TELUS swings to C$660M net loss in Q3 2026

TELUS Corporation reported third-quarter 2026 operating revenues of $5.020 billion in Canadian dollars, compared with $5.067 billion a year earlier.

Available on EDGAR 11/06/2026 - 07:08 AM EST Accepted by SEC EDGAR 11/06/2026 - 07:08 AM EST Learn about SEC filing dates

Rhea-AI Filing Summary

TELUS Corporation reported third-quarter 2026 operating revenues of $5.020 billion in Canadian dollars, compared with $5.067 billion a year earlier. It recorded a $660 million net loss, versus $431 million net income, and an $800 million impairment of intangible assets and goodwill. Operating loss was $248 million, compared with $742 million operating income in third-quarter 2025.

For the nine months ended September 30, operating revenues were $14.929 billion versus $15.116 billion, and net loss was $2.346 billion versus $487 million net income. Impairment charges were $2.935 billion versus $500 million. Cash provided by operating activities was $3.877 billion, compared with $3.736 billion. At September 30, 2026, net debt to EBITDA – excluding restructuring and other costs was 3.6x, above TELUS’s 2.5–3.0 objective; the common-share dividend payout ratio was 75%, against a 45%–60% objective. Cash and temporary investments, net, were $1.308 billion as of September 30, 2026, compared with $1.827 billion as of December 31, 2025.

0 points · 0 major

NegativeiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 3 points

How the balance works

Positive

• None.

Negative

• Major pointNine-month net loss was $2.346 billion, versus $487 million net income.
• Moderate pointNet debt to EBITDA was 3.6x, above TELUS’s 2.5–3.0 objective.
• Minor pointNine-month impairment charges totaled $2.935 billion, versus $500 million.

Filing Explained

From January 1, 2027, IFRS 18 changes TELUS's reporting presentation; TELUS says the overall effect on financial disclosure is not expected to be material.

On November 6, 2026, TELUS filed a Form 6-K furnishing its third-quarter financial statements and management’s discussion and analysis. The company expressly incorporates this report and its exhibits by reference into its listed Form F-10, F-3D and S-8 registration statements.

IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027. TELUS says it may reclassify certain amounts between operating and investing income, shift interest paid and received to different cash-flow categories, and add disclosures for management-defined performance measures. The company does not expect the overall effect on its financial disclosure to be material.

At September 30, 2026, cash and temporary investments, net, were C$1,308 million, compared with C$2,621 million at December 31, 2025.

Key Figures

Operating revenues: $5.020 billion; 2025: $5.067 billion Net income (loss): $660 million loss; 2025: $431 million income Impairment of intangible assets and goodwill: $800 million +5 more

8 metrics

Operating revenues $5.020 billion; 2025: $5.067 billion Three months ended September 30, 2026 and 2025; Canadian dollars

Net income (loss) $660 million loss; 2025: $431 million income Three months ended September 30, 2026 and 2025; Canadian dollars

Impairment of intangible assets and goodwill $800 million Three months ended September 30, 2026; Canadian dollars

Net income (loss) $2.346 billion loss; 2025: $487 million income Nine months ended September 30, 2026 and 2025; Canadian dollars

Impairment of intangible assets and goodwill $2.935 billion; 2025: $500 million Nine months ended September 30, 2026 and 2025; Canadian dollars

Cash provided by operating activities $3.877 billion; 2025: $3.736 billion Nine months ended September 30, 2026 and 2025; Canadian dollars

Net debt to EBITDA – excluding restructuring and other costs 3.6x As at September 30, 2026; objective 2.5–3.0

Common-share dividend payout ratio 75% 12 months ended September 30, 2026; objective 45%–60%

Key Terms

EBITDA – excluding restructuring and other costs, management-defined performance measures, IFRS 18, Presentation and Disclosure in Financial Statements, performance obligations, +1 more

5 terms

EBITDA – excluding restructuring and other costs financial

"Net debt to EBITDA – excluding restructuring and other costs"

management-defined performance measures financial

"Management-defined performance measures present management’s view"

IFRS 18, Presentation and Disclosure in Financial Statements technical

"IFRS 18, Presentation and Disclosure in Financial Statements"

performance obligations financial

"remaining unfulfilled, or partially unfulfilled, performance obligations"

Performance obligations are the specific promises a company makes to deliver goods or services to a customer under a contract, treated as separate deliverables when a customer can benefit from them on their own. Investors care because these promises determine when and how much revenue a company records — like breaking a bundled purchase into separate billable parts — which affects reported earnings, growth trends and the clarity of future cash flows.

cash flow hedges financial

"derivatives designated as cash flow hedges"

A cash flow hedge is an accounting label companies use when they enter financial contracts—like currency or interest-rate agreements—to protect expected future cash payments or receipts from unpredictable moves. For investors, it signals that the company is trying to smooth out future cash variability (think of locking in a price to avoid surprises), which can reduce reported profit swings but also means the company has exposure to derivative instruments and their associated risks.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was TU’s net loss in the third quarter of 2026?

