Why is TELUS stock up 1.9% today?

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Telus rises 1.95% to C$12.01 today

Highlights

TELUS Corporation cut its quarterly dividend by 55% to CAD 0.1875 per share and targets CAD 2.7 billion in cost savings by 2028.
Second-quarter revenue reached CAD 4.92 billion with a net loss of CAD 1.84 billion, including a non-cash impairment charge related to TELUS Digital.
TELUS stock traded between C$11.8 and C$12.18 with negative momentum signals and a 75% probability of a downward move over five days.

Dividend reduction and cost cuts as response to quarterly loss

TELUS Corporation implemented a 55% reduction in its quarterly dividend to CAD 0.1875 per share and began an extensive plan to achieve approximately CAD 2.7 billion in cost savings by 2028. The company reported second-quarter revenue of CAD 4.92 billion and a net loss of CAD 1.84 billion, partly due to a non-cash impairment charge tied to TELUS Digital. TELUS also launched new technology initiatives, including scam protection for mobility plans, infrastructure testing for direct smartphone-to-satellite connectivity, opened a new operations center in Guatemala, and announced new AI integration partnerships.

Anton Kharitonov, expert at Traders Union, sees TELUS’s rebound as fragile despite a temporary bump in price. He notes the stock remains weighed down by long-term technical weakness and the drastic 55% dividend cut, which signals stress. Kharitonov highlights persistent negative momentum with sellers maintaining control and warns that cost-cutting alone may not offset recent losses. He remains sharply focused on the bearish setup as the MACD, ADX, and RSI show little sign of sustained upside. "The technical and fundamental outlook for TELUS stays negative — any optimism here is premature," Kharitonov states.

Viktoras Karapetjanc, expert at Traders Union, regards the recent strategic pivot by TELUS as a proactive step to improve its long-term outlook. He sees the cost-saving plan, new technology initiatives, and dividend reset as setting the stage for more robust growth and operational efficiency. Karapetjanc believes this transformation opens new opportunities in AI and connectivity, supporting future value creation. Market sentiment remains cautiously optimistic with a base case for consolidation ahead of potential upside. "These actions enhance TELUS’s fundamentals — the bullish structure remains intact and further growth is achievable," Karapetjanc asserts.

Sholanke Dele, market strategist, is skeptical of the recent rally in TELUS, viewing it as sentiment-driven rather than reflecting genuine improvement. He points to ongoing losses and the scale of the dividend cut as red flags for investors. Dele emphasizes that downside risk persists, especially with negative momentum signals dominant. "I would be wary — news momentum fades quickly and fundamentals remain weak," warns Dele.

Short-term support challenged by negative momentum divergence

TELUS is trading above its 20-day moving average (MA-20) at C$11.64 but remains below the 50-day (MA-50) at C$12.55 and 200-day (MA-200) at C$15.98. This setup signals short-term support but ongoing medium- and long-term downside pressure from sellers, confirmed by the bearish alignment of MA-50 and MA-200. Key levels are support at C$11.98 and resistance at C$12.18. Momentum indicators are mostly negative: MACD and ADX both project continued selling, the RSI is at 46.07 with a "Sell" signal, and Stochastic RSI is overbought at 90.61. CCI is neutral at 27.56, while Bull/Bear Power shows slightly positive intraday sentiment. There is a divergence between overbought oscillators and negative momentum, increasing the risk to short-term gains.

Earlier, analysts noted that ongoing market headwinds and technical weakness kept TELUS under pressure, even as the company shifted its focus to aggressive cost-saving and financial discipline. The current outlook adds a new dimension by highlighting a rising risk of renewed bearish momentum should TELUS fall below C$11.8, making this level critical to watch for confirmation of further downside.

Source of Data: T Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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