Upside case
Bull case
$35+171.3%
TU would need investors to value it at roughly 53x earnings — about 33x more generous than today's 20x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
TELUS Corporation (TU) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
23
analysts
14 bullish · 1 bearish · 23 covering TU
Strong Buy
0
Buy
14
Hold
8
Sell
1
Strong Sell
0
Consensus Target
$23
+76.2% vs today
Scenario Range
$14 – $35
Model bear to bull value window
Coverage
23
Published analyst ratings
Valuation Context
19.5x
Forward P/E · Market cap $20.0B
TU price targets
Three scenarios for where TU stock could go
Current
~$13
Confidence
71 / 100
Updated
May 1, 2026
Where we are now
Current · $13
Bear
$14
Base
$17
Bull
$35
Market caseClosest to today
Base case
$17+36.3%
At 27x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$14+12.4%
The bear case assumes sentiment or fundamentals disappoint enough to push TU down roughly 12% from the current price.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
TELUS Corporation
TU · NYSECommunication ServicesTelecommunications ServicesDecember year-end
TELUS Corporation is a major Canadian telecommunications provider offering mobile, internet, TV, and security services to consumers and businesses. It generates revenue primarily from wireless services (mobile subscriptions and data plans) and wireline services (internet, TV, and home security), with wireless typically contributing over 50% of total revenue. The company's competitive advantage lies in its extensive fiber-optic network infrastructure and strong brand reputation for customer service in the Canadian market.
Market Cap
$20.0B
Revenue TTM
$20.5B
Net Income TTM
$1.1B
Net Margin
5.4%
TU Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
67%Exceptional
12 quarters tracked
Revenue Beat Rate
17%Exceptional
vs consensus estimates
Avg EPS Surprise
+4.1%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 1 of 4Q2 2025
EPS
$0.18/$0.15
Revenue
$3.5B/$3.6B
Q3 2025
EPS
$0.16/$0.17
Revenue
$3.7B/$3.8B
Q4 2025
EPS
$0.17/$0.19
Revenue
$3.6B/$3.8B
Q1 2026
EPS
$0.15/$0.18
Revenue
$3.8B/$3.9B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $0.18/$0.15 | +20.0% | $3.5B/$3.6B | -3.1% |
| Q3 2025 | $0.16/$0.17 | -5.9% | $3.7B/$3.8B | -2.3% |
| Q4 2025 | $0.17/$0.19 | -10.5% | $3.6B/$3.8B | -5.6% |
| Q1 2026 | $0.15/$0.18 | -16.7% | $3.8B/$3.9B | -2.4% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$21.3B
+3.7% YoY
FY2
$21.9B
+3.0% YoY
EPS Outlook
FY1
$0.70
-3.5% YoY
FY2
$0.72
+3.3% YoY
Trailing FCF (TTM)$1.7B
FCF Margin: 8.1%
Next Earnings
May 8, 2026
Expected EPS
$0.12
Expected Revenue
$3.6B
TU beat EPS estimates in 1 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
TU Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2022
Total disclosed revenue $3.1B
Product Mix
Latest annual revenue by segment or product family
Segment breakdown not available for this company.
Geographic Mix
Latest annual revenue by reported region
Foreign
100.0%
+19.2% YoY
Tap, hover, or focus a slice to inspect segment detail.
Foreign is the largest reported region at 100.0%, up 19.2% YoY.
TU Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $25 — implies +102.4% from today's price.
Upside to Fair Value
102.4%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
TU
24.2x
vs
S&P 500
25.2x
In line with benchmark
vs Communication Services Trailing P/E
TU
24.2x
vs
Communication Services
15.5x
+56% premium
vs TU 5Y Avg P/E
Today
24.2x
vs
5Y Average
21.0x
+15% premium
Forward PE
19.5x
S&P 500
19.1x
+2%
Communication Services
13.1x
+49%
5Y Avg
—
—
Trailing PE
24.2x
S&P 500
25.2x
-4%
Communication Services
15.5x
+56%
5Y Avg
21.0x
+15%
PEG Ratio
—
S&P 500
1.75x
—
Communication Services
0.66x
—
5Y Avg
—
—
EV/EBITDA
8.7x
S&P 500
15.3x
-43%
Communication Services
8.7x
+0%
5Y Avg
7.9x
+11%
Price/FCF
11.6x
S&P 500
21.3x
-46%
Communication Services
11.6x
-0%
5Y Avg
16.4x
-30%
Price/Sales
1.3x
S&P 500
3.1x
-58%
Communication Services
1.0x
+26%
5Y Avg
1.3x
-0%
Dividend Yield
6.09%
S&P 500
1.88%
+224%
Communication Services
3.38%
+80%
5Y Avg
5.71%
+7%
| Metric | TU | S&P 500 | Communication Services | 5Y Avg TU |
|---|---|---|---|---|
| Forward PE | 19.5x | 19.1x | 13.1x+49% | — |
| Trailing PE | 24.2x | 25.2x | 15.5x+56% | 21.0x+15% |
| PEG Ratio | — | 1.75x | 0.66x | — |
| EV/EBITDA | 8.7x | 15.3x-43% | 8.7x | 7.9x+11% |
| Price/FCF | 11.6x | 21.3x-46% | 11.6x | 16.4x-30% |
| Price/Sales | 1.3x | 3.1x-58% | 1.0x+26% | 1.3x |
| Dividend Yield | 6.09% | 1.88% | 3.38% | 5.71% |
TU trades above S&P 500 benchmarks on 0 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolTU Financial Health
Verdict
Adequate
TU earns 11.5% operating margin on regulated earnings, 6.1% dividend yield. Utilities carry higher leverage than industrials as a structural feature of the business model.
