TELUS reports operational and financial results for first quarter 2026 USA - English USA - English

TELUS reports operational and financial results for first quarter 2026 USA - English USA - English Industry-leading first quarter total Mobile and Fixed customer growth of 262,000 driven by sustained demand for our premium bundled services nationally

Delivered continued positive mobile network revenue growth of 1 per cent reflecting ongoing ARPU improvement

Consolidated Service revenue growth of 1 per cent and stable Consolidated Adjusted EBITDA of $1.8 billion, reflecting the resiliency of our business within a dynamic operating environment

Cash from Operations of $1.05 billion, alongside Free Cash Flow growth

of 19 per cent to $583 million

Commercial success of TELUS' Sovereign AI Factories, with Rimouski, Quebec, now sold out; second facility launching in Kamloops, British Columbia

Advancing comprehensive balance sheet deleveraging strategy, including strategic partnership opportunities for TELUS Health; progressing toward our net debt to EBITDA leverage target of 3.3-times or lower by year-end 2026 and 3.0-times or better by year-end 2027

Reaffirming key 2026 financial targets: Consolidated Service revenues of 2 to 4 per cent, Consolidated Adjusted EBITDA growth of 2 to 4 per cent; Consolidated Free Cash Flow of approximately $2.45 billion or 10 per cent growth; Consolidated Capital Expenditures of approximately $2.3 billion or 10 per cent decrease

VANCOUVER, BC, May 8, 2026 /CNW/ - TELUS Corporation today released its unaudited results for the first quarter of 2026. Effective January 1, 2026, we are retrospectively restating our segmented reporting information to reflect our new reporting structure following the October 2025 privatization of TELUS Digital and the associated post-privatization operational realignment. Please refer to Section 1.1 in our first quarter 2026 MD&A for additional details.

Consolidated operating revenues and other income was $5.0 billion, compared with $5.1 billion in the prior year, as higher Consolidated service revenue growth of 1 per cent was offset by lower Mobile equipment revenue and Other income. Consolidated service revenue growth was driven by: (i) growth in TELUS Health service revenues, reflecting business acquisitions and growth in payor and provider solutions; (ii) subscriber base growth across mobile, residential internet, security and automation and TV; and (iii) higher residential internet revenue per customer. These factors were partially offset by: (i) mobile phone ARPU declining at a decelerating rate; (ii) lower external revenues in TELUS Digital attributable to the strengthening of the Canadian dollar against the U.S. dollar compared to the same period in the prior year; (iii) lower business-to-business (B2B) data services revenue; (iv) lower agriculture and consumer goods services revenues as a result of the planned divestiture of non-core assets; and (v) declines in fixed legacy voice revenue as a result of technological substitution. See 'first quarter 2026 Operating Highlights' within this news release for a discussion on TELUS' reportable segment results for TTech, TELUS Health and TELUS Digital.

"In the first quarter of 2026, our team's unwavering commitment to operational excellence and cost efficiency has once again empowered TELUS to deliver industry-leading customer growth and stable financial performance," said Darren Entwistle, President and CEO. "These results were achieved within a dynamic operating environment, reflecting our disciplined approach to respond tactically while preserving our premium TELUS brand value. This disciplined approach reflects the enduring resiliency of our business and the compelling strength of our leading portfolio of services. Our mobile and fixed customer growth underscores the sustained demand for TELUS' premium bundled offerings and our world-leading broadband networks. Notably, we achieved total mobile and fixed customer growth of 262,000 driven by 12,000 mobile phone and 229,000 connected device net additions, alongside 21,000 internet customer net additions. This performance reinforces the strength of our integrated Mobile and Home offerings, powered by our leading PureFibre and 5G+ wireless broadband networks. Indeed, our ranking as Canada's most awarded wireless network ever by Opensignal--sweeping ten top honours in their February 2026 report, including 5G Gaming Experience and Time on 5G--reflects our team's global leadership in quality engineering excellence and unwavering commitment to superior coverage and speed. The dedication and passion of our team in delivering customer service excellence continues to drive industry-leading customer loyalty and retention--a testament to the strength of our customer relationships and the value of our bundled solutions."

