TELUS Reports Strong First Quarter 2026 Results with Exceptional Customer Growth and Steady Revenue
In a recent report, TELUS Corporation showcased its outstanding operational and financial performance for the first quarter of 2026. With an impressive increase in both mobile and fixed customer growth, totaling 262,000 new connections, TELUS continues to demonstrate the strength of its premium bundled services, which are in high demand across the nation. This robust customer growth can be attributed to TELUS' strategic investments in its services and infrastructure, particularly its cutting-edge PureFibre and 5G+ wireless networks.
In terms of financial results, the company reported a consolidated service revenue growth of 1%, which, while steady, reflects the resilience of TELUS within an ever-changing operating environment. Their Adjusted EBITDA remained stable at $1.8 billion, showcasing the effectiveness of their operational strategies in maintaining profitability. Additionally, TELUS generated $1.05 billion in cash from operations, alongside a significant 19% increase in Free Cash Flow to $583 million, paving the way for future investments and financial flexibility.
TELUS' Sovereign AI Factories are proving to be a significant success, with the facility in Rimouski, Quebec fully sold out shortly after launch. This success is a promising sign as they prepare to launch their second facility in Kamloops, British Columbia, catering to the growing demand for AI services. The company is also advancing a comprehensive deleveraging strategy, with an eye on optimizing its balance sheet by working towards a net debt to EBITDA leverage target of 3.3 times or lower by the end of 2026.
Looking ahead, TELUS reaffirmed its 2026 financial targets, aiming for a consolidated service revenue growth between 2% to 4%, and a similar trajectory for Adjusted EBITDA. They also anticipate Free Cash Flow to reach approximately $2.45 billion, reflecting a sustainable growth strategy directed at enhancing shareholder value. Capital expenditures are forecasted to decrease by 10% to about $2.3 billion, illustrating their strategy to streamline spending without compromising growth.
"Our team’s unwavering commitment to operational excellence and cost efficiency has enabled TELUS to sustain industry-leading customer growth and stable financial performance," stated Darren Entwistle, TELUS President and CEO. He emphasized that the results are indicative of a disciplined approach that is essential for navigating a dynamic market while preserving the premium brand value of TELUS.
In the mobility sector, TELUS observed a positive revenue growth of 1% within their mobile network services, following an uptick in Average Revenue Per User (ARPU). However, the company faced challenges due to a decline in mobile phone ARPU, primarily driven by competitive pressures in promotional pricing. Nonetheless, a notable increase in mobile phone gross additions reflects a successful strategy to attract new subscribers through compelling offerings.
Moreover, TELUS Health recorded a remarkable 11% growth in service revenue, solidifying its position as a leader in digital health solutions globally. The division now services approximately 170 million healthcare lives, a significant increase attributed to acquisitions and diversified health solutions. TELUS is also exploring strategic partnerships to enhance their health service offerings further.
TELUS Digital, despite facing some decline in revenues due to currency fluctuations and cutbacks from existing client contracts, managed to endorse further growth in AI and digital solutions through substantial investments. Their initiatives in AI technology are anticipated to bring promising returns by 2028, as they aim to unlock considerable operational efficiencies and revenue growth.
Overall, TELUS continues to possess a strong outlook for sustainable growth driven by their advanced technological infrastructure, a robust portfolio of services, and a strategic focus on operational excellence. The company’s commitment to philanthropic initiatives, as demonstrated through significant donations and community engagement, enhances its reputation as a socially responsible leader in the telecommunications sector. As they advance through 2026, TELUS is well-positioned to seize opportunities that arise amid market challenges while contributing positively to the communities they serve.
In terms of financial results, the company reported a consolidated service revenue growth of 1%, which, while steady, reflects the resilience of TELUS within an ever-changing operating environment. Their Adjusted EBITDA remained stable at $1.8 billion, showcasing the effectiveness of their operational strategies in maintaining profitability. Additionally, TELUS generated $1.05 billion in cash from operations, alongside a significant 19% increase in Free Cash Flow to $583 million, paving the way for future investments and financial flexibility.
TELUS' Sovereign AI Factories are proving to be a significant success, with the facility in Rimouski, Quebec fully sold out shortly after launch. This success is a promising sign as they prepare to launch their second facility in Kamloops, British Columbia, catering to the growing demand for AI services. The company is also advancing a comprehensive deleveraging strategy, with an eye on optimizing its balance sheet by working towards a net debt to EBITDA leverage target of 3.3 times or lower by the end of 2026.
Looking ahead, TELUS reaffirmed its 2026 financial targets, aiming for a consolidated service revenue growth between 2% to 4%, and a similar trajectory for Adjusted EBITDA. They also anticipate Free Cash Flow to reach approximately $2.45 billion, reflecting a sustainable growth strategy directed at enhancing shareholder value. Capital expenditures are forecasted to decrease by 10% to about $2.3 billion, illustrating their strategy to streamline spending without compromising growth.
"Our team’s unwavering commitment to operational excellence and cost efficiency has enabled TELUS to sustain industry-leading customer growth and stable financial performance," stated Darren Entwistle, TELUS President and CEO. He emphasized that the results are indicative of a disciplined approach that is essential for navigating a dynamic market while preserving the premium brand value of TELUS.
In the mobility sector, TELUS observed a positive revenue growth of 1% within their mobile network services, following an uptick in Average Revenue Per User (ARPU). However, the company faced challenges due to a decline in mobile phone ARPU, primarily driven by competitive pressures in promotional pricing. Nonetheless, a notable increase in mobile phone gross additions reflects a successful strategy to attract new subscribers through compelling offerings.
Moreover, TELUS Health recorded a remarkable 11% growth in service revenue, solidifying its position as a leader in digital health solutions globally. The division now services approximately 170 million healthcare lives, a significant increase attributed to acquisitions and diversified health solutions. TELUS is also exploring strategic partnerships to enhance their health service offerings further.
TELUS Digital, despite facing some decline in revenues due to currency fluctuations and cutbacks from existing client contracts, managed to endorse further growth in AI and digital solutions through substantial investments. Their initiatives in AI technology are anticipated to bring promising returns by 2028, as they aim to unlock considerable operational efficiencies and revenue growth.
Overall, TELUS continues to possess a strong outlook for sustainable growth driven by their advanced technological infrastructure, a robust portfolio of services, and a strategic focus on operational excellence. The company’s commitment to philanthropic initiatives, as demonstrated through significant donations and community engagement, enhances its reputation as a socially responsible leader in the telecommunications sector. As they advance through 2026, TELUS is well-positioned to seize opportunities that arise amid market challenges while contributing positively to the communities they serve.
Topics Telecommunications）
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