Regulated Operations
Revenue, regulated margins, and earnings
Revenue (TTM)
Trailing-twelve-month sales base
$20.5B
Revenue Growth
TTM vs prior year
+1.8%
Operating Margin
Operating income divided by revenue
11.5%
Net Margin
Net income divided by revenue
5.4%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.72
Operating Margin
Operating income over revenue — primary regulated earnings signal
11.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
3.9%
ROA
Return on assets, trailing twelve months
1.9%
Cash & Equivalents
Liquid assets on the balance sheet
$2.6B
Net Debt
Total debt minus cash
$28.8B
Debt Serviceability
Net debt as a multiple of annual free cash flow
17.4× FCF
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
6.7%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
6.2%
Dividend
6.1%
Buyback
0.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$40M
Dividend / Share
Annualized trailing dividend per share
$1.06
Payout Ratio
Share of earnings distributed as dividends
146.3%
Shares Outstanding
Declining as buybacks retire shares
1.5B
All figures from the trailing twelve months. Utilities operate with structural leverage (3–5× net debt/FCF) due to regulated, predictable cash flows.
Open full ratios pageTU Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
High Debt Levels
TELUS has a Debt-to-Equity ratio of 1.80, significantly higher than many industry peers, indicating a heavy reliance on external financing. The debt-to-FCF ratio of 28.27 suggests it would take over 28 years to pay back its debts, raising concerns about solvency, especially in a rising interest rate environment.
High Risk
Dividend Sustainability
The company has a high dividend payout ratio with a yield of 9.91% TTM, but this dividend is not well covered by earnings or free cash flows. If earnings do not improve, the sustainability of this dividend could be at risk.
Medium
Market Competition
The telecommunications sector is highly competitive, which could negatively impact TELUS's market share and pricing power. This competitive landscape may lead to revenue challenges as the company strives to maintain its position.
Medium
Recent Financial Performance
TELUS has recently missed earnings estimates, with earnings falling year-over-year for one quarter and revenues declining for two consecutive quarters. This trend raises concerns about the company's ability to meet market expectations.
Medium
Liquidity Concerns
TELUS's liquidity ratios are low, with a Current Ratio of 0.86 and a Quick Ratio of 0.81, indicating potential difficulties in meeting short-term obligations. These liquidity issues could pose risks to the company's financial stability.
Lower
Mixed Analyst Sentiment
Analysts have mixed ratings on TELUS, with some downgrading their outlook, resulting in a consensus rating of 'Hold.' This uncertainty reflects differing views on the stock's future performance and valuation.
Lower
Technical Analysis Signals
Technical analysis shows mixed signals, with some indicators suggesting a 'Sell' rating due to the stock price being below key moving averages. Conversely, other indicators indicate a 'Buy' signal from a pivot bottom and the 3-month MACD.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why TU Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Customer Momentum
Telus has demonstrated robust customer growth in both mobile and fixed services, indicating strong demand for its offerings. This momentum is expected to continue, supporting revenue growth.
Record Free Cash Flow
The company has achieved record free cash flow, which is crucial for funding dividends, reducing debt, and investing in growth initiatives. This financial strength positions Telus well for future expansion.
Attractive Dividend Yield
Telus offers a strong dividend yield, appealing to income-seeking investors. Some analyses suggest it is an 'oversold dividend play', making it an attractive option for those looking for reliable income.
Enterprise Sales Program Success
Telus Digital has reported success with its B2B sales programs, generating significant operating net revenue and strong conversion gains. This indicates a promising opportunity for further growth in enterprise sales outsourcing.
