Telus (T) AI Stock Analysis

• Market Cap: C$29.30B
• Dividend Yield: 9.49%
• Average Volume (3M): 7.06M
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.06
• 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$20.51
• Price Target Upside: 9.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 0.91
• Revenue Forecast (FY): C$21.00B

• Rating: 57 Neutral
• Price Target: C$19.00 ▲(1.23% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by balance-sheet leverage and a weak-to-neutral technical trend (price below key longer-term moving averages). Offsetting factors include improving free cash flow and steady revenue growth, plus an earnings-call backdrop of strong customer metrics and growth initiatives (Health/AI), while valuation is mixed with a very high yield but a relatively high P/E.

Positive Factors

Improving cash generation

Telus' operating cash flow has risen (~4.4B in 2021 to ~4.9B in 2024–2025) and free cash flow jumped to ~2.35B in 2025. This durable improvement strengthens the company's ability to fund capex, service debt, and pursue strategic initiatives while supporting deleveraging targets over the medium term.

Consistent customer and revenue growth

Sustained customer net additions and rising service revenue (2020–2025 growth to ~20.3B) reflect durable demand for bundled connectivity and network reach (PureFibre, 5G+). Low postpaid churn and scale in mobility/fixed customer bases underpin recurring revenue and long-term competitiveness.

Health and AI diversification

Expansion of TELUS Health and AI capabilities diversifies Telus beyond traditional telecom. Faster growth, higher digital service margins, and global reach (160M lives) create structural revenue optionality and a pathway to higher-margin growth that can materially improve overall profitability over several years.

Negative Factors

High leverage

Materially higher debt and an elevated debt-to-equity profile limit financial flexibility and increase exposure to rising interest costs. Even with deleveraging targets, the existing capital structure raises refinancing and investment risk and makes consistent cash generation essential for meeting obligations.

Compressed profitability and margins

Profitability has weakened from 2020–2022 levels, with lower net income and thin net margins. This compression reflects higher costs, interest/dep burdens, or pricing pressure and reduces retained earnings available for reinvestment, dividend sustainability, and faster deleveraging.

TELUS Digital profitability pressures

TELUS Digital's modest margin and ongoing profitability pressures could delay expected synergies from acquisitions. Combined with slight declines in mobile revenue/ARPU, a sustained period of low-margin digital growth would weigh on consolidated margins and slow the pace of financial improvement.

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

Cash generation is the key support (operating cash flow stable-to-rising and free cash flow improved materially in 2025), and revenue is steadily expanding. Offsetting this, profitability has compressed versus 2020–2022 and the balance sheet is highly levered with rising debt, reducing financial flexibility and increasing sensitivity to interest costs.

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: Neutral
• Last Price: 18.77
• 50DMA: Positive
• 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 Neutral. The current price of 18.77 is below the 20-day moving average (MA) of 18.86, above the 50-day MA of 18.57, and below the 200-day MA of 20.15, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 57.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$29.90B	4.32	40.24%	3.94%	2.75%	342.54%
QBR.B	73 Outperform	C$13.21B	15.73	34.72%	2.69%	-0.29%	15.30%
QBR.A	71 Outperform	C$13.21B	15.45	35.34%	2.70%	-0.29%	15.30%
RCI.A	69 Neutral	C$29.90B	4.40	47.85%	3.89%	2.75%	342.54%
BCE	67 Neutral	C$33.68B	5.32	―	7.42%	0.11%	7109.23%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
T	57 Neutral	C$29.30B	25.82	7.12%	9.49%	2.42%	24.37%

Telus Corporate Events

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.

TELUS Announces Pricing for Debt Securities Tender Offers

TELUS Corporation announced the pricing terms for its cash tender offers to purchase several series of its outstanding debt securities. The company has set the terms for these offers, which include a mix of reference yields and fixed spreads for different notes. The financing condition for these offers has been satisfied through the company’s recent offerings of Canadian and U.S. junior subordinated notes. The settlement date for the accepted notes is expected on December 16, 2025, after which the purchased notes will be retired and canceled. This move is part of TELUS’s strategy to manage its debt portfolio effectively, potentially impacting its financial flexibility and market positioning.

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 Upsizes Cash Tender Offers for Debt Securities

TELUS Corporation announced an increase in its cash tender offers for seven series of debt securities, raising the Maximum Purchase Amount to accommodate all tendered notes for specific series. The company successfully tendered C$1,873,961,000 in aggregate principal amount of notes, indicating strong participation. This move is likely to impact TELUS’s financial strategy by managing its debt profile, potentially improving its market positioning and financial flexibility.

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.