Telus launches efficiency program after Q3 loss: T remains under pressure

Traders Union
All News
Stocks
Telus slides 0.12% to C$12.41 today

Highlights

TELUS Corporation reported a net loss of C$660 million for the third quarter due to a goodwill impairment charge on TELUS Health.
Service revenue fell to C$4.5 billion and adjusted EBITDA declined 5% to C$1.8 billion, mainly from weaker digital and health segments.
Shares of TELUS closed at C$12.41 near session lows, trading below key trend levels with bearish momentum prevailing and a projected range of C$12.03 to C$12.79.

Net loss and asset writedown drive cost-cutting and capital restraint

TELUS Corporation reported a net loss of C$660 million for the third quarter, primarily caused by a non-cash goodwill impairment charge on TELUS Health, which weighed on quarterly earnings and reflects a downward revision of asset values, according to Tipranks. The company’s service revenue declined to C$4.5 billion and adjusted EBITDA fell 5% to C$1.8 billion, largely due to weaker performance in its digital and health segments, impacting its operational profitability. TELUS reaffirmed its full-year financial targets and launched a multi-year efficiency program aiming for cost reductions and deleveraging, while proceeding with asset divestitures to improve liquidity. The quarterly dividend was maintained at C$0.1875 per share, with the reinvestment plan discount removed and acquisition activity paused to support ongoing capital discipline.

Downward momentum persists as price under resistance and signals weaken

On the hourly chart, T trades below the MA-20 and MA-50, while the daily chart shows the price still under the MA-200. The Ichimoku Kijun line at C$12.84 serves as immediate resistance. Momentum indicators, including MACD and ADX, display a sell bias, while Stochastic RSI and CCI both sit in oversold territory. RSI remains neutral, Bull/Bear Power shows a negative value, and the Awesome Oscillator confirms persistent bearish momentum intraday.

Further downside favored as volatility narrows trading range

Over the next several sessions, T is expected to trade within a range of C$12.03 to C$12.79 based on typical volatility. The probability of an upside move is 26%, suggesting continued downside is more likely in the near term. A period of sideways consolidation may develop if price stabilizes within the current band, while a break above C$12.84 would open the door for a recovery scenario. Conversely, a decline below C$12.03 would reinforce the prevailing bearish mood.

Viktoras Karapetjanc, analyst at Traders Union, notes that TELUS is balancing short-term challenges with structural efforts to defend value. He sees the recent goodwill impairment and softer operating results as weighing on sentiment, but also recognizes the company’s move toward cost controls and asset sales as supportive for liquidity and longer-term stability. The analyst highlights that a steady dividend and focus on deleveraging signal commitment to shareholder returns despite near-term volatility. In his view, cautious optimism is warranted while shares remain near key technical levels. "If TELUS can maintain discipline on costs and execute its asset sales, I see potential for gradual recovery as macro sentiment improves."

Earlier, analysts noted that Telus was contending with profitability headwinds and restructuring efforts that warranted a cautious near-term outlook. The latest results reinforce these concerns with fresh evidence of operational strain and persistent downside risk, making the C$12.03 support level critical for traders monitoring for further bearish developments.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.