TELUS reported Q4 2025 revenue of $5.3 billion, a decline of about 2.2 percent. The decrease was mainly driven by lower mobile equipment sales and divestitures of non-core assets, which offset a 1 percent increase in service revenue.
Full-year 2025 revenue reached approximately $20 billion.
Net income for the fourth quarter totaled $290 million, with basic earnings per share of $0.19, down 21 percent year over year due to higher financing costs and lower operating income.
The telecom operator is shifting its strategy toward AI monetization, debt reduction, and network efficiency following the completion of major fiber and 5G investments.
ARPU improves amid premium bundling
TELUS reported improving ARPU trends in Q4, particularly in the mobile segment. The recovery follows earlier pressure from competitive pricing during 2025.
The improvement was driven by stronger adoption of premium bundled services and stabilization in roaming revenue.
Record customer growth
TELUS achieved a fourth-quarter record of 377,000 net customer additions, driven by strong demand across mobile, IoT, and broadband services.
Q4 additions included:
50,000 mobile phone subscribers
287,000 connected devices (IoT)
35,000 internet customers
For the full year, TELUS added more than 1.08 million customer connections.
Total telecom connections reached 21.2 million by the end of 2025, representing 5 percent growth year over year.
Capex declines after major network builds
TELUS invested approximately $2.5 billion in capital expenditure during 2025, excluding real estate, representing capital intensity of about 12 percent.
With major fiber and 5G deployments largely complete, TELUS plans to reduce capital expenditure to $2.3 billion in 2026 and target long-term capital intensity of 10 percent.
Cost efficiencies and integration synergies
TELUS achieved $431 million in annualized cash synergies from the integration of LifeWorks into TELUS Health.
The company expects efficiency gains from the privatization and integration of TELUS Digital, targeting $150 million to $200 million in annual cash synergies, including $150 million expected in 2026.
Leadership transition and deleveraging strategy
CEO Darren Entwistle will retire on June 30, 2026. Victor Dodig, former CEO of CIBC, has been appointed as his successor.
TELUS is prioritizing deleveraging, aiming to reduce its net debt-to-Adjusted EBITDA ratio from 3.4x at the end of 2025 to 3.3x in 2026 and 3.0x by 2027.
To support debt reduction and network monetization, the company has paused dividend growth in the near term.
2026 outlook
TELUS expects steady growth in 2026, with guidance including:
Service revenue growth of 2 percent to 4 percent
Adjusted EBITDA growth of 2 percent to 4 percent
Free cash flow target of $2.45 billion, roughly 10 percent growth
AI strategy becomes a core growth pillar
TELUS is positioning itself as an AI-first communications company through TELUS Digital and TELUS Health.
Key AI highlights include:
$800 million in AI-related revenue in 2025
Target of $2 billion in AI revenue by 2028
Investment in Sovereign AI Factories to host sensitive Canadian health and enterprise data
Deployment of more than 40 specialized AI applications, including the Fuel iX generative AI platform and AI-powered customer service bots
TELUS also announced a partnership with Abu Dhabi-based M42 to expand AI-driven healthcare data insights globally.
With record subscriber growth, expanding AI revenue, and reduced capital intensity ahead, TELUS is entering a new phase focused on monetizing its network investments and strengthening financial flexibility.
BABURAJAN KIZHAKEDATH