TELUS reported a $660 million net loss for the three months ended September 30, 2026, compared with $431 million net income in the corresponding 2025 period. It also recorded $800 million of impairment of intangible assets and goodwill.

When does IFRS 18 take effect for TU, and what changes does TELUS expect?

IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, with earlier adoption permitted. TELUS said it is assessing the impacts and, aside from the changes it described, does not expect the totality of its financial disclosure to be materially affected.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Form 6-K: How Foreign Companies Report to the SEC →

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934

For the month of November 2026
Commission File Number 001-15144

TELUS CORPORATION
(Translation of registrant's name into English)

23rd Floor, 510 West Georgia Street
Vancouver, British Columbia V6B 0M3
Canada
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ¨                           Form 40-F 🗹

Incorporation by Reference

This report on Form 6-K and the exhibits hereto are specifically incorporated by reference into the registration statement on Form F-10 (File No. 333-291929), the registration statement on Form F-3D (File No. 333-258770) and the registration statements on Form S-8 (File Nos. 333-291404, 333-268186, 333-181463 and 333-125486), of TELUS Corporation.

2

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	TELUS CORPORATION
	By:	/s/ Andrea Wood
		Name:	Andrea Wood
		Title:	Executive Vice President and Chief Legal and Governance Officer

Date: November 6, 2026

3

Exhibit Index

Exhibit Number		Description of Document
99.1		Consolidated Financial Statements
99.2		Management’s Discussion and Analysis

4

Exhibit 99.1

TELUS CORPORATION

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

SEPTEMBER 30, 2026

condensed interim consolidated statements of income and other comprehensive income (unaudited)

					Three months								Nine months
Periods ended September 30 (millions except per share amounts)		Note			2026				2025				2026				2025
OPERATING REVENUES
Service					$	4,481			$	4,507			$	13,407			$	13,441
Equipment						539				560				1,522				1,675
Operating revenues (arising from contracts with customers)		6				5,020				5,067				14,929				15,116
Other income		7				6				39				39				129
Operating revenues and other income						5,026				5,106				14,968				15,245
OPERATING EXPENSES
Goods and services purchased		16				2,035				1,942				5,760				5,647
Employee benefits expense		8, 16				1,442				1,411				4,549				4,422
Depreciation		17				617				621				1,791				1,814
Amortization of intangible assets		18				380				390				1,219				1,193
Impairment of intangible assets and goodwill		18				800				—				2,935				500
						5,274				4,364				16,254				13,576
OPERATING INCOME (LOSS)						(248	)			742				(1,286	)			1,669
Financing costs		9				376				154				1,131				871
INCOME (LOSS) BEFORE INCOME TAXES						(624	)			588				(2,417	)			798
Income taxes		10				36				157				(71	)			311
NET INCOME (LOSS)						(660	)			431				(2,346	)			487
OTHER COMPREHENSIVE INCOME		11
Items that may subsequently be reclassified to income
Change in unrealized fair value of derivatives designated as cash flow hedges						(47	)			30				(159	)			16
Foreign currency translation adjustment arising from translating financial statements of foreign operations						(22	)			59				81				41
						(69	)			89				(78	)			57
Items never subsequently reclassified to income
Change in measurement of investment financial assets						(22	)			1				(29	)			8
Employee defined benefit plan re-measurements						950				16				962				42
						928				17				933				50
						859				106				855				107
COMPREHENSIVE INCOME (LOSS)					$	199			$	537			$	(1,491	)		$	594
NET INCOME (LOSS) ATTRIBUTABLE TO:
Common Shares					$	(667	)		$	493			$	(2,371	)		$	821
Non-controlling interests						7				(62	)			25				(334	)
					$	(660	)		$	431			$	(2,346	)		$	487
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:
Common Shares					$	192			$	567			$	(1,516	)		$	941
Non-controlling interests						7				(30	)			25				(347	)
					$	199			$	537			$	(1,491	)		$	594
NET INCOME (LOSS) PER COMMON SHARE		12
Basic					$	(0.42	)		$	0.32			$	(1.51	)		$	0.54
Diluted					$	(0.42	)		$	0.32			$	(1.51	)		$	0.54
TOTAL WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic						1,589				1,535				1,575				1,525
Diluted						1,589				1,543				1,575				1,531

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

2 | September 30, 2026  

condensed interim consolidated statements of financial position (unaudited)

