Telstra Corporation Limited (AU:TLS)
ASX:TLS
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Telstra Corporation Limited
(Sydney:TLS)
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Rating:71Outperform
Price Target:
AU$6.00
▲(12.78% Upside)
Action:ReiteratedDate:03/26/26
The score is driven mainly by stable financial performance with improved margins/ROE but weakening revenue and free-cash-flow trends, plus supportive valuation (low P/E and solid yield). Technicals are constructive but overbought, and the earnings call was net positive due to tightened guidance and stronger shareholder returns despite spectrum and segment headwinds.
Positive Factors
Market-leading network quality
Consistently top-ranked network quality is a durable competitive advantage that supports customer retention, premium ARPU, and enterprise contract wins. High resilience and recognised performance reduce churn and underpin long-term revenue stability across consumer and business segments.
Negative Factors
Fixed broadband SIO losses and revenue weakness
Ongoing nbn SIO attrition and negative revenue growth erode a core recurring revenue base. Structural exposure to NBN wholesale economics and consumer churn pressures can persistently constrain top-line growth and limit cross-sell upside unless churn is materially addressed.
Read all positive and negative factors
Positive Factors
Negative Factors
Market-leading network quality
Consistently top-ranked network quality is a durable competitive advantage that supports customer retention, premium ARPU, and enterprise contract wins. High resilience and recognised performance reduce churn and underpin long-term revenue stability across consumer and business segments.
Read all positive factors
Telstra Corporation Limited (TLS) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$59.66B
Dividend Yield3.91%
Average Volume (3M)20.89M
Price to Earnings (P/E)12.3
Beta (1Y)0.28
Revenue Growth0.86%
EPS Growth34.23%
CountryAU
Employees31,876
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding11,254,937,500
10 Day Avg. Volume22,850,401
30 Day Avg. Volume20,891,454
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)4.01
Price to Sales (P/S)2.45
P/FCF Ratio16.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$5.33Price Target Upside0.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.21
Revenue Forecast (FY)AU$23.72B
Telstra Corporation Limited Business Overview & Revenue Model
Company Description
Telstra Group Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally. It operates in four segments: Telstra Consumer and Small Business, Telstra Enterprise, Network...
How the Company Makes Money
Telstra makes money primarily by selling telecommunications and related technology services to consumers, small businesses, enterprises, and government customers. Its major revenue streams include: (1) Mobile services—recurring fees from postpaid ...
Telstra Corporation Limited Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call highlighted a number of clear financial and operational positives: healthy reported and underlying earnings growth, strong cash earnings and EPS expansion, an increased interim dividend and enlarged buyback, meaningful progress on the strategic Aura fibre build, tangible tech and AI efficiency gains, and recognition for network quality. Offsetting these strengths were pockets of product and regional weakness (nbn SIO losses, Fixed Enterprise/DAC pressure), International one‑offs and expected H2 headwinds, ongoing cost items in Mobile (remediation, satellite and redundancy impacts), spectrum renewal uncertainty, and some service/resilience issues tied to device/LEO dynamics. Overall, the positives (strong earnings, cash flow, capital returns, strategic infrastructure progress and technology-driven efficiencies) outweigh the operational and regulatory risks called out in the call.Positive Updates
Strong reported and underlying earnings growth
Reported EBITDAaL up 4.9% to $4.2B; EBIT up 9.2% to $2.0B; NPAT up 8.1% to $1.2B; EPS up 11% to $0.099. Underlying EBITDAaL up 5.5% to $4.2B; cash EBIT up 14% to $2.5B; cash EPS up 20% to $0.14; underlying ROIC up 0.9 ppts to 8.9%.
Negative Updates
Fixed Enterprise and DAC revenue pressure
Fixed Enterprise EBITDA declined by $9M; Data & Connectivity (DAC) income fell 9% with DAC EBITDA only $25M as product rationalisation, service rationalisation and in‑period customer credits outweighed upsell progress.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong reported and underlying earnings growth
Reported EBITDAaL up 4.9% to $4.2B; EBIT up 9.2% to $2.0B; NPAT up 8.1% to $1.2B; EPS up 11% to $0.099. Underlying EBITDAaL up 5.5% to $4.2B; cash EBIT up 14% to $2.5B; cash EPS up 20% to $0.14; underlying ROIC up 0.9 ppts to 8.9%.
