TELUS Reports $660 Million Q3 Loss After $800 Million Health Write-Down

TELUS, one of Canada’s biggest phone and internet companies, reported a net loss of $660 million Canadian dollars for the third quarter of 2026. The loss came mostly from an $800 million non-cash write-down on its health business, not from customers leaving. The core phone business kept adding customers, while the company launched a plan to cut about $900 million a year in costs by the end of 2028.

What happened

TELUS released results for the quarter ended September 30, 2026, on November 6, 2026. The main numbers, all in Canadian dollars, were:

• Net loss of $660 million, compared with net income of $431 million a year earlier.
• An $800 million pre-tax, non-cash goodwill impairment on TELUS Health, after the company lowered its view of what that business is worth. TELUS is trying to sell the health unit.
• Operating revenue of $5.0 billion, down from $5.1 billion a year earlier. Service revenue was $4.5 billion, down 1 percent.
• Adjusted EBITDA, a common measure of operating profit, of $1.8 billion, down 5 percent. After adjusting for one-time items, the decline was 2 percent.
• Adjusted net income of $251 million, down 32 percent, and free cash flow of $396 million, down 35 percent.
• The phone business added 84,000 net new mobile phone customers, up from 82,000 a year earlier. The churn rate, the share of customers who cancel each month, fell to 1.01 percent. Average revenue per phone user held flat at $57.22 a month.
• Net debt stood at 3.6 times adjusted EBITDA. TELUS aims to bring that down to 3.0 times or lower by the end of 2028.
• TELUS reaffirmed its full-year 2026 guidance, so its targets for the year are unchanged.

TELUS also announced an efficiency program targeting about $900 million in annual savings by the end of 2028, and said it plans to sell side businesses, including TELUS Health and its agriculture unit.

Why it matters for beginners

A net loss does not always mean the everyday business is failing. Here, the $800 million write-down was non-cash, which means it was an accounting adjustment and no cash left the company for it. Even so, the underlying numbers also softened, with revenue, operating profit and free cash flow all lower than a year earlier.

There is also a dividend lesson in this story. TELUS cut its quarterly dividend by about 55 percent in July 2026, to $0.1875 a share, to free up cash to pay down debt. These results did not change the dividend again, and the board declared the same $0.1875 quarterly payout, payable on January 4, 2027. A dividend can be cut even at a large, well-known company, which is why income investors watch a company’s debt and cash flow, not just its size. Large, established companies are often called blue chip stocks, and you can read what that label does and does not promise in our guide to what blue chip stocks are.

What to watch next

• The sale of TELUS Health and the agriculture unit, and what price they fetch.
• Progress on the $900 million savings plan and whether debt falls toward 3.0 times EBITDA by the end of 2028.
• Whether phone customer growth continues and average revenue per user stays flat or starts rising again.
• The next quarterly results, and any change to the dividend or the full-year guidance.

FAQ

What is a write-down or impairment?

It is an accounting charge a company takes when it decides a business or asset is worth less than the value recorded on its books. It reduces reported profit, but it does not mean that amount of cash was spent in the quarter.

Did TELUS lose $660 million in cash?

No. The $800 million impairment was non-cash. TELUS still generated $396 million of free cash flow in the quarter, though that was down 35 percent from a year earlier.

Did the dividend change with these results?

No. The 55 percent dividend cut happened in July 2026, before these results. The quarterly payout stays at $0.1875 a share.

Is TELUS still adding customers?

Yes. It added 84,000 net new phone customers in the quarter, slightly more than a year earlier, and fewer customers cancelled, with churn at 1.01 percent.

Sources

• TELUS, “TELUS Reports Third Quarter 2026 Results,” November 6, 2026 (company release).
• Telecompaper, “Telus reports Q3 net loss of CAD 660 mln; launches new cost-cutting drive,” November 6, 2026 (report).

This article is for general information and education only. It is not legal or financial advice.