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Telstra Corporation Limited (AU:TLS)
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Telstra Corporation Limited (TLS) AI Stock Analysis

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AU:TLS

Telstra Corporation Limited

(Sydney:TLS)

Rating:65Neutral
Price Target:
AU$5.00
▲(1.42% Upside)
Telstra's overall performance is buoyed by strong earnings call results and strategic initiatives, although financial and technical analysis reveal areas of concern. The high valuation and technical indicators suggest potential risks, while earnings call highlights strong operational performance and future growth plans.

Telstra Corporation Limited (TLS) vs. iShares MSCI Australia ETF (EWA)

Telstra Corporation Limited Business Overview & Revenue Model

Company DescriptionTelstra Corporation Limited (TLS) is a leading telecommunications and technology company based in Australia. It provides a wide range of services, including mobile and fixed-line telecommunications, internet services, data and IP networks, and digital television. Telstra also offers technology solutions and managed services to businesses and governments, making it a key player in the digital ecosystem. The company operates primarily in Australia but has a presence in international markets, serving millions of customers with innovative and reliable communication solutions.
How the Company Makes MoneyTelstra Corporation Limited generates revenue through multiple streams, primarily from its telecommunications services. The core revenue streams include mobile services, where it earns from providing voice, messaging, and data services to consumers and businesses. Fixed-line services contribute significantly to its income, encompassing broadband internet, home phone services, and digital television. Additionally, Telstra makes money from selling hardware like smartphones and other connected devices under postpaid and prepaid plans. Beyond consumer services, Telstra earns revenue from its enterprise segment by offering managed services, cloud solutions, cybersecurity, and data center solutions to businesses and government clients. Partnerships with technology providers and media companies further enhance its revenue through joint ventures and content delivery networks. The company also benefits from its extensive network infrastructure, leasing capacity on its networks to other service providers, which adds another layer of revenue.

Telstra Corporation Limited Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: -1.00%|
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Positive
Telstra delivered strong financial results with significant growth in key metrics and strategic investments in AI and network expansion. However, challenges remain in certain business segments, and there are concerns about the operating environment and investment delays.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
EBITDA increased by 6% to $4.2 billion and net profit after tax rose by 7.1% to $1.1 billion. Earnings per share also increased by 6% to $0.089.
Dividend and Share Buyback
The Board resolved to pay a fully franked interim dividend of $0.095 per share, representing a 5.6% increase, and announced an on-market share buyback of up to $750 million.
Mobile Network Expansion
Invested an additional $800 million over the next four years to enhance the 5G network, covering 91% of the population with plans to reach 95% by the end of FY '25.
Joint Venture with Accenture
A strategic partnership to enhance AI capabilities, aiming to accelerate customer experience and network leadership ambitions.
Cost Management and Efficiency
Core fixed costs decreased by 4.8% or $161 million, with cumulative reductions of $283 million since FY '22, on track to achieve $350 million by end of FY '25.
Negative Updates
Challenges in Fixed Enterprise and NAS
Structural declines in Data and Connectivity (DAC) and Network Applications and Services (NAS) businesses persisted, with ongoing ARPU compression and technology changes.
Digicel Pacific Operating Environment
The Digicel Pacific business continues to face a challenging operating environment, impacting EBITDA growth.
Intercity Fiber Network Delays
Facing delays and cost pressures in the rollout of the Intercity Fiber Network, though committed to the $1.6 billion investment envelope.
Franking Account Deficit
The franking account balance is in deficit by $275 million, a factor in the decision to pursue a buyback rather than a special dividend.
Company Guidance
During the call, Telstra provided guidance indicating strong financial performance for the first half of fiscal year 2025, with EBITDA up 6% to $4.2 billion and profit for the period rising 7.1% to $1.1 billion. Earnings per share increased by 6% to $0.089, and return on invested capital (ROIC) improved by 0.2 points to 8%. The company reaffirmed its fiscal year 2025 guidance, committing to increasing earnings and improving ROIC. Telstra's Board approved a fully franked interim dividend of $0.095 per share, up 5.6% from the previous period, and announced an on-market share buyback of up to $750 million, supported by strong fiscal discipline and a robust balance sheet. The company highlighted growth across its business units, including mobiles, InfraCo fixed, Fixed C&SB, and international businesses. It also reported a 3.1% increase in mobile services revenue, driven by a net addition of 119,000 mobile handheld customers. The company aims to achieve a $350 million reduction in core fixed costs by the end of FY '25, having already reduced them by $283 million since FY '22. Additionally, Telstra continues to invest in its mobile network, planning an $800 million increase in mobile network investment over the next four years to maintain its leadership in 5G coverage, targeting 95% population coverage by the end of FY '25.

