Telus (T) AI Stock Analysis

• Market Cap: C$28.16B
• Dividend Yield: 9.49%
• Average Volume (3M): 7.06M
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.08
• Revenue Growth: 2.42%
• EPS Growth: 24.37%
• Country: CA
• Employees: 106,800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.20
• Shares Outstanding: 1,561,000,000
• 10 Day Avg. Volume: 7,703,353
• 30 Day Avg. Volume: 7,057,145
• PEG Ratio: 2.78
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 11.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$20.87
• Price Target Upside: 15.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.91
• Revenue Forecast (FY): C$21.00B

• Rating: 54 Neutral
• Price Target: C$18.50 ▲(2.55% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is driven mainly by mixed fundamentals: solid and improving cash generation and steady revenue growth are offset by high leverage and compressed profitability. Weak technical trend signals (below key moving averages with negative MACD) further weigh on the overall rating, while the high dividend yield provides partial support despite a not-cheap P/E.

Positive Factors

Diversified recurring revenue model

TELUS’s core subscription telecom business plus TELUS Health, Agriculture & Consumer Goods, and TELUS Digital create multiple recurring revenue streams. This diversification reduces reliance on any single product, supports cross‑sell, and gives durable cash flow visibility for investment and service expansion over years.

Consistent revenue growth (2020–2025)

Steady topline expansion over 2020–2025 signals resilient demand for connectivity and bundled services. Persistent revenue growth supports scale economics, amortizes network capex, and gives management room to invest in new services and digital offerings that can sustain midterm organic growth.

Strategic space-based partnership

The AST SpaceMobile tie-up and equity stake is a structural expansion into coverage-limited markets. It extends TELUS’s serviceable addressable market, differentiates its network offerings for remote customers, and creates a long‑term growth avenue in connectivity beyond terrestrial limits.

Negative Factors

High leverage and rising debt

Materially higher debt and a roughly 1.9x debt/equity profile constrain financial flexibility. In higher rate environments, interest costs and refinancing risk can crowd capital allocation, limiting capacity for M&A, elevated capex, or dividend support without stronger cash conversion.

Compressed profitability and margins

Profitability has weakened versus earlier years, with modest net margins and volatile net income. Sustained margin pressure reduces reinvestment capacity, weakens ROI on incremental revenue, and makes the business more sensitive to cost inflation, interest expense, or competitive price pressure.

Significant cybersecurity incident at TELUS Digital

A large BPO/data breach is a structural operational risk for TELUS’s digital and health services, potentially causing regulatory scrutiny, remediation costs, contract losses, and reputational damage. Given the sensitivity of customer and health data, impacts to client trust could be long‑lasting.

Telus Business Overview & Revenue Model

Company Description

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network revenue; mobile technologies equipment sale; data revenues, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services. The Digitally-Led Customer Experiences segment provides digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions. It has 16.9 million subscriber connections, which include 9.3 million mobile phone subscribers; 2.1 million connected device subscribers; 2.3 million internet subscribers; 1.1 million residential voice subscribers; 1.3 million TV subscribers; and 804,000 security subscribers. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is headquartered in Vancouver, Canada.

How the Company Makes Money

TELUS makes money primarily by selling subscription-based telecommunications services and, secondarily, by selling technology platforms and services to enterprises and institutions. (1) Telecommunications service revenues: The largest revenue stream comes from recurring monthly fees paid by consumers and businesses for wireless (mobile voice, text, and data) and wireline services (home internet, television/IPTV, and landline/VoIP voice). Revenue is supported by customer contracts and ongoing usage of data services; pricing is typically structured as monthly plans and service bundles. (2) Equipment and other sales: TELUS also generates revenue from the sale or financing of mobile devices and customer premise equipment (e.g., handsets and related accessories), often tied to customer acquisitions or upgrades. (3) Health technology and services (TELUS Health): TELUS earns revenue by providing healthcare software, digital health platforms, and related services to employers, insurers, pharmacies, clinicians, and health systems; monetization is generally through subscriptions, licensing, transactions, and service fees depending on the specific product. (4) Agriculture & consumer goods technology (TELUS Agriculture & Consumer Goods): Revenue is generated by providing software platforms, data/analytics, and services that help customers manage operations and supply chains across agriculture and consumer goods; monetization is typically via subscriptions and service/implementation fees. (5) Digital/IT and customer experience services (TELUS Digital): TELUS generates service revenue by providing outsourced customer experience, digital transformation, and IT services to enterprise clients, generally under service contracts. Key factors that contribute to earnings include scale in network operations, customer retention and bundling across wireless and home services, and cross-selling technology services alongside core connectivity offerings. Specific partnership terms and the exact revenue mix by segment are not provided here (null).

