Telus Targets $2B AI Revenue by 2028 with Q4 AI Growth of 44%
Telus plans to increase AI-enabling capabilities revenue from $800 million in 2025 to $2 billion by 2028 after Q4 AI revenue jumped 44% to $229 million. The company generated $2.2 billion in free cash flow, up 11%, and is exploring monetization of its 161.2 million-life Telus Health segment.
1. AI Revenue Ambitions
Telus aims to grow AI-enabling capabilities revenue from $800 million in 2025 to approximately $2 billion by 2028, building on Q4 AI revenue of $229 million, a 44% year-over-year increase.
2. Sovereign AI Infrastructure
The company converted legacy data centers in Rimouski and Kamloops into sovereign AI factories with minimal capital investment and secured an NVIDIA partnership for advantaged access to AI chips and pricing.
3. Telus Health Monetization Plans
Telus Health revenue rose 13% in Q4 with 161.2 million lives covered globally, and LifeWorks integration delivered $431 million in annualized synergies, as the unit is now being positioned for a strategic partnership.
4. Financial Performance and Guidance
Q4 revenue reached $5.261 billion, free cash flow climbed 11% to $2.2 billion, adjusted EBITDA margin expanded to 40.9%, and 2026 guidance calls for $2.45 billion free cash flow with reduced capex, targeting leverage below 3.3x.