Telstra Corporation Limited Financial Statement Overview

Summary
Telstra Corporation shows stable income with a modest revenue growth of 1.0%. The balance sheet reflects moderate leverage with a debt-to-equity ratio of 1.14. Cash flow challenges are evident with a decline in free cash flow growth rate. Despite strong operating cash flow, the financial performance indicates room for improvement in cost management and capital structure optimization.
Income Statement
75
Positive
Telstra Corporation shows a stable income performance with a consistent gross profit margin of around 24.9% over the recent year. The net profit margin stands at 7.1%, reflecting moderate profitability. Revenue growth is modest at 1.0%, indicating a slight upward trend in sales. EBIT and EBITDA margins are healthy at 14.4% and 33.0%, respectively, showcasing operational efficiency. However, the slight decline in net income from the previous year suggests challenges in cost management or market conditions.
Balance Sheet
70
Positive
The balance sheet reveals a solid equity base with a debt-to-equity ratio of 1.14, indicating moderate leverage. Return on equity is 10.9%, which is respectable but shows room for improvement in enhancing shareholder returns. The equity ratio of 32.8% reflects a balanced capital structure, although the company could benefit from reducing its debt load to enhance financial stability.
Cash Flow
60
Neutral
Telstra's cash flow performance indicates challenges with a negative free cash flow growth rate of -41.5%, suggesting a decline in cash reserves. The operating cash flow to net income ratio is robust at 3.98, indicating strong cash generation relative to earnings. However, the free cash flow to net income ratio of 0.86 suggests limited cash available for reinvestment or debt reduction after covering capital expenditures.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue22.93B22.70B21.28B21.56B23.71B
Gross Profit14.49B5.75B5.07B3.69B3.89B
EBITDA7.58B7.99B7.40B8.97B10.54B
Net Income1.62B1.93B1.69B1.86B1.82B
Balance Sheet
Total Assets45.55B45.03B41.63B42.52B44.40B
Cash, Cash Equivalents and Short-Term Investments1.05B932.00M1.04B1.13B499.00M
Total Debt16.97B15.87B14.27B17.44B19.13B
Total Liabilities28.20B27.21B24.65B27.25B29.26B
Stockholders Equity14.92B15.41B15.49B14.59B14.47B
Cash Flow
Free Cash Flow1.39B2.37B3.73B3.52B2.87B
Operating Cash Flow6.45B6.24B6.82B6.66B6.31B
Investing Cash Flow-4.99B-6.03B-3.50B-2.38B-2.39B
Financing Cash Flow-1.18B-333.00M-3.44B-3.62B-4.02B

Telstra Corporation Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.93
Price Trends
50DMA
4.91
Positive
100DMA
4.72
Positive
200DMA
4.33
Positive
Market Momentum
MACD
<0.01
Positive
RSI
51.75
Neutral
STOCH
53.33
Neutral
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 4.93 is below the 20-day moving average (MA) of 4.95, above the 50-day MA of 4.91, and above the 200-day MA of 4.33, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
AU$1.28B45.125.66%0.87%33.62%4.97%
66
Neutral
¥503.10B16.551.07%2.17%6.46%-14.78%
65
Neutral
AU$4.09B1,415.090.49%35.57%
65
Neutral
$55.46B25.8714.73%3.74%0.86%34.33%
62
Neutral
€1.68B0.21%30.90%91.12%
45
Neutral
$9.87B276.54-0.95%3.38%-0.23%-318.56%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:TLS
Telstra Corporation Limited
4.94
1.15
30.27%
AU:SLC
Superloop Ltd.
3.26
1.66
104.39%
AU:TPG
TPG Telecom Limited
5.20
0.82
18.80%
AU:TUA
Tuas Ltd.
7.46
3.24
76.78%
AU:ABB
Aussie Broadband Ltd.
4.55
1.57
52.68%

