Telus Corp. (TSE:T)
TSX:T
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Telus
(TSX:T)
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Rating:58Neutral
Price Target:
C$18.50
â–²(3.47% Upside)
Action:ReiteratedDate:03/26/26
The score reflects solid and improving cash flow with supportive 2026 free-cash-flow guidance and deleveraging plans, partially offset by high leverage and compressed profitability. Technicals are a notable drag given the stock’s downtrend and weak momentum, while valuation is mixed—an attractive dividend yield but a relatively high P/E.
Positive Factors
Free Cash Flow Strength
Sustained and rising free cash flow is a durable strength: record FCF in 2025 supports deleveraging, dividend sustainability, capex funding and the $7B asset monetization plan. Reliable cash generation reduces refinancing risk and funds strategic investments over the next 2–5 years.
Negative Factors
High Leverage
Material debt accumulation leaves the capital structure stretched and sensitive to higher rates. Elevated leverage constrains strategic flexibility, increases interest expense risk, and makes execution of the deleveraging plan and asset monetization critical to avoid longer-term rating or liquidity pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained and rising free cash flow is a durable strength: record FCF in 2025 supports deleveraging, dividend sustainability, capex funding and the $7B asset monetization plan. Reliable cash generation reduces refinancing risk and funds strategic investments over the next 2–5 years.
Read all positive factors
Telus (T) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$27.91B
Dividend Yield9.49%
Average Volume (3M)7.06M
Price to Earnings (P/E)24.9
Beta (1Y)0.08
Revenue Growth2.42%
EPS Growth24.37%
CountryCA
Employees106,800
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.20
Shares Outstanding1,561,000,000
10 Day Avg. Volume7,703,353
30 Day Avg. Volume7,057,145
Financial Highlights & Ratios
PEG Ratio2.78
Price to Book (P/B)1.76
Price to Sales (P/S)1.36
P/FCF Ratio11.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.84Price Target Upside16.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.91
Revenue Forecast (FY)C$21.00B
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 Tec...
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 stre...
Telus Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operational and financial achievements — record free cash flow (+11% YoY), industry-leading customer growth and churn metrics, significant AI revenue momentum (Q4 AI revenue +44% YoY), LifeWorks synergies exceeding targets, and clear deleveraging progress — while acknowledging manageable near-term headwinds including ARPU decline (-1.6%), a promotional competitive environment, TELUS Digital EBITDA compression, and business fixed data variability. Management provided constructive 2026 guidance (service revenue and adjusted EBITDA growth of 2–4%, free cash flow ≈ $2.45B) and detailed monetization and cost synergy initiatives to support targets. On balance, highlights substantially outweigh the lowlights.Positive Updates
Strong Customer Net Additions and Record Connected Devices
TELUS reported 1.1 million combined mobile and fixed customer net additions for 2025 (fourth consecutive year >1M). Q4 telecom net additions were 377,000, including Q4 wireless net additions of 337,000 (mobile phone net adds 50,000; record connected device net adds 287,000). Full year connected device net additions were 716,000 and mobile phone net adds were 207,000; fixed net additions for 2025 were 158,000 (16th consecutive year of positive wireline net additions).
Negative Updates
ARPU Still Declining (though improving sequentially)
Network/ARPU trends moderated but ARPU remained negative: overall ARPU decline of 1.6% reported with improvement on a sequential basis; continued focus required to restore ARPU growth despite stabilization.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Customer Net Additions and Record Connected Devices
TELUS reported 1.1 million combined mobile and fixed customer net additions for 2025 (fourth consecutive year >1M). Q4 telecom net additions were 377,000, including Q4 wireless net additions of 337,000 (mobile phone net adds 50,000; record connected device net adds 287,000). Full year connected device net additions were 716,000 and mobile phone net adds were 207,000; fixed net additions for 2025 were 158,000 (16th consecutive year of positive wireline net additions).
Read all positive updates
Company Guidance
TELUS guided 2026 targets of consolidated service revenue growth of 2–4% and consolidated adjusted EBITDA growth of 2–4%, with consolidated capital expenditures of approximately $2.3 billion (CapEx intensity trending from ~12% toward ~10%) and consolidated free cash flow of about $2.45 billion (circa 10% growth); management reiterated a minimum 10% CAGR in free cash flow through 2028 and an AI-enabling revenue ambition to grow from ~$800M in 2025 to ~$2B in 2028 (Q4 AI-enabling revenue was $229M, up 44% and 35% for the year). They also reaffirmed deleveraging targets (net debt/EBITDA 3.4x at YE‑2025, targeting ~3.3x or lower by YE‑2026 and ≤3.0x by YE‑2027), a $7 billion monetization program, a DDRIP discount reduction to 1.75% with full removal in 2027, and expected TELUS Digital annual cash synergies of ~$150–$200M (with ~ $150M realizable in 2026).Telus Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
46
Neutral
Cash Flow
71
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
Negative
17.88
Price Trends
18.34
Negative
18.20
Negative
19.51
Negative
Market Momentum
-0.07
Positive
41.04
Neutral
27.57
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 17.88 is below the 20-day moving average (MA) of 18.18, below the 50-day MA of 18.34, and below the 200-day MA of 19.51, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of 27.57 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$29.19B | 4.04 | 43.97% | 3.94% | 2.75% | 342.54% | |
74 Outperform | C$13.59B | 13.87 | 35.31% | 2.69% | -0.29% | 15.30% | |
71 Outperform | C$13.59B | 13.87 | 35.31% | 2.70% | -0.29% | 15.30% | |
69 Neutral | C$29.19B | 4.15 | 43.97% | 3.89% | 2.75% | 342.54% | |
64 Neutral | C$32.84B | 4.71 | 31.99% | 7.42% | 0.11% | 7109.23% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | C$27.91B | 24.88 | 7.68% | 9.49% | 2.42% | 24.37% |
* Communication Services Sector Average
TSE:T
Telus
17.88
-0.71
-3.80%
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BCE
35.22
4.56
14.88%
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53.98
16.08
42.45%
TSE:QBR.A
Quebecor Inc Cl A MV
60.18
25.81
75.11%
TSE:RCI.A
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54.25
13.55
33.31%
TSE:QBR.B
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60.08
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Telus Corporate Events
Business Operations and StrategyPrivate Placements and Financing
TELUS to Partially Redeem C$500 Million of 2026 Notes
Positive
Mar 9, 2026
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 existin...
Business Operations and StrategyDividends
TELUS to Trim Discount on Dividend Reinvestment Plan Shares in 2026
Neutral
Feb 25, 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...
Business Operations and Strategy
TELUS Hires Advisors to Advance Monetisation and Partnership Strategy for TELUS Health
Positive
Jan 8, 2026
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...
Business Operations and StrategyStock Buyback
TELUS insiders boost holdings as company accelerates share buybacks and deleveraging plan
Positive
Jan 5, 2026
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 sha...
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.