TELUS reported consolidated service revenue of $4.4 billion for the second quarter of 2026, down 1 percent year-over-year, as growth in mobile network and TELUS Health revenue was offset by weaker performance at TELUS Digital. The Canadian telecom operator is sharpening its investment strategy around wireless, PureFibre broadband and sovereign AI infrastructure while targeting lower capital intensity and stronger cash generation.
TELUS recorded a net loss of $1.8 billion, primarily due to a $2.1 billion pre-tax, non-cash impairment of intangible assets and goodwill related to the TELUS Digital cash-generating unit.
For full-year 2026, TELUS revised its consolidated service revenue outlook to between flat and a decline of 2 percent. Adjusted EBITDA is expected to decline between 2 percent and 4 percent, while free cash flow is projected at approximately $1.8 billion.
TELUS Mobile Revenue Reaches $1.7 Billion
Mobile network revenue increased 1 percent to $1.7 billion, supported by growth in the subscriber base. TELUS added 17,000 mobile phone customers during the second quarter as the mobile operator focused on value-accretive customer acquisition rather than volume-driven growth.
Mobile phone ARPU reached $56.36, representing a 0.4 percent decline. TELUS said the pace of ARPU contraction continued to decelerate, helped by its focus on loading customers onto premium brands.
Blended mobile phone churn was 1.08 percent compared with 1.06 percent a year earlier. The relatively stable churn rate underlines the importance of customer retention as TELUS balances subscriber growth with profitability and ARPU performance.
Connected devices remained a major source of customer expansion, with TELUS reporting 187,000 connected-device net additions in the second quarter.
TELUS Adds 20,000 Internet Customers as PureFibre Build Nears Completion
TELUS recorded 20,000 internet additions during Q2 2026. Broadband remains a core investment priority as the company’s large-scale TELUS PureFibre network build approaches completion.
The completion of the major PureFibre construction cycle is expected to create an important shift in TELUS’ capital profile. With less capital required for broad fibre network expansion, the company expects capital intensity to decline over the multi-year horizon.
TELUS plans to concentrate future network investment on areas offering the strongest returns, particularly its wireless and PureFibre networks. The strategy is designed to maximize the value of the extensive fibre infrastructure already deployed while supporting customer growth, broadband performance and convergence opportunities.
TELUS Q2 Capex Reaches $678 Million
TELUS invested $678 million in capital expenditures during the second quarter.
Capex in support of TTech operations of $614 million increased by $44 million. TELUS Health Capex of $44 million decreased by $15 million. TELUS Digital Capex of $34 million decreased by $9 million, mainly driven by prior year software license investment and decreased site expansions in Europe. As at June 30, 2026, 5G network covered approximately 34.2 million Canadians, representing over 92 percent of the population.
The company has updated its full-year 2026 capital expenditure forecast to approximately $2.6 billion.
The revised Capex plan reflects inflation and supply-chain pressures affecting customer premises equipment, additional spending on customer base management and strategic investment in sovereign AI data centres.
TELUS’ AI infrastructure spending includes network infrastructure upgrades and site enablement required to support its sovereign AI data centre strategy. This positions AI infrastructure alongside wireless and PureFibre as one of the company’s major areas for future capital deployment.
Despite the updated $2.6 billion Capex forecast, TELUS remains committed to achieving a capital intensity target of 10 percent as the PureFibre construction cycle winds down.
TELUS Steps Up Investment in Digital and Sovereign AI Infrastructure
Digital and AI infrastructure is emerging as a central part of TELUS’ investment strategy. The operator plans to direct resources toward infrastructure supporting Canada’s technological independence and economic development, including sovereign AI data centres.
TELUS identified digital and AI infrastructure, wireless and PureFibre as areas where it sees both a strong competitive position and a clearer path to investment returns.
At the same time, TELUS Digital is facing financial pressure. The company attributed part of the 1 percent decline in consolidated service revenue to lower TELUS Digital growth. The $2.1 billion impairment associated with the TELUS Digital cash-generating unit also contributed to TELUS’ $1.8 billion quarterly net loss.
TELUS is responding with a cost transformation program that will use technology to eliminate redundancy, improve operational efficiency and strengthen customer service. The company employs approximately 100,000 team members.
