Telus is one of Canada’s Big Three telecom service providers, offering wireless and broadband services nationally, but with strongholds in British Columbia and Alberta... Show more
Telus Corporation is one of Canada's largest communications companies, listed on the New York Stock Exchange under the ticker TU and on the Toronto Stock Exchange under T. The company operates a nationwide wireless network alongside a leading wireline and fibre footprint through its TELUS PureFibre platform, serving consumers and businesses across Canada. Beyond core telecom, Telus has expanded into adjacent growth verticals including TELUS Health, TELUS Digital (customer experience and AI solutions), and TELUS Agriculture and Consumer Goods. Historically, Telus attracted investors as a "dividend-growth" name, prized for its steady subscriber base, recurring revenue, and rising payouts. That positioning is now being re-evaluated as management prioritizes deleveraging and free cash flow over dividend growth.
Over the last 30 days, TU declined approximately 12.6%, moving from a closing price near $9.70 on August 26, 2026, to about $8.48 in the most recent completed trading session. Through much of August the stock held in a range of roughly $9.50 to $9.80 before breaking lower in September, slipping below $9.00 in mid-September and continuing to drift toward multi-year lows.
The 30-day move is part of a broader decline. Over the trailing quarter, the stock fell from roughly $11.08 in late June to $8.48, a decline of about 23%. The stock traded near $12.50 in early June and peaked above $11 in late July before the second-quarter earnings release triggered a sharp re-rating, underscoring a sustained multi-month downtrend rather than an isolated move.
The dominant catalyst was Telus' second-quarter 2026 earnings release on July 31, 2026, which set off a repricing that continued to weigh on shares through September. The company announced a 55% cut to its quarterly dividend, reducing the payout from $0.4184 to $0.1875 per share (an annualized $0.75 per share, down from $1.6736). Telus also disclosed a $2.1 billion pre-tax non-cash impairment related to TELUS Digital, contributing to a reported net loss of $1.8 billion for the quarter.
Alongside the dividend reset, management lowered full-year guidance. The company now expects consolidated service revenue to be flat to down 2% and adjusted EBITDA to decline 2% to 4%, with free cash flow of approximately $1.8 billion, down from a prior outlook of roughly $2.45 billion. Capital expenditures were raised to about $2.6 billion to fund AI data centers and network upgrades, and Telus said it would terminate the discount on its dividend reinvestment plan effective October 1, 2026. The stock fell roughly 14% on the day of the announcement, and the selling pressure continued into September as income-focused investors rotated out of the shares.
The quarterly decline reflects a fundamental shift in how investors value Telus. For years the company was positioned as a growing dividend payer, but a yield that climbed above 13% increasingly signaled a payout that was unsustainable relative to free cash flow. The dividend cut effectively removed the "growing dividend" investment thesis, pressuring the stock even as the move was intended to strengthen the balance sheet.
Several factors compounded the pressure. Competitive intensity in Canadian wireless and broadband, along with lower population growth tied to reduced immigration, has moderated subscriber demand. Within TELUS Digital, Telus flagged accelerated churn as hyperscale clients automate legacy services and AI adoption ramps more slowly than expected. In response, management paused acquisitions, launched asset-monetization efforts across TELUS Health and non-core real estate, and set a target of approximately 3.0x net debt to adjusted EBITDA by year-end 2028. These steps are aimed at a long-term repair, but the immediate effect has been a meaningful de-rating of the stock.
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Several factors will shape the near-term outlook for Telus. Investors will closely watch the third-quarter 2026 results, expected in November, when management is slated to provide a more detailed outline of its capital-returns framework and corporate strategy. Progress on the leverage target, the pace of asset monetization, and the trajectory of free cash flow will be key signals, given the company's commitment to roughly 10% compounded annual free cash flow growth over 2027 and 2028.
Beyond the balance sheet, attention will focus on wireless and fibre subscriber trends, average revenue per user, and competitive pricing dynamics. The stabilization of TELUS Digital, particularly the shift toward CXAI and sovereign AI data-center opportunities, will also matter for sentiment. Macroeconomic conditions—including Canadian interest rates and population growth—remain important variables for demand across the telecom sector.
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TU may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 19 of 40 cases where TU's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 47%.
The RSI Indicator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 14 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +0.77% 3-day Advance, the price is estimated to grow further. Considering data from situations where TU advanced for three days, in 123 of 286 cases, the price rose further within the following month. The odds of a continued upward trend are 43%.
The Momentum Indicator moved below the 0 level on August 28, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TU as a result. In 36 of 70 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 51%.
The Moving Average Convergence Divergence Histogram (MACD) for TU turned negative on September 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 39 similar instances when the indicator turned negative. In 22 of the 39 cases the stock turned lower in the days that followed. This puts the odds of success at 56%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TU declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
The Aroon Indicator for TU entered a downward trend on September 29, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of 12 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.404) is normal, around the industry mean (10.715). P/E Ratio (25.323) is within average values for comparable stocks, (33.181). Projected Growth (PEG Ratio) (13.443) is also within normal values, averaging (8.005). TU's Dividend Yield (0.124) is considerably higher than the industry average of (0.027). P/S Ratio (0.951) is also within normal values, averaging (5.777).
The Tickeron PE Growth Rating for this company is 50 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 83 (best 1 - 100 worst), indicating slightly worse than average price growth. TU’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 92 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TU’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of telecommunications products and services
Industry MajorTelecommunications