TELUS Corporation Q2 Earnings: Analysts Update Estimates Amid Revenue Growth Slowdown

TELUS Corporation's Q2 results were in line with expectations, with revenue at $5.1b and statutory earnings per share breaking even. Analysts have reduced their EPS estimates, but the consensus price target remains at $23.34. The most bullish analyst values the stock at $30.00, while the most bearish prices it at $20.00. The forecast revenue growth of 2.0% in 2025 is lower than the industry average.

Telus Corporation (TU) reported its Q2 2025 financial results, revealing a mixed performance that has left analysts with a range of opinions. The company's revenue for the quarter was C$5.1 billion, a 2% year-over-year increase, which was in line with analyst expectations [1]. However, the company's statutory earnings per share (EPS) came in at C$0.22, slightly below the forecasted C$0.2314, resulting in a 4.93% surprise miss [3].

Despite the EPS miss, Telus exceeded revenue expectations by 1.2%, indicating strong operational performance. The company's adjusted EBITDA grew by 4%, driven by cost reduction efforts and subscriber growth. Telus also reported a 16% revenue growth and 29% adjusted EBITDA growth in its TELUS Health segment, which was fueled by strategic investments and synergy optimization [1].

One of the key highlights of the quarter was Telus's decision to sell a 49.9% stake in its newly formed wireless tower infrastructure operator Terrion for C$1.26 billion. This move is aimed at reducing the company's leverage and supporting its deleveraging efforts [1].

Analysts have responded to the results with a mix of opinions. The current average analyst rating on the shares is "hold," with a breakdown of 7 "strong buy" or "buy," 10 "hold," and 1 "sell" or "strong sell" [1]. The most bullish analyst values the stock at C$30.00, while the most bearish prices it at C$20.00. The consensus price target remains at C$23.34 [1].

For 2025, Telus aims for operating revenue growth of 2-4% and adjusted EBITDA growth of 3-5%. The company plans to focus on expanding its AI and digital service capabilities and reducing its leverage [3]. However, the forecast revenue growth of 2.0% in 2025 is lower than the industry average, which could pose a challenge for the company's stock performance.

In summary, Telus's Q2 2025 results were in line with expectations, with revenue at C$5.1 billion and statutory earnings per share breaking even. The company's strategic investments in AI and infrastructure are aimed at maintaining its competitive edge, but analysts remain divided in their opinions on the company's future prospects.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXF8354E:0-canadian-telecom-firm-telus-s-q2-revenue-up-2-sells-stake-in-tower-firm-for-c-1-26-bln/
[2] https://www.nasdaq.com/articles/telus-tu-q2-earnings-taking-look-key-metrics-versus-estimates
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-telus-q2-2025-misses-eps-forecast-stock-dips-93CH-4166587