TELUS Corporation

Q2 2026 consolidated service revenue was $4.4 billion, down 1% year over year, and adjusted EBITDA was $1.8 billion, down 2%. Adjusted EPS was $0.16 versus $0.22 a year ago, free cash flow was $545 million, up 2%, and cash from operations increased 15%. TTech service revenue of $3.3 billion and adjusted EBITDA of $1.6 billion were both roughly flat; mobile network revenue was $1.7 billion, up 1%; TELUS Health service revenue was $533 million, up 4%; and Agriculture & Consumer Goods revenue was $90 million, up 6%. TELUS Digital recorded a pretax noncash carrying value impairment of $2.1 billion. For 2026, consolidated service revenue is expected to be flat to down 2%, consolidated adjusted EBITDA down 2% to down 4%, and free cash flow about $1.8 billion; CapEx is now expected to be approximately $2.6 billion, up from about $2.3 billion previously. Net debt to adjusted EBITDA was 3.5x at June 30, down from 3.7x a year ago, and available liquidity was $2.7 billion.

Victor Dodig framed the quarter as the start of a transformation focused on simplifying TELUS, tightening accountability, and reallocating capital toward core telecom and digital infrastructure. He said the company has strong assets in PureFibre, 5G, customer service, and AI-enabled infrastructure, but also faces macro headwinds, lower immigration-driven demand, and too much complexity. His tone was urgent but confident, emphasizing that TELUS will move with “clarity” and “speed” and that the current actions are meant to restore financial strength and long-term value.

Gopi Chande said Q2 results were hurt by weaker TELUS Digital performance and lower real estate gains, partially offset by steady telecom execution and stronger mobility trends. She highlighted the $2.1 billion TELUS Digital impairment, the 3.5x leverage ratio, $2.7 billion of liquidity, and the dividend reset’s expected $2.7 billion of cash savings through 2028. She also detailed the revised 2026 outlook, including free cash flow of about $1.8 billion, CapEx of about $2.6 billion, and the shift to a 45% to 60% free-cash-flow payout ratio.

Analysts focused on the big 2026 guidance cut, the TELUS Digital impairment and outlook, the asset portfolio review, and the new CapEx plan. Management said about 5 points of the EBITDA guidance change versus the prior outlook breaks down roughly into TELUS Digital, Health, paused real estate JVs, and telecom, and that telecom is stable in the second half versus the first half. On monetization, Victor said there is no rush, but the company is actively working on some assets, including Health, real estate, and Ventures, to help reach 3x leverage or lower by end-2028. On AI data centers, he said TELUS wants to provide more transparency later, but only once the roadmap and economics are clearer.