Quantum-Safe Security and Buybacks Boost Future Growth Potential
Analysts have reaffirmed TELUS’s fair value estimate at CA$21.71, indicating stability in the company’s financial outlook. Adjustments in the model included a slight modification to the discount rate and revenue growth, reflecting minor refinements rather than a fundamental change in perspective.
Recent Developments at TELUS
Share Repurchase Program
TELUS has initiated a share buyback scheme, allowing the purchase of up to 28 million shares, equivalent to 1.81% of the total outstanding shares. The program is valued at approximately $500 million and was approved by the Board on December 15, 2025. The buyback will continue until December 16, 2026.
Submarine Fibre Optic Project
A significant investment of over $20 million was made in a nearly 125-kilometre submarine fibre optic cable connecting Sept Îles and Sainte Anne des Monts. This project, in partnership with the Government of Canada, enhances network reliability and performance in communities east of Baie Comeau.
- Length: 125 km
- Investment: Over $20 million
- Environmental restoration planned for 2026
Partnership with L SPARK
TELUS has joined forces with L SPARK to improve support for Canadian startups. This partnership provides access to the TELUS Sovereign AI Factory, which boasts advanced computational capabilities using NVIDIA H200 GPUs and Quantum 2 InfiniBand technology.
Innovations in Business Solutions
The company has expanded TELUS Business Connect in collaboration with RingCentral. This upgrade incorporates AI tools such as:
- AI assistant
- AI receptionist
- Sentiment analysis
- AI contact centre across more than 20 digital channels
Customers can expect these features to be available in early 2026.
Introduction of Quantum Safe VPN
TELUS has launched a Quantum Safe VPN service aimed at enhancing security for Canadian businesses. This innovative solution incorporates post-quantum cryptography alongside managed firewall services, addressing future quantum computing-related security risks and compliance requirements.
Valuation Adjustments
The following adjustments have been made to TELUS’s financial metrics:
| Metric | Previous Value | Adjusted Value |
|---|---|---|
| Discount Rate | 7.40% | 7.35% |
| Revenue Growth | 3.39% | 3.38% |
| Net Profit Margin | 6.55% | 6.52% |
| Future P/E | 30.06x | 30.14x |
These updates reflect continuing confidence in TELUS’s growth potential, supported by strategic initiatives in security and technology.
