TELUS (NYSE:TU) Announces Earnings Results

TELUS (NYSE:TU) (TSE:T) announced its quarterly earnings data on Friday. The Wireless communications provider reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.02), Zacks reports. TELUS had a net margin of 4.54% and a return on equity of 8.29%.

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

• TELUS reduced its 2026 outlook, now expecting consolidated service revenue to be flat to down 2% and adjusted EBITDA to decline 2% to 4%, versus its prior forecast of 2% to 4% growth. Full-year free cash flow guidance was also cut to approximately $1.8 billion from $2.45 billion.
• TELUS Digital recorded a $2.1 billion non-cash impairment after faster-than-expected automation reduced demand for legacy content moderation and search-related services, while AI adoption has been slower and deal sizes smaller than previously modeled.
• The quarterly dividend will be cut 55% to $0.1875 per share effective October 1, with the dividend reinvestment plan discount ending at the same time. Management expects the reset to generate approximately $2.7 billion in cumulative cash savings through 2028.
• Management is targeting net debt to adjusted EBITDA of 3.0x or lower by the end of 2028, supported by dividend savings, lower capital intensity over time, asset monetizations, a moratorium on acquisitions, and tighter cost discipline.
• Core telecom performance was relatively stable: mobile network revenue grew 1%, ARPU trends improved for a fifth consecutive quarter, and the promotional environment showed signs of moderating. However, lower immigration is constraining subscriber growth, while fixed-business results remain challenged.

TELUS Stock Down 11.3%

Shares of TELUS stock traded down $1.22 during trading hours on Friday, hitting $9.55. The company had a trading volume of 32,781,328 shares, compared to its average volume of 6,129,106. The company has a debt-to-equity ratio of 1.59, a current ratio of 0.67 and a quick ratio of 0.63. The company’s 50-day moving average is $11.25 and its two-hundred day moving average is $12.48. The company has a market cap of $15.04 billion, a P/E ratio of 21.72, a price-to-earnings-growth ratio of 8.64 and a beta of 0.63. TELUS has a twelve month low of $9.22 and a twelve month high of $16.72.

TELUS Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Wednesday, June 10th were given a dividend of $0.4184 per share. This represents a $1.67 annualized dividend and a dividend yield of 17.5%. The ex-dividend date was Wednesday, June 10th. TELUS’s payout ratio is currently 275.00%.

Institutional Investors Weigh In On TELUS

Institutional investors and hedge funds have recently bought and sold shares of the stock. Towarzystwo Funduszy Inwestycyjnych PZU SA boosted its stake in TELUS by 129.0% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 2,473 shares of the Wireless communications provider’s stock valued at $33,000 after acquiring an additional 1,393 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in shares of TELUS during the fourth quarter worth about $55,000. State of Wyoming purchased a new stake in shares of TELUS in the 2nd quarter valued at about $61,000. Employees Retirement System of Texas purchased a new stake in shares of TELUS in the 3rd quarter valued at about $64,000. Finally, Northwestern Mutual Wealth Management Co. boosted its position in shares of TELUS by 37.1% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 4,585 shares of the Wireless communications provider’s stock valued at $72,000 after purchasing an additional 1,241 shares during the period. 49.40% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on TU. Wall Street Zen upgraded shares of TELUS from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. TD Cowen upgraded shares of TELUS from a “hold” rating to a “buy” rating in a report on Tuesday, April 28th. Scotiabank cut shares of TELUS from an “outperform” rating to a “sector perform” rating in a research report on Friday, April 10th. TD Securities upgraded shares of TELUS from a “buy” rating to a “buy” rating in a research note on Tuesday, April 28th. Finally, Morgan Stanley lowered TELUS to an “underweight” rating in a report on Tuesday, July 21st. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $15.67.

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.