Telus Financial Statement Overview

Summary

Steady revenue growth and improving free cash flow in 2025 support the outlook, but profitability has weakened versus 2020–2022 and the balance sheet is highly levered with rising debt, limiting flexibility.

Income Statement

Revenue is steadily expanding (2020–2025 annual revenue up from ~15.3B to ~20.3B, with 2025 growth ~7%), showing resilient demand. Profitability, however, has weakened versus earlier years: net income fell sharply from ~1.6B (2021–2022 range) to ~0.84B in 2023 and ~0.99B in 2024, before improving to ~1.11B in 2025. Margins in 2024 were modest (net margin ~4.9%) and below 2020–2022 levels, indicating higher costs, pricing pressure, or heavier depreciation/interest burden despite solid EBITDA scale.

Balance Sheet

Leverage is the main constraint. Total debt has climbed materially (about 20.4B in 2020 to ~31.5B in 2025) while equity is relatively flat (~15–16B), keeping debt to equity elevated (about 1.9x in 2024). Assets have grown, but the capital structure remains debt-heavy, which can limit flexibility in higher-rate environments and increases the importance of consistent cash generation. Returns on equity have also trended down from stronger 2020–2022 levels to the mid-single digits in 2023–2024.

Cash Flow

Cash generation looks comparatively solid and improving. Operating cash flow is stable-to-rising (~4.4B in 2021 to ~4.9B in 2024–2025), and free cash flow improved meaningfully to ~2.35B in 2025 from ~1.46B in 2024 (positive growth). The key weakness is conversion versus accounting earnings and obligations: in 2023–2024, free cash flow was only about ~29–30% of net income, and operating cash flow relative to debt is under 0.5 in 2023–2024, indicating debt remains large versus annual cash generation. Still, the direction of free cash flow in 2025 is a clear positive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.35B	20.14B	20.00B	18.29B	16.84B
Gross Profit	12.64B	7.08B	7.03B	6.52B	6.03B
EBITDA	6.78B	5.67B	5.62B	5.41B	4.99B
Net Income	1.11B	993.00M	841.00M	1.61B	1.66B
Balance Sheet
Total Assets	59.61B	58.02B	56.14B	54.05B	47.99B
Cash, Cash Equivalents and Short-Term Investments	2.62B	869.00M	864.00M	974.00M	723.00M
Total Debt	31.46B	29.78B	27.45B	25.14B	20.97B
Total Liabilities	43.03B	41.23B	38.83B	36.41B	31.92B
Stockholders Equity	15.78B	15.62B	16.11B	16.57B	15.12B
Cash Flow
Free Cash Flow	2.35B	1.46B	1.29B	1.16B	-928.00M
Operating Cash Flow	4.87B	4.85B	4.50B	4.81B	4.39B
Investing Cash Flow	-3.04B	-3.70B	-4.75B	-5.41B	-5.47B
Financing Cash Flow	-74.00M	-1.14B	139.00M	848.00M	953.00M

Telus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:T, the sentiment is Negative. The current price of 18.04 is below the 20-day moving average (MA) of 18.20, below the 50-day MA of 18.35, and below the 200-day MA of 19.55, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 25.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:T.

