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Research Alert: Bce Reports Better-than-expected Q1 Results On Ai-powered Businesses

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

BCE reported Q1 2026 revenue growth of 4.0% to $6,168M, supported by the Ziply Fiber acquisition, despite a 56.1% dividend reduction to $0.4375. Adjusted EPS of $0.63 beat the consensus of $0.58 but declined 8.7%, as adjusted EBITDA grew 2.9% to $2,631M with margin compression of 40 bps to 42.7%. The Ziply acquisition contributed $234M in revenue and $102M in EBITDA, demonstrating strategic value for BCE's growth opportunities. Management is targeting $1.5B in cost savings by 2028 with capital reallocation flexibility between Canadian and U.S. operations. Wireless showed improved competitive positioning with 16,947 postpaid net additions versus 9,598 losses in Q1 2025, while broadband performance was strong with 17,782 high-speed Internet net additions compared to 3,744 in the prior year. We will listen for updates on cost transformation, regulatory changes impacting fiber resale mandates, and digital media growth on the call.

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