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BCE
(NYSE:BCE)
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Rating:67Neutral
Price Target:
C$34.00
▲(13.03% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by fundamentals that are improving but constrained: strong TTM profitability and revenue strength are offset by elevated leverage and weak/volatile free-cash-flow conversion. Valuation is a major positive (very low P/E and high dividend yield), while technical indicators are mixed (below key longer-term moving averages) and the latest earnings call supports a steady outlook with guidance reaffirmed but near-term CapEx pressure.
Positive Factors
Contracted AI data-center capacity
Material contracted AI capacity provides durable, high‑visibility revenue and prepayment/tenant fee timing that de‑risks project economics. Contracting supports predictable long‑term cash flows, leverages BCE’s network footprint and creates a scalable infrastructure revenue stream beyond core telco services.
Negative Factors
Elevated leverage and rising debt
High absolute debt and above‑target leverage reduce financial flexibility and increase sensitivity to interest costs. Meeting deleveraging targets depends on asset sales and organic EBITDA gains; sustained elevated leverage constrains strategic optionality and raises refinancing and covenant risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted AI data-center capacity
Material contracted AI capacity provides durable, high‑visibility revenue and prepayment/tenant fee timing that de‑risks project economics. Contracting supports predictable long‑term cash flows, leverages BCE’s network footprint and creates a scalable infrastructure revenue stream beyond core telco services.
Read all positive factors
BCE (BCE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$29.53B
Dividend Yield5.53%
Average Volume (3M)4.20M
Price to Earnings (P/E)4.7
Beta (1Y)0.03
Revenue Growth1.59%
EPS Growth1374.54%
CountryCA
Employees38,683
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)6.75
Shares Outstanding932,525,800
10 Day Avg. Volume4,060,933
30 Day Avg. Volume4,201,288
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.33
Price to Sales (P/S)1.24
P/FCF Ratio9.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$36.82Price Target Upside22.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)2.57
Revenue Forecast (FY)C$25.00B
BCE Business Overview & Revenue Model
Company Description
BCE Inc., a leading Canadian telecommunications and media entity, provides a comprehensive suite of services including mobile, fixed-line, internet, and television to residential, business, and wholesale customers across the country. The company's...
How the Company Makes Money
BCE primarily makes money by selling subscription-based telecommunications services and related connectivity solutions, supplemented by media and advertising revenue. A major revenue stream is wireless service, where customers pay recurring monthl...
BCE Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed steady operational execution and progress on strategic growth platforms (fiber build, Bell AI Fabric, Bell Media streaming), with clear evidence of subscriber gains, digital monetization and contracting momentum for AI data centers. Balance sheet actions, >$1B free cash flow and modest improvements in leverage support a constructive financial position. Key near-term challenges include elevated CapEx for AI Fabric and Ziply build that pressured year-over-year free cash flow and constrained near-term Ziply revenue growth and margins, plus continued wireless product revenue decline and one-time comparability items. On balance, the positives (broad-based growth drivers, strong media and enterprise momentum, network recognition, and material contracted AI capacity) outweigh the near-term headwinds tied to investment timing and legacy declines.Positive Updates
Consolidated Revenue Growth
Total consolidated revenue increased 1.5% year-over-year in Q2 2026, reflecting contributions from Ziply Fiber and strong performance at Bell Media.
Negative Updates
Higher CapEx and Free Cash Flow Pressure
CapEx increased by $317 million year-over-year driven by Ziply Fiber build-out and AI Fabric investments; while free cash flow exceeded $1 billion, it was down year-over-year due to higher CapEx, with the majority of Saskatchewan AI data center CapEx (~$1.3 billion) expected in H2 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Total consolidated revenue increased 1.5% year-over-year in Q2 2026, reflecting contributions from Ziply Fiber and strong performance at Bell Media.
