Revenue growth has stalled with a 0.3% year-over-year decline in 2026Q1, while gross margins experienced a significant contraction to 16.5% from historical levels near 60%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 20.49B | 20.51B | 20.14B | 20B | 18.29B | 16.84B | 15.34B | 14.59B | 14.1B | 13.2B | 12.72B | 12.43B | 11.93B | 11.34B | 10.85B | 10.4B | 9.78B | 10.06B | 11.75B | 9.07B | 8.68B | 8.14B | 7.58B | 7.15B | 7.01B | 7.2B | 6.43B | 5.76B | 4.84B |
| Revenue Growth % | 0.98% | 1.82% | 0.67% | 9.36% | 8.64% | 9.76% | 5.15% | 3.5% | 6.76% | 3.75% | 2.37% | 4.22% | 5.21% | 4.46% | 4.38% | 6.32% | -2.78% | -14.38% | 29.46% | 4.53% | 6.61% | 7.41% | 6.09% | 1.99% | -2.72% | 11.96% | 11.65% | 18.98% | - |
| Cost of Goods Sold | 11.82B | 13.58B | 7.64B | 7.54B | 7.11B | 6.7B | 6.27B | 6.07B | 6.37B | 5.93B | 5.63B | 5.53B | 5.3B | 4.96B | 4.82B | 4.73B | 6.06B | 6.2B | 7.08B | 3.05B | 2.74B | 2.65B | 2.41B | 4.3B | 4.49B | 4.67B | 3.97B | 3.54B | 3.45B |
| COGS % of Revenue | - | 66.24% | 37.93% | 37.68% | 38.85% | 39.78% | 40.86% | 41.61% | 45.18% | 44.96% | 44.25% | 44.51% | 44.43% | 43.77% | 44.42% | 45.46% | 61.99% | 61.68% | 60.24% | 33.59% | 31.59% | 32.58% | 31.75% | 60.2% | 64.05% | 64.88% | 61.69% | 61.52% | 71.27% |
| Gross Profit | 8.67B | 6.92B | 12.5B | 12.47B | 11.19B | 10.14B | 9.07B | 8.52B | 7.73B | 7.27B | 7.09B | 6.9B | 6.63B | 6.37B | 6.03B | 5.67B | 3.72B | 3.85B | 4.67B | 6.03B | 5.94B | 5.49B | 5.17B | 2.84B | 2.52B | 2.53B | 2.46B | 2.22B | 1.39B |
| Gross Margin % | 42.31% | 33.76% | 62.07% | 62.32% | 61.15% | 60.21% | 59.14% | 58.39% | 54.82% | 55.04% | 55.75% | 55.49% | 55.57% | 56.23% | 55.58% | 54.54% | 38.01% | 38.32% | 39.76% | 66.41% | 68.41% | 67.42% | 68.25% | 39.8% | 35.95% | 35.12% | 38.31% | 38.48% | 28.73% |
| Gross Profit Growth % | - | -44.62% | 0.26% | 11.47% | 10.32% | 11.75% | 6.5% | 10.25% | 6.33% | 2.44% | 2.84% | 4.07% | 3.98% | 5.67% | 6.37% | 52.57% | -3.56% | -17.48% | -22.49% | 1.46% | 8.18% | 6.1% | 81.92% | 12.92% | -0.43% | 2.63% | 11.18% | 59.36% | - |
| Operating Expenses | 6.23B | 4.56B | 9.7B | 10.11B | 8.23B | 7.07B | 6.59B | 5.54B | 5.14B | 4.66B | 4.95B | 4.57B | 4.25B | 4.16B | 3.94B | 3.7B | 1.74B | 1.8B | 1.52B | 4.03B | 3.86B | 3.76B | 3.67B | 1.65B | 1.57B | 1.49B | 1.21B | 1.06B | 1.02B |
| OpEx % of Revenue | - | 22.23% | 48.15% | 50.52% | 45% | 41.96% | 42.96% | 37.99% | 36.47% | 35.31% | 38.9% | 36.76% | 35.6% | 36.69% | 36.27% | 35.62% | 17.74% | 17.93% | 12.95% | 44.42% | 44.42% | 46.23% | 48.46% | 23.13% | 22.41% | 20.75% | 18.84% | 18.43% | 21.1% |
| Selling, General & Admin | 4.41B | 0 | 5.91B | 6.15B | 4.9B | 4.27B | 3.7B | 3.03B | 2.9B | 2.6B | 2.94B | 2.71B | 2.49B | 2.42B | 2.13B | 1.89B | 2.68B | 2.65B | 2.58B | 2.42B | 2.28B | 2.14B | 2.03B | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | - | 29.33% | 30.73% | 26.78% | 25.35% | 24.12% | 20.8% | 20.55% | 19.66% | 23.1% | 21.79% | 20.85% | 21.38% | 19.62% | 18.21% | 27.43% | 26.32% | 21.96% | 26.63% | 26.27% | 26.29% | 26.79% | - | - | - | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 2.44B | 2.36B | 2.8B | 2.36B | 2.95B | 3.07B | 2.48B | 2.98B | 2.84B | 2.6B | 2.18B | 2.35B | 2.38B | 2.21B | 2.11B | 1.97B | 1.91B | 1.85B | 2.51B | 1.97B | 2.01B | 1.67B | 1.45B | 1.16B | 378.4M | 837M | 1.25B | 1.15B | 369.3M |
