BCE Q2 2026: Revenue +1.5%, Adjusted EPS +3.2%, but Free Cash Flow Drops on AI Capex
BCE is trading near its 52-week low of $20.87 (6.1% above the low) on elevated volume (1.9× avg).
Summary
BCE's Q2 2026 results show steady operational performance with revenue up 1.5% and adjusted EPS up 3.2%, but free cash flow dropped 9.5% due to higher capital spending on AI data centres and U.S. fibre expansion. Full-year guidance was confirmed.
Key Events · Earnings and Guidance · BCE
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Q2 Revenue +1.5%, Adjusted EPS +3.2%
Operating revenue of $6,176M grew 1.5% YoY, driven by service revenue (+4.3%) and Bell Media (+8.9%). Adjusted EPS of $0.65 beat last year's $0.63.
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Free Cash Flow Drops 9.5% on Capex Surge
Free cash flow fell to $1,042M from $1,152M as capital expenditures jumped 41.5% to $1,080M, funding AI data centre construction and Ziply Fiber's fibre expansion.
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Wireless Churn Hits 3-Year Low
Postpaid mobile phone churn improved to 1.02% (down 4 bps YoY), the lowest quarterly level in three years, reflecting disciplined pricing and customer retention.
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Bell Media Boosted by FIFA World Cup
Bell Media revenue rose 8.9% to $918M, with Crave subscriptions up 23% to 5.07M. The FIFA World Cup 2026 drove strong advertising and streaming demand.
Analysis · BCE · Technology
BCE delivered modest top-line growth and improved profitability metrics, yet free cash flow fell 9.5% as capital spending surged to build AI data centres and expand Ziply Fiber's U.S. fibre network. The company confirmed its full-year guidance, which already embeds this elevated capex. Wireless churn hit a three-year low, and Bell Media got a boost from the FIFA World Cup, but the heavy investment cycle is pressuring cash generation — a key metric for a dividend-paying telecom.
At the time of this filing, BCE was trading at $22.14 on NYSE in the Technology sector, with a market capitalization of approximately $20.6B. The 52-week trading range was $20.87 to $26.52. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.