Read all positive updates
Company Guidance
Telstra tightened FY26 underlying EBITDAaL guidance to $8.2–$8.4 billion (midpoint unchanged) and reconfirmed other guidance, while reiterating its Connected Future 30 ambition of mid‑single‑digit cash earnings growth and an underlying ROIC target of 10%; management said full‑year cash EBIT guidance is equivalent to around 5–10% annual growth. The group expects higher BAU CapEx in H2 (H1 BAU CapEx was $1.5bn, down 5%) and will invest about $1.6bn above BAU CapEx in the Aura (Intercity Fibre) program (majority by end FY27, some routes into FY28), targeting a mid‑teens IRR and stronger revenue from FY28. Capital settings were tightened toward shareholder returns: the on‑market buyback was increased to up to $1.25bn (H1 buybacks $637m at an average $4.90; ~2.6% shares retired in CY2025), an interim dividend of $0.105 per share was declared (90.5% franked: $0.095 franked / $0.01 unfranked, c.75% of cash EPS), and the balance sheet is to be maintained in the A‑band (net debt ~1.9x; average cost of debt ~4.8%).Telstra Corporation Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.16B | 22.72B | 22.93B | 22.70B | 21.28B | 21.56B |
| Gross Profit | 6.49B | 14.51B | 14.49B | 5.75B | 5.07B | 3.69B |
| EBITDA | 8.65B | 8.58B | 7.53B | 7.86B | 7.29B | 8.97B |
| Net Income | 2.27B | 2.17B | 1.62B | 1.93B | 1.69B | 1.86B |
Balance Sheet | ||||||
| Total Assets | 44.64B | 44.97B | 45.55B | 45.03B | 41.63B | 42.52B |
| Cash, Cash Equivalents and Short-Term Investments | 1.44B | 1.01B | 1.05B | 932.00M | 1.04B | 1.13B |
| Total Debt | 21.25B | 18.00B | 16.97B | 15.87B | 14.27B | 17.44B |
| Total Liabilities | 28.90B | 28.65B | 28.20B | 27.21B | 24.65B | 27.25B |
| Stockholders Equity | 13.33B | 13.90B | 14.92B | 15.41B | 15.49B | 14.59B |
Cash Flow | ||||||
| Free Cash Flow | 4.60B | 3.45B | 1.39B | 2.37B | 3.73B | 3.52B |
| Operating Cash Flow | 7.01B | 7.32B | 6.45B | 6.24B | 6.82B | 6.66B |
| Investing Cash Flow | -3.27B | -3.37B | -4.99B | -6.03B | -3.50B | -2.38B |
| Financing Cash Flow | -3.28B | -4.00B | -1.18B | -333.00M | -3.44B | -3.62B |
Telstra Corporation Limited Technical Analysis
Positive
5.32
Price Trends
4.97
Positive
4.88
Positive
4.82
Positive
Market Momentum
0.09
Positive
69.93
Neutral
84.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TLS, the sentiment is Positive. The current price of 5.32 is above the 20-day moving average (MA) of 5.22, above the 50-day MA of 4.97, and above the 200-day MA of 4.82, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 69.93 is Neutral, neither overbought nor oversold. The STOCH value of 84.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:TLS.
Telstra Corporation Limited Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$59.66B | 12.30 | 16.66% | 3.91% | 0.86% | 34.23% | |
64 Neutral | AU$1.68B | 64.94 | 3.49% | ― | 31.16% | ― | |
62 Neutral | AU$1.60B | 26.24 | 5.01% | ― | 1.75% | 0.42% | |
61 Neutral | AU$3.39B | 98.96 | 1.98% | ― | 34.09% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | AU$7.89B | 54.88 | 1.31% | 47.35% | -5.04% | -349.38% | |
54 Neutral | AU$1.41B | 72.38 | 4.61% | 1.27% | 18.74% | 14.89% |
* Communication Services Sector Average
AU:TLS
Telstra Corporation Limited
5.31
1.33
33.45%
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Telstra Corporation Limited Corporate Events
Telstra Updates Market on Progress of Ongoing On‑Market Share Buy‑Back
Mar 26, 2026
Telstra Group Limited has reported its latest daily on-market share buy-back activity, confirming that it repurchased 1,372,488 ordinary fully paid shares on the previous trading day. This lifts the cumulative total of shares bought back under the...
Telstra Updates Market on Progress of Ongoing On-Market Share Buy-Back
Mar 25, 2026
Telstra Group Limited has provided an updated notification to the ASX regarding its on-market share buy-back program for its ordinary fully paid shares under the code TLS. The company reported that, as of the latest daily update dated 25 March 202...
Telstra Updates Daily On-Market Share Buy-Back Totals
Mar 24, 2026
Telstra Group Limited has provided an updated notification to the ASX regarding its on-market share buy-back program for ordinary fully paid shares, traded under the ticker TLS. The update records cumulative buy-backs of 149,200,241 shares prior t...
Telstra Updates Market on Progress of On‑Market Share Buy‑Back
Mar 23, 2026
Telstra Group Limited has updated the market on its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest Appendix 3C filing notes that the company repurchased 1,376,824 shares on the previous trading day, taking ...
Telstra Updates Market on Progress of On-Market Share Buy-Back
Mar 20, 2026
Telstra Group Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares. The program, initially notified in August 2025, reflects the company’s active capital managem...