"TELUS Health delivered another quarter of strong growth, achieving service revenue and Adjusted EBITDA growth of 11 per cent, fueled by strategic investments, continuous product innovation and disciplined execution across our global platforms. We now cover approximately 170 million lives globally, further solidifying our position as the world leader in workforce digital health and well-being solutions. TELUS Health is capturing meaningful industry, technology and societal tailwinds that position it for sustained growth. Our financial advisors continue to support our comprehensive review of strategic partnership opportunities for TELUS Health. Proceeds from any monetization will be deployed toward deleveraging, supporting our path to improved financial flexibility and balance sheet strength."

"Through TELUS Digital, we are accelerating our enterprise-wide AI and data capabilities, enabling the strategic cross-promotion of our industry-leading AI product set throughout our entire business portfolio, while enhancing TELUS Digital's capacity to capture growth opportunities across its external client base. Our AI-enabling capabilities delivered strong double-digit growth of 22 per cent in the first quarter, demonstrating the compelling momentum of our AI-driven strategy as we progress toward our target of circa $2 billion in 2028 across TELUS Digital and TELUS Business Solutions, including contributions from our Sovereign AI Factories. Notably, our Sovereign AI Factory in Rimouski, Canada's first fully sovereign AI factory, sold out within months of launching, validating strong market demand for sovereign AI infrastructure. Accordingly, we are expanding our compute inventory in Rimouski to meet continued demand, while our second facility in Kamloops, British Columbia, will be coming online shortly to serve the growing ecosystem of Canadian businesses, researchers, and government organizations seeking sovereign AI capabilities. These super-secure facilities provide access to accelerated computing capabilities, enabling customers to innovate rapidly and develop smarter AI solutions. The strategic expansion of our AI capabilities is supported by the integration of TELUS Digital, which continues to unlock meaningful operational efficiencies, with annual cash synergies of approximately $150 million to $200 million tracking against plan, realizing annualized free cash flow synergies of approximately $115 million as at the end of the first quarter of 2026."

"Our strong financial and operational performance are underpinned by our world-leading broadband networks, data-centric growth assets and customer experience leadership. This positions us to execute on our strategic priorities in 2026 including amplifying profitable revenue growth, moderating capital expenditures to approximately $2.3 billion and generating strong free cash flow of approximately $2.45 billion. This will be complemented by an ongoing emphasis on cost efficiency, through digitization and further integration of AI across all operations, and an unwavering commitment to customer service excellence -- positioning TELUS to deliver sustainable, value-accretive growth for years to come."

Darren added: "Reflecting on our team's long-standing belief in the synergistic relationship between doing well in business and doing good in the global communities where our team members live, work and serve. Since 2000, TELUS has contributed $1.85 billion, including 2.5 million days of volunteerism – more than any other company in the world – supported by annual TELUS Days of Giving events in 35 countries. For 20 years, our annual Days of Giving events have been a powerful and authentic demonstration of our team's unparalleled legacy of giving in action."

Doug French, Executive Vice-president and CFO said, "Our first quarter 2026 results are a testament to our team's continued focus on discipline and operational execution, with rigorous cost management. Consolidated service revenue increased by 1 per cent while Adjusted EBITDA remained stable on a year over year basis. Growth was driven by TELUS Health's strong performance, while TTech and TELUS Digital delivered stable results, demonstrating the resilience of our diversified business portfolio in a dynamic operating environment. Stable cash from operations of $1,050 million and strong Free Cash Flow growth of 19 per cent to $583 million, underscores our solid financial foundation, as we deliver on the objectives and targets we have established with our investors."

"During the competitive first quarter, we responded to wireless promotional discounting with a measured approach focused on preserving our premium TELUS brand. This consistent strategy is evident in our financial results -- delivering positive network revenue growth of 1 per cent while ARPU demonstrated continued sequential improvement, reinforcing the effectiveness of our go-to-market strategy. As we progress through the year, our team will continue to execute with precision, maintaining a strategy that differentiates us from competitors and protects long-term wireless industry health."

