TELUS (NYSE:TU) Announces Earnings Results

TELUS (NYSE:TU) (TSE:T) released its earnings results on Thursday. The Wireless communications provider reported $0.15 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.03), Zacks reports. TELUS had a net margin of 5.71% and a return on equity of 8.76%. The business had revenue of $3.83 billion during the quarter, compared to analysts’ expectations of $3.85 billion. During the same quarter in the previous year, the company earned $0.25 EPS.

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

• CEO transition — Darren will retire June 30, 2026, Victor Dodig (former CIBC CEO) will become CEO July 1, 2026, and Darren will remain as an advisor until May 2027, with management emphasizing continuity from the board’s succession plan.
• Strong customer momentum — TELUS reported 1.1 million total mobile and fixed net additions in 2025 (including a record 716,000 connected device adds), 16th consecutive year of positive wireline net adds, and industry-leading postpaid mobile churn of 0.97%.
• Robust financial results and 2026 targets — record free cash flow of CAD 2.2 billion (+11% YoY), T‑Tech adjusted EBITDA +3.1% for 2025, and 2026 guidance of up to 4% service revenue/adjusted EBITDA growth, ~CAD 2.45 billion free cash flow, and CapEx of ~CAD 2.3 billion (CapEx intensity trending toward ~10%).
• TELUS Health and Digital momentum and monetization plans — LifeWorks synergies of CAD 431 million surpassed targets, Health and Digital expected to deliver double‑digit EBITDA growth in 2026, TELUS Digital AI‑enabling revenue grew 44% in Q4 to CAD 229 million (35% for the year) and the company is pursuing strategic investors and a path to ~CAD 2 billion in AI revenue by 2028.
• Capital allocation and deleveraging — dividend maintained with a prospective payout ratio ~70%, DRIP discount cut to 1.75% with full removal planned in 2027, a CAD 7 billion asset monetization program being pursued, and leverage targeted to ~3.3x end‑2026 and ~3.0x or better by end‑2027.

TELUS Stock Performance

Shares of TELUS stock opened at $13.95 on Friday. The firm has a 50 day simple moving average of $13.40 and a 200 day simple moving average of $14.65. The firm has a market cap of $21.59 billion, a P/E ratio of 25.35, a P/E/G ratio of 2.17 and a beta of 0.67. TELUS has a fifty-two week low of $12.54 and a fifty-two week high of $16.74. The company has a debt-to-equity ratio of 1.47, a current ratio of 0.76 and a quick ratio of 0.71.

TELUS Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Wednesday, March 11th will be paid a dividend of $0.4184 per share. This represents a $1.67 annualized dividend and a dividend yield of 12.0%. The ex-dividend date of this dividend is Wednesday, March 11th. TELUS’s dividend payout ratio is 218.18%.

More TELUS News

Here are the key news stories impacting TELUS this week:

• Positive Sentiment: Board declared a quarterly cash dividend of CAD 0.4184 per share payable April 1 (record/ex‑dividend March 11), supporting yield/income investors. TELUS Corporation – NOTICE OF CASH DIVIDEND
• Positive Sentiment: Company reported strong operational trends and set constructive 2026 financial targets: 377k net mobile/fixed customer additions in Q4, full‑year EPS growth, record free cash flow ($2.2B for 2025) and guidance for service revenue/adjusted EBITDA growth of 2–4% with reduced capex — signals cash generation and margin focus. TELUS reports strong and industry leading operational and financial results…
• Neutral Sentiment: Leadership transition: longtime CEO Darren Entwistle will retire June 30; board named Victor Dodig (former CIBC CEO) as successor — an orderly, board‑led change that reduces succession uncertainty but will be monitored for strategic continuity. Telus Names Former CIBC Chief Dodig Successor to CEO Entwistle
• Negative Sentiment: Q4 headline results missed estimates: EPS $0.15 vs. consensus $0.18 and revenues ~$3.83B vs. ~$3.85B; EPS declined year‑over‑year (prior $0.25). The misses and weaker EPS momentum likely drove near‑term selling pressure. Telus (TU) Lags Q4 Earnings and Revenue Estimates

Institutional Investors Weigh In On TELUS

A number of institutional investors and hedge funds have recently modified their holdings of the business. Arrowstreet Capital Limited Partnership increased its holdings in TELUS by 40.0% in the third quarter. Arrowstreet Capital Limited Partnership now owns 9,033,455 shares of the Wireless communications provider’s stock valued at $142,387,000 after purchasing an additional 2,583,074 shares during the last quarter. Scotia Capital Inc. raised its holdings in shares of TELUS by 4.5% in the third quarter. Scotia Capital Inc. now owns 19,687,766 shares of the Wireless communications provider’s stock valued at $310,129,000 after purchasing an additional 845,682 shares during the last quarter. Jane Street Group LLC increased its holdings in shares of TELUS by 123.5% during the 2nd quarter. Jane Street Group LLC now owns 151,059 shares of the Wireless communications provider’s stock worth $2,426,000 after acquiring an additional 792,690 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. lifted its position in TELUS by 71.5% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,357,433 shares of the Wireless communications provider’s stock worth $21,376,000 after acquiring an additional 566,059 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its position in shares of TELUS by 12.6% in the fourth quarter. JPMorgan Chase & Co. now owns 4,217,227 shares of the Wireless communications provider’s stock valued at $55,541,000 after purchasing an additional 471,886 shares during the last quarter. 49.40% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research analysts recently commented on the stock. National Bank Financial reaffirmed an “outperform” rating on shares of TELUS in a research report on Thursday, December 4th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of TELUS in a report on Monday, December 29th. JPMorgan Chase & Co. reaffirmed an “underweight” rating and issued a $19.00 price target (down from $22.00) on shares of TELUS in a research report on Tuesday, November 18th. BMO Capital Markets lowered shares of TELUS from an “outperform” rating to a “market perform” rating in a research report on Thursday, December 11th. Finally, Canaccord Genuity Group upgraded shares of TELUS from a “hold” rating to a “buy” rating in a research note on Thursday, December 4th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, TELUS presently has an average rating of “Hold” and a consensus price target of $18.17.

TELUS Company Profile

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.