Telstra Corporation Limited Earnings Recaps
Q4 2026
Aug 16, 2026
Shares fell 4.4% as investors reacted negatively to a cautious outlook and incremental margin pressure despite reported earnings growth, highlighting concerns about slowing momentum and the balance between rising investment and profitability.
Key takeaways
- Reported EBITDAaL increased 3% to $8.2 billion, with net profit after tax up 2.7% to $2.4 billion and EPS rising 5.3% to $0.199.
- Underlying EBITDAaL grew 4% to $8.3 billion; cash EPS improved 14% to $0.255, with underlying ROIC up 0.5 percentage points to 9%.
- Increased capital expenditures by approximately $800 million since FY 2021 focused on mobile network upgrades, including 1,200 sites with 5G Advanced and 1,800 sites with backup power.
- Dividend raised 10.5% to $0.21 per share supported by cash earnings; initiated a new $1 billion share buyback alongside elevated strategic CapEx.
- Market reaction suggests investor caution over margin compression risks and tempered outlook amid rising network investment and competitive pressures.