TELUS reports operational and financial results for first quarter 2026

Press Release

MAY 8, 2026

Industry-leading first quarter total Mobile and Fixed customer growth of 262,000 driven by sustained demand for our premium bundled services nationally

Delivered continued positive mobile network revenue growth of 1 per cent reflecting ongoing ARPU improvement

Consolidated Service revenue growth of 1 per cent and stable Consolidated Adjusted EBITDA of $1.8 billion, reflecting the resiliency of our business within a dynamic operating environment

Cash from Operations of $1.05 billion, alongside Free Cash Flow growth of 19 per cent to $583 million

Commercial success of TELUS’ Sovereign AI Factories, with Rimouski, Quebec, now sold out; second facility launching in Kamloops, British Columbia

Advancing comprehensive balance sheet deleveraging strategy, including strategic partnership opportunities for TELUS Health; progressing toward our net debt to EBITDA leverage target of 3.3-times or lower by year-end 2026 and 3.0-times or better by year-end 2027

Reaffirming key 2026 financial targets: Consolidated Service revenues of 2 to 4 per cent, Consolidated Adjusted EBITDA growth of 2 to 4 per cent; Consolidated Free Cash Flow of approximately $2.45 billion or 10 per cent growth; Consolidated Capital Expenditures of approximately $2.3 billion or 10 per cent decrease

Vancouver, B.C. – TELUS Corporation today released its unaudited results for the first quarter of 2026. Effective January 1, 2026, we are retrospectively restating our segmented reporting information to reflect our new reporting structure following the October 2025 privatization of TELUS Digital and the associated post-privatization operational realignment. Please refer to Section 1.1 in our first quarter 2026 MD&A for additional details.

Consolidated operating revenues and other income was $5.0 billion, compared with $5.1 billion in the prior year, as higher Consolidated service revenue growth of 1 per cent was offset by lower Mobile equipment revenue and Other income. Consolidated service revenue growth was driven by: (i) growth in TELUS Health service revenues, reflecting business acquisitions and growth in payor and provider solutions; (ii) subscriber base growth across mobile, residential internet, security and automation and TV; and (iii) higher residential internet revenue per customer. These factors were partially offset by: (i) mobile phone ARPU declining at a decelerating rate; (ii) lower external revenues in TELUS Digital attributable to the strengthening of the Canadian dollar against the U.S. dollar compared to the same period in the prior year; (iii) lower business-to-business (B2B) data services revenue; (iv) lower agriculture and consumer goods services revenues as a result of the planned divestiture of non-core assets; and (v) declines in fixed legacy voice revenue as a result of technological substitution. See ‘first quarter 2026 Operating Highlights’ within this news release for a discussion on TELUS’ reportable segment results for TTech, TELUS Health and TELUS Digital.

“In the first quarter of 2026, our team’s unwavering commitment to operational excellence and cost efficiency has once again empowered TELUS to deliver industry-leading customer growth and stable financial performance,” said Darren Entwistle, President and CEO. “These results were achieved within a dynamic operating environment, reflecting our disciplined approach to respond tactically while preserving our premium TELUS brand value. This disciplined approach reflects the enduring resiliency of our business and the compelling strength of our leading portfolio of services. Our mobile and fixed customer growth underscores the sustained demand for TELUS’ premium bundled offerings and our world-leading broadband networks. Notably, we achieved total mobile and fixed customer growth of 262,000 driven by 12,000 mobile phone and 229,000 connected device net additions, alongside 21,000 internet customer net additions. This performance reinforces the strength of our integrated Mobile and Home offerings, powered by our leading PureFibre and 5G+ wireless broadband networks. Indeed, our ranking as Canada’s most awarded wireless network ever by Opensignal—sweeping ten top honours in their February 2026 report, including 5G Gaming Experience and Time on 5G—reflects our team’s global leadership in quality engineering excellence and unwavering commitment to superior coverage and speed. The dedication and passion of our team in delivering customer service excellence continues to drive industry-leading customer loyalty and retention—a testament to the strength of our customer relationships and the value of our bundled solutions.”

“TELUS Health delivered another quarter of strong growth, achieving service revenue and Adjusted EBITDA growth of 11 per cent, fueled by strategic investments, continuous product innovation and disciplined execution across our global platforms. We now cover approximately 170 million lives globally, further solidifying our position as the world leader in workforce digital health and well-being solutions.

TELUS Health is capturing meaningful industry, technology and societal tailwinds that position it for sustained growth. Our financial advisors continue to support our comprehensive review of strategic partnership opportunities for TELUS Health. Proceeds from any monetization will be deployed toward deleveraging, supporting our path to improved financial flexibility and balance sheet strength.”

