Telus (TU) | News Based Sentiment Analysis

• On September 2, 2025, TELUS announced a definitive agreement to acquire full ownership of TELUS Digital for approximately US$539 million, a 62.6% premium over the 30-day volume-weighted average price as of June 12, 2025, and a 32.4% increase from their initial proposal of US$3.40 per share. This acquisition aims to strengthen TELUS’ AI and SaaS capabilities, signaling a strategic investment in future growth areas.
• TELUS strategically reduced its net debt by approximately $1.26 billion following the closing of the sale of a 49.9% interest in Terrion to La Caisse on September 11, 2025. This transaction, valuing Terrion at over $2.5 billion, is expected to reduce TELUS' net debt-to-EBITDA ratio by 0.17x, improving the company’s financial flexibility.
• Analysts at Cormark raised their FY2025 earnings per share (EPS) estimates on September 11, 2025, anticipating $1.08 per share, up from a previous estimate of $1.03, with another report indicating a raise to $0.78 from $0.74 and a consensus of $0.71. These upward revisions suggest growing confidence in TELUS’ financial performance.
• TELUS announced an increased quarterly dividend of $0.4163 per share, payable on October 1, 2025, to shareholders of record on September 10, 2025, representing a 7.5% yield and an increase from the previous $0.40 quarterly dividend. This demonstrates a commitment to returning value to shareholders, despite mixed analyst sentiment.
• On September 12, 2025, TELUS announced it will carry Apple's iPhone 17 lineup, offering customers savings of up to $650 with the Bring-It-Back program and up to $670 in trade-in offers. The devices are available for $0 upfront on a two-year term with TELUS Easy Payment and 5G+ Complete plans, potentially driving subscriber growth.
• Scotiabank lifted its price target on TELUS shares from C$25.00 to C$26.00 on September 10, 2025, while maintaining an “outperform” rating, indicating a positive outlook on the stock’s potential. This follows a previous “outperform” rating issued on July 15, 2025.

The Investment Story: September was a busy month for TELUS, marked by strategic acquisitions, debt reduction, positive analyst revisions, and continued shareholder returns. These moves demonstrate a focus on strengthening core capabilities and enhancing financial flexibility.

What It Means for Investors: The developments suggest a positive trajectory for TELUS, with investments in AI and cloud computing, improved financial health, and a commitment to shareholder value. However, investors should remain aware of potential short-term price volatility and monitor the integration of TELUS Digital.

Looking Ahead: Investors should closely monitor the outcome of the Special Meeting on October 27, 2025, regarding the TELUS Digital acquisition and track the company’s performance against analyst expectations. Continued updates on the Terrion divestiture and iPhone 17 sales will also be key.

The Bottom Line: TELUS is executing a strategic plan focused on growth, efficiency, and shareholder returns. While mixed analyst sentiment persists, the company’s recent moves position it favorably for long-term success, making it a compelling investment for those seeking exposure to the Canadian telecom and technology sectors.