-line and wireless voice services, mobile data, high-speed internet, fibre and broadband access, and television services through platforms such as Bell Fibe and Bell TV.