"As we move through 2026, we are well-positioned to drive strong, sustainable growth. Our leading asset mix, diversified business portfolio and proven operational excellence underpin our confidence in driving sustainable long-term value for all stakeholders. Our focus remains on strong Free Cash Flow generation, supported by EBITDA growth, capex intensity moderation and ongoing efficiency and synergy realization. As part of our disciplined capital allocation strategy, we continue to maintain our dividend at the current level while we have systematically started to reduce the discount on our dividend reinvestment plan. Starting in the first quarter of 2026, we reduced the discount to 1.75 per cent. Our three-year Free Cash Flow growth target of minimum 10 per cent compounded annual growth through 2028, combined with the proceeds from the potential monetization of TELUS Health, will support our capital allocation plan and deleveraging targets of 3.3-times or lower by year-end 2026 and 3.0-times or better by the end of 2027," concluded Doug.

As compared to the same period a year ago, net income in the quarter of $144 million and Basic earnings per share (EPS) of $0.09 declined by 52 per cent and 57 per cent, respectively. These decreases were primarily driven by the net after-tax impacts of a decline in Operating income and lower Financing costs. When excluding certain costs and other adjustments (see 'Reconciliation of adjusted Net income' in this news release), adjusted net income of $356 million decreased by 8 per cent over the same period last year, while adjusted basic EPS of $0.23 was down 12 per cent over the same period last year. Adjusted net income is a non-GAAP financial measure and adjusted basic EPS is a non-GAAP ratio. For further explanation of these measures, see 'Non-GAAP and other specified financial measures' in this news release.

Compared to the same period last year, consolidated EBITDA decreased by 13 per cent to $1.5 billion. In addition to the factors discussed within Adjusted EBITDA below, EBITDA was impacted by higher restructuring and other costs. Adjusted EBITDA was flat at $1.8 billion reflecting varied results across our reportable segments. See 'first quarter 2026 Operating Highlights' within this news release for a discussion on segmented Adjusted EBITDA results for TTech, TELUS Health and TELUS Digital.

Our TTech subscriber base of 17.7 million connections increased by 6 per cent over the past 12 months, reflecting a 2 per cent growth in our mobile phones subscriber base to 10.3 million, a 19 per cent increase in our connected devices subscriber base to 4.6 million, and a 3 per cent growth in our internet subscriber base to 2.8 million.

In TELUS Health, as of the end of the first quarter of 2026, healthcare lives covered were 169.6 million, an increase of 93.1 million over the past 12 months, primarily reflecting the addition of 79.3 million lives covered from our acquisition of May 2025 Workplace Options and a prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly. Organically, healthcare lives covered increased mainly reflecting robust growth in our employee and family assistance programs (EFAP) across all of our operating regions, in addition to the ongoing demand for virtual solutions.

Cash provided by operating activities of $1.1 billion declined by 3 per cent in the first quarter of 2026, primarily driven by lower EBITDA and an increase in interest paid. These factors were partially offset by a decrease in income taxes paid, net of recoveries received and an increase in interest received. Free cash flow of $583 million increased by 19 per cent compared to the same period a year ago, largely driven by a decrease in net income taxes paid, partially offset by higher capital expenditures.

Consolidated capital expenditures of $651 million increased by $64 million or 11 per cent in the first quarter of 2026. Capital expenditures in support of TTech operations of $564 million increased by $57 million in the first quarter of 2026, primarily from greater capital investments in developing new facilities to meet growing industry demand. Capital expenditures in support of TTech real estate development of $16 million increased by $8 million in the first quarter of 2026 due to greater capital investments to support the construction of multi-year development projects, including TELUS Ocean TM and TELUS Living projects in B.C. TELUS Health capital expenditures of $53 million increased by $9 million in the first quarter of 2026, largely driven by greater investments to support clinic expansions and business acquisitions. TELUS Digital capital expenditures of $37 million decreased by $4 million in the first quarter of 2026, mainly from lower real estate expenditures in Europe and Asia-Pacific.

