TELUS (TU)
Market Price (9/5/2026): $9.66 | Market Cap: $15.2 BilSector: Communication Services | Industry: Integrated Telecommunication Services
TELUS (TU)
Market Price (9/5/2026): $9.66Market Cap: $15.2 BilSector: Communication ServicesIndustry: Integrated Telecommunication Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.0%, Dividend Yield is 11%, FCF Yield is 13% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 25%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 10%, CFO LTM is 5.0 Bil, FCF LTM is 2.0 Bil Low stock price volatilityVol 12M is 23% Megatrend and thematic driversMegatrends include 5G & Advanced Connectivity, and Digital Health & Telemedicine. Themes include Wireless Services, Telehealth Platforms, Show more. | Weak multi-year price returns2Y Excs Rtn is -66%, 3Y Excs Rtn is -103% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 198% Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -1.1%, Rev Chg QQuarterly Revenue Change % is -2.2% Key risksTU key risks include [1] specific challenges related to its debt management and capital allocation, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.0%, Dividend Yield is 11%, FCF Yield is 13% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 25%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 10%, CFO LTM is 5.0 Bil, FCF LTM is 2.0 Bil |
| Low stock price volatilityVol 12M is 23% |
| Megatrend and thematic driversMegatrends include 5G & Advanced Connectivity, and Digital Health & Telemedicine. Themes include Wireless Services, Telehealth Platforms, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -66%, 3Y Excs Rtn is -103% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 198% |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -1.1%, Rev Chg QQuarterly Revenue Change % is -2.2% |
| Key risksTU key risks include [1] specific challenges related to its debt management and capital allocation, Show more. |
Qualitative Assessment
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Updated on 9/1/2026
TELUS (TU) stock has lost about 20% since 5/31/2026 because of the following key factors:
1. Significant Q2 2026 Earnings Miss and Substantial Revision of Full-Year Guidance.
TELUS reported its Q2 2026 financial results (for the fiscal quarter ending June 30, 2026) on July 31, 2026, missing analyst expectations. The company posted an earnings per share (EPS) of $0.12, which was $0.04 lower than the consensus estimate of $0.16. Quarterly revenue also fell short, coming in at $3.47 billion against an expected $3.55 billion. Furthermore, TELUS significantly revised its full-year 2026 consolidated service revenue guidance to a range of flat to negative 2%, a reduction from previous expectations of 2% to 4% growth. Consolidated Adjusted EBITDA guidance was also cut to a range of negative 2% to negative 4%, down from an anticipated 2% to 4% growth.
2. Steep 55% Dividend Cut and Removal of DRIP Discount to Prioritize Debt Reduction.
Concurrent with its Q2 2026 earnings release, TELUS announced a substantial reset of its quarterly dividend by 55%, reducing it to $0.1875 per common share. This measure is projected to generate approximately $2.7 billion in cumulative cash savings through 2028, earmarked specifically for debt reduction. Additionally, the company is removing the dividend reinvestment plan (DRIP) discount effective October 1, 2026, aiming to decrease shareholder dilution. This move negatively impacted investor sentiment, particularly among income-focused shareholders who relied on TELUS's dividend.
Show more
TELUS (TU) stock has lost about 20% since 5/31/2026 because of the following key factors:
1. Significant Q2 2026 Earnings Miss and Substantial Revision of Full-Year Guidance.
TELUS reported its Q2 2026 financial results (for the fiscal quarter ending June 30, 2026) on July 31, 2026, missing analyst expectations. The company posted an earnings per share (EPS) of $0.12, which was $0.04 lower than the consensus estimate of $0.16. Quarterly revenue also fell short, coming in at $3.47 billion against an expected $3.55 billion. Furthermore, TELUS significantly revised its full-year 2026 consolidated service revenue guidance to a range of flat to negative 2%, a reduction from previous expectations of 2% to 4% growth. Consolidated Adjusted EBITDA guidance was also cut to a range of negative 2% to negative 4%, down from an anticipated 2% to 4% growth.
2. Steep 55% Dividend Cut and Removal of DRIP Discount to Prioritize Debt Reduction.
Concurrent with its Q2 2026 earnings release, TELUS announced a substantial reset of its quarterly dividend by 55%, reducing it to $0.1875 per common share. This measure is projected to generate approximately $2.7 billion in cumulative cash savings through 2028, earmarked specifically for debt reduction. Additionally, the company is removing the dividend reinvestment plan (DRIP) discount effective October 1, 2026, aiming to decrease shareholder dilution. This move negatively impacted investor sentiment, particularly among income-focused shareholders who relied on TELUS's dividend.
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Updated on 9/1/2026
TELUS (TU) stock has lost about 20% since 5/31/2026 because of the following key factors:
1. Significant Q2 2026 Earnings Miss and Substantial Revision of Full-Year Guidance.
TELUS reported its Q2 2026 financial results (for the fiscal quarter ending June 30, 2026) on July 31, 2026, missing analyst expectations. The company posted an earnings per share (EPS) of $0.12, which was $0.04 lower than the consensus estimate of $0.16. Quarterly revenue also fell short, coming in at $3.47 billion against an expected $3.55 billion. Furthermore, TELUS significantly revised its full-year 2026 consolidated service revenue guidance to a range of flat to negative 2%, a reduction from previous expectations of 2% to 4% growth. Consolidated Adjusted EBITDA guidance was also cut to a range of negative 2% to negative 4%, down from an anticipated 2% to 4% growth.
