Telstra reports profit rise and announces A$1 billion share buyback

Telstra Group has reported its 2026 financial year results, showing a rise in annual profit to approximately A$2.24 billion, up from A$2.17 billion the previous year. This growth was primarily driven by its mobile segment, which saw increased revenue per user and higher customer spending. In response to earnings growth and balance-sheet strength, the company announced a new share buyback program of up to A$1 billion, following a previous A$1.25 billion repurchase completed in June. Shareholders will also receive a higher final dividend of 10.5 Australian cents per share.

The financial results come amid significant operational challenges, including a major network outage in July that affected up to 25 million people. The outage, attributed to an undocumented network design change and an unapplied software update, led to an inquiry by the Australian Competition and Consumer Commission. Consequently, CEO Vicki Brady had her short-term incentive bonus reduced by over $600,000, though her total compensation rose to $6.83 million due to other pay components.

Additionally, Telstra is navigating internal restructuring, including approximately 1,200 job cuts to simplify operations, and external competitive pressure from providers like Starlink. While the mobile division remains a core strength, other segments such as the international unit and fixed enterprise business experienced declines in EBITDA.