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Telus
(NYSE:T)
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Rating:50Neutral
Price Target:
C$13.50
â–¼(-6.25% Downside)
Action:Reiterated
Date:08/03/26
Score is held back primarily by pressured fundamentals (TTM net loss and high leverage) and a clear technical downtrend (price below all major moving averages). Cash generation is a relative support, but the latest earnings call highlighted meaningful near-term setbacks (guidance downgrade, lower FCF outlook, dividend cut) despite a credible deleveraging plan.
Positive Factors
Cash generation
Consistent operating cash flow around $4.4–4.9B and positive TTM free cash flow (~$1.9B) provide durable internal funding for network investment, debt reduction and strategic initiatives. This recurring cash generation supports capital allocation flexibility despite FCF variability historically.
Negative Factors
Elevated leverage
High absolute debt (~$31.5B) and a stretched leverage profile (debt ≈2.0x equity; net debt/adjusted EBITDA ~3.5x) limit strategic flexibility, increase refinancing risk and constrain returns until deleveraging goals are met, keeping capital markets and cost-of-capital risks elevated.
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Positive Factors
Negative Factors
Cash generation
Consistent operating cash flow around $4.4–4.9B and positive TTM free cash flow (~$1.9B) provide durable internal funding for network investment, debt reduction and strategic initiatives. This recurring cash generation supports capital allocation flexibility despite FCF variability historically.
Read all positive factors
Telus (T) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$21.36B
Dividend Yield12.09%
Average Volume (3M)8.08M
Price to Earnings (P/E)―
Beta (1Y)0.19
Revenue Growth-1.06%
EPS Growth-188.85%
CountryCA
Employees111,500
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.57
Shares Outstanding1,589,000,000
10 Day Avg. Volume6,698,917
30 Day Avg. Volume8,076,410
Financial Highlights & Ratios
PEG Ratio2.77
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$14.96Price Target Upside3.90% Upside
Rating ConsensusHold
Number of Analyst Covering14
EPS Forecast (FY)0.72
Revenue Forecast (FY)C$20.16B
Telus Business Overview & Revenue Model
Company Description
TELUS Corporation, together with its subsidiaries, operates as a telecommunications company in Canada and internationally. It operates through TELUS Technology Solutions, TELUS Health, and TELUS Digital Experience segments. The company offer techn...
How the Company Makes Money
TELUS makes money primarily by charging recurring subscription fees for connectivity and related services, supplemented by usage-based charges, hardware sales/financing, and technology and services revenue from its digital solutions businesses.
1...
Telus Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Negative
The call contained a mix of stabilizing operational elements in the core telecom business (flat TTech revenue/EBITDA, mobile revenue growth, improving ARPU trends, customer additions, and increased cash from operations) and decisive management actions (organizational changes, clear deleveraging targets and a capital reallocation plan). However, substantial negatives — notably a ~$2.1B TELUS Digital impairment, meaningful guidance downgrades, a 55% dividend cut, lower 2026 free cash flow, higher near-term CapEx, and leverage above target — materially weaken near-term financial momentum. Management presented a credible plan and explicit targets to fix these issues, but the magnitude of the financial setbacks and the sizable shareholder cash reduction weigh heavily on the immediate outlook.Positive Updates
Solid underlying telecom performance
TTech (core telecom) service revenue ~$3.3B was roughly flat year-over-year and adjusted EBITDA ~$1.6B was also relatively flat; mobile network revenue improved to $1.7B (up ~1%) marking the third consecutive quarter of mobile network revenue growth and ARPU deterioration decelerated to a stabilizing pace of <0.5%.
Negative Updates
Large TELUS Digital impairment
Recorded a pretax, noncash carrying value impairment of ~$2.1B in Q2 due to accelerated churn of legacy services (content moderation, ad relevancy/search) as hyperscalers automate services with AI and slower-than-expected adoption/compressed deal sizes for AI enabling services.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid underlying telecom performance
TTech (core telecom) service revenue ~$3.3B was roughly flat year-over-year and adjusted EBITDA ~$1.6B was also relatively flat; mobile network revenue improved to $1.7B (up ~1%) marking the third consecutive quarter of mobile network revenue growth and ARPU deterioration decelerated to a stabilizing pace of <0.5%.
