Canadian stocks have continued to show impressive momentum in 2026, even as macroeconomic worries, geopolitical tensions, and uncertainty around interest rates refuse to disappear. But that strength hasn’t lifted every corner of the TSX. For example, Telus (TSX: T) is underperforming the broader market by a wide margin. While the TSX Composite has jumped nearly 25% over the last year, this longtime Canadian blue-chip stock has moved sharply in the opposite direction, leaving investors to decide whether the selloff is warning them to stay away or giving them a rare opportunity to buy at a discounted price.
I think that question has become even more important because Telus itself is changing. The company is making some painful decisions today to improve cash flow, reduce debt, and put the company on firmer financial footing. Those moves won’t produce an overnight turnaround, but they could eventually leave investors with a healthier business.
Let’s take a closer look beyond Telus’s falling share price and examine whether this beaten-down Canadian telecom giant is finally a good buy at current levels.
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Why Telus stock looks interesting after the selloff
Telus stock currently trades at $13.44 per share with a market cap of roughly $21 billion. At this price, it also offers an annualized dividend yield of roughly 5.6%.
However, that attractive yield comes after a painful period for shareholders as Telus stock has lost over 40% of its value over the last year. Much of that weakness reflects growing concerns about Telus’s near-term outlook. If you don’t know it yet, the telecom giant recently reset its quarterly dividend by 55% to $0.19 per share and lowered its 2026 financial guidance. Intense pricing competition, slower subscriber demand, weaker Telus Digital results, and concerns about leverage have added further pressure.
Recent results explain the pressure
Telus’s latest results make it easier to understand why investors have turned cautious, although there were still some encouraging signs for its long-term outlook. In the second quarter, the company’s operating revenue fell 2% year-over-year (YoY) to $4.9 billion. Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) also slipped 2% YoY to $1.8 billion.
As a result, Telus reported a $1.8 billion net loss for the quarter, largely due to a $2.1 billion non-cash impairment related to Telus Digital. Even after adjustments, the telecom giant’s net profit fell 26% YoY to $254 million.
On the brighter side, its cash generation remained strong. Telus’s cash provided by operating activities jumped 15% YoY in the latest quarter, while free cash flow increased 2%. At the same time, its telecom subscriber connections grew 6% from a year ago.
Building a healthier Telus
That brings us to arguably the most interesting part of the Telus investment appeal today as it is taking some difficult steps to strengthen the business and its balance sheet over time.
The company’s recent dividend reset is expected to save roughly $2.7 billion through 2028, with those funds directed toward reducing debt. Telus is also targeting a net debt-to-adjusted EBITDA ratio of around 3 times or lower by the end of 2028, compared with 3.5 times at the end of the latest quarter.
Meanwhile, the telecom firm is also reviewing non-core Telus Health and real estate assets for potential monetization, with proceeds expected to support further deleveraging. At the same time, it plans to concentrate investments on areas where it sees stronger returns, including its wireless and PureFibre networks as well as digital and artificial intelligence (AI) infrastructure.
Given all these positive factors, Telus’s sharply lower share price and renewed focus on cash flow, debt reduction, and disciplined capital allocation make its stock worth considering today.