“Through TELUS Digital, we are accelerating our enterprise-wide AI and data capabilities, enabling the strategic cross-promotion of our industry-leading AI product set throughout our entire business portfolio, while enhancing TELUS Digital’s capacity to capture growth opportunities across its external client base. Our AI-enabling capabilities delivered strong double-digit growth of 22 per cent in the first quarter, demonstrating the compelling momentum of our AI-driven strategy as we progress toward our target of circa $2 billion in 2028 across TELUS Digital and TELUS Business Solutions, including contributions from our Sovereign AI Factories. Notably, our Sovereign AI Factory in Rimouski, Canada’s first fully sovereign AI factory, sold out within months of launching, validating strong market demand for sovereign AI infrastructure. Accordingly, we are expanding our compute inventory in Rimouski to meet continued demand, while our second facility in Kamloops, British Columbia, will be coming online shortly to serve the growing ecosystem of Canadian businesses, researchers, and government organizations seeking sovereign AI capabilities. These super-secure facilities provide access to accelerated computing capabilities, enabling customers to innovate rapidly and develop smarter AI solutions. The strategic expansion of our AI capabilities is supported by the integration of TELUS Digital, which continues to unlock meaningful operational efficiencies, with annual cash synergies of approximately $150 million to $200 million tracking against plan, realizing annualized free cash flow synergies of approximately $115 million as at the end of the first quarter of 2026.”

“Our strong financial and operational performance are underpinned by our world-leading broadband networks, data-centric growth assets and customer experience leadership. This positions us to execute on our strategic priorities in 2026 including amplifying profitable revenue growth, moderating capital expenditures to approximately $2.3 billion and generating strong free cash flow of approximately $2.45 billion. This will be complemented by an ongoing emphasis on cost efficiency, through digitization and further integration of AI across all operations, and an unwavering commitment to customer service excellence — positioning TELUS to deliver sustainable, value-accretive growth for years to come.”
Darren added: “Reflecting on our team’s long-standing belief in the synergistic relationship between doing well in business and doing good in the global communities where our team members live, work and serve. Since 2000, TELUS has contributed $1.85 billion, including 2.5 million days of volunteerism – more than any other company in the world – supported by annual TELUS Days of Giving events in 35 countries. For 20 years, our annual Days of Giving events have been a powerful and authentic demonstration of our team’s unparalleled legacy of giving in action.”

Doug French, Executive Vice-president and CFO said, “Our first quarter 2026 results are a testament to our team’s continued focus on discipline and operational execution, with rigorous cost management. Consolidated service revenue increased by 1 per cent while Adjusted EBITDA remained stable on a year over year basis. Growth was driven by TELUS Health’s strong performance, while TTech and TELUS Digital delivered stable results, demonstrating the resilience of our diversified business portfolio in a dynamic operating environment. Stable cash from operations of $1,050 million and strong Free Cash Flow growth of 19 per cent to $583 million, underscores our solid financial foundation, as we deliver on the objectives and targets we have established with our investors.”

“During the competitive first quarter, we responded to wireless promotional discounting with a measured approach focused on preserving our premium TELUS brand. This consistent strategy is evident in our financial results — delivering positive network revenue growth of 1 per cent while ARPU demonstrated continued sequential improvement, reinforcing the effectiveness of our go-to-market strategy. As we progress through the year, our team will continue to execute with precision, maintaining a strategy that differentiates us from competitors and protects long-term wireless industry health.”
“As we move through 2026, we are well-positioned to drive strong, sustainable growth. Our leading asset mix, diversified business portfolio and proven operational excellence underpin our confidence in driving sustainable long-term value for all stakeholders. Our focus remains on strong Free Cash Flow generation, supported by EBITDA growth, capex intensity moderation and ongoing efficiency and synergy realization. As part of our disciplined capital allocation strategy, we continue to maintain our dividend at the current level while we have systematically started to reduce the discount on our dividend reinvestment plan. Starting in the first quarter of 2026, we reduced the discount to 1.75 per cent. Our three-year Free Cash Flow growth target of minimum 10 per cent compounded annual growth through 2028, combined with the proceeds from the potential monetization of TELUS Health, will support our capital allocation plan and deleveraging targets of 3.3-times or lower by year-end 2026 and 3.0-times or better by the end of 2027,” concluded Doug.

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For more information, please contact:

TELUS Investor Relations

Ian McMillan
TELUS Investor Relations

ir@telus.com

TELUS Media Relations

Steve Beisswanger
Media Relations

Steve.Beisswanger@telus.com

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