TELUS (NYSE:TU) Issues Earnings Results, Misses Expectations By $0.02 EPS

TELUS (NYSE:TU) (TSE:T) announced its quarterly earnings data on Friday. The Wireless communications provider reported $0.11 earnings per share for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.02), Zacks reports. TELUS had a negative net margin of 4.51% and a positive return on equity of 8.01%.

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

• Q3 performance weakened: consolidated service revenue fell 1%, adjusted EBITDA declined 5% (2% excluding prior-year one-time items), and free cash flow dropped 35% to CAD 396 million. Adjusted EPS was CAD 0.16, down from CAD 0.24, while a non-cash CAD 800 million TELUS Health impairment drove basic EPS to negative CAD 0.42.
• Wireless customer trends improved, with 84,000 mobile phone net additions and blended churn of 1.01%, the lowest quarterly level in three years; postpaid churn was below 0.9%. Mobile service revenue rose 1% and fixed data revenue rose 2%, although internet net additions were 10,000 amid a deliberate shift away from subsidized volume.
• TELUS is targeting CAD 900 million in annualized cash savings by the end of 2028, including roughly CAD 250 million in structural savings with full run-rate benefits expected from 2027. The company expects to invest about CAD 150 million to deliver the broader program.
• TELUS expects about CAD 500 million in cumulative revenue over the next three years from its digital infrastructure opportunities, including data-center connectivity and sovereign AI services. It cited more than CAD 1 billion in total contract value in its pipeline and 38 MW of secured power, while saying it will add capacity in line with customer demand.
• Management aims to reduce net debt leverage from 3.6 times to 3.0 times or lower by the end of 2028 through savings, asset monetizations and potential PureFibre partnerships that would preserve TELUS’s control. One Health asset is at an advanced stage with a prospective buyer, but the fiber discussions remain early; 2026 guidance was reaffirmed.

TELUS Price Performance

Shares of NYSE:TU traded down $0.35 during midday trading on Friday, hitting $9.06. 11,361,738 shares of the stock were exchanged, compared to its average volume of 6,162,647. TELUS has a twelve month low of $7.64 and a twelve month high of $14.95. The company has a current ratio of 0.67, a quick ratio of 0.62 and a debt-to-equity ratio of 1.88. The company has a 50 day moving average price of $8.72 and a 200-day moving average price of $11.24. The stock has a market cap of $14.40 billion, a P/E ratio of 14.84, a PEG ratio of 21.33 and a beta of 0.63.

TELUS Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, January 4th. Stockholders of record on Friday, December 11th will be paid a dividend of C$0.19 per share. This represents a $0.75 annualized dividend and a dividend yield of 8.3%. The ex-dividend date of this dividend is Friday, December 11th. TELUS’s payout ratio is -131.71%.

Key Stories Impacting TELUS

Here are the key news stories impacting TELUS this week:

• Positive Sentiment: TELUS declared a quarterly dividend of C$0.1875 per share, maintaining a cash return to shareholders. TELUS Declares C$0.1875 Quarterly Dividend
• Neutral Sentiment: The company said its transformation strategy is intended to support debt reduction and growth investment in core telecom and AI infrastructure; execution will be key to the financial impact. TELUS Reports Third Quarter 2026 Results
• Neutral Sentiment: TELUS appointed Marc Allera and Bill Thomas to its board, effective January 1, 2027. The appointments add leadership experience but do not indicate an immediate change to results. TELUS Appoints Marc Allera and Bill Thomas to Board of Directors
• Negative Sentiment: Quarterly EPS of $0.11 missed the $0.13 consensus and was down from $0.17 a year earlier. Adjusted EPS of C$0.16 also came in below FactSet’s C$0.17 estimate; reports describe this as the company’s fourth consecutive earnings miss. Telus Misses Q3 Earnings Estimates
• Negative Sentiment: An approximately $800 million impairment charge contributed to a third-quarter GAAP loss, raising concerns about asset values and weighing on the headline results. TELUS Reports Third-Quarter Loss After $800 Million Impairment

Analyst Upgrades and Downgrades

TU has been the subject of several recent analyst reports. Barclays set a $10.00 price target on TELUS and gave the company an “equal weight” rating in a report on Tuesday, October 13th. Wall Street Zen cut TELUS from a “hold” rating to a “sell” rating in a research report on Saturday, August 1st. Royal Bank Of Canada downgraded TELUS from an “outperform” rating to a “sector perform” rating in a report on Tuesday, August 4th. Morgan Stanley cut shares of TELUS to an “underweight” rating in a research note on Tuesday, July 21st. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of TELUS in a report on Tuesday. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus target price of $15.00.

TELUS Company Profile

TELUS Corporation is a Canadian communications and technology company headquartered in Vancouver, British Columbia. It provides telecommunications and digital services to consumers, businesses and public-sector organizations, primarily in Canada.

Its core offerings include wireless voice and data services, high-speed internet, television, home security and fixed-line voice services. TELUS also provides business connectivity, cloud, cybersecurity, information technology and communications solutions.