BCE (NYSE:BCE) Announces Earnings Results

BCE (NYSE:BCE) (TSE:BCE) announced its quarterly earnings data on Thursday. The utilities provider reported $0.46 EPS for the quarter, topping analysts’ consensus estimates of $0.42 by $0.04, Zacks reports. The company had revenue of $4.43 billion during the quarter, compared to the consensus estimate of $4.38 billion. BCE had a net margin of 25.66% and a return on equity of 14.35%. BCE’s quarterly revenue was up 4.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.69 EPS. BCE updated its FY 2026 guidance to 1.790-1.910 EPS.

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

• Bell is aggressively scaling its AI strategy — a fully contracted 300 MW Saskatchewan AI data center is under construction and at full run rate is expected to contribute roughly CAD 500M revenue, CAD 400M EBITDA and >CAD 250M free cash flow at ~20% IRR; management says it has line-of-sight to monetize about 800 MW over time and raised its AI-powered solutions 2028 target to ~CAD 2B.
• Q1 financials were mixed — consolidated revenue grew 4% and adjusted EBITDA +2.9%, but adjusted EPS fell CAD 0.06 (higher D&A and interest), free cash flow edged up 0.8% to CAD 804M, margins dipped ~40 bps and net debt leverage was ~3.8x with a target to reach 3.5x by end-2027.
• Customer metrics show momentum — ~43,000 residential FTTH net adds in Canada (total fiber net adds ~50,000 including Ziply), internet revenue on North American fiber platforms +15% YoY, Crave subscribers +25% to 4.7M (D2C +59%), and improved video and postpaid wireless net adds despite a promotional Q1.
• Management is simplifying and reallocating capital — completed high-return disposals (MLSE, Bell Smart Home) and announced the CAD 675M Land Mobile Radio sale, cut legacy Canadian telecom CapEx by >CAD 2B since 2022, and is redeploying funds into higher-return AI Fabric and U.S. fiber growth initiatives.

BCE Stock Down 1.7%

Shares of BCE traded down $0.42 during mid-day trading on Friday, reaching $24.15. 3,425,862 shares of the stock traded hands, compared to its average volume of 2,906,118. The firm has a market cap of $22.52 billion, a price-to-earnings ratio of 4.91 and a beta of 0.48. The stock has a fifty day simple moving average of $24.91 and a 200 day simple moving average of $24.30. BCE has a 12-month low of $21.09 and a 12-month high of $26.52. The company has a quick ratio of 0.55, a current ratio of 0.58 and a debt-to-equity ratio of 1.74.

BCE Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th will be paid a dividend of $0.4375 per share. The ex-dividend date is Monday, June 15th. This represents a $1.75 dividend on an annualized basis and a dividend yield of 7.2%. BCE’s dividend payout ratio (DPR) is currently 26.02%.

Analyst Upgrades and Downgrades

A number of brokerages have commented on BCE. Royal Bank Of Canada upped their price objective on shares of BCE from $38.00 to $39.00 and gave the stock an “outperform” rating in a research report on Tuesday, March 17th. Scotiabank reiterated an “outperform” rating on shares of BCE in a report on Monday, January 12th. Barrington Research upgraded shares of BCE from an “underperform” rating to an “equal weight” rating and increased their price target for the company from $21.00 to $26.00 in a report on Tuesday, January 27th. Weiss Ratings upgraded shares of BCE from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, February 4th. Finally, TD Securities downgraded shares of BCE from a “buy” rating to a “hold” rating in a report on Thursday, April 2nd. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, BCE has an average rating of “Moderate Buy” and an average target price of $28.67.

Institutional Trading of BCE

Hedge funds have recently made changes to their positions in the company. Arax Advisory Partners grew its position in shares of BCE by 61.2% during the fourth quarter. Arax Advisory Partners now owns 3,333 shares of the utilities provider’s stock worth $79,000 after buying an additional 1,265 shares in the last quarter. Steward Partners Investment Advisory LLC grew its position in shares of BCE by 73.0% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 5,821 shares of the utilities provider’s stock worth $139,000 after buying an additional 2,457 shares in the last quarter. Advisory Services Network LLC acquired a new stake in shares of BCE during the third quarter worth approximately $96,000. Binnacle Investments Inc grew its position in shares of BCE by 17.1% during the third quarter. Binnacle Investments Inc now owns 4,164 shares of the utilities provider’s stock worth $97,000 after buying an additional 609 shares in the last quarter. Finally, Quadrant Capital Group LLC acquired a new stake in shares of BCE during the third quarter worth approximately $120,000. Hedge funds and other institutional investors own 41.46% of the company’s stock.

BCE News Roundup

Here are the key news stories impacting BCE this week:

• Positive Sentiment: BCE said Q1 revenue rose 4% year over year, helped by stronger Bell CTS U.S./Ziply and Media performance, and free cash flow improved despite higher capital spending. Article title
• Positive Sentiment: Management pointed to AI-driven demand and said BCE is expanding its Bell Business Markets offering, highlighting a growth area that could support future revenue. Article title
• Neutral Sentiment: The company also announced a quarterly dividend of C$0.4375 per share, which keeps BCE attractive for income-focused investors. Article title
• Neutral Sentiment: Shareholders approved the election of directors at the annual meeting, with all nominees receiving strong support. Article title
• Negative Sentiment: Adjusted EPS declined from a year earlier, and the company’s revenue and earnings guidance for FY2026 came in below consensus, which is likely pressuring the stock. Article title
• Negative Sentiment: Reports of employee firings tied to alleged attendance-policy violations may add to near-term headline risk, though the operational impact appears limited. Article title

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.