-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
TELUS reported challenging Q1 2026 results with revenue declining 0.6% to $4,989M and EPS falling to $0.09 from $0.21, missing the consensus of $0.22. Earnings declined due to elevated restructuring costs of $315M versus $97M in the prior year and 12.2% equipment revenue drop amid competitive pressures. TELUS Health emerged as the standout with 11.2% growth to $526M, demonstrating strategic diversification value beyond core telecom. Management characterized the wireless environment as "highly promotional and irrational" with aggressive pricing threatening premium brand value. We expect continued margin pressure as competitor price emulation commoditizes benefits and undermines value creation. However, we believe TELUS Health's performance and operational synergies, including $431M in delivered LifeWorks synergies, provide some offset. Net debt to EBITDA improved to 3.5x from 3.9x, progressing toward the 2027 target of approximately 3.0x.