2. Steep 55% Dividend Cut and Removal of DRIP Discount to Prioritize Debt Reduction.
Concurrent with its Q2 2026 earnings release, TELUS announced a substantial reset of its quarterly dividend by 55%, reducing it to $0.1875 per common share. This measure is projected to generate approximately $2.7 billion in cumulative cash savings through 2028, earmarked specifically for debt reduction. Additionally, the company is removing the dividend reinvestment plan (DRIP) discount effective October 1, 2026, aiming to decrease shareholder dilution. This move negatively impacted investor sentiment, particularly among income-focused shareholders who relied on TELUS's dividend.
3. Large Non-Cash Impairment Charge on TELUS Digital Assets.
During fiscal Q2 2026, TELUS recognized a pre-tax, non-cash intangible asset and goodwill impairment charge of $2.1 billion. This impairment was primarily attributed to a reduction in the recoverable amount of the TELUS Digital cash-generating unit. This significant charge resulted in a net income loss of $1.8 billion for the quarter, further contributing to the negative financial outlook.
4. Multiple Analyst Downgrades and Negative Outlooks.
Following the disappointing Q2 2026 results and revised guidance, several prominent investment firms downgraded TELUS's stock. Morgan Stanley, CIBC, and Barclays all issued downgrades. Morgan Stanley, for instance, lowered its rating to Underweight from Equal Weight and reduced its price target to C$13 from C$20. Barclays also cut its price target multiple times during the period, to $12 in mid-July and further to $11 in early August. The broader analyst consensus shifted to "Reduce" or "Hold" ratings, with concerns raised about lower growth prospects, increased leverage, and diminished appeal for income investors.
5. Increased Capital Expenditures and Elevated Leverage.
TELUS updated its full-year 2026 capital expenditure guidance to approximately $2.6 billion, an increase from the previously projected C$2.3 billion. This rise reflects factors such as inflation, supply chain dynamics impacting customer premise equipment, and strategic investments in sovereign AI data centers and network infrastructure. The company's net debt to Adjusted EBITDA ratio stood at 3.5-times at the end of fiscal Q2 2026, indicating elevated leverage. While TELUS aims to reduce this ratio to 3.0-times or lower by year-end 2028, the immediate increase in capital spending, coupled with significant debt, added to investor concerns.
Show less
TELUS (TU) stock has lost about 20% since 5/31/2026 because of the following key factors:
1. Significant Q2 2026 Earnings Miss and Substantial Revision of Full-Year Guidance.
TELUS reported its Q2 2026 financial results (for the fiscal quarter ending June 30, 2026) on July 31, 2026, missing analyst expectations. The company posted an earnings per share (EPS) of $0.12, which was $0.04 lower than the consensus estimate of $0.16. Quarterly revenue also fell short, coming in at $3.47 billion against an expected $3.55 billion. Furthermore, TELUS significantly revised its full-year 2026 consolidated service revenue guidance to a range of flat to negative 2%, a reduction from previous expectations of 2% to 4% growth. Consolidated Adjusted EBITDA guidance was also cut to a range of negative 2% to negative 4%, down from an anticipated 2% to 4% growth.
2. Steep 55% Dividend Cut and Removal of DRIP Discount to Prioritize Debt Reduction.
Concurrent with its Q2 2026 earnings release, TELUS announced a substantial reset of its quarterly dividend by 55%, reducing it to $0.1875 per common share. This measure is projected to generate approximately $2.7 billion in cumulative cash savings through 2028, earmarked specifically for debt reduction. Additionally, the company is removing the dividend reinvestment plan (DRIP) discount effective October 1, 2026, aiming to decrease shareholder dilution. This move negatively impacted investor sentiment, particularly among income-focused shareholders who relied on TELUS's dividend.
3. Large Non-Cash Impairment Charge on TELUS Digital Assets.
During fiscal Q2 2026, TELUS recognized a pre-tax, non-cash intangible asset and goodwill impairment charge of $2.1 billion. This impairment was primarily attributed to a reduction in the recoverable amount of the TELUS Digital cash-generating unit. This significant charge resulted in a net income loss of $1.8 billion for the quarter, further contributing to the negative financial outlook.
4. Multiple Analyst Downgrades and Negative Outlooks.
Following the disappointing Q2 2026 results and revised guidance, several prominent investment firms downgraded TELUS's stock. Morgan Stanley, CIBC, and Barclays all issued downgrades. Morgan Stanley, for instance, lowered its rating to Underweight from Equal Weight and reduced its price target to C$13 from C$20. Barclays also cut its price target multiple times during the period, to $12 in mid-July and further to $11 in early August. The broader analyst consensus shifted to "Reduce" or "Hold" ratings, with concerns raised about lower growth prospects, increased leverage, and diminished appeal for income investors.
5. Increased Capital Expenditures and Elevated Leverage.
TELUS updated its full-year 2026 capital expenditure guidance to approximately $2.6 billion, an increase from the previously projected C$2.3 billion. This rise reflects factors such as inflation, supply chain dynamics impacting customer premise equipment, and strategic investments in sovereign AI data centers and network infrastructure. The company's net debt to Adjusted EBITDA ratio stood at 3.5-times at the end of fiscal Q2 2026, indicating elevated leverage. While TELUS aims to reduce this ratio to 3.0-times or lower by year-end 2028, the immediate increase in capital spending, coupled with significant debt, added to investor concerns.