Telstra Appoints Holly Kramer to Board, Files Initial Director Interest Notice
Mar 20, 2026
Telstra Group Limited has notified the Australian Securities Exchange of the appointment of Holly Kramer as a director of the company effective 20 March 2026. The initial director’s interest notice confirms that Kramer currently holds no rel...
Telstra Lodges Final Director’s Interest Notice for Departing Board Member
Mar 20, 2026
Telstra Group Limited has announced the cessation of Elana Rubin as a director effective 20 March 2026, lodging a Final Director’s Interest Notice in line with ASX listing rules. The filing details Rubin’s remaining shareholdings, indi...
Telstra Updates Market on Progress of Ongoing Share Buy-Back
Mar 17, 2026
Telstra Group Limited has reported progress on its on-market share buy-back program, confirming that it repurchased 640,803 ordinary fully paid shares on the previous trading day. This takes the total number of shares bought back under the program...
Telstra discloses internal reshuffle of director Craig Dunn’s shareholdings
Mar 17, 2026
Telstra Group Limited has lodged a Change of Director’s Interest Notice with the ASX relating to non-executive director Craig Dunn, in line with its disclosure obligations under listing rule 3.19A.2. The filing confirms that the change invol...
Telstra Updates Market on Progress of On‑Market Share Buy‑Back
Mar 16, 2026
Telstra Group Limited has provided an updated notification to the ASX regarding its on-market share buy-back of ordinary fully paid shares. The latest filing, dated 16 March 2026, confirms the company is continuing its previously announced buy-bac...
Telstra Issues Daily Update on Ongoing Share Buy-Back
Mar 12, 2026
Telstra Group Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back of ordinary fully paid shares. The company reported that, as of 12 March 2026, it had repurchased a cumulative total of 138,864,731 share...
Telstra Updates Market on Ongoing On-Market Share Buy-Back
Mar 11, 2026
Telstra Group Limited has provided an updated notification to the ASX on the progress of its on-market share buy-back program for its ordinary fully paid shares. The company reported that, as of the latest daily update, a cumulative 136,738,449 sh...
Telstra updates DRP pricing details for interim dividend
Mar 9, 2026
Telstra Group Limited has updated its earlier dividend notification for its ordinary fully paid shares, clarifying the dividend reinvestment plan price applicable to the interim distribution for the six months to 31 December 2025. The update, lodg...
Telstra Continues On‑Market Share Buy‑Back With Daily ASX Update
Feb 27, 2026
Telstra Group Limited has lodged an updated notification with the ASX on 27 February 2026 detailing the ongoing execution of its on‑market share buy‑back program in its ordinary fully paid shares. The filing notes that a further 1,913,...
Telstra Updates Market on Progress of Ongoing Share Buy-Back
Feb 26, 2026
Telstra Group Limited has provided an update on its on-market share buy-back program for its ordinary fully paid shares. The company reported that a total of 133,490,472 shares had been repurchased before the previous trading day, with an addition...
Telstra Reports Daily Progress in Ongoing On‑Market Share Buy‑Back
Feb 25, 2026
Telstra Group Limited has reported another daily update to its on‑market share buy‑back program for its ordinary fully paid shares. The company disclosed that as of 25 February 2026 it had bought back a cumulative 131,932,344 shares pr...
Telstra Updates Market on Ongoing On‑Market Share Buy‑Back
Feb 24, 2026
Telstra Group Limited continues its on-market share buy-back program for its ordinary fully paid shares, reporting that a total of 130,091,714 shares had been repurchased before the latest trading day. The company disclosed that a further 1,840,63...
Telstra Posts Strong Half-Year, Lifts Dividend and Expands Buy-Back
Feb 20, 2026
Telstra delivered a strong first half of FY26, with growth in earnings driven by momentum across its businesses, tight cost control and disciplined capital management. The company reported increases in EBITDAaL, EBIT, NPAT, earnings per share and ...
Telstra lifts earnings, dividend and buy-back on strong first-half FY26
Feb 19, 2026
Telstra reported a strong first half of FY26, with ongoing growth in earnings driven by momentum across its core businesses, tight cost control and disciplined capital management. Underlying EBITDA increased across Mobiles, Fixed Consumer Small B...
Telstra Sets A$0.105 Interim Dividend and DRP Election Timetable
Feb 19, 2026
Telstra Group Limited has declared an ordinary dividend of A$0.105 per fully paid share, relating to the six-month period ended 31 December 2025 and payable to holders of its TLS ordinary securities. The stock will trade ex-dividend on 25 February...
Telstra lifts half-year profit, ups buy-back to $1.25bn
Feb 19, 2026
Telstra Group Limited has reported its financial results for the half-year ended 31 December 2025, showing total income of $11.845 billion, up 0.2%, and profit attributable to equity holders of $1.124 billion, an increase of 9.4%. The board declar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.