TELUS reported third-quarter 2026 consolidated service revenue of $4.5 billion, a 1% decline, as strength in its core telecommunications operation was offset by weaker results at TELUS Digital. The Canadian company reaffirmed the full-year targets it updated with its second-quarter results and outlined a multi-year efficiency program intended to strengthen earnings, cash flow, and its balance sheet.
Mobile network revenue increased 1%, supported by 84,000 net new mobile phone customers. Average revenue per user was stable at $57.22, while blended mobile phone churn improved to 1.01%, its lowest level in three years. Fixed data revenue also contributed to the relative stability of the core telecom business.
TELUS recorded a net loss of $660 million, primarily because of an $800 million pre-tax noncash goodwill impairment tied to TELUS Health. The charge reflected revised growth expectations, broader market conditions, and updated valuation assumptions during an active divestiture process. Consolidated adjusted EBITDA fell 5% to $1.8 billion, reflecting lower TELUS Digital client volumes and comparisons with prior-year real estate gains and other one-time items. On a normalized basis, adjusted EBITDA declined 2%.
The company is prioritizing monetization of TELUS Health and TELUS Agriculture & Consumer Goods, with proceeds intended for debt reduction. Net debt was 3.6 times adjusted EBITDA at quarter-end. Management remains committed to lowering leverage to 3 times or less by the end of 2028 through operational improvements, asset sales, and disciplined capital allocation.
TELUS also introduced an efficiency program targeting approximately $900 million in annualized cash savings exiting 2028. The strategy is designed to concentrate investment on Canadian telecommunications and artificial intelligence infrastructure while simplifying the wider portfolio. The combination of core network stability, planned cost reductions, and noncore asset monetization provides a path toward improved free cash flow, although the impairment and continuing TELUS Digital pressure weighed materially on the reported quarter.
KEY QUOTE:
“Since our second quarter earnings call, our core telecom business has shown clear signs of stabilization and we have made important progress on the execution of our Transformation Strategy.”
Victor Dodig, President and Chief Executive Officer of TELUS