As at (millions)		Note		September 30, 2026				December 31, 2025
ASSETS
Current assets
Cash and temporary investments, net				$	1,308			$	2,621
Accounts receivable		6(b)			3,569				3,797
Income and other taxes receivable					280				173
Inventories		1(b)			458				482
Contract assets		6(c)			441				457
Costs incurred to obtain or fulfill contracts with customers		20			330				413
Prepaid maintenance and other					512				421
Current derivative assets		4(d)			153				8
					7,051				8,372
Non-current assets
Property, plant and equipment, net		17			18,115				17,503
Intangible assets, net		18			19,799				20,328
Goodwill, net		18			8,097				10,460
Contract assets		6(c)			267				274
Other long-term assets		20			4,005				2,676
					50,283				51,241
				$	57,334			$	59,613
LIABILITIES AND OWNERS’ EQUITY
Current liabilities
Short-term borrowings		22		$	1,576			$	920
Accounts payable and accrued liabilities		23			3,903				3,494
Income and other taxes payable					117				141
Dividends payable		13			296				649
Advance billings and customer deposits		24			951				1,053
Provisions		25			455				300
Current maturities of long-term debt		26			3,854				3,102
Current derivative liabilities		4(d)			22				30
					11,174				9,689
Non-current liabilities
Provisions		25			538				661
Long-term debt		26			25,930				27,437
Other long-term liabilities		27			1,025				955
Deferred income taxes					4,416				4,292
					31,909				33,345
Liabilities					43,083				43,034
Owners’ equity
Common equity		28			13,443				15,775
Non-controlling interests					808				804
					14,251				16,579
				$	57,334			$	59,613
Contingent liabilities		29

The accompanying notes are an integral part of these condensed interim consolidated financial statements.          

  September 30, 2026 | 3

condensed interim consolidated statements of changes in owners’ equity (unaudited)

				Common equity
				Equity contributed																Accumulated								Non-
				Common Shares (Note 28)												Retained				other								controlling
(millions)		Note		Number of shares				Share capital				Contributed surplus				earnings (deficit)				comprehensive income (loss)				Total				interests (Note 28(b))				Total
Balance as at January 1, 2025					1,504			$	13,124			$	1,081			$	1,520			$	(105	)		$	15,620			$	1,178			$	16,798
Net income (loss)					—				—				—				821				—				821				(334	)			487
Other comprehensive income		11			—				—				—				42				78				120				(13	)			107
Transactions with owners in their capacity as owners
Dividends		13			—				—				—				(1,883	)			—				(1,883	)			—				(1,883	)
Dividends reinvested and optional cash payments		13(b), 14(c)			31				635				—				—				—				635				—				635
Equity accounted share-based compensation					—				2				101				—				—				103				1				104
Change in ownership interests of subsidiaries		28(b)			—				—				457				—				—				457				817				1,274
Balance as at September 30, 2025					1,535			$	13,761			$	1,639			$	500			$	(27	)		$	15,873			$	1,649			$	17,522
Balance as at January 1, 2026					1,549			$	14,096			$	1,577			$	98			$	4			$	15,775			$	804			$	16,579
Net income (loss)					—				—				—				(2,371	)			—				(2,371	)			25				(2,346	)
Other comprehensive income		11			—				—				—				962				(107	)			855				—				855
Transactions with owners in their capacity as owners
Dividends		13			—				—				—				(1,608	)			—				(1,608	)			—				(1,608	)
Dividends reinvested and optional cash payments		13(b), 14(c)			39				653				—				—				—				653				—				653
Equity accounted share-based compensation		14(b)			2				54				82				—				—				136				—				136
Issue of shares in business combination		25			—				3				—				—				—				3				—				3
Partnership distributions to non-controlling interest					—				—				—				—				—				—				(21	)			(21	)
Balance as at September 30, 2026					1,590			$	14,806			$	1,659			$	(2,919	)		$	(103	)		$	13,443			$	808			$	14,251

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

4 | September 30, 2026  

condensed interim consolidated statements of cash flows (unaudited)

