TELUS (NYSE:TU) Issues Quarterly Earnings Results, Misses Expectations By $0.03 EPS

TELUS (NYSE:TU) (TSE:T) announced its earnings results on Thursday. The Wireless communications provider reported $0.15 earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.03), Zacks reports. The company had revenue of $3.83 billion during the quarter, compared to analyst estimates of $3.85 billion. TELUS had a return on equity of 8.40% and a net margin of 5.42%.During the same period in the previous year, the company posted $0.25 earnings per share.

Here are the key takeaways from TELUS’s conference call:

• CEO transition — Darren will retire June 30, 2026, Victor Dodig (former CIBC CEO) will become CEO July 1, 2026, and Darren will remain as an advisor until May 2027, with management emphasizing continuity from the board’s succession plan.
• Strong customer momentum — TELUS reported 1.1 million total mobile and fixed net additions in 2025 (including a record 716,000 connected device adds), 16th consecutive year of positive wireline net adds, and industry-leading postpaid mobile churn of 0.97%.
• Robust financial results and 2026 targets — record free cash flow of CAD 2.2 billion (+11% YoY), T‑Tech adjusted EBITDA +3.1% for 2025, and 2026 guidance of up to 4% service revenue/adjusted EBITDA growth, ~CAD 2.45 billion free cash flow, and CapEx of ~CAD 2.3 billion (CapEx intensity trending toward ~10%).
• TELUS Health and Digital momentum and monetization plans — LifeWorks synergies of CAD 431 million surpassed targets, Health and Digital expected to deliver double‑digit EBITDA growth in 2026, TELUS Digital AI‑enabling revenue grew 44% in Q4 to CAD 229 million (35% for the year) and the company is pursuing strategic investors and a path to ~CAD 2 billion in AI revenue by 2028.
• Capital allocation and deleveraging — dividend maintained with a prospective payout ratio ~70%, DRIP discount cut to 1.75% with full removal planned in 2027, a CAD 7 billion asset monetization program being pursued, and leverage targeted to ~3.3x end‑2026 and ~3.0x or better by end‑2027.

TELUS Trading Down 3.3%

TELUS stock opened at $13.48 on Friday. The stock has a 50-day simple moving average of $13.40 and a 200 day simple moving average of $14.63. The stock has a market capitalization of $20.86 billion, a P/E ratio of 25.91, a PEG ratio of 2.12 and a beta of 0.67. The company has a debt-to-equity ratio of 1.47, a quick ratio of 0.71 and a current ratio of 0.76. TELUS has a 52 week low of $12.54 and a 52 week high of $16.74.

TELUS Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Wednesday, March 11th will be issued a dividend of $0.4184 per share. The ex-dividend date is Wednesday, March 11th. This represents a $1.67 dividend on an annualized basis and a yield of 12.4%. TELUS’s dividend payout ratio (DPR) is presently 218.18%.

Institutional Trading of TELUS

A number of hedge funds have recently made changes to their positions in TU. Ameriprise Financial Inc. lifted its position in TELUS by 7.3% during the second quarter. Ameriprise Financial Inc. now owns 631,342 shares of the Wireless communications provider’s stock worth $10,224,000 after acquiring an additional 42,859 shares during the last quarter. PDT Partners LLC acquired a new position in shares of TELUS in the second quarter valued at approximately $3,775,000. Jane Street Group LLC increased its stake in shares of TELUS by 123.5% during the second quarter. Jane Street Group LLC now owns 151,059 shares of the Wireless communications provider’s stock worth $2,426,000 after purchasing an additional 792,690 shares during the period. Canada Pension Plan Investment Board lifted its holdings in TELUS by 89.4% during the 2nd quarter. Canada Pension Plan Investment Board now owns 506,895 shares of the Wireless communications provider’s stock worth $8,146,000 after purchasing an additional 239,203 shares during the last quarter. Finally, Bayesian Capital Management LP acquired a new stake in TELUS during the 2nd quarter worth approximately $536,000. 49.40% of the stock is owned by institutional investors and hedge funds.

More TELUS News

Here are the key news stories impacting TELUS this week:

• Positive Sentiment: Board declared a quarterly cash dividend of C$0.4184 per share (annualized yield ~12.4%), maintaining shareholder income and supporting yield‑seeking demand. Read More.
• Positive Sentiment: TELUS reported strong operating metrics and set ambitious 2026 financial targets: large customer net additions, record consolidated free cash flow (~C$2.2B in 2025), margin expansion in TTech, and a balance‑sheet deleveraging plan — all supportive for cash generation and targeted growth. Read More.
• Positive Sentiment: Strategic tech milestone — TELUS partnered with Photonic Inc. to demonstrate quantum communications over existing metropolitan fibre, highlighting potential leadership in secure networking and future service differentiation. Read More.
• Neutral Sentiment: Planned CEO transition announced — long‑time CEO Darren Entwistle will retire June 30 and Victor Dodig (former CIBC chief) is named successor. Succession is orderly but introduces near‑term execution and strategic risk as leadership changes. Read More.
• Negative Sentiment: Q4 earnings missed expectations: EPS $0.15 vs. consensus $0.18 and revenue C$3.83B vs. est. C$3.85B; EPS is well below prior‑year levels — the miss is the primary near‑term catalyst for the share decline as investors digest weaker profitability. Read More.

Analysts Set New Price Targets

TU has been the topic of a number of recent research reports. Citigroup raised TELUS to a “buy” rating in a research report on Thursday, December 4th. TD Securities reiterated a “buy” rating on shares of TELUS in a report on Friday. BMO Capital Markets lowered shares of TELUS from an “outperform” rating to a “market perform” rating in a research report on Thursday, December 11th. Barclays decreased their target price on shares of TELUS from $15.00 to $14.00 and set an “equal weight” rating for the company in a research report on Monday, November 10th. Finally, National Bank Financial reiterated an “outperform” rating on shares of TELUS in a research note on Thursday, December 4th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, TELUS has a consensus rating of “Moderate Buy” and an average price target of $18.17.

About TELUS

TELUS Corporation (NYSE: TU) is a Canadian telecommunications and technology company headquartered in Vancouver, British Columbia. It delivers a broad portfolio of consumer and business communications services across Canada, including mobile wireless, fixed-line voice, broadband internet, and television. TELUS also provides a range of enterprise services such as cloud and IT solutions, managed network services, cybersecurity and Internet of Things (IoT) offerings for business customers.

Beyond core connectivity, TELUS has expanded into health and digital services.