TELUS CEO's Parting Shot: ‘$2 Billion in AI Revenue by 2028' Is the Number He Wants Investors to Remember

Core Insights - TELUS aims to achieve $2 billion in AI revenue by 2028, up from $800 million, with Q4 2025 AI revenue increasing 44% to $229 million [1] - Outgoing CEO Darren Entwistle emphasized the importance of AI infrastructure and TELUS Health as key growth drivers beyond traditional telecom services [1] AI Revenue Growth - TELUS's AI-enabling capabilities revenue is projected to grow significantly, with a target of approximately $2 billion by 2028 [1] - In Q4 2025, AI revenue increased by 44%, contributing to a 35% growth for the full year [1] - The company has converted legacy data centers into sovereign AI infrastructure with minimal capital investment, enhancing its competitive position [1] TELUS Health Performance - TELUS Health reported a 13% revenue growth and a 10% increase in Adjusted EBITDA in Q4 2025, covering 161.2 million healthcare lives globally [1] - The integration of LifeWorks has resulted in $431 million in annualized synergies, significantly exceeding the initial target of $150 million [1] - TELUS is exploring strategic partnerships for TELUS Health, indicating a focus on monetization opportunities [1] Financial Overview - TELUS reported Q4 revenue of $5.261 billion, which was below estimates due to a deliberate reduction in promotional device offers [1] - The adjusted EBITDA margin expanded by 2.4 percentage points to 40.9%, with full-year free cash flow reaching $2.2 billion, an 11% increase [1] - For 2026, TELUS anticipates free cash flow of approximately $2.45 billion and capital expenditures of about $2.3 billion, reflecting a deleveraging trend [1]