TELUS (NYSE:TU) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

TELUS (NYSE:TU) (TSE:T) issued its quarterly earnings results on Friday. The Wireless communications provider reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.01, Zacks reports. TELUS had a return on equity of 8.42% and a net margin of 5.42%.The firm had revenue of $3.60 billion during the quarter, compared to the consensus estimate of $3.64 billion. During the same period last year, the company earned $0.26 earnings per share. The company’s revenue for the quarter was down .6% on a year-over-year basis.

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

• TELUS reported industry-leading customer growth with 262,000 net additions in Q1 (including a record 229,000 connected devices) and ~21,000 internet net adds, driven by its PureFibre and 5G+ bundled strategy.
• Free cash flow momentum is strong (Q1 FCF up 19% year‑over‑year to CAD 583m) and management targets ~CAD 2.45 billion FCF in 2026 with a minimum 10% CAGR through 2028, alongside a CAD 7 billion asset-monetization program to accelerate deleveraging.
• TELUS Health continues to scale: service revenue and adjusted EBITDA grew 11%, LifeWorks synergies reached CAD 431m (above target), revenue now >CAD 2bn, and management is pursuing strategic partnership/monetization interest via an active marketing process.
• TELUS Digital/AI is a growth engine — AI-enabled revenue rose 22%, the Rimouski sovereign AI factory is sold out (Kamloops coming online), and TELUS Digital privatization is delivering annual cash synergies (~CAD 150–200m) and meaningful cash generation.
• Near-term headwinds remain: consolidated adjusted EBITDA was flat in Q1, fixed data revenue grew <1%, and enterprise contract repricing plus ongoing industry pricing intensity are cited as key risks that could push results toward the lower end of guidance.

TELUS Price Performance

TELUS stock traded down $0.15 during midday trading on Friday, reaching $12.74. 6,967,263 shares of the company were exchanged, compared to its average volume of 4,979,771. The company has a market capitalization of $19.73 billion, a price-to-earnings ratio of 24.50, a P/E/G ratio of 4.73 and a beta of 0.61. The firm’s 50-day simple moving average is $12.89 and its 200-day simple moving average is $13.41. TELUS has a 1 year low of $11.69 and a 1 year high of $16.74. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.81 and a current ratio of 0.86.

TELUS Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Wednesday, June 10th will be given a dividend of $0.4184 per share. This represents a $1.67 dividend on an annualized basis and a yield of 13.1%. The ex-dividend date is Wednesday, June 10th. TELUS’s dividend payout ratio (DPR) is currently 236.54%.

Key Stories Impacting TELUS

Here are the key news stories impacting TELUS this week:

• Positive Sentiment: TELUS reported first-quarter adjusted earnings of $0.17 per share, slightly ahead of estimates, while free cash flow rose 19% to $583 million and the company added 262,000 mobile and fixed customers. TELUS reports operational and financial results for first quarter 2026
• Positive Sentiment: The company reaffirmed its full-year 2026 targets, signaling confidence in service revenue, EBITDA, and free cash flow growth. TELUS reports operational and financial results for first quarter 2026
• Positive Sentiment: TELUS announced a quarterly dividend of C$0.4184 per share, reinforcing its income profile and attractive yield for investors. TELUS Corporation – NOTICE OF CASH DIVIDEND
• Neutral Sentiment: TELUS named Gopi Chande as its next CFO, replacing Doug French on July 1 as part of a planned leadership transition. TELUS Announces Retirement of Chief Financial Officer Doug French and Appointment of Successor Gopi Chande
• Negative Sentiment: Revenue declined 0.6% year over year and earnings were below the prior-year quarter, suggesting slower top-line momentum and pressure versus last year. TELUS reports operational and financial results for first quarter 2026

Wall Street Analyst Weigh In

Several research analysts have issued reports on TU shares. TD Securities upgraded TELUS from a “buy” rating to a “buy” rating in a research report on Tuesday, April 28th. Weiss Ratings cut TELUS from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, April 20th. TD Cowen upgraded TELUS from a “hold” rating to a “buy” rating in a research report on Tuesday, April 28th. Canaccord Genuity Group cut TELUS from a “buy” rating to a “hold” rating in a research report on Thursday, April 9th. Finally, Wall Street Zen upgraded TELUS from a “sell” rating to a “hold” rating in a research report on Saturday. Five equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $17.63.

Institutional Trading of TELUS

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TU. Towarzystwo Funduszy Inwestycyjnych PZU SA increased its position in TELUS by 129.0% during the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 2,473 shares of the Wireless communications provider’s stock worth $33,000 after purchasing an additional 1,393 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in TELUS during the 4th quarter worth about $55,000. State of Wyoming purchased a new stake in TELUS during the 2nd quarter worth about $61,000. Employees Retirement System of Texas purchased a new stake in TELUS during the 3rd quarter worth about $64,000. Finally, Northwestern Mutual Wealth Management Co. increased its position in TELUS by 37.1% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 4,585 shares of the Wireless communications provider’s stock worth $72,000 after purchasing an additional 1,241 shares in the last quarter. Hedge funds and other institutional investors own 49.40% of the company’s stock.

TELUS Company Profile

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.