Show less
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Stock Movement Drivers
Fundamental Drivers
The -21.0% change in TU stock from 5/31/2026 to 9/4/2026 was primarily driven by a -19.9% change in the company's P/S Multiple.| (LTM values as of) | 5312026 | 9042026 | Change |
|---|---|---|---|
| Stock Price ($) | 12.24 | 9.67 | -21.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 20,317 | 20,206 | -0.5% |
| P/S Multiple | 0.9 | 0.8 | -19.9% |
| Shares Outstanding (Mil) | 1,561 | 1,574 | -0.8% |
| Cumulative Contribution | -21.0% |
Market Drivers
5/31/2026 to 9/4/2026| Return | Correlation | |
|---|---|---|
| TU | -21.0% | |
| Market (SPY) | 1.8% | -20.3% |
| Sector (XLC) | -3.2% | 12.8% |
Fundamental Drivers
The -26.2% change in TU stock from 2/28/2026 to 9/4/2026 was primarily driven by a -24.5% change in the company's P/S Multiple.| (LTM values as of) | 2282026 | 9042026 | Change |
|---|---|---|---|
| Stock Price ($) | 13.10 | 9.67 | -26.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 20,346 | 20,206 | -0.7% |
| P/S Multiple | 1.0 | 0.8 | -24.5% |
| Shares Outstanding (Mil) | 1,549 | 1,574 | -1.6% |
| Cumulative Contribution | -26.2% |
Market Drivers
2/28/2026 to 9/4/2026| Return | Correlation | |
|---|---|---|
| TU | -26.2% | |
| Market (SPY) | 12.6% | -2.9% |
| Sector (XLC) | -4.8% | 17.7% |
Fundamental Drivers
The -35.9% change in TU stock from 8/31/2025 to 9/4/2026 was primarily driven by a -33.1% change in the company's P/S Multiple.| (LTM values as of) | 8312025 | 9042026 | Change |
|---|---|---|---|
| Stock Price ($) | 15.08 | 9.67 | -35.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 20,422 | 20,206 | -1.1% |
| P/S Multiple | 1.1 | 0.8 | -33.1% |
| Shares Outstanding (Mil) | 1,525 | 1,574 | -3.1% |
| Cumulative Contribution | -35.9% |
Market Drivers
8/31/2025 to 9/4/2026| Return | Correlation | |
|---|---|---|
| TU | -35.9% | |
| Market (SPY) | 20.4% | -0.9% |
| Sector (XLC) | 1.6% | 17.1% |
Fundamental Drivers
The -31.1% change in TU stock from 8/31/2023 to 9/4/2026 was primarily driven by a -27.6% change in the company's P/S Multiple.| (LTM values as of) | 8312023 | 9042026 | Change |
|---|---|---|---|
| Stock Price ($) | 14.03 | 9.67 | -31.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 19,522 | 20,206 | 3.5% |
| P/S Multiple | 1.0 | 0.8 | -27.6% |
| Shares Outstanding (Mil) | 1,447 | 1,574 | -8.1% |
| Cumulative Contribution | -31.1% |
Market Drivers
8/31/2023 to 9/4/2026| Return | Correlation | |
|---|---|---|
| TU | -31.1% | |
| Market (SPY) | 77.1% | 8.0% |
| Sector (XLC) | 70.6% | 14.5% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| TU Return | 24% | -14% | -2% | -18% | 5% | -22% | -31% |
| Peers Return | 53% | -9% | 1% | 1% | 17% | 23% | 105% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| TU Win Rate | 67% | 50% | 50% | 42% | 58% | 44% | |
| Peers Win Rate | 57% | 48% | 50% | 53% | 53% | 69% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 56% | |
Max Drawdowns [4] | |||||||
| TU Max Drawdown | -7% | -28% | -25% | -22% | -21% | -30% | |
| Peers Max Drawdown | -22% | -34% | -31% | -27% | -24% | -19% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: T, IDT, ATNI, VZ, BCE.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 9/4/2026 (YTD)
How Low Can It Go
| Event | TU | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -14.4% | -9.5% |
| % Gain to Breakeven | 16.8% | 10.5% |
| Time to Breakeven | 60 days | 24 days |
| 2020 COVID-19 Crash | ||
| % Loss | -32.2% | -33.7% |
| % Gain to Breakeven | 47.4% | 50.9% |
| Time to Breakeven | 255 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -24.7% | -12.2% |
| % Gain to Breakeven | 32.8% | 13.9% |
| Time to Breakeven | 168 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -27.2% | -6.8% |
| % Gain to Breakeven | 37.3% | 7.3% |
| Time to Breakeven | 208 days | 15 days |
| 2013 Taper Tantrum | ||
| % Loss | -19.9% | -0.2% |
| % Gain to Breakeven | 24.8% | 0.2% |
| Time to Breakeven | 120 days | 1 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -15.1% | -17.9% |
| % Gain to Breakeven | 17.8% | 21.8% |
| Time to Breakeven | 79 days | 123 days |
In The Past
TELUS's stock fell -7.9% during the 2025 US Tariff Shock. Such a loss loss requires a 8.6% gain to breakeven.
