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

TELUS (NYSE:TU) (TSE:T) posted its quarterly earnings results on Friday. The Wireless communications provider reported $0.17 EPS for the quarter, beating the consensus estimate of $0.16 by $0.01, Zacks reports. TELUS had a net margin of 5.42% and a return on equity of 8.42%. The business had revenue of $3.60 billion during the quarter, compared to analyst estimates of $3.64 billion. During the same period in the previous year, the business posted $0.26 EPS. The company’s quarterly revenue 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 Trading Down 1.1%

Shares of NYSE:TU opened at $12.74 on Friday. The company has a market cap of $19.73 billion, a PE ratio of 28.96, a P/E/G ratio of 4.68 and a beta of 0.61. The company’s 50-day moving average price is $12.89 and its 200 day moving average price is $13.41. TELUS has a fifty-two week low of $11.69 and a fifty-two week high of $16.74. The company has a quick ratio of 0.81, a current ratio of 0.86 and a debt-to-equity ratio of 1.65.

TELUS Announces Dividend

The company 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 $0.4184 dividend. The ex-dividend date is Wednesday, June 10th. This represents a $1.67 annualized dividend and a yield of 13.1%. TELUS’s dividend payout ratio (DPR) is currently 236.54%.

Wall Street Analyst Weigh In

Several research firms have recently commented on TU. Wall Street Zen raised shares of TELUS from a “sell” rating to a “hold” rating in a report on Saturday. Canaccord Genuity Group lowered shares of TELUS from a “buy” rating to a “hold” rating in a report on Thursday, April 9th. TD Cowen raised shares of TELUS from a “hold” rating to a “buy” rating in a report on Tuesday, April 28th. Scotiabank lowered shares of TELUS from an “outperform” rating to a “sector perform” rating in a report on Friday, April 10th. Finally, TD Securities raised shares of TELUS from a “buy” rating to a “buy” rating in a report on Tuesday, April 28th. Five research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, TELUS presently has an average rating of “Hold” and a consensus target price of $17.63.

More TELUS News

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

Institutional Trading of TELUS

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Towarzystwo Funduszy Inwestycyjnych PZU SA raised its position in shares of 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 buying an additional 1,393 shares in the last quarter. Kestra Advisory Services LLC bought a new stake in shares of TELUS during the 4th quarter worth about $55,000. State of Wyoming bought a new stake in shares of TELUS during the 2nd quarter worth about $61,000. Employees Retirement System of Texas bought a new stake in shares of TELUS during the 3rd quarter worth about $64,000. Finally, Northwestern Mutual Wealth Management Co. raised its position in shares of 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 buying an additional 1,241 shares in the last quarter. 49.40% of the stock is currently owned by institutional investors.

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.