		Three months								Nine months
Periods ended September 30 (millions)		2026				2025				2026				2025
OPERATING ACTIVITIES
Net income (loss)		$	(660	)		$	431			$	(2,346	)		$	487
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization			997				1,011				3,010				3,007
Impairment of intangible assets and goodwill (Note 18)			800				—				2,935				500
Income tax expense (recovery) (Note 10)			36				157				(71	)			311
Income taxes paid, net			(81	)			(77	)			(209	)			(374	)
Investment tax credits and tax other			(4	)			(9	)			(19	)			(36	)
Share-based compensation expense, net (Note 14(a))			48				42				131				121
Employee future benefits expense, net (Note 31(a))			27				10				49				29
Gain on contributions of real estate to joint ventures (Notes 7, 21)			—				(13	)			(15	)			(21	)
(Income) loss from equity accounted investments, net (Notes 7, 21)			6				1				5				(1	)
Gain on purchase of long-term debt  (Note 9, 26(b))			—				(222	)			—				(222	)
Other			(55	)			(99	)			(100	)			(133	)
Net change in non-cash operating working capital (Note 31(a))			371				261				507				68
Cash provided by operating activities			1,485				1,493				3,877				3,736
INVESTING ACTIVITIES
Cash payments for capital assets, excluding spectrum licences (Note 31(a))			(596	)			(634	)			(1,950	)			(1,886	)
Cash payments for spectrum licences (Note 18(a))			—				—				(373	)			—
Cash payments for acquisitions, net			—				(3	)			—				(464	)
Advances to, and investment in, real estate joint ventures and associates (Note 21)			—				(1	)			(1	)			(1	)
Real estate joint venture receipts (Note 21)			—				—				6				1
Proceeds on disposition			26				3				35				76
Investment in portfolio investments and other			(95	)			(25	)			(198	)			(81	)
Cash used by investing activities			(665	)			(660	)			(2,481	)			(2,355	)
FINANCING ACTIVITIES (Note 31(b))
Dividends paid to holders of Common Shares (Note 13(a))			(444	)			(408	)			(1,308	)			(1,215	)
Issue (repayment) of short-term borrowings, net			353				3				665				12
Long-term debt issued			1,137				1,381				3,848				9,513
Redemptions and repayment of long-term debt (Note 26)			(1,938	)			(4,910	)			(5,893	)			(9,948	)
Partnership distributions to non-controlling interest (Note 28(b))			(7	)			—				(21	)			—
Equity of subsidiary issued to non-controlling interest (Note  28(b))			—				1,261				—				1,261
Financing activity transaction costs and other			—				(15	)			—				(46	)
Cash used by financing activities			(899	)			(2,688	)			(2,709	)			(423	)
CASH POSITION
Increase (decrease) in cash and temporary investments, net			(79	)			(1,855	)			(1,313	)			958
Cash and temporary investments, net, beginning of period			1,387				3,682				2,621				869
Cash and temporary investments, net, end of period		$	1,308			$	1,827			$	1,308			$	1,827
SUPPLEMENTAL DISCLOSURE OF OPERATING CASH FLOWS
Interest paid		$	(370	)		$	(399	)		$	(1,250	)		$	(1,078	)
Interest received		$	7			$	16			$	52			$	38

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

  September 30, 2026 | 5

notes to condensed interim consolidated financial statements (unaudited)

SEPTEMBER 30, 2026

TELUS Corporation is one of Canada’s largest telecommunications companies, providing a wide range of technology solutions, which include: mobile and fixed voice and data telecommunications services and products; healthcare services, software and technology solutions (including employee and family assistance programs and benefits administration); agriculture and consumer goods services (software, data management and data analytics-driven smart-food chain and consumer goods technologies); and digital experiences. Data services include: internet protocol; television; hosting, managed information technology and cloud-based services; and home and business security and automation.

TELUS Corporation was incorporated under the Company Act (British Columbia) on October 26, 1998, under the name BCT.TELUS Communications Inc. (BCT). On January 31, 1999, pursuant to a court-approved plan of arrangement under the Canada Business Corporations Act among BCT, BC TELECOM Inc. and the former Alberta-based TELUS Corporation (TC), BCT acquired all of the shares of BC TELECOM Inc. and TC in exchange for Common Shares and Non-Voting Shares of BCT, and BC TELECOM Inc. was dissolved. On May 3, 2000, BCT changed its name to TELUS Corporation and in February 2005, TELUS Corporation transitioned under the Business Corporations Act (British Columbia), successor to the Company Act (British Columbia). TELUS Corporation maintains its registered office at Floor 5, 510 West Georgia Street, Vancouver, British Columbia, V6B 0M3.

The terms “TELUS”, “we”, “us”, “our” or “ourselves” refer to TELUS Corporation and, where the context of the narrative permits or requires, its subsidiaries. Our principal subsidiaries, which were wholly owned as at September 30, 2026, are TELUS Communications Inc. and TELUS Health Inc.

Notes to consolidated financial statements			Page
General application
1.	Condensed interim consolidated financial statements		7
2.	Accounting policy developments		7
3.	Capital structure financial policies		10
4.	Financial instruments		15
Consolidated results of operations focused
5.	Segment information		22
6.	Revenue from contracts with customers		25
7.	Other income		26
8.	Employee benefits expense		26
9.	Financing costs		27
10.	Income taxes		27
11.	Other comprehensive income		29
12.	Per share amounts		31
13.	Dividends per share		31
14.	Share-based compensation		32
15.	Employee future benefits		34
16.	Restructuring and other costs		36
Consolidated financial position focused
17.	Property, plant and equipment		37
18.	Intangible assets and goodwill		38
19.	Leases		40
20.	Other long-term assets		41
21.	Real estate joint ventures and investments in associates		42
22.	Short-term borrowings		43
23.	Accounts payable and accrued liabilities		43
24.	Advance billings and customer deposits		44
25.	Provisions		45
26.	Long-term debt		46
27.	Other long-term liabilities		52
28.	Owners’ equity		52
29.	Contingent liabilities		54
Other
30.	Related party transactions		55
31.	Additional statement of cash flow information		56

6 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

1 condensed interim consolidated financial statements

(a) Basis of presentation

The notes presented in our condensed interim consolidated financial statements include only significant events and transactions and are not fully inclusive of all matters normally disclosed in our annual audited financial statements; thus, our interim consolidated financial statements are referred to as condensed. Our condensed interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2025.