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| Event | TU | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -32.2% | -33.7% |
| % Gain to Breakeven | 47.4% | 50.9% |
| Time to Breakeven | 255 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -24.7% | -12.2% |
| % Gain to Breakeven | 32.8% | 13.9% |
| Time to Breakeven | 168 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -27.2% | -6.8% |
| % Gain to Breakeven | 37.3% | 7.3% |
| Time to Breakeven | 208 days | 15 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -49.4% | -53.4% |
| % Gain to Breakeven | 97.7% | 114.4% |
| Time to Breakeven | 564 days | 1085 days |
In The Past
TELUS's stock fell -7.9% during the 2025 US Tariff Shock. Such a loss loss requires a 8.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About TELUS (TU)
TELUS Corporation (TU) is a major Canadian telecommunications and information technology company. Operating primarily within Canada, it offers a comprehensive suite of services that cater to both consumer and business needs, spanning traditional communication services and advanced digital solutions.
Through its Technology Solutions segment, TELUS provides a wide array of core telecommunications products, including mobile phone services, internet, television, and residential voice. Beyond these consumer offerings, it also delivers essential business services such as hosting, managed IT, cloud solutions, and specialized services like healthcare solutions, home and business security, and agricultural technology. The company boasts a substantial customer base, with over 16.9 million subscriber connections across these various services.
Complementing its traditional offerings, TELUS also operates a Digitally-Led Customer Experiences segment. This division focuses on providing digital customer experience and transformation solutions, incorporating advanced technologies like artificial intelligence and content management. This segment helps businesses enhance their digital presence and operational efficiency, showcasing TELUS's expansion into modern digital enablement alongside its robust telecom infrastructure.
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Here are 1-3 brief analogies for TELUS (TU):
- Canada's AT&T
- Canada's Verizon
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- Mobile Phone Services: Provides cellular network access, mobile data, and sales of mobile devices to subscribers.
- Internet Services: Offers high-speed internet access for residential and business customers.
- Television Services: Delivers digital television programming and on-demand content to subscribers.
- Voice Services: Supplies traditional residential and business landline telephone services.
- Home & Business Security Services: Provides monitoring and security solutions for homes and commercial establishments.
- IT & Cloud Services: Offers hosting, managed information technology, and cloud-based solutions for businesses.
- Digital Customer Experience & Transformation Solutions: Delivers solutions for digital enablement, artificial intelligence, and content management to enhance customer experiences.
- Healthcare Solutions: Provides specialized technology solutions designed for the healthcare sector.
- Agriculture Solutions: Offers technology-driven services and solutions specifically for the agriculture industry.
- Connected Device Services: Supports and connects a variety of internet-of-things (IoT) and other connected devices.
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TELUS (TU) primarily serves individual consumers and households, in addition to a wide range of businesses.
Its major customer categories include:
- Individual Consumers and Households: This is TELUS's largest customer segment, encompassing millions of subscribers for its core telecommunications services. These customers utilize mobile phone plans, home internet, residential voice services, television packages, and home security solutions throughout Canada.
- Businesses and Enterprises: TELUS offers a broad portfolio of telecommunications and information technology solutions to businesses of all sizes. This includes services such as hosting, managed IT, cloud-based services, data services, customer care, and digital-enablement transformation solutions, including artificial intelligence and content management.
- Specialized Industry Verticals: TELUS also provides tailored solutions to specific industry sectors. Notably, the company delivers advanced healthcare solutions and specialized technology and services designed for the agriculture sector.
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Nokia (NYSE: NOK)
Ericsson (NASDAQ: ERIC)
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Darren Entwistle, President and CEO
Darren Entwistle joined TELUS in 2000 as President and CEO, and is the longest-serving CEO in the global telecommunications industry. He has led the company's evolution from a regional telephone company in Western Canada into a global communications and information technology leader. Prior to TELUS, he was an executive at Cable & Wireless in the United Kingdom. He holds a Bachelor of Economics (Honours) from Concordia University, an MBA (Finance) from McGill University, and a diploma in Network Engineering from the University of Toronto. He oversaw the $6.6 billion acquisition of Clearnet in 2000 and the purchase of Emergis in 2008.
Doug French, Executive Vice-president and Chief Financial OfficerDoug French possesses 30 years of financial management experience, with 20 years specifically in the telecommunications industry, giving him the most national carrier experience among Canadian telecommunications CFOs. He joined TELUS in 1996 and has advanced through senior roles, including Controller for significant business divisions and leading Corporate Accounting, Financial Reporting, and Bid Governance, before assuming the CFO position. Prior to joining TELUS, he served as a Senior Manager at Ernst & Young LLP (Canada). He holds an undergraduate degree from the University of Toronto.
Zainul Mawji, Executive Vice-president and President, TELUS Consumer SolutionsZainul Mawji leads a dedicated team responsible for the comprehensive design and delivery of products and services across Mobility and Home Solutions, driving innovation and enhancing customer service. Over two decades at TELUS, she has held key leadership positions in corporate development, marketing, IT, capital management, strategy, and technology operations. Mawji joined TELUS in 2001 after earning her MBA from the Richard Ivey School of Business at the University of Western Ontario. Her background, influenced by entrepreneurial parents, contributes to her natural ability to operationalize innovative ideas.