| Operating Margin % | 11.89% | 11.52% | 13.92% | 11.81% | 16.15% | 18.26% | 16.18% | 20.41% | 20.13% | 19.73% | 17.15% | 18.93% | 19.97% | 19.54% | 19.42% | 18.93% | 19.51% | 18.42% | 21.4% | 21.76% | 23.21% | 20.53% | 19.09% | 16.27% | 5.4% | 11.62% | 19.47% | 20.04% | 7.63% |
| Operating Income Growth % | - | -15.73% | 18.71% | -20.04% | -3.9% | 23.85% | -16.63% | 4.93% | 8.91% | 19.39% | -7.27% | -1.22% | 7.54% | 5.13% | 7.06% | 3.14% | 3.01% | -26.33% | 27.35% | -2.01% | 20.53% | 15.48% | 24.46% | 207.35% | -54.79% | -33.18% | 8.47% | 212.7% | - |
| EBITDA | 7.68B | 6.42B | 6.84B | 6.43B | 6.41B | 6.29B | 5.49B | 5.55B | 5.12B | 4.77B | 4.24B | 4.26B | 4.22B | 4.02B | 3.97B | 3.78B | 3.64B | 3.66B | 4.6B | 3.59B | 3.59B | 3.3B | 3.09B | 2.82B | 1.95B | 2.51B | 2.46B | 2.22B | 1.39B |
| EBITDA Margin % | 37.5% | 31.32% | 33.96% | 32.15% | 35.02% | 37.36% | 35.81% | 38.07% | 36.29% | 36.16% | 33.32% | 34.29% | 35.35% | 35.44% | 36.6% | 36.34% | 37.25% | 36.43% | 39.18% | 39.55% | 41.36% | 40.47% | 40.77% | 39.4% | 27.81% | 34.79% | 38.31% | 38.48% | 28.73% |
| EBITDA Growth % | 10.62% | -6.11% | 6.36% | 0.39% | 1.84% | 14.49% | -1.08% | 8.58% | 7.14% | 12.59% | -0.52% | 1.09% | 4.93% | 1.16% | 5.13% | 3.71% | -0.57% | -20.4% | 28.23% | -0.03% | 8.95% | 6.62% | 9.76% | 44.5% | -22.24% | 1.67% | 11.18% | 59.36% | - |
| D&A (Non-Cash Add-back) | 5.25B | 4.06B | 4.04B | 4.07B | 3.45B | 3.22B | 3.01B | 2.58B | 2.28B | 2.17B | 2.06B | 1.91B | 1.83B | 1.8B | 1.86B | 1.81B | 1.74B | 1.81B | 2.09B | 1.61B | 1.58B | 1.62B | 1.64B | 1.65B | 1.57B | 1.67B | 1.21B | 1.06B | 1.02B |
| EBIT | 2.43B | 2.86B | 2.64B | 2.38B | 3.19B | 3.08B | 2.46B | 2.95B | 2.82B | 2.75B | 2.17B | 2.4B | 2.39B | 2.2B | 2.02B | 1.98B | 1.91B | 1.79B | 2.04B | 1.98B | 2.02B | 1.67B | 1.48B | 1.18B | 447.2M | 667.1M | 1.13B | 1.27B | 1.21B |
| Net Interest Income | -1.67B | -1.47B | -1.38B | -1.26B | -846M | -785M | -735M | -698M | -630M | -578M | -504M | -469M | -457M | -424M | -343.48M | -386M | -523M | -535M | -463M | -440M | -498.3M | -585M | -616.4M | -639.7M | -689.7M | -696.1M | 0 | 0 | 0 |
| Interest Income | 76.06M | 56M | 39M | 29M | 21M | 20M | 11M | 11M | 12M | 7M | 2M | 26M | 6M | 10M | 15.06M | 3M | 4M | 49.21M | 14M | 37.4M | 12.3M | 58.7M | 39.1M | 43.3M | 25.9M | 12.8M | 0 | 0 | 0 |
| Interest Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 993.51M | 1.2B | 1.23B | 1.09B | 2.32B | 2.28B | 1.71B | 2.24B | 2.18B | 2.03B | 1.66B | 1.91B | 1.93B | 1.77B | 1.77B | 1.59B | 1.37B | 1.26B | 1.91B | 1.5B | 1.48B | 1.03B | 825.5M | 511.7M | -266.5M | -45.4M | 957.1M | 646.6M | 1.13B |
| Pretax Margin % | 4.85% | 5.86% | 6.1% | 5.44% | 12.69% | 13.53% | 11.15% | 15.38% | 15.44% | 15.39% | 13.06% | 15.33% | 16.15% | 15.6% | 16.36% | 15.3% | 13.97% | 12.54% | 16.23% | 16.51% | 17.07% | 12.65% | 10.89% | 7.16% | -3.8% | -0.63% | 14.88% | 11.22% | 23.27% |
| Income Tax | 373.14M | 425M | 290M | 222M | 604M | 580M | 451M | 468M | 552M | 553M | 426M | 524M | 501M | 474M | 457M | 376M | 328M | 212.56M | 530.61M | 233.6M | 351M | 322M | 255.1M | 176.9M | -42.5M | 93.4M | 496.1M | 296.9M | 524M |
| Effective Tax Rate % | 37.56% | 35.36% | 23.62% | 20.39% | 26.01% | 25.46% | 26.36% | 20.86% | 25.37% | 27.21% | 25.63% | 27.49% | 26.01% | 26.81% | 25.75% | 23.63% | 24.01% | 16.85% | 27.82% | 15.59% | 23.68% | 31.26% | 30.9% | 34.57% | 15.95% | -205.73% | 51.83% | 45.92% | 46.5% |
