TELUS Net Income Drops to 144 Million in First Quarter
The telecommunications provider reported a net income of 144 million for the three months ended March 31, 2026, compared to 301 million in the prior-year period
TELUS Corporation (TU), a Canadian telecommunications company providing technology solutions across mobile, healthcare, and digital experience sectors, reported a decline in profitability for the first quarter ended March 31, 2026. Net income fell to 144 million from 301 million in the same period in 2025. Net income per common share, both basic and diluted, dropped to 0.09 a share from 0.21 a share.
Operating income decreased 29% to 534 million from 752 million in the prior-year quarter. The company said this result was driven by a 222 million decrease in EBITDA, which was impacted by restructuring and other costs that were 218 million higher in the first quarter of 2026. These costs related to cost efficiency and effectiveness programs and the privatization of TELUS Digital.
Operating revenues and other income declined 1% to 5,013 million from 5,057 million. Service revenues rose 1% to 4,484 million, aided by subscriber growth across mobile, residential internet, security, automation, and TV, as well as growth in TELUS Health service revenues. These gains were offset by a decelerating decline in mobile phone average revenue per subscriber per month (ARPU), lower business-to-business data services revenue, and the strengthening of the Canadian dollar against the U.S. dollar affecting TELUS Digital. Equipment revenues fell 12% to 505 million due to lower contracted volumes and lower fixed premises equipment sales.
Consolidated operating expenses rose 4% to 4,479 million from 4,305 million. The company attributed the 174 million increase primarily to a 12% rise in employee benefits expense, which reached 1,635 million. Depreciation decreased 2% to 583 million, while amortization of intangible assets rose 1% to 405 million.
Cash provided by operating activities decreased to 1,050 million from 1,077 million in the prior-year quarter. Cash used by investing activities rose to 1,144 million from 602 million. Cash used by financing activities increased to 1,225 million from 330 million. The company's cash and temporary investments, net, ended the period at 1,302 million, down from 2,621 million on December 31, 2025.
Long-term debt decreased to 26,039 million from 27,437 million as of March 31, 2026. The company reported that it replaced 732 million of lease principal through discretionary repayment.
For the 12-month period ended March 31, 2026, the ratio of common share dividends declared to cash provided by operating activities less capital expenditures was 117%, compared to 96% in the prior year. The company's objective range for the annual common share dividend payout ratio is 60% to 75% of free cash flow on a prospective basis.