Tony Geheran, Executive Vice-president and Chief Operations OfficerTony Geheran leads Customer Technology Excellence, overseeing digital experiences and managing all facets of TELUS' technology infrastructure, including the construction, performance, and maintenance of its PureFibre and 5G networks. Since joining TELUS in 2001, he has held several leadership roles, including Executive Vice-President and Chief Customer Officer of Customer Service Excellence. Geheran brings over 30 years of experience in the telecommunications industry, having previously led teams in the United Kingdom and the Republic of Ireland. His professional qualifications in mechanical and electrical engineering were acquired during his service in the Royal Navy.
Jim Senko, Executive Vice-president and Chief Product OfficerJim Senko is at the forefront of the TELUS Consumer Solutions Product Office, focusing on developing innovative product solutions that connect Canadians through integrated offerings across mobility, home internet, content, and smart home bundles. Since joining TELUS in 2001, he has held various leadership positions encompassing channel distribution, marketing, and product development. Before his tenure at TELUS, Senko was Vice-president and leader of the UK Telecommunications and Media practice for Gemini Consulting (a subsidiary of Cap Gemini) and gained international management experience with consulting firms such as KPMG.
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The key risks to TELUS (TU) are:
- Cybersecurity Risks and Data Breaches: TELUS faces significant operational and reputational risks from cybersecurity threats. The company has recently experienced a major security breach, affecting its business process outsourcing operations and involving claims of extensive data theft. Such incidents can lead to compromised data privacy, strained customer relationships, potential regulatory scrutiny, and substantial remediation costs. The integration of Artificial Intelligence also introduces risks related to operational reliability, responsible AI usage, data privacy, and cybersecurity.
- Intense Market Competition and Pricing Pressures: The Canadian telecommunications sector is highly competitive, with major players vying for market share across wireless, internet, television, and home phone services. This intense rivalry leads to pricing pressures, aggressive marketing, and service bundling, which can impact mobile average revenue per user (ARPU) and overall financial performance. New entrants with disruptive, lower-cost models and evolving technologies further intensify this competition, requiring continuous strategic adaptation from TELUS.
- High Debt Levels: TELUS carries substantial debt, primarily due to aggressive capital expenditures on infrastructure investments such as its PureFibre and 5G networks, and ventures into TELUS Health. Elevated debt levels increase the cost of servicing this debt, especially in a rising interest rate environment. There are also concerns regarding dividend sustainability, as the payout ratio has at times exceeded the company's target range, potentially unless free cash flows significantly improve. The company's balance sheet strength has been rated as poor by some due to these high debt levels, indicating potential financial instability.
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Addressable Market Sizes for TELUS's Main Products and Services in Canada
- Mobile Phone Services: The Canadian Telecom Mobile Network Operator (MNO) market was valued at USD 49.96 billion in 2025 and is estimated to grow to USD 65.59 billion by 2031. Mobile services constituted 55.2% of the total Canadian telecommunications revenues in 2023. The broader Canadian telecommunication services market, which includes mobile data services, generated USD 60,128.2 million in 2025 and is projected to reach USD 78,020.6 million by 2030.
- Internet Services: The Canadian internet access market generated revenues of USD 11.30 billion in 2024. Fixed Internet alone accounted for over 28% of all telecommunications revenues in Canada in 2023.
- TV Services (Television/Pay TV): The Canada television market size was approximately USD 1.74 billion in 2024 and is projected to reach nearly USD 2.19 billion by 2034. The Smart TV market in Canada was valued at USD 23.22 billion in 2024 and is anticipated to grow to USD 62.90 billion by 2033.
- Security Services (Home and Business Security): The Canadian smart home security market generated USD 1,664.5 million in revenue in 2024 and is expected to reach USD 4,001.9 million by 2030. The broader Canada Home Security System Market is projected to grow from USD 62.4 billion in 2025 to USD 128.7 billion by 2031. Additionally, the electronic security system market in Canada was valued at over USD 1.6 billion in 2024.
- Hosting, Managed Information Technology, and Cloud-based Services: The Canada cloud computing market generated a revenue of USD 47,889.7 million in 2024 and is expected to reach USD 152,299.2 million by 2030. The Canadian managed services market generated revenues of USD 24,526.7 billion in 2025 and is expected to reach USD 52,083.3 billion by 2033. The Canada IT services market size reached USD 96.3 billion in 2025 and is expected to reach USD 187.5 billion by 2033.
- Customer Care and Business Services (including Digitally-Led Customer Experiences, AI, and Content Management solutions): The business process outsourcing (BPO) market in Canada generated a revenue of USD 31,010.0 million in 2025 and is expected to reach USD 59,669.8 million by 2033. The Canada customer experience business process outsourcing market generated a revenue of USD 4,467.8 million in 2024 and is expected to reach USD 15,263.7 million by 2033. The Canada digital experience platform market generated USD 1,441.3 million in revenue in 2023 and is expected to reach USD 3,828.6 million by 2030.
- Healthcare Solutions: The Canada healthcare IT market generated a revenue of USD 522.0 million in 2021 and is expected to reach USD 1,012.9 million by 2030. The Canada Healthcare IT Software Market is projected to grow from USD 2.78 billion in 2025 to USD 6.94 billion by 2031.
