TELUS (NYSE:TU) Issues Earnings Results, Misses Expectations By $0.01 EPS

TELUS (NYSE:TU) (TSE:T) announced its quarterly earnings results on Friday. The Wireless communications provider reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.12 by ($0.01), Zacks reports. TELUS had a negative net margin of 4.51% and a positive return on equity of 8.01%. The company had revenue of $5.02 billion during the quarter, compared to analyst estimates of $3.50 billion.

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

• Q3 performance weakened: consolidated service revenue fell 1%, adjusted EBITDA declined 5% (2% excluding prior-year one-time items), and free cash flow dropped 35% to CAD 396 million. Adjusted EPS was CAD 0.16, down from CAD 0.24, while a non-cash CAD 800 million TELUS Health impairment drove basic EPS to negative CAD 0.42.
• Wireless customer trends improved, with 84,000 mobile phone net additions and blended churn of 1.01%, the lowest quarterly level in three years; postpaid churn was below 0.9%. Mobile service revenue rose 1% and fixed data revenue rose 2%, although internet net additions were 10,000 amid a deliberate shift away from subsidized volume.
• TELUS is targeting CAD 900 million in annualized cash savings by the end of 2028, including roughly CAD 250 million in structural savings with full run-rate benefits expected from 2027. The company expects to invest about CAD 150 million to deliver the broader program.
• TELUS expects about CAD 500 million in cumulative revenue over the next three years from its digital infrastructure opportunities, including data-center connectivity and sovereign AI services. It cited more than CAD 1 billion in total contract value in its pipeline and 38 MW of secured power, while saying it will add capacity in line with customer demand.
• Management aims to reduce net debt leverage from 3.6 times to 3.0 times or lower by the end of 2028 through savings, asset monetizations and potential PureFibre partnerships that would preserve TELUS’s control. One Health asset is at an advanced stage with a prospective buyer, but the fiber discussions remain early; 2026 guidance was reaffirmed.

TELUS Price Performance

TU opened at $9.06 on Friday. TELUS has a twelve month low of $7.64 and a twelve month high of $14.95. The firm has a market cap of $14.40 billion, a price-to-earnings ratio of -9.64, a PEG ratio of 21.47 and a beta of 0.63. The company has a current ratio of 0.67, a quick ratio of 0.62 and a debt-to-equity ratio of 1.88. The company has a fifty day simple moving average of $8.72 and a 200 day simple moving average of $11.24.

TELUS Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, January 4th. Investors of record on Friday, December 11th will be issued a dividend of C$0.19 per share. This represents a $0.75 dividend on an annualized basis and a yield of 8.3%. The ex-dividend date of this dividend is Friday, December 11th. TELUS’s dividend payout ratio (DPR) is presently -131.71%.

Analyst Ratings Changes

A number of research analysts have commented on TU shares. Royal Bank Of Canada cut TELUS from an “outperform” rating to a “sector perform” rating in a research note on Tuesday, August 4th. Morgan Stanley downgraded TELUS to an “underweight” rating in a research report on Tuesday, July 21st. Raymond James Financial initiated coverage on TELUS in a research note on Wednesday, July 15th. They issued a “market perform” rating for the company. Barclays set a $10.00 target price on TELUS and gave the company an “equal weight” rating in a report on Tuesday, October 13th. Finally, National Bank Financial downgraded TELUS from an “outperform” rating to a “sector perform” rating in a report on Tuesday, August 4th. Three investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $15.00.

Key TELUS News

Here are the key news stories impacting TELUS this week:

• Positive Sentiment: TELUS declared a quarterly dividend of C$0.1875 per share, maintaining a cash return to shareholders. TELUS Declares C$0.1875 Quarterly Dividend
• Neutral Sentiment: The company said its transformation strategy is intended to support debt reduction and growth investment in core telecom and AI infrastructure; execution will be key to the financial impact. TELUS Reports Third Quarter 2026 Results
• Neutral Sentiment: TELUS appointed Marc Allera and Bill Thomas to its board, effective January 1, 2027. The appointments add leadership experience but do not indicate an immediate change to results. TELUS Appoints Marc Allera and Bill Thomas to Board of Directors
• Negative Sentiment: Quarterly EPS of $0.11 missed the $0.13 consensus and was down from $0.17 a year earlier. Adjusted EPS of C$0.16 also came in below FactSet’s C$0.17 estimate; reports describe this as the company’s fourth consecutive earnings miss. Telus Misses Q3 Earnings Estimates
• Negative Sentiment: An approximately $800 million impairment charge contributed to a third-quarter GAAP loss, raising concerns about asset values and weighing on the headline results. TELUS Reports Third-Quarter Loss After $800 Million Impairment

TELUS Company Profile

TELUS is a Canadian telecommunications and technology company headquartered in Vancouver, British Columbia. Its core services include wireless voice and data, internet, television and home phone offerings, as well as communications and technology solutions for businesses and public-sector organizations.

The company also operates TELUS Health, which provides digital health services and technology, and TELUS Agriculture & Consumer Goods, which offers technology and data solutions for the agriculture and food industries.