TELUS (NYSE:TU) Issues Earnings Results

TELUS (NYSE:TU) (TSE:T) posted its quarterly 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%.

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 Price Performance

Shares of TELUS stock traded down $1.22 during trading on Friday, hitting $9.55. 32,781,328 shares of the company were exchanged, compared to its average volume of 6,129,106. TELUS has a fifty-two week low of $9.22 and a fifty-two week high of $16.72. The company has a quick ratio of 0.63, a current ratio of 0.67 and a debt-to-equity ratio of 1.59. The firm has a 50 day moving average price of $11.25 and a 200 day moving average price of $12.48. The stock has a market capitalization of $15.04 billion, a price-to-earnings ratio of 21.72, a P/E/G ratio of 8.64 and a beta of 0.63.

TELUS Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a dividend of $0.1875 per share. This represents a $0.75 annualized dividend and a dividend yield of 7.8%. The ex-dividend date is Thursday, September 10th. TELUS’s payout ratio is currently 275.00%.

TELUS News Roundup

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

Wall Street Analyst Weigh In

TU has been the topic of a number of research reports. Weiss Ratings restated a “sell (d+)” rating on shares of TELUS in a report on Friday, July 17th. TD Securities raised TELUS from a “buy” rating to a “buy” rating in a report on Tuesday, April 28th. Canaccord Genuity Group downgraded TELUS from a “buy” rating to a “hold” rating in a research report on Thursday, April 9th. Scotiabank lowered TELUS from an “outperform” rating to a “sector perform” rating in a report on Friday, April 10th. Finally, Raymond James Financial began coverage on TELUS in a research note on Wednesday, July 15th. They set a “market perform” rating for the company. Five research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $15.67.

Hedge Funds Weigh In On TELUS

Several hedge funds have recently bought and sold shares of the stock. FIL Ltd raised its holdings in shares of TELUS by 112.9% in the fourth quarter. FIL Ltd now owns 30,300,204 shares of the Wireless communications provider’s stock worth $399,352,000 after acquiring an additional 16,066,539 shares during the last quarter. The Manufacturers Life Insurance Company boosted its stake in shares of TELUS by 258.3% during the fourth 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 acquiring an additional 14,285,486 shares during the last quarter. Bank of Nova Scotia boosted its stake in shares of TELUS by 19.0% during the fourth quarter. Bank of Nova Scotia now owns 17,536,356 shares of the Wireless communications provider’s stock valued at $231,118,000 after acquiring an additional 2,798,034 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in shares of TELUS by 40.0% during the third quarter. Arrowstreet Capital Limited Partnership now owns 9,033,455 shares of the Wireless communications provider’s stock valued at $142,387,000 after acquiring an additional 2,583,074 shares during the last quarter. Finally, Invesco Ltd. increased its position in TELUS by 20.1% during the 4th quarter. Invesco Ltd. now owns 12,500,760 shares of the Wireless communications provider’s stock worth $164,635,000 after purchasing an additional 2,091,819 shares in the last quarter. Hedge funds and other institutional investors own 49.40% of the company’s stock.

About TELUS

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.