Our condensed interim consolidated financial statements are expressed in Canadian dollars and follow the same accounting policies and methods of their application as set out in our consolidated financial statements for the year ended December 31, 2025. The generally accepted accounting principles that we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS^® Accounting Standards) and Canadian generally accepted accounting principles. Our condensed interim consolidated financial statements comply with International Accounting Standard 34, Interim Financial Reporting and reflect all adjustments (which are of a normal recurring nature) that are, in our opinion, necessary for a fair statement of the results for the interim periods presented.

These consolidated financial statements for the three-month and nine-month periods ended September 30, 2026, were authorized by our Board of Directors for issue on November 6, 2026.

(b) Inventories

Inventories primarily consist of mobile handsets, parts and accessories, which totalled $344 million as at September 30, 2026 (December 31, 2025 – $376 million), and communications equipment held for resale. These inventories are valued at the lower of cost and net realizable value, with cost being determined on an average cost basis. Costs of goods sold for the three-month and nine-month periods ended September 30, 2026, totalled $0.5 billion (2025 – $0.6 billion) and $1.6 billion (2025 – $1.7 billion), respectively.

2 accounting policy developments

(a) Initial application of standards, interpretations and amendments to standards and interpretations in the reporting period

· In May 2024, the International Accounting Standards Board issued Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7). The narrow-scope amendments are to address diversity in accounting practice in respect of: the classification of financial assets with environmental, social and corporate governance and similar features; and to clarify the date on which a financial asset or financial liability is to be de-recognized when using electronic payment systems. The new standard is effective for annual reporting periods beginning on or after January 1, 2026, and earlier adoption was permitted. Our existing practices were compliant with the amendments.

(b) Standards, interpretations and amendments to standards and interpretations not yet effective and not yet applied

· In April 2024, the International Accounting Standards Board issued IFRS 18, Presentation and Disclosure in the Financial Statements, which sets out the overall requirements for presentation and disclosures in the financial statements and does not affect the recognition and measurement requirements of IFRS Accounting Standards. The new standard will replace IAS 1, Presentation of Financial Statements.

Although much of the substance of IAS 1, Presentation of Financial Statements, will carry over into the new standard:

The new standard incrementally will	Current assessment of the new standard’s requirements on our future presentation and disclosure
With a view to improving comparability amongst entities, require presentation in the statement of operations of a subtotal for operating profit and a subtotal for profit before financing and income taxes (both subtotals as defined in the new standard)	The presentation of certain immaterial amounts will shift among operating*, investing (new) and financing* categories of the statement of operations (as discussed further below)

^* As presented prior to the application of the new standard.

  September 30, 2026 | 7

notes to condensed interim consolidated financial statements (unaudited)

The new standard
incrementally will Current assessment of the new
standard’s requirements on our
future presentation and disclosure

With a view to improving comparability amongst entities, require limited changes to the statement of cash flows, including elimination of options for the classification of interest and dividend cash flows	The classification of interest paid and interest received will shift from being within operating activities (applying the indirect method)* to within financing activities and within investing activities, respectively; our existing dividend cash flow classification is compliant with the new standard
Require disclosure and reconciliation, within a single financial statement note, of management-defined performance measures which are used in public communications to share management’s views of various aspects of an entity’s performance and are derived from the statement of income and other comprehensive income**	The incremental disclosure, which may be partially duplicative of non-GAAP and other financial measures disclosures, including reconciliations, not contained within the financial statements (including disclosures and reconciliations made in management’s discussion and analysis), will be presented with other non-standardized financial measures in our segment information note (as discussed further below)
Enhance the requirements for aggregation and disaggregation of financial statement amounts	Our existing aggregation and disaggregation practices are compliant with the new standard

The new standard is effective for annual reporting periods beginning on or after January 1, 2027, with earlier adoption permitted. We are continuing to assess the impacts of the new standard and, other than as set out above, do not expect the totality of our financial disclosure to be materially affected by the application of the new standard.

Statement of income and other comprehensive income presentation

Of most significance, relative to our historical practice, IFRS 18, Presentation and Disclosure in Financial Statements, will newly define what income and expenses are to be classified in the operating and financing categories of, and will newly introduce an investing category to, our statement of income and other comprehensive income.

The income and expenses arising from investments in associates and joint ventures accounted for applying the equity method will be classified in the newly introduced investing category of the statement of income and other comprehensive income. Relative to our historical practice (see Note 7), the possible effect of applying the new standard for primary financial statement purposes will be reclassifying equal and offsetting amounts between operating income* and investing income; such possible effect is not currently expected to be material.

Irrespective of an entity’s capital structure financial policies’ approach to cash management, the new standard prescribes that an entity such as ourselves classify any income generated from cash and cash equivalents as investing income. We manage our financing expense on a net basis by offsetting income on cash and cash equivalents against such expense and thus, historically, have not separately recognized such income as a revenue. Relative to our historical practice (see Note 9), the possible effect of applying the new standard for primary financial statement purposes will be to increase the investing income and financing expense* by equal and offsetting amounts; such possible effect is not currently expected to be material.

