Telus (T) AI Stock Analysis

• Market Cap: $29.44B
• Dividend Yield: 8.69%
• Average Volume (3M): 5.90M
• Price to Earnings (P/E): 24.5
• 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): 0.24
• Shares Outstanding: 1,548,000,000
• 10 Day Avg. Volume: 7,818,423
• 30 Day Avg. Volume: 5,903,567
• PEG Ratio: 1.89
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 19.92
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 3.11
• Enterprise Value/Gross Profit: 8.92
• Enterprise Value/Ebitda: 9.89
• 1Y Price Target: $21.56
• Price Target Upside: 14.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.97
• Revenue Forecast (FY): $20.71B

• Rating: 69 Neutral
• Price Target: C$24.00 ▲(27.39% Upside)

Telus' overall stock score reflects strong financial performance and positive earnings call highlights, including customer growth and strategic initiatives in AI and health services. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The attractive dividend yield and strategic focus on growth areas provide a balanced outlook.

Positive Factors

Customer Growth

Strong customer growth indicates robust demand for Telus' services, enhancing its market position and providing a stable revenue base for future expansion.

AI Revenue Growth Prospects

Significant AI revenue growth potential underscores Telus' strategic focus on innovation, positioning it well in the evolving tech landscape and driving long-term profitability.

TELUS Health Expansion

Expansion in health services diversifies Telus' revenue streams and leverages its telecom infrastructure, enhancing resilience and growth opportunities in a vital sector.

Negative Factors

Increased Leverage

Higher leverage can increase financial risk, potentially impacting Telus' ability to invest in growth initiatives and manage economic downturns effectively.

Mobile Network Revenue Decline

Declining mobile network revenue and ARPU may indicate competitive pressures or market saturation, challenging Telus' core business profitability.

Challenges in TELUS Digital Profitability

Profitability challenges in TELUS Digital could hinder the company's ability to capitalize on digital transformation trends, affecting long-term growth and innovation potential.

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 generates revenue primarily through its wireless and wireline services. The wireless segment includes voice and data plans for mobile devices, which are a significant source of recurring revenue. The company also earns money from wireline services, including broadband internet, home phone services, and television subscriptions. Additionally, Telus has ventured into health technology, offering digital health solutions and services that contribute to its revenue. Key partnerships with device manufacturers and content providers enhance its service offerings and revenue potential. Furthermore, the company's emphasis on customer retention and expansion into new markets plays a crucial role in driving its financial performance.

Telus Financial Statement Overview

Summary

Telus exhibits solid financial performance with strong revenue growth and cash flow generation. However, increased leverage and slight pressure on profitability margins warrant attention. The company is well-positioned in the telecommunications industry, but should focus on managing debt levels and improving net profitability to sustain long-term growth.

Income Statement

Telus has demonstrated consistent revenue growth with a TTM growth rate of 6.46%. The gross profit margin remains strong at 62.25%, indicating efficient cost management. However, the net profit margin has slightly decreased to 4.73% in the TTM, reflecting some pressure on profitability. The EBIT and EBITDA margins have also seen a decline, suggesting increased operational costs or competitive pressures.

Balance Sheet

The company's debt-to-equity ratio has increased to 2.18, indicating higher leverage, which could pose financial risk if not managed carefully. Return on equity is relatively stable at 6.21%, showing moderate profitability. The equity ratio stands at 25.11%, suggesting a balanced asset structure but with room for improvement in equity financing.

Cash Flow

Telus has shown a significant improvement in free cash flow growth at 48.69% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.44, reflecting adequate cash flow relative to net income. The free cash flow to net income ratio of 0.47 suggests effective conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.42B	20.14B	20.00B	18.29B	16.84B	15.34B
Gross Profit	7.13B	7.08B	7.03B	6.52B	6.03B	5.62B
EBITDA	6.43B	5.67B	5.62B	5.41B	4.99B	4.70B
Net Income	966.00M	993.00M	841.00M	1.61B	1.66B	1.21B
Balance Sheet
Total Assets	60.63B	58.02B	56.14B	54.05B	47.99B	43.33B
Cash, Cash Equivalents and Short-Term Investments	3.68B	869.00M	864.00M	974.00M	723.00M	848.00M
Total Debt	33.12B	29.78B	27.45B	25.14B	20.97B	20.39B
Total Liabilities	44.53B	41.23B	38.83B	36.41B	31.92B	30.70B
Stockholders Equity	15.22B	15.62B	16.11B	16.57B	15.12B	12.04B
Cash Flow
Free Cash Flow	2.21B	1.46B	1.29B	1.16B	-928.00M	1.75B
Operating Cash Flow	4.75B	4.85B	4.50B	4.81B	4.39B	4.57B
Investing Cash Flow	-3.15B	-3.70B	-4.75B	-5.41B	-5.47B	-6.17B
Financing Cash Flow	1.15B	-1.14B	139.00M	848.00M	953.00M	1.90B