- Agriculture Solutions: The Canada smart agriculture market generated a revenue of USD 4,376.0 million in 2025 and is expected to reach USD 13,802.4 million by 2033. The Canadian agri-tech market size was USD 691 million in 2024.
- Connected Device Services (IoT/M2M): IoT and M2M Services in Canada are projected to surpass USD 4.43 billion by 2031. The Internet of Things (IoT) market in Canada is expected to grow significantly, with an estimated 1.5 billion connected devices in the future.
- Residential Voice Services: Null (Stand-alone market size for residential voice services is difficult to isolate as it is a declining segment often bundled within broader telecommunications services.)
AI Analysis | Feedback
TELUS (TU) is expected to drive future revenue growth over the next two to three years through several key initiatives:
- Expansion of AI-enabling capabilities and Sovereign AI Factories: TELUS anticipates significant growth from its AI-enabling capabilities, targeting revenue to increase from approximately $800 million in 2025 to around $2 billion by 2028. This growth is expected across both TELUS Digital and TELUS Business Solutions, benefiting from contributions from their sovereign AI factories and a strategic partnership with NVIDIA.
- Growth and Monetization of TELUS Health: TELUS Health is a crucial growth engine, consistently demonstrating strong revenue and adjusted EBITDA growth. The company is actively exploring strategic partnerships to further maximize value creation, drive growth, and scale this business, which serves over 160 million lives globally.
- Subscriber Growth in Core Mobile, Internet, and Security Services, fueled by 5G and PureFibre Network Expansion: TELUS continues to achieve robust customer additions in its core telecommunications services, including mobile, internet, and security and automation. This growth is sustained by strong demand for its bundled services and ongoing strategic investments in the expansion of its PureFibre and 5G networks, which enhance connectivity and attract high-value subscribers.
- TELUS International's Focus on AI & Data Solutions and Trust, Safety & Security Services: TELUS International (TI), a subsidiary, is strategically expanding its AI and data solutions capabilities. Additionally, its Trust, Safety & Security services segment is a significant growth area, catering to increasing demand for content moderation and security in digital platforms, particularly for clients in sectors such as gaming, e-commerce, social media, and travel technology.
AI Analysis | Feedback
Share Repurchases
- TELUS announced a share repurchase program (Normal Course Issuer Bid - NCIB) of up to C$500 million, authorized to acquire up to 28 million shares between December 17, 2025, and December 16, 2026.
- As of January 5, 2026, TELUS had already purchased 2,299,753 common shares for cancellation at an average price of $17.39 per share, as part of the C$500 million NCIB.
- Since 2004, TELUS has returned approximately $5.3 billion to shareholders through share repurchases.
Share Issuance
- TELUS operates a Dividend Reinvestment and Share Purchase Plan (DRISP) where eligible shareholders can reinvest dividends to acquire additional common shares, potentially issued from treasury at a discount.
- Effective October 1, 2019, TELUS offered shares from treasury at a 2% discount through its DRISP, and announced a phased reduction of this discount starting in early 2026, with the discount eliminated entirely by 2028.
- TELUS's total outstanding shares increased from 1.351 billion at the end of 2021 to 1.535 billion at the end of 2025.
Inbound Investments
- The Terrion partnership with La Caisse contributed to reducing TELUS's net debt by $1.26 billion.
Outbound Investments
- In 2023, the TELUS Pollinator Fund for Good made equity investments in several clean technology startups and a reforestation company, including Flash Forest, Climate Robotics, erthos, Plentify, and Dryad.
- TELUS completed the privatization of TELUS Digital by acquiring all outstanding shares not already owned by the company for approximately $539 million.
- TELUS Health has consistently made investments to support clinic expansions and business acquisitions.
Capital Expenditures
- TELUS's consolidated capital expenditures were approximately $2.6 billion in 2024 and approximately $2.5 billion in 2025 (excluding $100 million for real estate development).
- For 2026, capital expenditures are forecasted to be approximately $2.3 billion, representing a 10% decrease.
- The primary focus of these expenditures includes expanding TELUS's PureFibre and 5G+ broadband networks, investing in artificial intelligence data centers, and supporting the growth of TELUS Health's digital health offerings and clinic expansions.
Peer Outperformance in Integrated Telecommunication Services
TU has trailed 75% of its 20 Integrated Telecommunication Services peers over 5Y. Among the peers that beat it are T and VZ. Integrated Telecommunication Services ranks 3rd of 9 industries in Communication Services by median 5Y return. That makes it one of the strongest corners of the sector.
Share of Integrated Telecommunication Services constituents that TU has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
1Y
32%
of 22 industry peers · -35.6% return
3Y
30%
of 20 industry peers · -29.7% return
5Y
25%
of 20 industry peers · -43.0% return
Integrated Telecommunication Services peers with revenue growth within 4pp of TU's that beat it on at least 2 of 3 windows, and by at least 20pp over 5Y. Growth is matched by construction, so the gap is largely a re-rating gap. The multiple column is the context for it.