The new standard requires that the income and expenses from other assets, such as investment properties (as defined by IFRS Accounting Standards), which do not comprise a specified main business activity and which generate a return individually and largely independently of our other resources, be classified in the newly introduced investing category of our statement of income and other comprehensive income. Relative to our historical practice, the possible effect of applying the new standard for primary financial statement purposes will be reclassifying equal and offsetting amounts between operating income^* and investing income; such possible effect is not currently expected to be material.

^* As presented prior to the application of the new standard.

** Although there is no requirement for entities to use the same terminology, the new standard references this primary financial statement as the “statement of financial performance”.

8 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

Foreign exchange differences arise due to fluctuations in foreign exchange rates between the time of a foreign currency-denominated transaction and its settlement. We manage such differences as a part of our financing management. As such, we establish hedging relationships and apply hedge accounting for a significant portion of our U.S. dollar-denominated transactions. However, it is not practicable to establish hedging relationships and apply hedge accounting for all foreign currency-denominated transactions. In our instance, primarily in respect of unhedged foreign exchange exposures (or not accounted for as a foreign currency translation adjustments arising from translating financial statements of foreign operations), the new standard prescribes that the default classification for foreign exchange differences is to be operating activities, irrespective of an entity’s financing management. Relative to our historical practice (see Note 9), the possible effect of applying the new standard for primary financial statement purposes will be reclassifying any such equal and offsetting default foreign exchange differences between Goods and services purchased within operating activities* and financing expense*; such possible effect is not currently expected to be material.

Management-defined performance measures

IFRS 18, Presentation and Disclosure in Financial Statements will require financial statement disclosure of management-defined performance measures (which the new standard restricts to subtotals of income and expense and, among other requirements, which are used in public communications outside of the financial statements) and their reconciliation to the most directly comparable listed or required IFRS Accounting Standard totals or subtotals. Management-defined performance measures present management’s view of only limited aspects of management-defined financial performance as a whole^*** and are not necessarily comparable with measures sharing similar labels or descriptions provided by other entities.

Judgment is required in identifying which of our measures may be management-defined performance measures. Due consideration must be given to the view that differing opinions may reasonably exist regarding what constitutes a performance measure and/or a management-defined performance measure, particularly so when a measure is multi-faceted and serves multiple purposes. On a continuing basis, as we continue to develop and evolve our business, we review and evolve our measures, including total of reportable segments measures and capital management measures, to identify those which may have become possible management-defined performance measures, and we review our possible management-defined performance measures to assess whether they may have ceased to be such.

Our management-defined performance measures possibly include, among others, adjusted net income attributable to Common Shares (the numerator of adjusted net income per basic share). Adjusted net income excludes the effects of (if, and as, applicable):

· Gain on purchase of long-term debt;

· Long-term debt prepayment premium;

· Restructuring and other costs;

· Real estate rationalization-related restructuring impairments;

· Impairment of intangible assets and goodwill; and

· Income tax-related adjustments.

Adjusted net income attributable to Common Shares is a measure used to evaluate performance at a consolidated level and excludes items that, in management’s view, may obscure underlying trends in business performance or are atypical items that do not reflect our ongoing operations. It should not be considered an alternative to Net income (loss) in measuring our performance.

^* As presented prior to the application of the new standard.

*** Free cash flow is not a standardized financial measure under IFRS Accounting Standards and might not be comparable to similar measures disclosed by other issuers (see Note 3).

  September 30, 2026 | 9

notes to condensed interim consolidated financial statements (unaudited)

		Three-month period ended September 30, 2026															Nine-month period ended September 30, 2026
		Unattributed amounts						Attributable to									Unattributed amounts						Attributable to
					Income tax			Common Shares 1						Non-controlling						Income tax			Common Shares 1						Non-controlling
(millions except per share amounts)		Total			effect			Total			Per basic share			interests			Total			effect			Total			Per basic share			interests
Reconciliation of net income (loss) with possible management-defined performance measure
Net income (loss)		$	(660	)				$	(667	)	$	(0.42	)	$	7		$	(2,346	)				$	(2,371	)	$	(1.51	)	$	25
Add (deduct):
Long-term debt prepayment premium (Note 9)			—		$	—			—			—			—			51		$	(14	)		51			0.03			—
Restructuring and other costs (Note 16(a))			211		$	(49	)		210			0.13			1			715		$	(159	)		714			0.45			1
Real estate rationalization-related restructuring impairments included in depreciation (Note 16(a))			1		$	—			1			—			—			5		$	(1	)		5			—			—
Impairment of intangible assets and goodwill (Note 18(b))			800		$	(15	)		800			0.50			—			2,935		$	(234	)		2,935			1.86			—
Income-tax related adjustments			(30	)					(30	)		(0.02	)		—			(66	)					(66	)		(0.04	)		—
Income tax on the above adjustments			(64	)					(63	)		(0.03	)		(1	)		(408	)					(407	)		(0.24	)		(1	)
Adjusted net income		$	258					$	251		$	0.16		$	7		$	886					$	861		$	0.55		$	25
									Possible management-defined performance measure															Possible management-defined performance measure

1 The amounts presented as being attributable to Common Shares are consistent with those that are disclosed and reconciled (as required by securities regulation) in Section 11.1 of the management’s discussion and analysis corresponding to these condensed interim consolidated financial statements.

