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TELUS Corporation reported first-quarter 2026 results, highlighting industry-leading growth in its mobile and fixed customer base, continued mobile network revenue momentum, and stable profitability amid a dynamic operating environment. The company also outlined progress on balance sheet deleveraging and reiterated its 2026 financial targets.
First-quarter 2026 total mobile and fixed customer growth reached 262,000, supported by sustained demand for TELUS’ premium bundled services nationwide. TELUS reported 12,000 net additions from mobile phone subscribers and 229,000 net additions from connected devices, alongside 21,000 internet customer net additions.
Consolidated operating revenues and other income were $5.0 billion, compared with $5.1 billion in the prior year. The company said higher consolidated service revenue growth of 1% was offset by lower mobile equipment revenue and other income.
Consolidated service revenue growth of 1% was driven by growth in TELUS Health service revenues (including business acquisitions and growth in payor and provider solutions), subscriber base growth across mobile, residential internet, security and automation, and TV, and higher residential internet revenue per customer. These factors were partially offset by mobile phone ARPU declining at a decelerating rate, lower external revenues in TELUS Digital due to the Canadian dollar strengthening versus the U.S. dollar, lower B2B data services revenue, lower agriculture and consumer goods services revenue tied to planned divestitures of non-core assets, and declines in fixed legacy voice revenue due to technological substitution.
TELUS reported stable consolidated adjusted EBITDA of $1.8 billion. Consolidated adjusted EBITDA was flat year over year, reflecting varied results across reportable segments.
Cash from operations was $1.05 billion, while free cash flow increased 19% to $583 million.
Consolidated capital expenditures were $651 million, up $64 million (11%) in the quarter. TELUS said capital expenditures supporting TTech operations were $564 million, up $57 million, primarily from greater investment in developing new facilities to meet industry demand. Capital expenditures in support of TTech real estate development were $16 million, up $8 million, including multi-year development projects such as TELUS Ocean and TELUS Living in B.C. TELUS Health capital expenditures were $53 million, up $9 million, driven by clinic expansions and business acquisitions. TELUS Digital capital expenditures were $37 million, down $4 million, mainly due to lower real estate expenditures in Europe and Asia-Pacific.
As of March 31, 2026, TELUS said its 5G network covered 33.4 million Canadians, representing over 90% of the population.
The company also reported commercial progress for its Sovereign AI Factories. TELUS said its Rimouski, Quebec facility is sold out, and a second facility in Kamloops, British Columbia is scheduled to come online shortly to serve demand from Canadian businesses, researchers, and government organizations seeking sovereign AI capabilities.
Compared with the same period a year ago, net income was $144 million, down 52%, and basic earnings per share (EPS) was $0.09, down 57%. TELUS attributed the declines primarily to net after-tax impacts of lower operating income and lower financing costs.
On an adjusted basis, adjusted net income was $356 million, down 8%, and adjusted basic EPS was $0.23, down 12%.
Consolidated EBITDA decreased 13% to $1.5 billion, with TELUS citing higher restructuring and other costs as contributing factors. Adjusted EBITDA was flat at $1.8 billion.
TTech subscriber connections totaled 17.7 million, up 6% year over year. TELUS reported mobile phone subscriber growth of 2% to 10.3 million, connected device subscriber growth of 19% to 4.6 million, and internet subscriber growth of 3% to 2.8 million.
In TELUS Health, healthcare lives covered were 169.6 million as of the end of the first quarter of 2026, up 93.1 million over the past 12 months. TELUS said the increase primarily reflected the addition of 79.3 million lives covered from the May 2025 Workplace Options acquisition and a prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly. Organically, TELUS said growth was driven by robust demand for employee and family assistance programs (EFAP) across operating regions and ongoing demand for virtual solutions.
TELUS said it is advancing its balance sheet deleveraging strategy, including strategic partnership opportunities for TELUS Health. The company is progressing toward a net debt to EBITDA leverage target of 3.3 times or lower by year-end 2026 and 3.0 times or better by year-end 2027.
For 2026, TELUS reaffirmed its key targets: consolidated service revenues of 2% to 4% growth; consolidated adjusted EBITDA growth of 2% to 4%; consolidated free cash flow of approximately $2.45 billion (about 10% growth); and consolidated capital expenditures of approximately $2.3 billion (about 10% decrease).
TELUS CEO Darren Entwistle said the company delivered industry-leading customer growth and stable financial performance, citing sustained demand for bundled offerings and improvements in mobile ARPU. He also highlighted TELUS’ Sovereign AI Factories momentum, including the Rimouski facility selling out and the expansion of compute inventory to meet demand.
TELUS CFO Doug French said the quarter reflected disciplined execution and cost management, with consolidated service revenue up 1% and adjusted EBITDA stable year over year. He also noted free cash flow growth to $583 million and reiterated the company’s focus on free cash flow generation, capex moderation, and efficiency and synergy realization.
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