Canada's BCE Q3 revenue rises on AI solutions, media growth

Overview

• Canada telecom and media firm's Q3 revenue rose 2.2% year-over-year

• Adjusted EPS for Q3 fell 6.3% year-over-year

• Net earnings declined sharply due to lower gains on investments from a prior asset sale

Outlook

• BCE maintains 2026 revenue growth guidance of 1% to 5%

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

• BCE expects 2026 free cash flow to fall 28% to 34%

Result Drivers

• AI-POWERED SOLUTIONS - Bell cited strong demand for enterprise AI-powered solutions, including Ateko and Bell Cyber, as a key driver of business markets revenue growth

• MEDIA PERFORMANCE - Growth in Bell Media revenue was attributed to strong FIFA World Cup 2026 and Crave streaming performance

• U.S. EXPANSION - Full-quarter contribution from Ziply Fiber in the U.S. supported higher service revenue

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "hold" and 1 "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$36.75, about 24.7% above its November 4 closing price of C$29.48

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)