Telstra Corporation Limited Corporate Events

Telstra Announces Cessation of Securities in Strategic Buy-Back
Jun 24, 2025

Telstra Group Limited announced the cessation of 34,471,311 ordinary fully paid securities as part of an on-market buy-back, effective June 23, 2025. This move is part of Telstra’s capital management strategy, potentially impacting its share value and signaling confidence in its financial position to stakeholders.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Announces Director’s Interest Change for Superannuation
Jun 20, 2025

Telstra Corporation Limited announced a change in the director’s interest notice for Bridget Loudon, involving a transfer and rebalance of her holdings for superannuation purposes. This change reflects an on-market trade of securities, moving shares from directly held to indirectly held within a family super fund, indicating a strategic financial management decision by the director.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Completes Significant Share Buy-Back
Jun 18, 2025

Telstra Group Limited has announced the completion of its on-market buy-back program, acquiring a total of 169,398,366 ordinary fully paid securities for a consideration of AUD 749,999,996. This buy-back is part of Telstra’s strategy to optimize its capital structure and return value to shareholders, potentially enhancing its market position and financial performance.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Ongoing Share Buy-Back Program
Jun 18, 2025

Telstra Group Limited has announced a daily update on its ongoing buy-back program, where it repurchased 1,793,064 ordinary fully paid securities on the previous day, bringing the total number of securities bought back to 167,605,302. This buy-back initiative is part of Telstra’s strategy to optimize its capital structure and enhance shareholder value, reflecting its strong financial position and commitment to returning capital to shareholders.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Ongoing Securities Buy-Back
Jun 17, 2025

Telstra Group Limited has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities, with a total of 1,861,376 securities bought back on the previous day, adding to the cumulative total of 165,743,926 securities. This buy-back initiative is part of Telstra’s strategy to optimize its capital structure and enhance shareholder value, reflecting the company’s commitment to efficient capital management and potentially impacting its stock performance positively.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Share Buy-Back Progress
Jun 16, 2025

Telstra Group Limited has announced an update on its ongoing share buy-back program, revealing that a total of 2,168,811 ordinary fully paid securities were bought back on the previous day, adding to the cumulative total of 163,575,115 securities repurchased. This buy-back initiative is part of Telstra’s strategy to optimize its capital structure and return value to shareholders, potentially impacting the company’s share price and market perception positively.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Ongoing Buy-Back Program
Jun 13, 2025

Telstra Group Limited has announced an update regarding its ongoing buy-back program, with a total of 3,529,401 ordinary fully paid securities bought back on the previous day. This move is part of Telstra’s strategy to manage its capital structure and return value to shareholders, potentially impacting its share price and market perception positively.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Share Buy-Back Progress
Jun 12, 2025

Telstra Group Limited has announced an update on its ongoing share buy-back program, reporting the acquisition of 2,648,159 ordinary fully paid securities on the previous day, bringing the total number of securities bought back to 157,397,555. This buy-back initiative is part of Telstra’s strategy to optimize its capital structure and return value to shareholders, potentially enhancing the company’s stock market performance and investor confidence.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Share Buy-Back Progress
Jun 11, 2025

Telstra Group Limited has announced an update regarding its ongoing share buy-back program. As of June 11, 2025, the company has repurchased a total of 153,259,061 of its ordinary fully paid shares, with 4,138,494 shares bought back on the previous day. This buy-back initiative is part of Telstra’s strategy to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Significant Buy-Back Progress
Jun 10, 2025

Telstra Group Limited has announced an update on its ongoing on-market buy-back program, revealing that a total of 3,711,144 ordinary fully paid securities were bought back on the previous day, adding to a cumulative total of 149,547,917 securities acquired before that day. This buy-back initiative is part of Telstra’s strategy to optimize its capital structure, potentially enhancing shareholder value and reflecting confidence in the company’s financial health and future prospects.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Share Buy-Back Progress
Jun 6, 2025

Telstra Corporation Limited has announced an update on its ongoing share buy-back program, revealing that it has repurchased a total of 147,931,682 securities prior to the previous day, with an additional 1,616,235 securities bought back on the previous day. This buy-back initiative reflects Telstra’s strategy to manage its capital structure effectively, potentially enhancing shareholder value and demonstrating confidence in the company’s financial position.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.90 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Ongoing Share Buy-Back Program
Jun 5, 2025