3 capital structure financial policies

General

Our objective when managing financial capital is to maintain a flexible capital structure that optimizes the cost and availability of capital at an acceptable level of risk. In our definition of financial capital, we include:

· Common equity (excluding accumulated other comprehensive income);

· Non-controlling interests;

· Long-term debt (including long-term credit facilities, commercial paper backstopped by long-term credit facilities and any hedging assets or liabilities associated with long-term debt items, net of amounts recognized in accumulated other comprehensive income);

· Cash and temporary investments;

· Short-term borrowings (including those arising from securitized trade receivables and unbilled customer finance receivables and any hedging assets or liabilities associated with short-term borrowings, net of amounts recognized in accumulated other comprehensive income); and

· Other long-term debt.

We manage our financial capital structure and make adjustments to it in light of changes in economic conditions and the risk characteristics of our business. In order to maintain or adjust our financial capital structure, we may:

· Adjust the amount of dividends paid to holders of Common Shares;

· Adjust the discount at which Common Shares are offered under the Dividend Reinvestment and Share Purchase Plan;

· Purchase Common Shares for cancellation pursuant to normal course issuer bids;

10 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

· Issue new equity (including Common Shares and subsidiary equity);

· Issue new debt, issue new debt to replace existing debt with different characteristics; and/or

· Increase or decrease the amount of short-term borrowings arising from securitized trade receivables and unbilled customer finance receivables.

During 2026, our financial objectives, which are reviewed annually, were unchanged from 2025. We believe that our financial objectives support our long-term strategy.

We monitor financial capital utilizing a number of measures, including: net debt to earnings before interest, income taxes, depreciation and amortization (EBITDA^*) – excluding restructuring and other costs ratio; coverage ratios; and dividend payout ratios.

Debt and coverage ratios

Net debt to EBITDA – excluding restructuring and other costs is calculated as net debt at the end of the period, divided by 12-month trailing EBITDA – excluding restructuring and other costs. Historically, this measure is substantially similar to the leverage ratio covenant in our credit facilities. Net debt and EBITDA – excluding restructuring and other costs are measures that do not have any standardized meanings prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures disclosed by other issuers. The calculation of these measures is set out in the following table. Net debt is one component of a ratio used to determine compliance with certain debt covenants.

As at, or for the 12-month periods ended, September 30 ($ in millions)		Objective		2026				2025
Components of debt and coverage ratios
Net debt 1				$	25,981			$	25,663
EBITDA – excluding restructuring and other costs 2				$	7,213			$	7,353
Net interest cost 3 (Note 9)				$	1,513			$	1,418
Debt ratio
Net debt to EBITDA – excluding restructuring and other costs		2.5 – 3.0 4			3.6				3.5
Coverage ratios
Earnings coverage 5					(0.3	)			2.1
EBITDA – excluding restructuring and other costs interest coverage 6					4.8				5.2

^* EBITDA is not a standardized financial measure under IFRS Accounting Standards and might not be comparable to similar measures disclosed by other issuers (upon application of IFRS 18, Presentation and Disclosure in Financial Statements (see Note 2(b)), EBITDA possibly may not be a management-defined performance measure); we define EBITDA as operating revenues and other income less goods and services purchased and employee benefits expense. We report EBITDA because it is a key measure that management uses to evaluate the performance of our business, and it is also utilized to determine compliance with certain debt covenants.

  September 30, 2026 | 11

notes to condensed interim consolidated financial statements (unaudited)

1 Net debt and total managed capitalization are calculated as follows:

	As at September 30		Note		2026				2025
	Long-term debt		26		$	29,784			$	28,989
	TELUS Corporation junior subordinated notes equity credit deducted in calculating net debt		26(f)			(3,699	)			(2,232	)
	Debt issuance costs netted against long-term debt					155				138
	Derivative (assets) liabilities used to manage interest rate and currency risks associated with U.S. dollar-denominated debt, net					(57	)			(22	)
	Accumulated other comprehensive income (loss) amounts arising from financial instruments used to manage interest rate and currency risks associated with U.S. dollar-denominated debt – excluding tax effects					(470	)			(305	)
	Cash and temporary investments, net					(1,308	)			(1,827	)
	Short-term borrowings		22			1,576				922
	Net debt					25,981				25,663
	Common equity					13,443				15,873
	Non-controlling interests					808				1,649
	Add: TELUS Corporation junior subordinated notes equity credit deducted in calculating net debt					3,699				2,232
	Less: accumulated other comprehensive (income) loss amounts included above in common equity and non-controlling interests					103				(31	)
	Total managed capitalization				$	44,034			$	45,386

