TELUS reports $1.8 billion loss after impairment

• TELUS reported a second-quarter 2026 net loss of $1.8 billion due to a $2.1 billion non-cash impairment.
• Operating revenues declined 3% to $4.9 billion, while free cash flow increased 2% to $545 million.
• The company reduced its dividend and updated 2026 financial guidance.

TELUS (NYSE:TU) recorded a second-quarter 2026 net loss of $1.8 billion after recording a $2.1 billion non-cash impairment related to its TELUS Digital unit.

Consolidated operating revenues declined 3% year over year to $4.9 billion, while service revenue decreased 1% to $4.4 billion and mobile network revenue increased 1% to $1.7 billion.

TELUS reported adjusted EBITDA of $1.8 billion, down 2%, while cash from operations increased 15% to $1.3 billion and free cash flow rose 2% to $545 million.

The company reduced its quarterly dividend to $0.1875 per share from previous levels, expects approximately $2.7 billion in cumulative cash savings through 2028.

TELUS ended the quarter with net debt to adjusted EBITDA of 3.5 times and is targeting approximately 3.0 times or lower by the end of 2028.

The company revised its 2026 outlook, expecting service revenue growth of flat to negative 2%, adjusted EBITDA decline of 2% to 4%, free cash flow of about $1.8 billion and capital expenditures of roughly $2.6 billion.