Telus announces TELUS Health impairment: T remains under pressure

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Telus slides 1.42% to C$12.16 today

Highlights

TELUS reported third-quarter 2026 service revenue of $4.5 billion, down 1% year over year, and a net loss of $660 million due to an $800 million noncash goodwill impairment in TELUS Health.
The company reaffirmed its full-year targets and announced a multi-year efficiency program aimed at improving future earnings and cash flow.
TELUS stock trades below key moving averages with persistent downside pressure, and an expected range of C$11.73 to C$12.59 suggests further declines are more likely than gains.

Net loss and goodwill impairment drive cautious sentiment despite efficiency plans

TELUS reported third-quarter 2026 consolidated service revenue of $4.5 billion, representing a 1% decline compared to the prior year, alongside a 5% drop in consolidated adjusted EBITDA to $1.8 billion, according to Pulse2. The company posted a net loss of $660 million for the quarter, primarily due to an $800 million pre-tax noncash goodwill impairment tied to TELUS Health, which weighed on reported earnings and has contributed to a more cautious market outlook. TELUS reaffirmed its full-year targets and announced a multi-year efficiency program aimed at strengthening future earnings and cash flow, though these steps have not offset investor concerns surrounding the sizable impairment charge.

Downside momentum prevails as resistance strengthens and signals weaken

T is trading below MA-20 (C$12.49), MA-50 (C$12.69), and MA-200 (C$15.52), while the Ichimoku Kijun at C$12.71 now acts as immediate resistance. Momentum indicators show both MACD and ADX in a Sell state, while RSI and CCI are neutral. Stoch RSI is in the oversold zone, hinting at possible selling exhaustion, but not confirming a reversal. Bull/Bear Power remains slightly negative, reflecting moderate seller dominance for intraday moves, and the Awesome Oscillator gives a neutral signal, presenting little support for a directional shift.

Low upside potential as price risks further declines within range

In the short term, T is expected to trade within the C$11.73 to C$12.59 price band, reflecting typical volatility around the current level. The probability of an upside move is very low, with downside risk remaining elevated. If prices clear C$12.71, T may attempt a test of higher resistance, but a drop below C$11.73 could prompt further declines and continued downside momentum. Baseline expectation is stabilization inside this range given current technical and market drivers.

Viktoras Karapetjanc, expert at Traders Union, sees persistent selling pressure on TELUS after a challenging quarter weighed by a major noncash goodwill impairment. He notes that while the company reaffirmed its full-year targets and introduced a multi-year efficiency program, technical signals and weak sentiment currently limit the odds of a swift reversal. Karapetjanc believes near-term stabilization inside the C$11.73–C$12.59 range is likely as investors wait for firmer signs of margin improvement. "If TELUS manages to sustain its cost initiatives and restore confidence in coming quarters, I expect sentiment and price to gradually strengthen from this base."

Earlier, analysts noted that Telus was under persistent downside pressure due to operational headwinds and cost-cutting efforts amid asset writedowns. The current price action and renewed decline in earnings reinforce this cautious outlook, with downside momentum likely to persist unless the stock decisively reclaims resistance at C$12.71.

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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