TELUS (TU) stock falls on C$800M goodwill writedown

TELUS (NYSE: TU) shares were down 4.51% in early trading on November 6, 2026, after TELUS Q3 2026 results showed a net loss of C$660 million, against a profit of C$431 million a year earlier. The loss came from a C$800 million non-cash goodwill impairment on its TELUS Health unit.

What TELUS reported in its Q3 2026 results

Adjusted EBITDA is operating profit before interest, taxes, depreciation and amortization, excluding one-off items. Adjusted EPS is profit per share on the same cleaned-up basis. Goodwill is the premium paid for past acquisitions, and an impairment writes it down when a business is judged to be worth less. Revenue from TELUS Digital fell on lower volumes from two hyperscale clients, offsetting growth in the core telecom business.

TELUS reaffirmed its full-year 2026 guidance (its own financial forecast) and launched an efficiency program targeting about C$900 million in annualized cash savings exiting 2028. Net debt stood at 3.6 times Adjusted EBITDA, and the company aims for 3.0 times or lower by year-end 2028.

Why the stock fell 4.5%

The drop was within the stock's normal range, roughly three-quarters of a typical day's swing. The headline loss of C$0.42 per share, driven by the TELUS Health writedown, was the most visible change. Behind it, financing costs more than doubled to C$376 million from C$154 million, and the 35% fall in free cash flow came as capital spending rose 8% to C$701 million, at a time when the company is trying to cut debt.

What to watch next

• Progress on selling TELUS Health and TELUS Agriculture & Consumer Goods, with proceeds going to debt reduction

• Delivery of the C$900 million savings program, about 80% of which is meant to come from core telecom

• Mobile trends after 84,000 net new phone customers and churn of 1.01%, a three-year low

FAQ

Why did TELUS write down TELUS Health?

TELUS said the unit's recoverable amount fell below its book value because of updated growth expectations, broader market conditions and a valuation update tied to the active sale process.

Is TELUS still paying a dividend?

Yes. TELUS paid C$444 million in dividends to common shareholders in the quarter, after a dividend reset and the removal of its dividend reinvestment plan discount announced in July.

Sources

• 6-K - TELUS CORP: earnings release exhibit (U.S. SEC EDGAR)

• 6-K - TELUS CORP: earnings release exhibit, financial statements (U.S. SEC EDGAR)

This article is for information only and is not investment advice.