Telus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 18.84 is below the 20-day moving average (MA) of 20.49, below the 50-day MA of 21.21, and below the 200-day MA of 21.13, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 16.84 is Positive, neither overbought nor oversold. The STOCH value of 7.51 is Positive, 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.A	78 Outperform	C$28.97B	4.28	47.85%	3.63%	2.75%	342.54%
RCI.B	73 Outperform	$29.17B	4.30	47.62%	3.76%	2.75%	342.54%
QBR.A	73 Outperform	C$10.29B	13.19	35.34%	2.55%	-0.29%	15.30%
QBR.B	72 Outperform	$10.29B	13.55	34.72%	2.67%	-0.29%	15.30%
T	69 Neutral	$29.44B	24.49	7.30%	8.69%	2.42%	24.37%
BCE	68 Neutral	$29.91B	4.83	31.28%	8.86%	0.11%	7109.23%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Telus Corporate Events

Telus Corp Reports Strong Q3 2025 Results

Telus Corp is a Canadian telecommunications company that provides a range of services including mobile and fixed connectivity, digital solutions, and healthcare services, with a strong focus on customer experience and sustainability.

Telus Reports Strong Q3 2025 Financial Results

On November 7, 2025, Telus Corporation released its financial statements for the period ending September 30, 2025, reporting a net income of $431 million for the third quarter, a significant increase from $257 million in the same period the previous year. Despite a decline in equipment revenue, the company saw an overall rise in operating revenues and other income, indicating a strong performance in its service segment. The financial results reflect Telus’s robust operational strategy and its ability to maintain a competitive position in the telecommunications market.

The most recent analyst rating on (TSE:T) stock is a Hold 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 Reports Strong Q3 2025 Results and Strategic Expansions

On November 7, 2025, TELUS Corporation reported strong operational and financial results for the third quarter of 2025, highlighting significant customer growth and robust financial performance. The company achieved a notable increase in mobile and fixed customer additions, alongside growth in TELUS Health’s operating revenue and adjusted EBITDA. TELUS also completed strategic transactions, including the acquisition of TELUS Digital’s remaining interest and the establishment of Terrion, enhancing its industry positioning and shareholder value. The company’s focus on operational excellence and strategic investments is expected to drive continued growth and financial stability.

The most recent analyst rating on (TSE:T) stock is a Hold 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 Quarterly Dividend for January 2026

On November 6, 2025, TELUS Corporation announced that its Board of Directors has declared a quarterly cash dividend of $0.4184 Canadian per share. This dividend is payable on January 2, 2026, to shareholders who are recorded as of December 11, 2025. This announcement reflects TELUS’s continued commitment to providing value to its shareholders and may impact investor sentiment positively.

The most recent analyst rating on (TSE:T) stock is a Hold 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 Completes Privatization of TELUS Digital to Boost AI and SaaS Leadership

TELUS has completed the privatization of TELUS Digital, acquiring all outstanding shares for approximately US$539 million, thereby owning 100% of the company. This strategic move is expected to enhance TELUS’s capabilities in AI-powered digital customer experience and SaaS transformation, generating approximately $150 million annually in operational efficiencies. The integration aims to accelerate growth across TELUS’s business lines and create significant shareholder value, positioning the company as a global leader in its industry.

The most recent analyst rating on (TSE:T) stock is a Hold 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 Acquires Full Ownership of TELUS Digital to Enhance AI and SaaS Capabilities

TELUS Corporation has announced a definitive agreement to acquire full ownership of TELUS Digital by purchasing all outstanding shares not already owned for US$4.50 per share, totaling US$539 million. This acquisition aims to integrate TELUS Digital’s capabilities in AI and SaaS with TELUS’s operations, enhancing service offerings across various sectors and accelerating global growth. The transaction has been unanimously recommended by TELUS Digital’s independent Special Committee and Board of Directors, highlighting the immediate value and liquidity it provides to shareholders, as well as the potential for continued growth and innovation in a competitive market.

The most recent analyst rating on (TSE:T) stock is a Hold with a C$22.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.