Is Telus a Good Stock to Buy Now?
Telus (TSX: T) has underperformed the TSX Composite, which rose 25% in the last year, with its stock down over 40%. The company cut its dividend by 55% and lowered 2026 guidance due to competition and weaker demand. Q2 revenue and EBITDA fell 2% YoY, but cash flow increased. Telus is focusing on debt reduction and asset monetization to improve financial health.
How this was made
The 30-second read
Why it matters
The Q2 loss, dividend reset, and guidance cut represent the first public disclosure of these deteriorating fundamentals, likely prompting further price weakness.
Market read
First‑report earnings and dividend news for a large‑cap telecom; material for traders evaluating short‑term price action and yield opportunities.
What to watch
Telus's 6% subscriber growth and strong cash generation may support a turnaround despite short‑term earnings pain.
Background
Telus is a major Canadian telecom facing a 40% share‑price decline over the past year amid pricing competition and debt concerns.
Market effects
Highlights pressure on Canadian telecoms and may affect peers like BCE and Rogers.
Adds to weakness in the TSX, especially the communications sector.
Limited to North American telecom exposure; no direct global macro effect.
Counterpoint
The dividend cut improves cash flow and could set up a higher-yield entry point if the balance sheet stabilizes.
Key entities
- companyTelus Corp.
Canadian telecom operator (TSX: T, NYSE: T).
