TELUS Posts Strong 2025 Results and Sets Aggressive 2026 Growth and Deleveraging Targets
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Telus ( (TSE:T) ) has provided an announcement.
On February 12, 2026, TELUS reported unaudited fourth-quarter and full-year 2025 results showing industry-leading customer growth of 377,000 net additions in the quarter and more than 1.08 million for the year, supported by strong uptake of mobile, connected devices and internet services on its PureFibre and 5G+ networks. Consolidated operating revenues and other income for the quarter were $5.3 billion, with 1% service revenue growth offset by weaker mobile equipment sales and divested non-core assets, while full-year basic EPS rose 9%, net income attributable to common shares increased 12%, and cash from operations held steady at $4.9 billion.
TELUS highlighted solid performance from its TTech segment, including health, with 2025 Adjusted EBITDA up 3.1% and overall TTech EBITDA growth of 4% alongside 230 basis points of margin expansion, helping lift free cash flow to a record $2.2 billion, 11% above the prior year and ahead of guidance. TELUS Health delivered double‑digit revenue and EBITDA growth and realized $431 million in annualized LifeWorks synergies, while expanding coverage to more than 161 million lives and pursuing strategic partnerships, including a joint initiative with Abu Dhabi‑based M42’s health data arm and an ongoing process to attract new health partners.
Management underscored the strategic impact of privatizing TELUS Digital, which is accelerating AI and data capabilities across the group and generating about $800 million in 2025 revenue, with a target of roughly $2 billion by 2028 and expected annual cash synergies of $150 million to $200 million from integration. The company is executing a balance sheet deleveraging plan, ending 2025 with net debt to Adjusted EBITDA of 3.4 times and aiming to reduce this to 3.3 times or lower by end‑2026 and around 3.0 times by end‑2027, supported by moderating capital intensity and disciplined capital allocation.
For 2026, TELUS set what it characterizes as industry‑leading financial targets, guiding for 2% to 4% growth in consolidated service revenues and Adjusted EBITDA, approximately $2.3 billion in capital expenditures—about 10% lower than 2025—and around $2.45 billion in free cash flow, implying further 10% growth. Executives framed these goals as underpinned by profitable revenue expansion, cost efficiency initiatives and customer experience leadership, positioning the company for sustainable value creation while reinforcing its community‑oriented brand, which marked its 25th anniversary in 2025 alongside extensive volunteer and philanthropic activity.
The most recent analyst rating on (TSE:T) stock is a Hold with a C$14.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.
Spark’s Take on TSE:T Stock
According to Spark, TipRanks’ AI Analyst, TSE:T is a Neutral.
Telus’ overall stock score is driven by stable financial performance and a strong earnings call, highlighting growth in customer base and AI initiatives. However, technical indicators suggest bearish momentum, and high leverage poses financial risks. The attractive dividend yield and strategic corporate events provide positive support.
To see Spark’s full report on TSE:T stock, click here.
More about Telus
TELUS Corporation is a Canadian telecommunications and technology company providing mobile, internet, fibre broadband, security and automation, and digital services, alongside a growing global health technology business. The company focuses on bundled connectivity offerings, AI-enabled digital platforms and workforce health solutions, leveraging its PureFibre and 5G+ networks to drive subscriber growth and customer loyalty in Canada and select international markets.
Average Trading Volume: 8,178,448
Technical Sentiment Signal: Sell
Current Market Cap: C$30.12B
See more insights into T stock on TipRanks’ Stock Analysis page.
