TELUS reports C$660 million Q3 loss on C$800 million health unit impairment

Q3 results

TELUS Corporation reported a third-quarter 2026 net loss of C$660 million, primarily reflecting a C$800 million non-cash goodwill impairment related to TELUS Health. Revenue declined 2% year over year to C$5.02 billion from C$5.11 billion, exceeding analysts' expectations of C$4.96 billion. Adjusted earnings were C$0.16 per share, slightly below the consensus estimate of C$0.17.

Cost savings and debt targets

TELUS announced an operational efficiency programme designed to generate approximately C$900 million in annualised cash savings by the end of 2028. The company maintained its target of lowering net debt to adjusted EBITDA to 3.0 times or less by the end of 2028, compared with 3.6 times at the end of the third quarter.

Health and digital units

The C$800 million goodwill impairment at TELUS Health resulted from revised growth expectations and updated business valuations during an ongoing divestiture process. TELUS is prioritising the potential sale of TELUS Health and TELUS Agriculture & Consumer Goods, with proceeds intended to reduce outstanding debt. Consolidated service revenue declined 1% to C$4.5 billion, as growth in the company's core telecommunications operations was offset by weaker performance at TELUS Digital. The digital services division experienced reduced service volumes from two major hyperscale customers, contributing to lower consolidated profitability. Adjusted EBITDA decreased 5% to C$1.8 billion, reflecting the impact of TELUS Digital's performance and the absence of real estate gains recorded in the previous year.

Management statement

President and Chief Executive Officer Victor Dodig outlined the objectives of the transformation strategy.

"Our strategy has a clear objective: to restore TELUS as a leading communications and AI infrastructure company in Canada," Dodig said.

"We have identified specific measures to fundamentally transform the business and are acting with urgency to strengthen our financial foundation."

Why it matters

The loss and impairment charge highlight pressure on TELUS's health and digital businesses, while the company moves to cut costs, reduce debt, and focus on its core telecommunications operations.

Sources

• theglobeandmail.com: Telus reports $660-million loss on health unit writedown as Dodig refocuses on core telecom business - The Globe and Mail
• finance.yahoo.com: TELUS Reports Q3 Earnings Miss and C$660 Million Net Loss, Unveils C$900 Million Cost Savings Plan
• grafa.com: TELUS Reports C$660 Million Loss, Targets C$900 Million Savings | Grafa

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.