TELUS reports 262,000 customer additions in first quarter
Free cash flow grew 19% to $583 million as the company advanced a balance sheet deleveraging strategy.
TELUS Corporation (TU), a communications technology company, reported total mobile and fixed customer growth of 262,000 for the first quarter of 2026. This growth included 229,000 connected device net additions, 21,000 internet customer net additions and 12,000 mobile phone net additions.
Consolidated operating revenues and other income was $5.0 billion, compared to $5.1 billion in the prior year. Consolidated service revenue grew 1% during the period, while Consolidated Adjusted EBITDA remained stable at $1.8 billion. The company said service revenue growth was driven by higher residential internet revenue per customer, subscriber base growth across TV, security and automation, residential internet and mobile, and growth in TELUS Health service revenues.
These gains were partially offset by lower business-to-business data services revenue and declines in fixed legacy voice revenue due to technological substitution. The company also reported lower external revenues in TELUS Digital because of a stronger Canadian dollar against the U.S. dollar and lower revenues in agriculture and consumer goods services following the planned divestiture of non-core assets. Mobile phone average revenue per user (ARPU) declined, though the company said this decline occurred at a decelerating rate.
TELUS Health reported service revenue and Adjusted EBITDA growth of 11%. The company said the segment now covers approximately 170 million lives globally.
Cash from operations was $1.05 billion. The company is pursuing a deleveraging strategy that includes strategic partnership opportunities for TELUS Health. TELUS is progressing toward a net debt to EBITDA leverage target of 3.3-times or lower by the end of 2026 and 3.0-times or better by the end of 2027.
In its AI operations, the company said its Sovereign AI Factory in Rimouski, Quebec, is now sold out, and a second facility is launching in Kamloops, British Columbia.
TELUS reaffirmed its 2026 financial targets, which include Consolidated Service revenues growth of 2% to 4% and Consolidated Adjusted EBITDA growth of 2% to 4%. The company expects Consolidated Free Cash Flow of approximately $2.45 billion, representing 10% growth, and Consolidated Capital Expenditures of approximately $2.3 billion, a 10% decrease.