Canada's BCE Q4 revenue down 0.3%, EPS falls 12.7%

Overview

• Canada telecom firm's Q4 revenue fell 0.3% yr/yr

• Adjusted EPS for Q4 down 12.7%

• Company's AI-powered solutions revenue up 31% in Q4

Outlook

• BCE expects 2026 revenue growth between 1% and 5%

• Company anticipates 2026 adjusted EBITDA growth of 0% to 4%

• BCE forecasts 2026 free cash flow growth between 4% and 10%

Result Drivers

• WIRELESS MOMENTUM - BCE continued to see strong wireless performance with improved postpaid churn and increased fibre Internet subscribers, supported by Ziply Fiber acquisition

• AI SOLUTIONS GROWTH - AI-powered solutions revenue increased 31% in Q4, driven by growth at Bell Cyber and Ateko

• COST REDUCTIONS - Adjusted EBITDA margin improved due to reduced operating costs from decreased sales of low-margin products and labor cost reductions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for BCE Inc is C$37.00, about 2.9% above its February 4 closing price of C$35.95

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nCNWy1FBha

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.