Canada's Telus Q3 service revenue falls on digital weakness
TU•TU•TU•TU•Telus said third-quarter service revenue fell 1% year over year as its digital segment weakened. Adjusted EPS dropped 33%, and the company reaffirmed 2026 guidance while targeting about C$900 million in annualized cash savings exiting 2028.
Telus reported third-quarter adjusted EBITDA of C$1.76 billion, adjusted net income of C$251 million and a net loss of C$660 million. Free cash flow was C$396 million.
Lower client service volumes from two hyperscale clients and ramp-downs in trust and safety and AI/data solutions reduced TELUS Digital revenue and EBITDA. Telus also recognized a non-cash C$800 million goodwill impairment for TELUS Health, citing updated growth expectations and market conditions amid an active divestiture process.
Telus reaffirmed its 2026 guidance, including capital expenditures of about C$2.6 billion and free cash flow of about C$1.8 billion. Its efficiency program targets about C$900 million in annualized cash savings exiting 2028.
