Where Could Telus Stock Be in 3 Years?

Strong cash flow, AI investments, and an eye-popping dividend yield make Telus stock hard to ignore right now.

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Key Points
  • Telus (TSX:T) continues growing its wireless, broadband, and healthcare technology businesses while generating strong cash flow.
  • The company is investing heavily in artificial intelligence infrastructure and network expansion across Canada.
  • Its strong dividend yield and diversified long-term growth initiatives could support future shareholder returns.

Not every stock needs to double overnight to become a strong long-term investment. Sometimes, the most rewarding companies are the ones that quietly expand their businesses year after year while continuing to pay investors along the way.

That’s what makes Canadian telecom stocks like Telus (TSX: T) interesting right now. While the company is still benefiting from its traditional wireless and internet operations, it’s also pushing aggressively into newer growth areas like healthcare technology and artificial intelligence (AI) infrastructure.

Those businesses could look much more important three years from now than they do today. Add in a massive dividend yield and growing free cash flow, and it’s easy to see why it looks attractive for long-term investors. Before exploring where Telus stock could be headed over the next few years, let’s take a quick look at its key fundamentals.

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Source: Getty Images

Telus stock continues building momentum

Simply put, Telus is one of Canada’s biggest telecom companies, offering wireless, internet, TV, healthcare technology, and digital services to consumers and businesses. Its operations span several growth-focused segments, including Telus Technology Solutions, Telus Digital Experience, and Telus Health.

Although Telus stock has seen 22% value erosion over the last year, its underlying growth fundamentals still look stable. The stock currently trades at $17.30 apiece with a market cap of $27.2 billion. The company also rewards investors with quarterly dividends, and its yield at the current market price sits near an eye-catching 9.7%.

A closer look at its financial growth trends

Notably, Telus added 262,000 total mobile and fixed customers in the first quarter of 2026 as demand for its bundled wireless and home services remained strong. Its consolidated service revenue during the quarter rose 1% year over year (YoY), while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) remained stable at $1.8 billion. On the brighter side, the company’s quarterly free cash flow jumped 19% YoY to $583 million, helping strengthen its financial flexibility.

One of the biggest growth drivers continues to be Telus Health. The division delivered 11% YoY growth in the latest quarter in both service revenue and adjusted EBITDA. Telus has also been exploring strategic partnership opportunities for the business, which could further unlock value and strengthen its balance sheet.

AI and infrastructure investments could drive future growth

Beyond its core telecom operations, Telus has been making aggressive investments in long-term growth opportunities tied to AI and digital infrastructure. The company’s Sovereign AI Factories have already generated strong demand. Its Rimouski facility sold out quickly, prompting Telus to expand capacity there while also launching a second facility in Kamloops, British Columbia.

These projects could position Telus as an important player in Canada’s growing AI infrastructure market over the next several years.

At the same time, the company continues investing heavily in its broadband and wireless networks. Telus plans to invest roughly $66 billion by 2030 to expand and enhance its infrastructure across Canada. That includes continued expansion of its PureFibre network and 5G+ wireless services. These investments could support its long-term customer growth, productivity improvements, and operational efficiency.

Where will Telus stock be three years from now?

Telus stock has slipped 34% over the last three years. But where will it be in three years?

While no one can predict exact share prices, I expect the company to continue benefiting from several important long-term trends, including growing demand for connectivity, healthcare technology, AI infrastructure, and digital services.

Combined with its resilient customer base and expanding growth businesses, I wouldn’t be surprised if Telus stock stages a massive recovery in the next three years.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

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