TELUS Corporation (TU) AI Stock Analysis

TELUS Corporation is a Canadian telecommunications and information technology company operating through two primary segments: Technology Solutions and Digitally-Led Customer Experiences. The Technology Solutions segment provides mobile technologies, network services, internet protocol data services, television, managed IT, and cloud-based offerings, alongside specialized software for healthcare, security, and smart food chains. The Digitally-Led Customer Experiences segment focuses on digital customer experience solutions and digital-enablement transformations, including artificial intelligence solutions and content management. Established in 1998, the Vancouver-based company serves businesses and consumers using its extensive network infrastructure.

TELUS achieved a 5-year revenue CAGR of 5.8% from FY2020 to FY2025, with revenue climbing from $16.84B in FY2021 to $20.35B in FY2025. Gross margin increased to 62.1% in FY2025, while operating margin was 11.6% and net income stood at $1.11B. However, recent performance has weakened. Over the trailing twelve months, revenue was $20.21B with a profit margin of -4.5% and diluted EPS of -$0.43. In the latest quarter ended June 30, 2026, quarterly revenue fell 2.2% year-over-year and quarterly earnings declined 58.5%.

As of June 30, 2026, TELUS held $1.39B in cash and short-term investments against $31.46B in total debt, resulting in net debt of $30.07B and a debt-to-equity ratio of 2.37. Its current ratio stands at 0.67 with total assets of $56.81B and shareholders' equity of $13.28B. In FY2025, the company generated $4.87B in operating cash flow and $2.35B in free cash flow, while deploying $2.52B toward capital expenditures, $1.63B toward dividends, and $40.0M toward share buybacks.

TELUS closed at $8.44 on October 16, 2026, declining 39.1% over the past year compared to a 16.8% return for the S&P 500 (SPY). Over five years, the stock fell 48.5% while SPY gained 83.0%. The company trades at a forward P/E of 15.7x, which sits above the 14.1x median of its US-listed Communication Services peers. Its price-to-sales ratio is 0.7x compared to the peer group median of 0.8x, and its EV/EBITDA of 10.0x matches the peer median of 10.0x.

TELUS pays a quarterly dividend with an annual forward payout of $0.53 per share, representing a dividend yield of 6.24%. The company has paid dividends for 28 consecutive years and has delivered a 5-year annualized dividend growth rate of 5.8%. Its payout ratio is listed at 1.7%, with its last ex-dividend date occurring on September 10, 2026.

Wall Street coverage on TELUS consists of 2 Strong Buy, 1 Buy, 11 Hold, 2 Sell, and 2 Strong Sell recommendations. The consensus mean price target is $10.00, representing an 18.5% upside over the last closing price of $8.44. For the fiscal year ending December 31, 2026, analysts estimate EPS of $0.50 and revenue of $20.08B. TELUS recorded 0 EPS beats over its last 4 quarters, and its next earnings release is scheduled for November 6, 2026.

This page is an AI-written research summary of TELUS Corporation (TU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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