Favorable Technical Indicators
Certain technical analyses suggest bullish signals, with potential for bounces after deep drops or oversold conditions. This technical setup may lead to upward price movement in the near term.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
TU Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$12.82
52W Range Position
22%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$11.69
+9.7% from the low
52-Week High
$16.74
-23.4% from the high
1 Month
-0.31%
3 Month
-9.27%
YTD
-2.2%
1 Year
-16.2%
3Y CAGR
-14.7%
5Y CAGR
-9.8%
10Y CAGR
-1.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
TU vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
19.5x
vs 11.1x median
+76% above peer median
Revenue Growth
+3.7%
vs +2.6% median
+44% above peer median
Net Margin
5.4%
vs 12.4% median
-56% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
TU TU TELUS Corporation | $20.0B | 19.5x | +3.7% | 5.4% | Buy | +76.2% |
BCE BCE BCE Inc. | $22.6B | 9.3x | +1.9% | 25.8% | Hold | +7.3% |
T T AT&T Inc. | $178.4B | 11.1x | +1.4% | 16.9% | Hold | +15.1% |
VZ VZ Verizon Communications Inc. | $200.1B | 9.6x | +2.6% | 12.4% | Hold | +8.7% |
TMU TMUS T-Mobile US, Inc. | $209.0B | 18.4x | +5.2% | 11.6% | Buy | +31.5% |
S S SentinelOne, Inc. | $4.8B | 80.7x | +17.7% | -45.0% | Buy | +21.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
TU Dividend and Capital Return
TU returns 6.2% total yield, led by a 6.09% dividend, raised 5 consecutive years.
Dividend SustainableFCF Stretched
Total Shareholder Yield
6.2%
Dividend + buyback return per year
Buyback Yield
0.1%
Dividend Yield
6.09%
Payout Ratio
1.5%
How TU Splits Its Return
Div 6.09%
Dividend 6.09%Buybacks 0.1%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.06
Growth Streak
Consecutive years of dividend increases
5Y
3Y Div CAGR
4.5%
5Y Div CAGR
5.8%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$40M
Estimated Shares Retired
3M
Approx. Share Reduction
0.2%
Shares Outstanding
Current diluted share count from the screening snapshot
1.5B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.31 | — | — | — |
| 2025 | $1.19 | +4.7% | 0.2% | 8.3% |
| 2024 | $1.13 | +5.8% | 0.0% | 7.8% |
| 2023 | $1.07 | +3.1% | 0.0% | 5.1% |
| 2022 | $1.04 | +2.3% | 0.0% | 4.4% |
FAQ
7 questionsTU Investor Questions
Common questions answered from live analyst data and company financials.
01Is TELUS Corporation (TU) stock a buy or sell in 2026?
TELUS Corporation (TU) is rated Buy by Wall Street analysts as of 2026. Of 23 analysts covering the stock, 14 rate it Buy or Strong Buy, 8 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $23, implying +76.2% from the current price of $13. The bear case scenario is $14 and the bull case is $35.
02What is the TU stock price target for 2026?
The Wall Street consensus price target for TU is $23 based on 23 analyst estimates. The high-end target is $24 (+87.2% from today), and the low-end target is $22 (+67.7%). The base case model target is $17.
03Is TELUS Corporation (TU) stock overvalued in 2026?
TU trades at 19.5x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for TELUS Corporation (TU) stock in 2026?
The primary risks for TU in 2026 are: (1) High Debt Levels — TELUS has a Debt-to-Equity ratio of 1. (2) Dividend Sustainability — The company has a high dividend payout ratio with a yield of 9. (3) Market Competition — The telecommunications sector is highly competitive, which could negatively impact TELUS's market share and pricing power. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is TELUS Corporation's revenue and earnings forecast?
Analyst consensus estimates TU will report consensus revenue of $21.3B (+3.7% year-over-year) and EPS of $0.70 (-3.5% year-over-year) for the upcoming fiscal year. The following year, analysts project $21.9B in revenue.
06When does TELUS Corporation (TU) report its next earnings?
TELUS Corporation is expected to report its next earnings on approximately 2026-05-08. Consensus expects EPS of $0.12 and revenue of $3.6B. Over recent quarters, TU has beaten EPS estimates 67% of the time.
07How much free cash flow does TELUS Corporation generate?
TELUS Corporation (TU) generated $1.7B in free cash flow over the trailing twelve months — a free cash flow margin of 8.1%. TU returns capital to shareholders through dividends (6.1% yield) and share repurchases ($40M TTM).