Read all positive updates
Company Guidance
TELUS updated 2026 guidance and a multi-year financial plan focused on deleveraging and free cash flow growth: Q2 results were service revenue $4.4B (‑1% YoY), adjusted EBITDA $1.8B (‑2%), adjusted EPS $0.16 (from $0.22), basic EPS negative after a $2.1B TELUS Digital impairment, cash from operations +15% and FCF $545M (+2%), with net debt/adjusted EBITDA at ~3.5x (from 3.7x). For full‑year 2026 management now expects consolidated service revenue flat to ‑2% and adjusted EBITDA ‑2% to ‑4% (TTech roughly flat), CapEx of ~ $2.6B (up from ~$2.3B) and FCF ≈ $1.8B (vs prior ≈ $2.45B), including an incremental $100M of restructuring spending; they reaffirm a multiyear capital intensity target of ~10%. Key policy changes: quarterly dividend reset to $0.1875 ($0.75 annual) effective Oct 1 (55% cut), DRIP discount terminated Oct 1, dividend payout target now 45–60% of trailing 12‑month FCF (from 60–75%), and ~$2.7B of cumulative cash savings from the dividend reset earmarked for debt reduction; management targets ≤3.0x net debt/adjusted EBITDA by end‑2028, minimum compounded annual FCF growth of 10% over 2027–28, a moratorium on acquisitions until leverage is repaired, and active asset monetization (e.g., $1.26B Terrion proceeds reduced leverage ~0.17 turns).Telus Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
49
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.21B | 20.35B | 20.14B | 20.00B | 18.29B | 16.84B |
| Gross Profit | 7.85B | 12.64B | 7.08B | 7.03B | 6.52B | 6.03B |
| EBITDA | 7.38B | 6.78B | 5.67B | 5.62B | 5.41B | 4.99B |
| Net Income | -919.00M | 1.11B | 993.00M | 841.00M | 1.61B | 1.66B |
Balance Sheet | ||||||
| Total Assets | 56.81B | 59.61B | 58.02B | 56.14B | 54.05B | 47.99B |
| Cash, Cash Equivalents and Short-Term Investments | 1.39B | 2.62B | 869.00M | 864.00M | 974.00M | 723.00M |
| Total Debt | 31.46B | 31.46B | 29.78B | 27.45B | 25.14B | 20.97B |
| Total Liabilities | 42.72B | 43.03B | 41.23B | 38.83B | 36.41B | 31.92B |
| Stockholders Equity | 13.28B | 15.78B | 15.62B | 16.11B | 16.57B | 15.12B |
Cash Flow | ||||||
| Free Cash Flow | 1.89B | 2.35B | 1.46B | 1.29B | 1.16B | -928.00M |
| Operating Cash Flow | 4.59B | 4.87B | 4.85B | 4.50B | 4.81B | 4.39B |
| Investing Cash Flow | -2.08B | -3.04B | -3.70B | -4.75B | -5.41B | -5.47B |
| Financing Cash Flow | -4.28B | -74.00M | -1.14B | 139.00M | 848.00M | 953.00M |
Telus Technical Analysis
Negative
14.40
Price Trends
14.86
Negative
15.80
Negative
16.77
Negative
Market Momentum
-0.40
Negative
45.24
Neutral
50.92
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 14.4 is above the 20-day moving average (MA) of 13.95, below the 50-day MA of 14.86, and below the 200-day MA of 16.77, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of 50.92 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | C$14.40B | 15.36 | 35.86% | 2.23% | 3.12% | 24.49% | |
70 Outperform | C$14.40B | 15.36 | 35.86% | 2.30% | 3.12% | 24.49% | |
69 Neutral | C$27.01B | 4.37 | 32.78% | 4.13% | 8.73% | 302.65% | |
67 Neutral | C$30.31B | 4.85 | 27.73% | 5.82% | 1.59% | 1374.54% | |
65 Neutral | C$27.01B | 4.37 | 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$21.36B | -24.14 | -6.56% | 11.61% | -1.06% | -188.85% |
* Communication Services Sector Average
TSE:T
Telus
13.81
-7.24
-34.38%
TSE:BCE
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32.77
-1.14
-3.36%
TSE:RCI.B
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50.14
2.49
5.22%
TSE:QBR.A
Quebecor Inc Cl A MV
62.70
22.84
57.28%
TSE:RCI.A
Rogers Comm Cl A
50.27
0.12
0.23%
TSE:QBR.B
Quebecor
61.71
22.02
55.46%
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.