JULY 31, 2026
TELUS reports second quarter 2026 financial and operational results and resets quarterly dividend to support deleveraging and fuel long-term growth
Dividend reset realigned with capital priorities with clear path to 3.0-times or lower leverage by year-end 2028
Dividend reinvestment plan discount to be removed effective October 1, 2026, reducing shareholder dilution
Vancouver, B.C. – TELUS Corporation (TSX: T, NYSE: TU) today released its unaudited results for the second quarter ended June 30, 2026. Concurrent with its quarterly results, TELUS is announcing three near-term strategic priorities, a reset of its quarterly dividend, planned removal of the dividend reinvestment plan (DRIP) discount and revised full-year financial guidance that reflects the company's financial priorities and its commitment to long-term value creation and balance sheet strength. An overview of TELUS’ second quarter 2026 results is discussed below.
Highlights
- Introduced three near-term strategic financial and operational priorities to guide TELUS’ performance and capital allocation going forward including: Strengthen the financial foundation; Hone operational discipline and reinvest in the core business; and Deploy resources to drive profitable, sustainable growth and returns. See “Strategic Financial and Operational Priorities” below for further details.
- Delivered mobile phone and internet net additions of 17,000 and 20,000, respectively, reflect a disciplined strategy prioritizing value-accretive customer growth; connected device net additions of 187,000.
- Mobile network revenue of $1.7 billion is up 1 per cent year-over-year, supported by subscriber base growth and ARPU of $56.36, declining at a decelerating rate of 0.4 per cent through a focus on premium brand customer loading. Achieved blended mobile phone churn of 1.08 per cent, up from 1.06 per cent in the same period last year.
- Net income loss of $1.8 billion due to a pre-tax, non-cash intangible asset and goodwill impairment of $2.1 billion in the second quarter, reflecting a reduction in the recoverable amount of the TELUS Digital cash-generating unit. See “Second Quarter Financial Results Overview” below for further details.
- Consolidated service revenue of $4.4 billion declined 1 per cent reflecting lower TELUS Digital growth, partially offset by continued mobile network revenue growth and higher TELUS Health revenues. Adjusted EBITDA of $1.8 billion declined 2 per cent, which reflects varied results across our reportable segments and lower real estate gains. See “Second Quarter Financial Results Overview” below for further details.
- Capital expenditures of $678 million were recorded in the second quarter; full-year capital expenditures have been updated to approximately $2.6 billion, reflecting inflation and supply chain dynamics impacting customer premise equipment, strategic investment directed towards our sovereign AI data centres, including network infrastructure upgrades and site enablement, and additional investments directed towards customer base management; TELUS remains committed to its 10 per cent capital intensity target.
- Cash provided by operating activities of $1.3 billion increased 15 per cent and free cash flow of $545 million is higher by 2 per cent, driven by decreased net income taxes paid and lower lease payments, partially offset by increased interest paid and lower Adjusted EBITDA.
- TELUS’ Board of Directors declared a quarterly dividend of $0.1875 per common share, representing a reset of 55 per cent to an annualized amount of $0.75 per share, which is expected to generate approximately $2.7 billion in cumulative cash savings through 2028 directed toward debt reduction; the DRIP discount will be removed effective October 1, 2026.
- Net debt to Adjusted EBITDA of 3.5-times at quarter-end; TELUS is targeting approximately 3.0-times or lower by year-end 2028, supported by organic free cash flow growth, the dividend reset, disciplined capital expenditures and proceeds from asset monetization processes currently underway.
- Full-year consolidated service revenue guidance revised to a range of flat to negative 2 per cent; consolidated Adjusted EBITDA is now expected to be in a range of negative 2 to negative 4 per cent; and full-year free cash flow is anticipated to be approximately $1.8 billion. See “2026 Financial Outlook” below for further details.
"TELUS is built on a foundation of genuine strength – leading networks, sustained customer loyalty and growing expertise in health and AI-enabling capabilities that are increasingly central to how Canadians live and work. The macro environment has shifted and we are responding with clarity and discipline. Today we are announcing three strategic priorities that will strengthen our financial foundation, sharpen our operational focus and concentrate our resources on the opportunities where TELUS is best positioned to win – all in service of delivering long-term, profitable and sustainable growth," said Victor Dodig, President and Chief Executive Officer.
"I am proud to be working alongside our experienced and capable leadership team and our 100,000 passionate and professional team members across TELUS to execute on these strategic priorities, delivering improved experiences for our customers and opening opportunities for our people, and creating value for our shareholders. Our focus is on disciplined execution and ensuring maximum returns on every dollar of capital we deploy. Everything I have seen since stepping into this role has only deepened my conviction – in this team and the admirable culture they have built, as well as the bright future ahead for TELUS," said Mr. Dodig.
"The actions we are taking establish the financial conditions for strong, profitable growth and durable, compounding free cash flow growth," said Gopi Chande, Chief Financial Officer. "In combination, the dividend reset, termination of the DRIP discount and proceeds from our monetization initiatives provide a path to achieve our leverage and free cash flow objectives. Our commitment to reducing capital intensity, combined with a disciplined focus on operational efficiency across the business, reinforce that path further. The strategic changes we are making to how this company generates and deploys cash will compound to create lasting value for our shareholders."
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