Telstra Group Limited has announced an update on its ongoing on-market buy-back program. As of June 5, 2025, the company has repurchased a total of 145,281,087 ordinary fully paid securities, with an additional 2,650,595 securities bought back on the previous day. This buy-back initiative is part of Telstra’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Market Buy-Back Progress
Jun 4, 2025

Telstra Group Limited has announced an update regarding its ongoing on-market buy-back program. As of June 4, 2025, the company has repurchased a total of 145,281,087 securities, with 3,838,049 bought back on the previous day. This buy-back initiative reflects Telstra’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Continues Strategic Share Buy-Back Program
Jun 2, 2025

Telstra Corporation Limited has announced an update on its ongoing share buy-back program, revealing that a total of 2,052,659 ordinary fully paid securities were bought back on the previous day, adding to the cumulative total of 139,390,379 securities repurchased. This buy-back initiative is part of Telstra’s strategy to optimize its capital structure and enhance shareholder value, reflecting a commitment to returning surplus capital to its investors.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Share Buy-Back Progress
May 30, 2025

Telstra Group Limited has announced an update on its ongoing share buy-back program, revealing that it has repurchased a total of 135,765,243 securities before the previous day and an additional 3,625,136 securities on the previous day. This buy-back initiative is part of Telstra’s strategy to manage its capital structure effectively, potentially enhancing shareholder value and reflecting confidence in the company’s financial health.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Updates on Securities Buy-Back Program
May 29, 2025

Telstra Group Limited has announced an update regarding its ongoing buy-back program, revealing that a total of 134,927,055 securities have been bought back prior to the latest update, with an additional 838,188 securities purchased on the previous day. This move is part of Telstra’s strategy to manage its capital efficiently and potentially enhance shareholder value, reflecting its commitment to maintaining a strong financial position in the competitive telecommunications market.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Unveils ‘Connected Future 30 Strategy’ to Drive Growth and Innovation
May 28, 2025

Telstra Corporation Limited has unveiled its new ‘Connected Future 30 Strategy’ during its Investor Day 2025, marking a transition from its previous strategies, T22 and T25. The strategy emphasizes leveraging Telstra’s leadership in mobile and digital infrastructure, enhancing cost discipline and efficiency, and ensuring consistent growth and value for shareholders. The company aims to adapt to changing customer needs, driven by technological advancements such as AI, and the increasing demand for data and connectivity. This strategic shift is expected to position Telstra to meet the evolving requirements of its customers and stakeholders, ensuring its continued leadership in the telecommunications industry.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Unveils Connected Future 30 Strategy at Investor Day
May 26, 2025

Telstra Group Limited has announced its Connected Future 30 Strategy during an Investor Day presentation led by the CEO and senior management. This strategy is expected to impact Telstra’s operations and industry positioning, as it outlines the company’s future direction and goals. The presentation was made available via webcast, with a transcript to be lodged with the ASX, indicating Telstra’s commitment to transparency and engagement with stakeholders.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Unveils Connected Future 30 Strategy
May 26, 2025

Telstra Group Limited has announced its new strategic initiative, the Connected Future 30 Strategy. This announcement, authorized by the Telstra Group Limited Board, is expected to have significant implications for the company’s operations and its positioning within the industry, although specific details of the strategy’s impact were not disclosed.

The most recent analyst rating on (AU:TLS) stock is a Buy with a A$4.40 price target. To see the full list of analyst forecasts on Telstra Corporation Limited stock, see the AU:TLS Stock Forecast page.

Telstra Appoints Steven Worrall as New CEO of Telstra InfraCo
May 11, 2025

Telstra Group Limited has announced the appointment of Steven Worrall as the new CEO of Telstra InfraCo, effective 1 September 2025, following the retirement of Brendon Riley. Worrall, who has a strong background in global technology and AI from his role at Microsoft, is expected to further enhance Telstra InfraCo’s leadership in digital infrastructure. This leadership change is anticipated to bolster Telstra’s market position and drive growth through strategic partnerships and technology advancements.

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.Date of analysis: Jun 05, 2025