As at March 31, 2026, our 5G network covered 33.4 million Canadians, representing over 90 per cent of the population.

Consolidated Financial Highlights

C$ millions, except footnotes and unless noted otherwise

Three months ended

March 31

Per cent

(unaudited)

2026

2025

change

Operating revenues (arising from contracts with customers)

4,989

5,018

(1)

Operating revenues and other income

5,013

5,057

(1)

Total operating expenses

4,479

4,305

Net income

144

301

(52)

Net income attributable to common shares

136

321

(58)

Adjusted Net income (1)

356

388

(8)

Basic EPS ($)

0.09

0.21

(57)

Adjusted basic EPS (1) ($)

0.23

0.26

(12)

EBITDA (1)

1,522

1,744

(13)

Adjusted EBITDA (1)

1,837

1,841

Capital expenditures (2)

651

587

Cash provided by operating activities

1,050

1,077

(3)

Free cash flow (1)

583

488

Telecom subscriber connections (3) (thousands)

17,722

16,729

Healthcare lives covered (4) (millions)

169.6

76.5

n/m

Notation used in the table above: n/m – not meaningful.

(1)

These are non-GAAP and other specified financial measures, which do not have standardized meanings under IFRS Accounting Standards and might not be comparable to those used by other issuers. For further definitions and explanations of these measures, see 'Non-GAAP and other specified financial measures' in this news release.

(2)

Capital expenditures include assets purchased, excluding right-of-use lease assets, but not yet paid for, and consequently differ from cash payments for capital assets, excluding spectrum licences, as reported in the consolidated financial statements. Refer to Note 31 of the consolidated financial statements for further information.

(3)

The sum of active mobile phone subscribers, connected device subscribers and internet subscribers, measured at the end of the respective periods based on information in billing and other source systems. Effective January 1, 2026 with retrospective application to January 1, 2025, we have revised our subscriber reporting to apply a product-intensive focus on our core bundling foundation of mobility and internet and thus will no longer report TV, security and automation and residential voice subscribers. This change concentrates our disclosure on our core bundling foundation and enables us to better serve our customers, while supporting the migration from legacy products and services to integrated IP streaming, mobile-first connectivity, and smart home solutions. Effective January 1, 2026, we made certain subscriber adjustments on a prospective basis, reducing our subscriber base for mobile phones (18,000), connected devices (78,000) and internet (30,000). See Section 5.4 in our first quarter 2026 MD&A for further details.

(4)

During the second quarter of 2025, we added 79.3 million healthcare lives covered as a result of the Workplace Options acquisition and a prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly.

First quarter 2026 Operating Highlights

TELUS technology solutions (TTech)

Mobile products and services

Fixed products and services

Agriculture and consumer goods services

TELUS Health

TELUS Digital

Dividend Declaration

The TELUS Board of Directors declared a quarterly dividend of $0.4184 per share on the issued and outstanding Common Shares of the Company payable on July 2, 2026 to holders of record at the close of business on June 10, 2026.

Corporate Highlights

TELUS makes significant contributions and investments in the communities where team members live, work and serve and to the Canadian economy on behalf of customers, shareholders and team members. These include:

Community Highlights

Giving Back to Our Communities

Empowering Canadians with Connectivity

Leading in ESG & Sustainability

Global awards and third party recognition

Access to quarterly results information

Interested investors, the media and others may review this quarterly earnings news release, MD&A, financial statements, quarterly results slides, audio and transcript of the investor webcast call, supplementary financial information at telus.com/investors.

TELUS' first quarter 2026 conference call is scheduled for Friday, May 8, 2026 at 1:30 pm ET (10:30 am PT) and will feature a presentation followed by a question and answer period with investment analysts. Interested parties can access the webcast at telus.com/investors. An audio recording will be available approximately 60 minutes after the call until July 7, 2026 at 1-855-201-2300. Quote conference access code 96709# and playback access code 96709#. An archive of the webcast will also be available at telus.com/investors and a transcript will be posted on the website within a few business days.