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| TU | TELUS | 1.2% | -16.6x | -35.6% | -29.7% | -43.0% | — |
| T | AT&T | 1.6% | 8.3x | -9.1% | 107.7% | 63.8% | +107pp |
| VZ | Verizon Communications | 1.0% | 12.9x | 21.2% | 78.8% | 24.1% | +67pp |
Price returns, excluding dividends. P/E shown for context only and not used for matching.
Median price return by industry across the Communication Services sector, ranked by 5Y. Integrated Telecommunication Services is TU's own industry. Use this to see which corners of the sector have carried the returns.
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Wireless Telecommunication Services | 3 | -3.1% | 39.5% | 40.4% | ECHO 242% · TMUS 40% · SHEN -57% |
| Publishing | 5 | 21.6% | -5.3% | 20.1% | NWSA 41% · NYT 37% · SCHL 20% |
| Integrated Telecommunication Services ← | 21 | -9.1% | 13.2% | -11.0% | IQST 1369% · AD 160% · GSAT 150% |
| Movies & Entertainment | 23 | 4.0% | 69.1% | -15.7% | IMAX 239% · MSGS 122% · BATRA 118% |
| Alternative Carriers | 4 | 49.5% | 13.7% | -38.3% | IRDM 10% · UNIT -37% · LUMN -39% |
| Advertising | 18 | -12.4% | -17.3% | -58.9% | APP 311% · EVC 51% · OMC 34% |
| Broadcasting | 14 | -2.8% | -12.9% | -69.1% | FOXA 89% · NXST 41% · WBD 0% |
| Interactive Media & Services | 30 | -22.4% | -36.5% | -71.6% | GOOGL 138% · META 65% · EVER 24% |
| Interactive Home Entertainment | 8 | -45.0% | -59.5% | -89.0% | TTWO 34% · RBLX -48% · PINS -64% |
Median of constituents with a full price history over each window. Top names are unfiltered by size in this render.
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| How Low Can TELUS Stock Really Go? | 10/17/2025 | |
| Fundamental Metrics: ... | 06/19/2024 |
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 28.30 |
| Mkt Cap | 18.6 |
| Rev LTM | 22,502 |
| Op Inc LTM | 3,891 |
| FCF LTM | 2,340 |
| FCF 3Y Avg | 2,500 |
| CFO LTM | 5,900 |
| CFO 3Y Avg | 6,059 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 1.8% |
| Rev Chg 3Y Avg | 0.7% |
| Rev Chg Q | 1.6% |
| QoQ Delta Rev Chg LTM | 0.4% |
| Op Inc Chg LTM | 1.9% |
| Op Inc Chg 3Y Avg | 1.4% |
| Op Mgn LTM | 16.3% |
| Op Mgn 3Y Avg | 16.2% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 26.1% |
| CFO/Rev 3Y Avg | 25.8% |
| FCF/Rev LTM | 10.4% |
| FCF/Rev 3Y Avg | 11.0% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| TELUS technology solutions | 15,467 | 15,648 | 17,121 | 15,632 | 14,528 |
| TELUS digital experience | 3,881 | 3,641 | 3,655 | 3,214 | 2,310 |
| TELUS health | 2,048 | 1,787 | |||
| Eliminations | -1,050 | -937 | -771 | -554 | 0 |
| Total | 20,346 | 20,139 | 20,005 | 18,292 | 16,838 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| TELUS technology solutions | 3,243 | 2,918 | 5,722 | 5,697 | 5,735 |
| Eliminations | -79 | -50 | 0 | 0 | 0 |
| TELUS health | -138 | -218 | |||
| TELUS digital experience | -663 | 154 | 709 | 709 | 555 |
| Amortization of intangible assets | -1,555 | -1,226 | -1,090 | ||
| Depreciation | -2,514 | -2,226 | -2,126 | ||
| Total | 2,363 | 2,804 | 2,362 | 2,954 | 3,074 |
| $ Mil | 1999 |
|---|---|
| Wireline | 1,654 |
| Wireless | 379 |
| Advanced Communications | 172 |
| Other | 124 |
| Total | 2,329 |
Price Behavior
Price Behavior
| Market Price | $9.67 | |
| Market Cap ($ Bil) | 15.2 | |
| First Trading Date | 06/11/1996 | |
| Distance from 52W High | -36.2% | |
| 50 Days | 200 Days | |
| DMA Price | $10.08 | $11.87 |
| DMA Trend | down | down |
| Distance from DMA | -4.1% | -18.5% |
| 3M | 1YR | |
| Volatility | 32.1% | 22.8% |
| Downside Capture | 18.55 | 22.99 |
| Upside Capture | -83.76 | -32.93 |
| Correlation (SPY) | -22.4% | -1.5% |
TU Betas & Captures as of 8/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.02 | -0.87 | -0.54 | -0.08 | -0.02 | 0.10 |
| Up Beta | -0.13 | -1.52 | -1.05 | 0.07 | -0.11 | 0.16 |
| Down Beta | 0.37 | -1.29 | -0.54 | -0.14 | 0.13 | -0.09 |
