Canada's Telus Q1 revenue rises 1%, adjusted EPS beats

Telus

08/05/2026 11:54

Overview

Canada telecom and digital health firm's Q1 adjusted EPS beat analyst expectations

Q1 consolidated service revenue grew 1% yr/yr; net income fell 52%

Free cash flow rose 19% to C$583 mln, driven by lower income taxes paid

Outlook

Telus reaffirms 2026 service revenue growth target of 2 to 4%

Company expects 2026 adjusted EBITDA growth of 2 to 4%

Telus sees 2026 free cash flow of about C$2.45 bln, up 10%

Result Drivers

TELUS HEALTH GROWTH - Service revenue and adjusted EBITDA growth in TELUS Health driven by acquisitions and increased demand for payor and provider solutions

SUBSCRIBER BASE EXPANSION - Growth in mobile, internet, security, automation and TV subscribers supported service revenue

MARGIN PRESSURES - Lower mobile equipment revenue, legacy fixed voice declines, and B2B data services weighed on results, partly offset by cost reductions

Company press release: ID:nCNWD24FJa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
C$5.01 bln
Q1 Adjusted EPS
Beat
C$0.23
C$0.22 (12 Analysts)
Q1 Adjusted Net Income
C$356 mln
Q1 Net Income
C$144 mln
Q1 EBITDA
C$1.52 bln
Q1 Free Cash Flow
C$583 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "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 Telus Corporation is C$20.00, about 14% above its May 7 closing price of C$17.55

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)