BCE (NYSE:BCE) Issues Quarterly Earnings Results, Beats Estimates By $0.01 EPS

BCE (NYSE:BCE) (TSE:BCE) released its earnings results on Thursday. The utilities provider reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.01, Zacks reports. The firm had revenue of $4.35 billion for the quarter, compared to the consensus estimate of $4.35 billion. BCE had a return on equity of 13.06% and a net margin of 25.49%. BCE updated its FY 2026 guidance to 1.798-1.919 EPS.

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

• Q2 execution remained on plan: revenue rose 1.5%, adjusted EBITDA increased 1%, free cash flow exceeded CAD 1 billion, and net-debt leverage improved to approximately 3.7x. Management reconfirmed all 2026 guidance and remains targeted at 3.5x leverage by year-end 2027.
• Wireless and Canadian fiber trends improved, with 41,594 postpaid phone net adds, postpaid churn falling to a three-year low of 1.02%, and 45,271 residential FTTH internet additions. Management emphasized better pricing, reduced hardware discounting, and stronger product margins.
• Bell Media delivered strong growth, with revenue up 8.9% and adjusted EBITDA up 3.8%, supported by FIFA World Cup coverage and Crave. Crave subscribers increased 23% to 5.1 million, direct-to-consumer streaming subscribers grew 49%, and digital video advertising revenue rose 39%.
• Bell AI Fabric continues to advance, with approximately 335 MW of contracted capacity, construction progressing on the 300-MW Saskatchewan facility, and Winnipeg expected to enter service in the second half of 2026. Management said it has line of sight to 800 MW, although additional capacity depends on securing contracts and completing construction.
• Capital spending increased CAD 317 million year over year, primarily due to Ziply Fiber and AI Fabric, causing free cash flow to decline year over year; approximately CAD 1.3 billion of Saskatchewan data-center CapEx is expected in the second half of 2026. Ziply’s revenue remained broadly flat as fiber growth was offset by legacy copper, voice, wholesale declines, and near-term subscriber-acquisition costs.

BCE Stock Performance

Shares of NYSE:BCE traded down $0.04 during trading on Friday, hitting $22.73. 3,122,119 shares of the stock were exchanged, compared to its average volume of 4,256,492. The company has a market capitalization of $21.19 billion, a price-to-earnings ratio of 4.65 and a beta of 0.51. BCE has a 1-year low of $20.87 and a 1-year high of $26.52. The company’s fifty day simple moving average is $22.56 and its 200-day simple moving average is $24.14. The company has a debt-to-equity ratio of 1.84, a quick ratio of 0.71 and a current ratio of 0.74.

BCE Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.4375 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.75 dividend on an annualized basis and a dividend yield of 7.7%. BCE’s dividend payout ratio is currently 25.81%.

Analyst Ratings Changes

Several equities analysts recently weighed in on BCE shares. TD Securities upgraded shares of BCE from a “hold” rating to a “buy” rating in a report on Wednesday, July 1st. Scotiabank reaffirmed an “outperform” rating on shares of BCE in a research report on Friday. Canadian Imperial Bank of Commerce reaffirmed an “outperform” rating on shares of BCE in a report on Friday, July 10th. Barclays lowered their price target on shares of BCE from $26.00 to $25.00 and set an “equal weight” rating for the company in a research report on Thursday, July 16th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of BCE in a research note on Friday, May 29th. Six investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $30.00.

Hedge Funds Weigh In On BCE

Hedge funds have recently modified their holdings of the stock. Arax Advisory Partners grew its stake in BCE by 61.2% in the fourth quarter. Arax Advisory Partners now owns 3,333 shares of the utilities provider’s stock valued at $79,000 after acquiring an additional 1,265 shares during the period. Steward Partners Investment Advisory LLC increased its stake in BCE by 73.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 5,821 shares of the utilities provider’s stock worth $139,000 after purchasing an additional 2,457 shares in the last quarter. Advisory Services Network LLC acquired a new stake in BCE during the 3rd quarter worth approximately $96,000. Binnacle Investments Inc boosted its holdings in shares of BCE by 17.1% in the third quarter. Binnacle Investments Inc now owns 4,164 shares of the utilities provider’s stock valued at $97,000 after buying an additional 609 shares during the period. Finally, Quadrant Capital Group LLC acquired a new position in shares of BCE in the third quarter valued at approximately $120,000. 41.46% of the stock is owned by institutional investors and hedge funds.

BCE News Summary

Here are the key news stories impacting BCE this week:

• Positive Sentiment: BCE reported adjusted earnings of $0.47 per share, slightly above the $0.46 consensus estimate and up from $0.46 a year earlier. Revenue also increased, supported by growth at Ziply Fiber, Bell Media and AI services. BCE’s Q2 Earnings Beat Estimates on Ziply Fiber & Media Momentum
• Positive Sentiment: Bell Media benefited from increased advertising and broadcast activity related to the FIFA World Cup, providing a boost to media revenue. FIFA World Cup helps lift Bell Media revenues
• Positive Sentiment: The company declared a quarterly dividend of $0.4375 per share, equivalent to $1.75 annually and a reported yield of approximately 7.7%. The payout may support income-focused demand for the shares. BCE Dividend: What Every Investor Needs to Know Before Buying
• Neutral Sentiment: Management maintained 2026 revenue guidance of approximately $17.9 billion to $18.6 billion, broadly consistent with the $18.2 billion analyst consensus.
• Negative Sentiment: Overall quarterly profit declined despite the earnings beat, while weaker product sales and higher investment spending offset operating gains. BCE reports second quarter 2026 results
• Negative Sentiment: 2026 EPS guidance of $1.798 to $1.919 has a midpoint below the $1.90 consensus estimate, suggesting limited earnings upside and potentially pressuring the stock.

BCE Company Profile

BCE Inc (NYSE: BCE) is a Canadian communications, media and entertainment company that operates through its primary subsidiaries, including Bell Canada and Bell Media. As a large integrated telecommunications provider, BCE delivers a broad range of connectivity services and content to residential, business and wholesale customers across Canada. The company combines network infrastructure with media assets to offer bundled communications and entertainment solutions.

On the services side, BCE provides fixed-line and wireless voice services, mobile data, high-speed internet, fibre and broadband access, and television services through platforms such as Bell Fibe and Bell TV.