Caution regarding forward-looking statements

This news release contains forward-looking statements about expected events and our financial and operating performance. Forward-looking statements include any statements that do not refer to historical facts. They include, but are not limited to, statements relating to our objectives and our strategies to achieve those objectives, our expectations regarding trends in the telecommunications industry (including demand for data and ongoing subscriber base growth), our expectations regarding growth in different areas of our business and regarding the nature, timing and benefits of our asset monetization and deleveraging plans, and our financing plans (including our targeted dividend payments). Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target and other similar expressions, or verbs such as aim, anticipate, believe, could, expect, intend, may, plan, predict, seek, should, strive and will. These statements are made pursuant to the "safe harbour" provisions of applicable securities laws in Canada and the United States Private Securities Litigation Reform Act of 1995.

By their nature, forward-looking statements are subject to inherent risks and uncertainties and are based on assumptions, including assumptions about future economic conditions and courses of action. These assumptions may ultimately prove to have been inaccurate and, as a result, our actual results or other events may differ materially from expectations expressed in, or implied by, the forward-looking statements. The assumptions for our 2026 outlook, as described in Section 9 in our 2025 annual MD&A, remain the same, except for the updates below as well as our estimates regarding economic growth, inflation, unemployment and housing starts as discussed in Section 1.2 in our first quarter 2026 MD&A.

Risks and uncertainties that could cause actual performance or events to differ materially from the forward-looking statements made herein and in other TELUS filings include, but are not limited to, the following:

Risks and uncertainties include:

Risks relating to operational performance include:

We may not be able to deliver the service excellence our customers expect or maintain our competitive advantage in this area.

Risks and uncertainties include:

Risks include:

The assumptions underlying our forward-looking statements are described in additional detail in Section 9 General trends, outlook and assumptions, and regulatory developments and proceedings and Section 10 Risks and risk management in our 2025 annual MD&A. Those descriptions are incorporated by reference in this cautionary statement but are not intended to be a complete list of the risks that could affect the Company, or of our assumptions. Updates to the assumptions on which our 2026 outlook is based are presented in Section 9 Update to general trends, outlook and assumptions, and regulatory developments and proceedings in our first quarter 2026 MD&A.

Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation. Except as otherwise indicated in this document, the forward-looking statements made herein do not reflect the potential impact of any non-recurring or special items or any mergers, acquisitions, dispositions or other business combinations or transactions that may be announced or that may occur after the date of this document.

Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements in this document describe our expectations, and are based on our assumptions, as at the date of this document and are subject to change after this date. We disclaim any intention or obligation to update or revise any forward-looking statements except as required by law.

This cautionary statement qualifies all of the forward-looking statements in this document.

Non-GAAP and other specified financial measures

We issue guidance on and report certain non-GAAP measures that are used to evaluate the performance of TELUS, as well as to determine compliance with debt covenants and to manage our capital structure. As non-GAAP measures generally do not have standardized meanings, they might not be comparable to similar measures disclosed by other issuers. Securities regulations require that such measures be clearly defined, qualified and reconciled with their nearest GAAP measure. Certain of the metrics do not have generally accepted industry definitions.

Adjusted Net income and adjusted basic earnings per share (EPS): These are non-GAAP measures that do not have any standardized meanings prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other issuers. Adjusted Net income excludes the effects of restructuring and other costs, real estate rationalization-related restructuring impairments, income tax-related adjustments, long-term debt prepayment premium, and other adjustments (identified in the following tables). Adjusted basic EPS is calculated as adjusted Net income divided by the basic weighted-average number of Common Shares outstanding. These measures are used to evaluate performance at a consolidated level and exclude items that, in management's view, may obscure underlying trends in business performance or items of an unusual nature that do not reflect our ongoing operations. They should not be considered as alternatives to Net income and basic EPS in measuring TELUS' performance.

