TELUS falls short of revenue and profit expectations; revises annual forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 07 2025
0mins
Source: SeekingAlpha
Q3 Financial Performance: TELUS reported a Q3 Non-GAAP EPS of C$0.24, missing expectations by C$0.03, with revenue of C$5.11 billion, which is a 0.2% year-over-year increase but fell short by C$90 million.
2025 Targets Update: The company anticipates that its 2025 targets for TTech Operating Revenue growth will be at the lower end of the original range, while targets for TTech Adjusted EBITDA, Consolidated Capital Expenditures, and Free Cash Flow remain unchanged.
Privatization Impact: Following the privatization of TELUS Digital, the previously issued 2025 guidance for TELUS Digital is no longer relevant and will not be updated.
Growth Projections: The original growth projections for TTech Operating revenues are now expected to be between 2% to 4%, while TTech Adjusted EBITDA growth remains at 3% to 5%, with consolidated free cash flow and capital expenditures both unchanged at approximately C$2.15 billion and C$2.5 billion, respectively.
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Analyst Views on TU
Wall Street analysts forecast TU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TU is 14.96 USD with a low forecast of 13.71 USD and a high forecast of 18.04 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
4 Buy
4 Hold
2 Sell
Hold
Current: 14.260
Low
13.71
Averages
14.96
High
18.04
Current: 14.260
Low
13.71
Averages
14.96
High
18.04
About TU
TELUS Corporation is a communications technology company serving customers through its suite of broadband services for consumers, businesses and the public sector. Its segments include TELUS technology solutions, TELUS digital experience and TELUS health. The TELUS technology solutions segment includes mobile technologies; data (which include Internet protocol; television; hosting, cloud-based services; and home and business security and automation); agriculture and consumer goods services (software, data management and data analytics-driven smart-food chain and consumer goods technologies); voice and other telecommunications services ; and equipment sales. The TELUS health segment includes healthcare services, software and technology solutions. The TELUS digital experience segment consists of digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Diversity and Inclusion: The report captures perspectives from over 11,000 respondents, with a focus on historically underrepresented groups, indicating that integrating diverse voices in AI development is crucial for building trustworthy AI and improving social acceptance of technology.
- Trust-Building Strategies: Survey findings suggest that companies must assess potential harms before releasing AI technologies and explain their use in plain language, which not only enhances user trust but also fosters interaction and collaboration between businesses and customers.
- Global Leadership Position: TELUS aims to establish its leadership in human-centric technology by promoting responsible AI use through transparency and accountability, striving to create a future where customers and communities can confidently embrace the benefits of technology.
See More
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- Successful Debt Redemption: TELUS has completed the full redemption of C$600 million 3.75% Notes, demonstrating the company's efficiency and foresight in debt management, thereby strengthening its financial foundation.
- Effective Financing Strategy: The redemption was funded through TELUS's December 2025 issuance of Fixed-to-Fixed Rate Junior Subordinated Notes, which raised C$2.9 billion, indicating the company's flexibility and strategic approach to capital allocation.
- Increased Financial Flexibility: By proactively managing its debt maturity profile, TELUS aims to reduce its net debt to adjusted EBITDA ratio to 3.3 times by the end of 2026, enhancing financial flexibility and long-term shareholder value.
- Comprehensive Financial Strategy: This redemption is part of TELUS's broader balance sheet management and deleveraging initiatives, reflecting the company's ongoing efforts to optimize its financial structure and enhance market competitiveness.
See More
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- Enhanced Financial Flexibility: This redemption is part of TELUS's broader balance sheet management and deleveraging initiatives, with a projected net debt to adjusted EBITDA ratio of approximately 3.4 times by 2025, thereby increasing flexibility in capital allocation.
- Strategic Restructuring Progress: The early redemption of C$1.0 billion in discounted notes announced on December 10, 2025, indicates TELUS's proactive efforts to optimize its debt maturity profile, supporting long-term shareholder value growth.
- Clear Future Outlook: TELUS aims to reduce its net debt to adjusted EBITDA ratio to approximately 3.3 times by the end of 2026 and further to 3.0 times by the end of 2027, reflecting the company's strong commitment to future financial health.
See More
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- Successful Debt Management: TELUS has successfully redeemed C$600 million of its 3.75% Notes, demonstrating the effectiveness of its C$2.9 billion Hybrid Notes issuance in December 2025, thereby enhancing the company's financial foundation and flexibility.
- Increased Financial Flexibility: By proactively managing its debt maturity profile, TELUS aims to reduce its net debt to adjusted EBITDA ratio to 3.3 times by the end of 2026, further supporting capital allocation priorities and driving long-term shareholder value.
- Comprehensive Financial Strategy: This redemption is part of TELUS's broader balance sheet management and deleveraging initiatives, which included the early redemption of seven series of discounted notes totaling C$1.0 billion, indicating the company's foresight and decision-making capabilities in financial management.
- Future Outlook: TELUS projects a reduction of its net debt to adjusted EBITDA ratio to approximately 3.0 times by the end of 2027, reflecting the company's commitment to future financial health and its responsiveness to market changes.
See More
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- Strategic Partnership Opportunity: TELUS Health is engaging TD Securities and Jefferies Securities to explore strategic partnerships aimed at maximizing its annual revenue of $1.5 billion, which is expected to enhance its market competitiveness and drive business growth.
- Global Reach: The business serves over 160 million lives across more than 200 countries and territories, highlighting its significance in the global health tech sector and likely attracting increased investor interest in the future.
- Financial Health: As of Q3 2025, TELUS Health reported an EBITDA of $258 million and cash flow of $99 million, indicating a robust financial position that supports future growth objectives.
- Deleveraging Strategy: TELUS aims to reduce its net debt to adjusted EBITDA ratio to below 3.3 times within the next 18 months, demonstrating a commitment to financial stability and providing a solid foundation for potential partners.
See More
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- Strategic Partnership Opportunity: TELUS has engaged TD Securities and Jefferies to evaluate potential strategic partnerships for TELUS Health, aiming to maximize value creation by integrating complementary skills and customer reach to drive growth.
- Strong Financial Performance: As of Q3 2025, TELUS Health has generated $1.5 billion in year-to-date operating revenue, with EBITDA of $258 million and cash flow of $99 million, reflecting robust performance in the global market.
- Deleveraging Plan: TELUS aims to reduce its net debt to adjusted EBITDA ratio from 3.4 times to 3.3 times over the next 18 months, further optimizing its financial structure to support long-term growth.
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