TELUS (NYSE:TU) Issues Quarterly Earnings Results

TELUS (NYSE:TU) (TSE:T) posted its earnings results on Friday. The Wireless communications provider reported $0.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.01, Zacks reports. TELUS had a return on equity of 8.42% and a net margin of 5.42%.The firm had revenue of $3.60 billion during the quarter, compared to analysts’ expectations of $3.64 billion. During the same period in the previous year, the firm earned $0.26 earnings per share. The company’s revenue was down .6% on a year-over-year basis.

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

• TELUS reported industry-leading customer growth with 262,000 net additions in Q1 (including a record 229,000 connected devices) and ~21,000 internet net adds, driven by its PureFibre and 5G+ bundled strategy.
• Free cash flow momentum is strong (Q1 FCF up 19% year‑over‑year to CAD 583m) and management targets ~CAD 2.45 billion FCF in 2026 with a minimum 10% CAGR through 2028, alongside a CAD 7 billion asset-monetization program to accelerate deleveraging.
• TELUS Health continues to scale: service revenue and adjusted EBITDA grew 11%, LifeWorks synergies reached CAD 431m (above target), revenue now >CAD 2bn, and management is pursuing strategic partnership/monetization interest via an active marketing process.
• TELUS Digital/AI is a growth engine — AI-enabled revenue rose 22%, the Rimouski sovereign AI factory is sold out (Kamloops coming online), and TELUS Digital privatization is delivering annual cash synergies (~CAD 150–200m) and meaningful cash generation.
• Near-term headwinds remain: consolidated adjusted EBITDA was flat in Q1, fixed data revenue grew <1%, and enterprise contract repricing plus ongoing industry pricing intensity are cited as key risks that could push results toward the lower end of guidance.

TELUS Stock Down 1.1%

TELUS stock traded down $0.15 during midday trading on Friday, reaching $12.74. The stock had a trading volume of 6,967,263 shares, compared to its average volume of 4,979,771. The stock has a market capitalization of $19.73 billion, a P/E ratio of 24.50, a price-to-earnings-growth ratio of 4.73 and a beta of 0.61. The firm’s fifty day simple moving average is $12.89 and its 200-day simple moving average is $13.41. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.81 and a current ratio of 0.86. TELUS has a 1-year low of $11.69 and a 1-year high of $16.74.

TELUS Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Wednesday, June 10th will be issued a dividend of $0.4184 per share. The ex-dividend date is Wednesday, June 10th. This represents a $1.67 dividend on an annualized basis and a dividend yield of 13.1%. TELUS’s dividend payout ratio (DPR) is presently 236.54%.

Key Stories Impacting TELUS

Here are the key news stories impacting TELUS this week:

• Positive Sentiment: TELUS reported first-quarter adjusted earnings of $0.17 per share, slightly ahead of estimates, while free cash flow rose 19% to $583 million and the company added 262,000 mobile and fixed customers. TELUS reports operational and financial results for first quarter 2026
• Positive Sentiment: The company reaffirmed its full-year 2026 targets, signaling confidence in service revenue, EBITDA, and free cash flow growth. TELUS reports operational and financial results for first quarter 2026
• Positive Sentiment: TELUS announced a quarterly dividend of C$0.4184 per share, reinforcing its income profile and attractive yield for investors. TELUS Corporation – NOTICE OF CASH DIVIDEND
• Neutral Sentiment: TELUS named Gopi Chande as its next CFO, replacing Doug French on July 1 as part of a planned leadership transition. TELUS Announces Retirement of Chief Financial Officer Doug French and Appointment of Successor Gopi Chande
• Negative Sentiment: Revenue declined 0.6% year over year and earnings were below the prior-year quarter, suggesting slower top-line momentum and pressure versus last year. TELUS reports operational and financial results for first quarter 2026

Hedge Funds Weigh In On TELUS

Several hedge funds have recently made changes to their positions in TU. Towarzystwo Funduszy Inwestycyjnych PZU SA lifted its position in shares of TELUS by 129.0% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 2,473 shares of the Wireless communications provider’s stock worth $33,000 after purchasing an additional 1,393 shares in the last quarter. Kestra Advisory Services LLC bought a new position in TELUS in the fourth quarter valued at $55,000. State of Wyoming acquired a new stake in TELUS in the 2nd quarter valued at $61,000. Employees Retirement System of Texas acquired a new stake in TELUS in the 3rd quarter valued at $64,000. Finally, Northwestern Mutual Wealth Management Co. lifted its position in TELUS by 37.1% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 4,585 shares of the Wireless communications provider’s stock worth $72,000 after buying an additional 1,241 shares in the last quarter. 49.40% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on TU shares. TD Cowen upgraded TELUS from a “hold” rating to a “buy” rating in a report on Tuesday, April 28th. TD Securities upgraded shares of TELUS from a “buy” rating to a “buy” rating in a report on Tuesday, April 28th. Bank of America raised shares of TELUS from a “neutral” rating to a “buy” rating and lifted their price target for the company from $14.50 to $16.00 in a research note on Tuesday, March 10th. Scotiabank cut shares of TELUS from an “outperform” rating to a “sector perform” rating in a report on Friday, April 10th. Finally, Wall Street Zen upgraded shares of TELUS from a “sell” rating to a “hold” rating in a report on Saturday. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, TELUS has an average rating of “Hold” and an average target price of $17.63.

TELUS Company Profile

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.