#Canada #Montreal #BCE #Bell Canada #Q1 2026

BCE Reports First Quarter 2026 Results

BCE Inc., one of Canada’s leading telecommunications and media companies, announced its first quarter results for 2026, revealing a solid performance amid a competitive landscape. The report highlights a consolidated revenue growth of 4.0%, alongside an increase of 2.9% in adjusted EBITDA, demonstrating BCE's robust operational execution across its strategic objectives.

Financial Highlights

In the first quarter of 2026, BCE recorded operating revenues of $6,168 million, a notable increase from the $5,930 million reported in Q1 2025. These results showcase an uplift of 3.4% in service revenue and a 7.9% growth in product revenue. However, net earnings took a minor hit, declining 2.3% to $667 million from $683 million in the previous year. Adjusted net earnings also saw a dip of 7%, landing at $589 million, which translates to an adjusted earnings per share (EPS) of $0.63, down 8.7%.

Free Cash Flow and Capital Expenditures

BCE’s free cash flow increased slightly by 0.8%, reaching $804 million. This growth reflects a strategic focus on capital allocation despite a 26.9% decline in operating cash flows, primarily due to increased income taxes related to various strategic divestitures. The company reported capital expenditures of $841 million, marking a substantial 15.4% increase year-over-year as investments in infrastructure and AI capabilities continue to grow.

Subscriber Growth and Service Demand

The first quarter saw remarkable growth in residential fiber-to-the-home (FTTH) internet subscribers, with net activations totaling 49,525. This marks a 3.2% increase, bolstered by the acquisition of Ziply Fiber, and has contributed to 15% growth in internet revenue year-over-year. Subscription numbers for Crave, BCE’s streaming platform, surged 25% to 4.74 million, achieving the highest viewership quarter in its history.

Strategic Initiatives and Market Demand

Mirko Bibic, President and CEO of BCE, stated that the company’s recovery from various operational challenges stems from the successful execution of four strategic priorities. These include a robust push towards AI-powered enterprise solutions, as evidenced by a 113% growth in AI-driven revenues within the Bell Business Markets segment, which also posted a 9.7% increase in overall revenues. The last quarter underscored Bell’s unique market position, leveraging deep ties with major enterprises to provide tailored services that meet evolving customer needs.

Bell has taken significant steps in enhancing its service delivery capabilities, winning a federal contract aimed at modernizing customer service across essential Canadian public service departments. This initiative is powered by the AI-enabled Genesys Cloud™ platform, showcasing Bell's commitment to digital transformation in public services.

Investment in Fiber and AI Technologies

A core component of BCE’s growth lies in its continuous investment in network enhancements. Recently, Bell launched 5G+ Advanced, an upgraded wireless network offering faster speeds and greater capacity across key urban areas including Toronto and Hamilton. Furthermore, BCE announced a strategic partnership with the Government of Saskatchewan to develop a new 300 MW AI data center near Regina, thereby enhancing Canada’s AI computing capacity.

Bell is also strategic in bolstering its cybersecurity frameworks through partnerships with educational institutions aimed at training skilled professionals in both cybersecurity and AI applications, further securing its operational landscape.

Conclusion and Future Outlook

As BCE looks to the future, the company remains optimistic about its financial trajectory for 2026, maintaining guidance for revenue growth of 1% to 5% and adjusted EBITDA growth reaching 0% to 4%. The impending structural adjustments due to strategic divestitures are expected to optimize operations, ultimately aiming to deliver sustained value for its shareholders.

The Q1 2026 results underline BCE’s ongoing commitment to innovation, service excellence, and strategic foresight in an ever-evolving telecommunications environment.