Reconciliation of adjusted Net income

Three months ended

March 31

C$ millions

2026

2025

Net income attributable to Common Shares

136

321

Add (deduct) amounts net of amount attributable to non-controlling interests:

Restructuring and other costs

315

Tax effects of restructuring and other costs

(87)

(24)

Real estate rationalization-related restructuring impairments

Tax effect of real estate rationalization-related restructuring impairments

(1)

Income tax-related adjustments

(11)

(4)

Adjusted Net income

356

388

Reconciliation of adjusted basic EPS

Three months ended

March 31

2026

2025

Basic EPS

0.09

0.21

Add (deduct) amounts net of amount attributable to non-controlling interests:

Restructuring and other costs, per share

0.20

0.06

Tax effect of restructuring and other costs, per share

(0.05)

(0.01)

Income tax-related adjustments, per share

(0.01)

Adjusted basic EPS

0.23

0.26

EBITDA (earnings before interest, income taxes, depreciation and amortization): We issue guidance on and report EBITDA because it is a key measure used to evaluate performance at a consolidated level. EBITDA is commonly reported and widely used by investors and lending institutions as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. EBITDA should not be considered as an alternative to Net income in measuring TELUS' performance, nor should it be used as a measure of cash flow. EBITDA as calculated by TELUS is equivalent to Operating revenues and other income less the total of Goods and services purchased expense and Employee benefits expense.

We calculate Adjusted EBITDA by excluding items of an unusual nature that do not reflect our ongoing operations and should not, in our opinion, be considered in a long-term valuation metric or should not be included in an assessment of our ability to service or incur debt.

EBITDA and Adjusted EBITDA reconciliations

TTech

TELUS Health

TELUS Digital

Eliminations

Total

Three months ended

March 31

(C$ millions)

2026

2025 1

2026

2025 1

2026

2025 1

2026

2025

2026

2025

Net income

144

301

Financing costs

335

344

Income taxes

107

EBIT

665

842

(47)

(32)

(65)

(45)

(19)

(13)

534

752

Depreciation

517

529

583

592

Amortization of intangible assets

241

240

405

400

EBITDA

1,423

1,611

(19)

(13)

1,522

1,744

Add restructuring and other costs included in EBITDA

259

315

EBITDA – excluding restructuring and other costs and Adjusted EBITDA

1,682

1,690

(19)

(13)

1,837

1,841

(1)

2025 results have been restated.

Adjusted EBITDA less capital expenditures is calculated for our reportable segments, as it represents a TELUS performance measure that may be more comparable to similar measures presented by other issuers.

Adjusted EBITDA less capital expenditures reconciliation

TTech

TELUS Health

TELUS Digital

Eliminations

Total

Three months ended March 31

(C$ millions)

2026

2025 1

2026

2025 1

2026

2025 1

2026

2025

2026

2025

Adjusted EBITDA

1,682

1,690

(19)

(13)

1,837

1,841

Capital expenditures

(580)

(515)

(53)

(44)

(37)

(41)

(651)

(587)

Adjusted EBITDA less capital expenditures

1,102

1,175

1,186

1,254

(1)

2025 results have been restated.

Free cash flow: We report this measure as a supplementary indicator of our operating performance, and there is no generally accepted industry definition of free cash flow. It should not be considered as an alternative to the measures in the condensed interim consolidated statements of cash flows. Free cash flow excludes certain working capital changes (such as trade receivables and trade payables), proceeds from divested assets and other sources and uses of cash, as reported in the condensed interim consolidated statements of cash flows. It provides an indication of the amount of cash generated by operations that is available after capital expenditures and may be used for discretionary purposes, among other things, to pay dividends, repay debt, purchase shares or make other investments. Free cash flow may be supplemented from time to time by proceeds from divested assets or financing activities.

