TELUS cuts dividend by 55% following Q2 earnings report

TELUS has implemented a 55.2% dividend cut following its second-quarter 2026 earnings report. The decision, led by CEO Victor Dodig and CFO Gopi Chande, aims to generate approximately $2.7 billion in cumulative cash savings through 2028. This capital is intended to support deleveraging efforts, with management targeting a reduction in the Net-Debt to Adjusted EBITDA ratio from 3.5 to 3.0 by the end of 2028.

Following the announcement, TELUS stock declined by 11.6%, contributing to a year-to-date drop of 21.1%. The company also reported a $2.1 billion goodwill impairment charge related to its TELUS Digital segment.

Despite these challenges, core operational metrics showed some resilience. Mobile network revenue increased by 1%, and cash flow from operations rose 15% to $1.3 billion. However, management updated its full-year 2026 guidance to project flat-to-negative 2% service revenue growth and a 2% to 4% decline in adjusted EBITDA.