TELUS stock faces a 55 percent dividend cut after Q2 loss

Published on 10/07/2026 at 06:05 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

TELUS stock traded at CAD 11.19 on October 6, 2026, down 0.53 percent. Q2 service revenue fell 1 percent to CAD 4.4 billion as adjusted EBITDA declined 2 percent.

TELUS, CA87971M1032, Illustration mit AI erstellt.

TELUS stock (ISIN CA87971M1032) was last at CAD 11.19 on the TSX on October 6, 2026, down 0.53 percent. The telecom company reported a CAD 1.8 billion Q2 loss and cut its quarterly dividend by 55 percent, according to The Globe and Mail.

Q2 loss changes the balance

TELUS reported Q2 service revenue of CAD 4.4 billion, down 1 percent year over year, while adjusted EBITDA declined 2 percent to CAD 1.8 billion. A CAD 2.1 billion non-cash impairment tied to TELUS Digital drove the CAD 1.8 billion net loss, making the quarter a balance-sheet story as much as an operating update.

Operating signals were mixed. Mobile network revenue increased 1 percent to CAD 1.7 billion, while TELUS added 17,000 mobile phone subscribers, 20,000 internet subscribers and 187,000 connected devices in Q2, according to The Globe and Mail.

Dividend cash goes to debt

The new quarterly dividend is CAD 0.1875 per share, or CAD 0.75 annualized, compared with the previous payout. TELUS also reduced its free cash flow payout target to 45 to 60 percent and expects the changes to generate CAD 2.7 billion in cumulative cash savings through 2028 for debt reduction, per The Globe and Mail.

Management guides for consolidated service revenue ranging from flat to a 2 percent decline in 2026, adjusted EBITDA down 2 to 4 percent and full-year free cash flow of CAD 1.8 billion. The company targets leverage of 3.0x or lower by year-end 2028, extending the deleveraging timetable.

Credit pressure remains visible

S&P Global Ratings revised TELUS to a stable outlook from positive on September 21, 2026, while affirming the BBB- issuer rating. S&P expects leverage near 4.0x in 2026 and 3.8x in 2027, which leaves debt reduction as the central test for the new capital policy.

MarketScreener lists a Hold consensus from 18 analysts and an average price target of CAD 14.31. Relative to the CAD 11.19 TSX price, that target lies 27.9 percent above the price, although the consensus does not remove the near-term leverage risk.

TSX price stays near yearly low

TELUS stock was last at CAD 11.19 on the TSX on October 6, 2026 at 4:00 p.m. ET, compared with a 52-week range of CAD 11.06 to CAD 21.74. The market capitalization was CAD 17.5 billion on the same date.