Read all positive updates
Company Guidance
Management reconfirmed all 2026 financial guidance targets and said results are tracking to full‑year ’26 guidance: Q2 consolidated revenue rose 1.5% and adjusted EBITDA grew 1% (adjusted EBITDA margin ~43.8%), adjusted EPS was $0.65 (+$0.02), and free cash flow exceeded $1.0 billion (down YoY due to higher CapEx); total CapEx was up $317 million YoY with the majority of ~ $1.3 billion of 2026 Saskatchewan AI data‑center CapEx expected in H2. They noted ~335 MW of AI capacity already contracted (line‑of‑sight to 800 MW), ~ $400 million of tenant setup fees/prepayments (about < $100M received in Q2, recorded in working capital), Ziply is ramping H2 build toward the plan to reach ~3.0 million homes by end‑2028, and Ziply Q2 adjusted EBITDA was $95 million (40.6% margin). On the balance sheet they affirmed available liquidity of ~$4.6 billion, reported net‑debt leverage of ~3.7x (down ~0.1x since Q4) with a target of 3.5x by end‑2027, completed $2.5 billion of public debt issuance and repurchases, expect proceeds from the pending LMR sale to aid deleveraging, and noted a pension solvency surplus of ~ $4.9 billion (≈125% solvency ratio).BCE Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.80B | 24.47B | 24.41B | 24.67B | 24.17B | 23.45B |
| Gross Profit | 14.67B | 16.75B | 16.70B | 16.75B | 16.53B | 16.16B |
| EBITDA | 14.92B | 14.72B | 7.71B | 9.72B | 9.76B | 9.63B |
| Net Income | 6.42B | 6.46B | 344.00M | 2.26B | 2.87B | 2.84B |
Balance Sheet | ||||||
| Total Assets | 81.04B | 80.08B | 73.48B | 71.94B | 69.33B | 66.76B |
| Cash, Cash Equivalents and Short-Term Investments | 479.00M | 320.00M | 1.97B | 1.77B | 149.00M | 289.00M |
| Total Debt | 41.78B | 41.06B | 40.50B | 36.18B | 31.92B | 29.67B |
| Total Liabilities | 56.86B | 56.87B | 56.13B | 51.38B | 46.81B | 43.82B |
| Stockholders Equity | 23.86B | 22.92B | 17.07B | 20.23B | 22.18B | 22.64B |
Cash Flow | ||||||
| Free Cash Flow | 2.65B | 3.29B | 2.56B | 3.18B | 3.23B | 1.09B |
| Operating Cash Flow | 6.79B | 6.99B | 6.99B | 7.95B | 8.37B | 8.01B |
| Investing Cash Flow | -4.54B | -3.60B | -4.44B | -5.78B | -5.52B | -7.00B |
| Financing Cash Flow | -2.38B | -4.65B | -1.75B | -1.54B | -2.99B | -1.02B |
BCE Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$15.36B | 16.45 | 35.07% | 2.23% | 3.12% | 24.49% | |
70 Outperform | C$15.36B | 16.45 | 35.07% | 2.30% | 3.12% | 24.49% | |
69 Neutral | C$26.06B | 4.16 | 32.78% | 4.13% | 8.73% | 302.65% | |
67 Neutral | C$29.53B | 4.69 | 29.69% | 5.82% | 1.59% | 1374.54% | |
65 Neutral | C$26.06B | 4.16 | 32.78% | 4.33% | 8.73% | 302.65% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
50 Neutral | C$21.50B | -23.62 | 6.41% | 11.61% | -1.06% | -188.85% |
* Communication Services Sector Average
TSE:BCE
BCE
31.67
-0.21
-0.65%
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BCE Corporate Events
Business Operations and StrategyFinancial Disclosures
BCE Leans on Fibre, AI and Streaming as Q2 Results Show Revenue and Subscriber Gains
Positive
Aug 6, 2026
BCE posted second-quarter 2026 results showing 1.5% consolidated revenue growth and a 1.0% rise in adjusted EBITDA, while net earnings slipped to $629 million and adjusted EPS climbed 3.2% to $0.65. Operating cash flow rose 11% to $2.16 billion, t...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Austral Gold maps 14-year future for Chile’s Guanaco mine in new technical report
Positive
Jul 23, 2026
Austral Gold has released an updated technical report for its Guanaco Mine in Chile, outlining a 14-year life-of-mine plan built on existing mining and processing infrastructure. The report confirms significant proven and probable mineral reserves...
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.