Why Is TELUS CORP (TU) Stock Down Today?

TELUS Corp (TU) fell 11.83% to $9.51 in morning trading on Monday driven by a sharp drop in market confidence following disappointing second-quarter earnings and revenue results. The stock opened with a -4.4% gap down from the prior close and continued to decline throughout the session, hitting a low of $9.46 before stabilizing slightly. The move came amid a broader selloff in telecom stocks and a lack of investor optimism about the company’s near-term performance.

What Happened

TELUS reported adjusted earnings per share of $0.12 for the second quarter, missing the expected $0.17. Revenue came in at $3.561 billion, below the projected $3.760 billion. These results signaled weaker-than-expected performance across the company’s core operations. In addition, the company announced a dividend reset to $0.75 per year, a reduction from previous levels, which is expected to generate approximately $2.7 billion in cash savings through 2028. The move to consolidate its core telecom businesses was also highlighted as a strategic shift, but it did not appear to reassure investors in the short term. Meanwhile, Barclays cut its price target for TELUS to $12 from a higher level, maintaining an equal-weight rating.

What The Data Shows

The stock opened at $10.30, a -4.4% gap down from the prior close of $10.77. The session high of $10.48 was reached shortly after the market opened, but the stock quickly declined to a low of $9.46. As of the latest data, the stock was trading at $9.49 with 3.2 million shares traded, which is 0.5 times the 3-month daily average. TELUS has a market cap of $16.8 billion, a P/E ratio of 25.0, and a 52-week range of $9.95 to $16.72. The company declared a quarterly dividend of CAD $0.1875, with a forward yield of 4.97%. However, the dividend yield currently stands at 11.22%, reflecting the sharp drop in share price.

What To Watch

Investors should monitor TELUS’s upcoming corporate actions, including the dividend of $0.2950322 per share, which is set for ex/effective on June 10, 2026. Coverage of the company’s strategic moves and financial performance will likely expand in the coming weeks.