| Net Income | 928.35M | 1.11B | 993M | 841M | 1.61B | 1.66B | 1.21B | 1.75B | 1.6B | 1.46B | 1.22B | 1.38B | 1.43B | 1.29B | 1.32B | 1.22B | 1.03B | 1.05B | 1.37B | 1.26B | 1.12B | 700.3M | 565.8M | 331.5M | -229M | 453.5M | 461M | 349.7M | 72.4M |
| Net Margin % | 4.53% | 5.43% | 4.93% | 4.2% | 8.83% | 9.83% | 7.87% | 11.97% | 11.35% | 11.06% | 9.61% | 11.12% | 11.95% | 11.42% | 12.15% | 11.72% | 10.57% | 10.39% | 11.69% | 13.86% | 12.93% | 8.6% | 7.46% | 4.64% | -3.27% | 6.3% | 7.17% | 6.07% | 1.49% |
| Net Income Growth % | -21.79% | 12.08% | 18.07% | -47.93% | -2.42% | 37.12% | -30.87% | 9.13% | 9.59% | 19.38% | -11.51% | -3.02% | 10.12% | -1.82% | 8.12% | 17.89% | -1.05% | -23.88% | 9.13% | 12.06% | 60.29% | 23.77% | 70.68% | 244.76% | -150.5% | -1.63% | 31.83% | 383.01% | - |
| Net Income (Continuing) | 620.37M | 777M | 938M | 867M | 1.72B | 1.7B | 1.26B | 1.78B | 1.62B | 1.58B | 1.24B | 1.38B | 1.43B | 1.29B | 1.2B | 1.22B | 1.05B | 1B | 1.13B | 1.26B | 1.15B | 708.1M | 570.4M | 327.7M | -225.9M | -138.8M | 386.3M | 349.7M | 597.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 809.09M | 804M | 1.18B | 1.19B | 1.09B | 943M | 414.44M | 85.6M | 82M | 42M | 19M | 0 | 0 | 0 | 0 | 0 | 22M | 21.99M | 27.99M | 25.9M | 23.6M | 25.6M | 13.1M | 10.7M | 11.2M | 0 | 74.3M | 12.4M | 9.6M |
| EPS (Diluted) | 0.59 | 0.72 | 0.67 | 0.58 | 1.15 | 1.23 | 0.94 | 1.45 | 1.34 | 1.32 | 1.03 | 1.15 | 1.16 | 1.00 | 0.92 | 0.94 | 0.82 | 0.79 | 0.88 | 0.94 | 0.83 | 0.49 | 0.39 | 0.23 | -0.18 | 0.38 | 0.46 | 0.37 | 0.07 |
| EPS Growth % | -23.81% | 7.46% | 15.52% | -49.57% | -6.5% | 30.85% | -35.17% | 8.21% | 1.52% | 28.16% | -10.43% | -0.86% | 16% | 8.7% | -2.13% | 14.63% | 3.8% | -10.23% | -6.38% | 13.25% | 69.39% | 25.64% | 69.57% | 227.78% | -147.37% | -17.39% | 24.32% | 448.15% | - |
| EPS (Basic) | - | 0.73 | 0.67 | 0.58 | 1.16 | 1.23 | 0.95 | 1.45 | 1.34 | 1.32 | 1.03 | 1.15 | 1.16 | 1.01 | 0.93 | 0.94 | 0.82 | 0.79 | 0.88 | 0.95 | 0.83 | 0.49 | 0.40 | 0.23 | -0.18 | 0.38 | 0.46 | 0.37 | 0.07 |
| Diluted Shares Outstanding | 1.56B | 1.53B | 1.49B | 1.46B | 1.4B | 1.35B | 1.28B | 1.2B | 1.19B | 1.19B | 1.19B | 1.21B | 1.24B | 1.29B | 1.31B | 1.3B | 1.28B | 1.27B | 1.29B | 1.34B | 1.39B | 1.44B | 1.43B | 1.41B | 1.27B | 1.18B | 994.57M | 948.49M | 939.26M |
| Basic Shares Outstanding | 1.56B | 1.55B | 1.49B | 1.45B | 1.4B | 1.35B | 1.27B | 1.2B | 1.19B | 1.19B | 1.18B | 1.21B | 1.23B | 1.28B | 1.3B | 1.3B | 1.28B | 1.27B | 1.28B | 1.33B | 1.38B | 1.43B | 1.42B | 1.4B | 1.27B | 1.18B | 989.19M | 948.49M | 939.26M |
| Dividend Payout Ratio | - | 146.27% | 157.3% | 156.36% | 73.56% | 63.14% | 77.05% | 65.81% | 71.31% | 74.11% | 87.49% | 71.78% | 64.07% | 65.84% | 58.73% | 52.67% | 45.74% | 57.61% | 0.36% | 41.74% | 36.94% | 44.58% | 43.96% | 51.89% | - | 71.71% | 72.82% | 95.77% | 427.76% |
Margin compression and competition
As reported in recent financial filings, TELUS Corporation's revenue growth has stalled, with the most recent quarter showing a 0.3% year-over-year decline, suggesting that the company's core telecommunications business is struggling to find meaningful expansion in an increasingly saturated and competitive Canadian market environment.
