TELUS Reports Mixed Q1 2026 Results with Strong Customer Growth, Reaffirms Full-Year Guidance
TU is trading near its 52-week low of $11.69 (9.2% above the low).
Summary
TELUS reported a significant decline in Q1 2026 net income and EPS, but achieved strong customer growth and stable adjusted EBITDA, leading to a 19% increase in free cash flow, while reaffirming its full-year financial targets.
Key Events · Earnings and Guidance · TU
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Q1 2026 Financial Performance
Net income declined 52% to $144 million and basic EPS fell 57% to $0.09, primarily due to higher restructuring costs. Adjusted net income decreased 8% and adjusted basic EPS decreased 12%.
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Operational Strength
Achieved industry-leading total mobile and fixed customer growth of 262,000, driven by 12,000 mobile phone, 229,000 connected device, and 21,000 internet net additions.
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Stable Adjusted EBITDA & FCF Growth
Consolidated Adjusted EBITDA remained stable at $1.8 billion, and Free Cash Flow increased 19% to $583 million.
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Reaffirmed 2026 Guidance
Management reaffirmed its full-year 2026 financial targets, including 2-4% growth for consolidated service revenues and adjusted EBITDA, and approximately $2.45 billion in free cash flow.
Analysis · TU · Technology
TELUS's first quarter 2026 results present a mixed picture, with a substantial decline in reported net income and basic EPS, primarily due to higher restructuring costs and lower financing costs. However, the company demonstrated robust operational performance, adding 262,000 total mobile and fixed customers and achieving stable adjusted EBITDA. Free cash flow saw a healthy 19% increase, providing financial flexibility. Crucially, management reaffirmed its key 2026 financial targets for service revenue, adjusted EBITDA, free cash flow, and capital expenditures, signaling confidence in its ability to navigate a dynamic operating environment and achieve its full-year objectives. Investors will likely focus on the company's ability to continue driving customer growth and free cash flow while managing profitability and executing its deleveraging strategy, including potential strategic partnerships for TELUS Health.
At the time of this filing, TU was trading at $12.76 on NYSE in the Technology sector, with a market capitalization of approximately $20.1B. The 52-week trading range was $11.69 to $16.74. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.