Free cash flow calculation

Three months ended March 31, 2026

Three months ended March 31, 2025

(C$ millions)

Cash provided by

operating

activities

Difference

Free cash flow

Cash provided

by operating

activities

Difference

Free cash

flow

EBITDA

1,522

1,744

Restructuring and other costs, net of disbursements

165

(36)

Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment ® mobile device financing

Effect of non-discretionary lease principal 1

(113)

(193)

Items from the condensed interim consolidated statements of cash flows:

Share-based compensation, net of employee share purchase plan cash outflows

Net employee defined benefit plans expense

Employer contributions to employee defined benefit plans

(5)

Gain on contributions of real estate to joint ventures

(5)

(8)

(Income) loss from equity accounted investments

(1)

Interest paid

(430)

(371)

Interest received

Other

(11)

Other working capital items

(165)

165

(172)

172

Capital expenditures

(651)

(587)

1,166

(583)

583

1,231

(589)

642

Income taxes paid, net of refunds 2

(116)

116

(154)

1,050

(467)

583

1,077

(589)

488

(1)

As set out in Note 3 of the interim consolidated financial statements, we may issue new debt to replace existing debt with different characteristics. As part of managing our capital structure, we chose to replace lease principal of $732 through discretionary repayment.

(2)

As set out in Note 3 of the interim consolidated financial statements, as part of managing our capital structure, we paid incremental income taxes in connection with issuing subsidiary equity and such amount has been excluded from the free cash flow amount shown in this table

Mobile phone average revenue per subscriber per month (ARPU) is calculated as network revenue derived from monthly service plan, roaming and usage charges; divided by the average number of mobile phone subscribers on the network during the period, and is expressed as a rate per month.

Appendix

Operating revenues and other income – TTech segment

C$ millions

Three months ended

March 31

Per cent

(unaudited)

2026

2025

(restated)

change

Mobile network revenue

1,750

1,732

Mobile equipment and other service revenues

474

524

(10)

Fixed data services (1)

1,175

1,168

Fixed voice services

161

170

(5)

Fixed equipment and other service revenues

124

143

(13)

Agriculture and consumer goods services

(10)

Operating revenues (arising from contracts with customers)

3,772

3,835

(2)

Other income

(69)

External Operating revenues and other income

3,784

3,874

(2)

Intersegment revenues

–

TTech Operating revenues and other income

3,790

3,880

(2)

(1)

Excludes agriculture and consumer goods services.

Operating revenues and other income – TELUS health segment

C$ millions

Three months ended

March 31

Per cent

(unaudited)

2026

2025

change

Health services

522

470

Health equipment

Operating revenues (arising from contracts with customers)

523

471

Other income

–

n/m

External Operating revenues and other income

524

471

Intersegment revenues

TELUS Health Operating revenues and other income

526

473

Operating revenues and other income – TELUS digital experience segment

C$ millions

Three months ended

March 31

Per cent

(unaudited)

2026

2025

change

Operating revenues (arising from contracts with customers)

694

712

(3)

Other income

–

n/m

External Operating revenues and other income

705

712

(1)

Intersegment revenues

108

102

TELUS Digital Operating revenues and other income

813

814

–

About TELUS

TELUS (TSX: T, NYSE: TU) is a world-leading communications technology company operating in more than 45 countries and generating over $20 billion in annual revenue with more than 21 million customer connections through our advanced suite of broadband services for consumers, businesses and the public sector. We are committed to leveraging our technology to enable remarkable human outcomes. TELUS is passionate about putting our customers and communities first, leading the way globally in client service excellence and social capitalism. TELUS Health is enhancing approximately 170 million lives across 200 countries and territories through innovative preventive medicine and well-being technologies. TELUS Agriculture & Consumer Goods utilizes digital technologies and data insights to optimize the connection between producers and consumers. TELUS Digital specializes in digital customer experiences and future-focused digital transformations that deliver value for their global clients. Guided by our enduring 'give where we live' philosophy, TELUS continues to invest in initiatives that support education, health and community well-being. In 2023, we launched the TELUS Student Bursary, which strives to ensure that every young person in Canada who wants a post-secondary education has the opportunity to pursue one. To date, the program has distributed over $6 million in bursaries to 2,000 students and counting. Since 2000, TELUS, our team members and retirees have contributed $1.85 billion in cash, in-kind contributions, time and programs, including 2.5 million days of service - earning TELUS the distinction of the world's most giving company.

For more information, visit telus.com and telusdigital.com or follow @TELUSNews on X and @Darren_Entwistle on Instagram.

Investor Relations

Ian McMillan

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Steve Beisswanger

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SOURCE TELUS Corporation