Telus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCI.B	75 Outperform	C$28.38B	4.04	43.97%	3.94%	2.75%	342.54%
QBR.B	73 Outperform	C$13.30B	13.87	35.31%	2.69%	-0.29%	15.30%
QBR.A	71 Outperform	C$13.30B	13.87	35.31%	2.70%	-0.29%	15.30%
RCI.A	69 Neutral	C$28.38B	4.15	43.97%	3.89%	2.75%	342.54%
BCE	63 Neutral	C$33.04B	4.71	31.99%	7.42%	0.11%	7109.23%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
T	54 Neutral	C$28.16B	24.88	7.68%	9.49%	2.42%	24.37%

Telus Corporate Events

TELUS to Partially Redeem C$500 Million of 2026 Notes

TELUS plans to partially redeem C$500 million of its 2.75% Notes, Series CZ due July 8, 2026, on May 8, 2026, out of a total C$800 million outstanding. The notes will be selected on a pro rata basis, with the redemption price set under the existing indenture, and will be funded using proceeds from the company’s Fixed-to-Fixed Rate Junior Subordinated Notes issued in December 2025.

The transaction reflects TELUS’ ongoing balance sheet management as it refinances near-term debt with longer-dated, subordinated securities, potentially strengthening its capital structure ahead of the notes’ maturity. The move may also lower refinancing risk and provide additional financial flexibility as the company continues to invest in its core communications, health and digital businesses.

The most recent analyst rating on (TSE:T) stock is a Hold with a C$19.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

TELUS to Trim Discount on Dividend Reinvestment Plan Shares in 2026

TELUS will amend its Dividend Reinvestment and Share Purchase Plan effective April 1, 2026, reducing the discount on shares issued from treasury for dividend reinvestment to 1.75 per cent off the average market price, while optional cash purchases will be made at full market value. The change, applying to shareholders of record as of March 11, 2026, fine-tunes the economics of its DRISP for Canadian and U.S. investors and may modestly adjust the company’s equity funding mix and attractiveness of share-based dividend reinvestment without altering overall access to the program.

Eligible shareholders in Canada and the United States can continue to reinvest dividends or enroll in the DRISP through Computershare, while non-registered holders are directed to work through their intermediaries. By maintaining the program with a lower discount rather than eliminating it, TELUS balances ongoing investor participation incentives with a more measured approach to share issuance from treasury, which could help manage dilution while preserving an efficient capital-raising tool.

The most recent analyst rating on (TSE:T) stock is a Hold with a C$19.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

TELUS Hires Advisors to Advance Monetisation and Partnership Strategy for TELUS Health

TELUS has appointed TD Securities and Jefferies as financial advisors to guide the monetisation and partnership strategy for its TELUS Health business, which it describes as a rapidly growing, globally scaled digital health asset with a growing AI-focused product set. The company aims to bring in a strategic partner to enhance TELUS Health’s capabilities, customer reach and financial resources, and views the initiative as a key lever in its broader deleveraging plan, targeting a gradual reduction in net debt to adjusted EBITDA over the next several years and supporting long-term value creation through disciplined capital allocation and a strong free cash flow outlook.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

TELUS insiders boost holdings as company accelerates share buybacks and deleveraging plan

TELUS announced that its leadership, including President and CEO Darren Entwistle and several board members, acquired 357,090 TELUS shares in the open market over November and December, bringing collective insider holdings to about 2.4 million shares. Entwistle has also been taking his entire salary in TELUS shares since 2024 and intends to continue, underscoring management’s alignment with shareholders and confidence in the company’s long-term value.

The company also disclosed it has repurchased and cancelled nearly 2.3 million common shares at an average price of $17.39 as part of a $500 million normal course issuer bid launched in December 2025, a move it says reflects the disconnect between its share price and underlying business fundamentals. TELUS framed the buybacks as complementary to its deleveraging program and phased reduction of its dividend reinvestment plan, citing strong operations and free cash flow growth that support an accelerated path to lower leverage targets through 2027, which could bolster investor confidence and strengthen its financial position in the telecom sector.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

TELUS Announces Full Redemption of C$600 Million Notes Ahead of Schedule

TELUS Corporation has announced the full redemption of its C$600 million 3.75% Notes, Series CV, which were due on March 10, 2026. This strategic financial move is set to take place on January 16, 2026, and reflects TELUS’s proactive management of its financial obligations, potentially impacting its financial positioning positively. The redemption aligns with TELUS’s commitment to leveraging its financial strategies to support its operations and maintain its industry standing.

The most recent analyst rating on (TSE:T) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.