The lack of consistent top-line momentum appears to reflect the maturity of the domestic wireless and wireline segments. Investors should monitor whether the company's diversification into non-telco verticals can eventually offset the deceleration observed in its core connectivity services.
Based on the provided income statement data, TELUS experienced a significant gross margin contraction to 16.5% in 2026Q1, a sharp departure from the 60% range maintained throughout 2024 and 2025, which warrants further investigation into potential shifts in product mix or unexpected cost escalations.
This sudden compression suggests that the company may be facing severe pricing pressure or an inability to pass through rising operational costs to the end consumer. Such volatility in gross profitability may indicate that the firm's competitive moat is being tested by aggressive market entrants.
According to the latest quarterly figures, the operating margin has plummeted to 11.52% as of the most recent reporting period, indicating that the company is failing to achieve the necessary scale to offset its high fixed-cost infrastructure requirements in a challenging macroeconomic climate.
The inability to maintain operating margins suggests that SG&A and network maintenance costs are consuming an increasing share of gross profit. This trend may imply that the company's historical investments in fiber and 5G are not yet yielding the expected efficiency gains.
As evidenced by the erratic net income fluctuations, including a 58.4% decline in EPS during 2026Q1, the quality of reported earnings appears compromised by non-operating items and significant quarterly swings that make it difficult to discern the company's true long-term profitability trajectory for shareholders.
The inconsistency in net income, highlighted by the near-zero net margin in 2025Q2, suggests that investors should be cautious when relying on headline EPS figures. These results may indicate that restructuring costs or other one-time charges are masking the core operational reality of the business.
Based on the reported income statement, the combination of declining revenue and compressed margins raises serious questions regarding the sustainability of the company's dividend growth program, as the current earnings profile may not provide sufficient coverage for ongoing capital-intensive network reinvestment and shareholder distributions.
Short-sellers would likely focus on the divergence between the company's dividend commitments and its deteriorating cash-generating capacity. If margins do not recover, management may be forced to choose between maintaining the dividend and funding the necessary infrastructure to remain competitive against national rivals.
Quick answers to the most common questions about buying TU stock.
For fiscal year 2025, TELUS Corporation (TU) reported total revenue of $20.51B. This represents a 323.4% increase compared to $4.84B in 1998.
TELUS Corporation (TU) is profitable, generating $1.11B in net income for the fiscal year ending 2025 with a net profit margin of 5.4%.
TELUS Corporation (TU) reported an operating income of $2.36B, resulting in an operating profit margin of 11.5%. This margin reflects the operational efficiency of the business before interest and taxes.
TELUS Corporation (TU) generated $6.92B in gross profit for the year, representing a gross profit margin of 33.8%. This demonstrates the company's core pricing power and production efficiency.