Canada's BCE Q2 revenue rises on increased fibre, AI demand

BCE

06/08/2026 11:47

Overview
Canada telecom provider's Q2 revenue grew 1.5% yr/yr, driven by higher service revenue
Adjusted EPS for Q2 rose 3.2% yr/yr, while net earnings declined 2.3%
Higher capital expenditures for AI and fibre projects led to 9.5% lower free cash flow

Outlook
BCE confirms 2026 revenue growth guidance of 1% to 5%
Company expects 2026 adjusted EBITDA growth of 0% to 4%
BCE sees 2026 free cash flow of C$2.1 bln to C$2.3 bln, down from 2025

Result Drivers
SERVICE REVENUE GROWTH - Higher service revenue from Bell CTS U.S. and Bell Media offset declines in Bell CTS Canada
FIBRE AND AI DEMAND - Strong demand for fibre-to-the-home internet and AI-powered enterprise solutions contributed to revenue growth
MEDIA REVENUE - Bell Media revenue rose on strong Crave performance and FIFA World Cup coverage

Company press release: ID:nPn6KX7qya

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$6.18 bln
 
Q2 Adjusted EPS
 
$0.65
 
Q2 EPS
 
$0.60
 
Q2 Adjusted Net Income
 
$604 mln
 
Q2 Net Income
 
$629 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy."
Wall Street's median 12-month price target for BCE Inc is C$36.50, about 18.3% above its August 5 closing price of C$30.86
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Aug 6 - Canada's Quebecor Q2 revenue rises, raises dividend
Aug 6 - Deutsche Telekom more than doubles 2026 buyback sum after earnings beat
Aug 5 - Taiwan's Chunghwa Telecom Q2 revenue rises on strength across segments

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)