BCE (BCE) Q2 2026 earnings summary

Executive summary

• Consolidated revenue rose 1.5% year-over-year to $6,176 million, with adjusted EBITDA up 1.0% to $2,702 million and free cash flow exceeding $1 billion for the quarter.

• Net earnings declined 2.3% to $629 million, while adjusted EPS increased 3.2% to $0.65, aided by higher adjusted EBITDA and the absence of prior-year non-cash FX losses.

• Achieved lowest postpaid churn in three years at 1.02%, with strong subscriber growth in fibre, mobile, and video segments, and Crave streaming subscribers up 23% to over 5 million.

• Recognized for network reliability and speed, with multiple industry awards for internet and 5G performance.

• Advanced AI-powered solutions and data centre build-out, including major projects in Saskatchewan, Winnipeg, and Merritt, B.C., and acquisition of Ziply Fiber boosting U.S. segment growth.

Financial highlights

• Operating revenues reached $6,176 million (+1.5% YoY); adjusted EBITDA was $2,702 million (+1.0% YoY) with a margin of 43.8%.

• Adjusted EPS increased by $0.02 to $0.65; net earnings per share declined 4.8% to $0.60.

• Capital expenditures surged 41.5% to $1,080 million, mainly for Ziply Fiber and AI data centre investments; capital intensity at 17.5%.

• Free cash flow reached $1,042 million, up 9.5% year-over-year, but declined 9.5% compared to prior periods due to higher capital expenditures.

• Cash flows from operating activities increased 11.0% to $2,162 million.

Outlook and guidance

• All 2026 financial guidance targets were reconfirmed, including revenue growth of 1–5%, adjusted EBITDA growth of 0–4%, and a target net debt leverage ratio of 3.5x by end of 2027.

• Capital expenditures expected to rise by $1.3 billion, mainly for Saskatchewan AI data centre, with most incurred in the second half of the year.

• Adjusted EPS and free cash flow expected to decline due to higher capex and related expenses; dividend maintained at $1.75 per share.

• Anticipated improvements in wireless pricing, AI-powered enterprise solutions, and media revenue.