| Up Capture | 14% | -71% | -74% | -31% | -18% | 2% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 9 | 21 | 28 | 58 | 112 | 357 |
| Down Capture | -9% | -20% | 23% | 27% | 29% | 49% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 11 | 20 | 33 | 62 | 129 | 374 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with TU | |
|---|---|---|---|---|
| TU | -35.7% | 22.8% | -2.01 | - |
| Sector ETF (XLC) | -0.8% | 15.3% | -0.26 | 16.8% |
| Equity (SPY) | 19.7% | 12.8% | 1.13 | -1.0% |
| Gold (GLD) | 24.6% | 29.2% | 0.75 | 4.7% |
| Commodities (DBC) | 44.1% | 20.4% | 1.69 | -6.5% |
| Real Estate (VNQ) | 9.1% | 13.6% | 0.39 | 25.5% |
| Bitcoin (BTCUSD) | -26.9% | 43.8% | -0.59 | 4.9% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with TU | |
|---|---|---|---|---|
| TU | -10.4% | 19.8% | -0.64 | - |
| Sector ETF (XLC) | 6.8% | 20.9% | 0.24 | 28.7% |
| Equity (SPY) | 12.8% | 17.2% | 0.57 | 30.1% |
| Gold (GLD) | 19.1% | 18.8% | 0.82 | 16.9% |
| Commodities (DBC) | 10.7% | 19.5% | 0.43 | 9.6% |
| Real Estate (VNQ) | 1.7% | 18.9% | -0.01 | 45.7% |
| Bitcoin (BTCUSD) | 10.6% | 52.6% | 0.38 | 16.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with TU | |
|---|---|---|---|---|
| TU | -0.1% | 19.8% | -0.05 | - |
| Sector ETF (XLC) | 9.2% | 22.1% | 0.46 | 43.4% |
| Equity (SPY) | 15.3% | 17.9% | 0.72 | 48.8% |
| Gold (GLD) | 12.4% | 16.3% | 0.62 | 12.6% |
| Commodities (DBC) | 7.9% | 18.1% | 0.35 | 21.8% |
| Real Estate (VNQ) | 4.8% | 20.7% | 0.19 | 55.1% |
| Bitcoin (BTCUSD) | 64.0% | 66.2% | 1.04 | 17.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 6/2/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 0 |
| # Negative | 0 | 0 | 0 |
| Median Positive | |||
| Median Negative | |||
| Max Positive | |||
| Max Negative | |||
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 0 |
| # Negative | 0 | 0 | 0 |
| Median Positive | |||
| Median Negative | |||
| Max Positive | |||
| Max Negative | |||
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/31/2026 | 6-K |
| 03/31/2026 | 05/08/2026 | 6-K |
| 12/31/2025 | 02/12/2026 | 40-F |
| 09/30/2025 | 11/07/2025 | 6-K |
| 06/30/2025 | 08/01/2025 | 6-K |
| 03/31/2025 | 05/09/2025 | 6-K |
| 12/31/2024 | 02/13/2025 | 40-F |
| 09/30/2024 | 11/08/2024 | 6-K |
| 06/30/2024 | 08/02/2024 | 6-K |
| 03/31/2024 | 05/09/2024 | 6-K |
| 12/31/2023 | 02/09/2024 | 40-F |
| 09/30/2023 | 11/03/2023 | 6-K |
| 06/30/2023 | 08/04/2023 | 6-K |
| 03/31/2023 | 05/04/2023 | 6-K |
| 12/31/2022 | 02/09/2023 | 40-F |
| 09/30/2022 | 11/04/2022 | 6-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/31/2026 | 6-K |
| 03/31/2026 | 05/08/2026 | 6-K |
| 12/31/2025 | 02/12/2026 | 40-F |
| 09/30/2025 | 11/07/2025 | 6-K |
| 06/30/2025 | 08/01/2025 | 6-K |
| 03/31/2025 | 05/09/2025 | 6-K |
| 12/31/2024 | 02/13/2025 | 40-F |
| 09/30/2024 | 11/08/2024 | 6-K |
| 06/30/2024 | 08/02/2024 | 6-K |
| 03/31/2024 | 05/09/2024 | 6-K |
| 12/31/2023 | 02/09/2024 | 40-F |
| 09/30/2023 | 11/03/2023 | 6-K |
| 06/30/2023 | 08/04/2023 | 6-K |
| 03/31/2023 | 05/04/2023 | 6-K |
| 12/31/2022 | 02/09/2023 | 40-F |
| 09/30/2022 | 11/04/2022 | 6-K |
| 06/30/2022 | 08/05/2022 | 6-K |
| 03/31/2022 | 05/06/2022 | 6-K |
| 12/31/2021 | 02/10/2022 | 40-F |
| 09/30/2021 | 11/05/2021 | 6-K |
| 06/30/2021 | 07/30/2021 | 6-K |
| 03/31/2021 | 05/07/2021 | 6-K |
| 12/31/2020 | 02/11/2021 | 40-F |
| 09/30/2020 | 11/06/2020 | 6-K |
| 06/30/2020 | 07/31/2020 | 6-K |
| 03/31/2020 | 05/07/2020 | 6-K |
| 12/31/2019 | 02/13/2020 | 40-F |
| 09/30/2019 | 11/07/2019 | 6-K |
Investor Activity (13F)
Updated Sep 5, 202613F holdings as of Mar 31, 2026 (Q1 2026)
Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager |
|---|
Industry Resources
| Communication Services Resources |
| Variety |
| The Hollywood Reporter |
| Adweek |
| Integrated Telecommunication Services Resources |
| Fierce Telecom |
| Telecoms.com |
| Light Reading |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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