2 EBITDA – excluding restructuring and other costs is calculated as follows:

			EBITDA (Note 5)				Restructuring and other costs (Note 16)				EBITDA – excluding restructuring and other costs
	Add
	Nine-month period ended September 30, 2026		$	4,659			$	715			$	5,374
	Year ended December 31, 2025			6,922				432				7,354
	Deduct
	Nine-month period ended September 30, 2025			(5,176	)			(339	)			(5,515	)
	EBITDA – excluding restructuring and other costs		$	6,405			$	808			$	7,213

3 Net interest cost is defined as financing costs, excluding employee defined benefit plans net interest, unrealized changes in virtual power purchase agreements forward element when accounted for as held for trading, recoveries on long-term debt prepayment premium and recoveries on repayment of debt, calculated on a 12-month trailing basis (expenses recorded for long-term debt prepayment premium, if any, are included in net interest cost) (see Note 9).

4 Our long-term objective range for this ratio is 2.5 – 3.0 times, reflecting a shift of 0.3 in the range, as announced on July 31, 2026, to better align with our long-term optimal leverage range. The ratio as at September 30, 2026, is outside the long-term objective range. We may permit, and have permitted, this ratio to go outside the objective range (for long-term investment opportunities). We have an objective of achieving a ratio of 3.0 times by year-end 2028. We are in compliance with the leverage ratio covenant in our credit facilities, which states that we may not permit our net debt to operating cash flow ratio to exceed 4.25:1.00 (see Note 26(d)); the calculation of the debt ratio is substantially similar to the calculation of the leverage ratio covenant in our credit facilities.

5 Earnings coverage is defined in Canadian Securities Administrators National Instrument 41-101 as net income before borrowing costs and income tax expense, divided by borrowing costs (interest on long-term debt (including dividend obligations on preferred shares that are required to be accounted for as financial liabilities); interest on short-term borrowings and other; and long-term debt prepayment premium), and adding back capitalized interest, all such amounts excluding those attributable to non-controlling interests.

6 EBITDA – excluding restructuring and other costs interest coverage is defined as EBITDA – excluding restructuring and other costs, divided by net interest cost. This measure is substantially similar to the coverage ratio covenant in our credit facilities.

Net debt to EBITDA – excluding restructuring and other costs was 3.6 times as at September 30, 2026, compared to 3.5 times one year earlier. In addition to a decrease in EBITDA – excluding restructuring and other costs, the increase in the ratio was also due to the effect of the increase in net debt levels arising from current and prior period acquisitions of spectrum and businesses, offset by the junior subordinated notes equity credit.

12 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

The earnings coverage ratio for the twelve-month period ended September 30, 2026, was (0.3) times, down from 2.1 times one year earlier. A decrease in income before borrowing costs and income taxes lowered the ratio by 2.4 and an increase in borrowing costs immaterially lowered the ratio. The EBITDA – excluding restructuring and other costs interest coverage ratio for the twelve-month period ended September 30, 2026, was 4.8 times, down from 5.2 times one year earlier. An increase of $95 million in net interest costs lowered the ratio by 0.3.

TELUS Corporation Common Share dividend payout ratio

So as to be consistent with the way we manage our business, our TELUS Corporation Common Share dividend payout ratio is presented as a historical measure calculated as the sum of the dividends declared in the most recent four quarters for TELUS Corporation Common Shares, as recorded in the financial statements, net of dividend reinvestment plan effects (see Note 13), divided by the sum of free cash flow^* amounts for the most recent four quarters for interim reporting periods (divided by annual free cash flow if the reported amount is in respect of a fiscal year).

For the 12-month periods ended September 30		Objective		2026				2025
Determined using most comparable IFRS Accounting Standards measures
Ratio of TELUS Corporation Common Share dividends declared to cash provided by operating activities (Note 2(b)) – less capital expenditures					97	%			106	%
Determined using management measures
TELUS Corporation Common Share dividend payout ratio – net of dividend reinvestment plan effects		45%–60% 1			75	%			75	%

1 Our objective range for the TELUS Corporation Common Share dividend payout ratio is 45%-60% of free cash flow on a trailing 12-months basis, reflecting a shift from 60-75% of free cash flow on a prospective basis. Our calculation of TELUS Corporation Common Share dividends declared, net of dividend reinvestment plan effects, is as follows:

	For the 12-month periods ended September 30 (millions)		2026				2025
	TELUS Corporation Common Share dividends declared		$	2,257			$	2,488
	Amount of TELUS Corporation Common Share dividends declared reinvested in TELUS Corporation Common Shares			(679	)			(860	)
	TELUS Corporation Common Share dividends declared – net of dividend reinvestment plan effects		$	1,578			$	1,628

Our calculation of free cash flow, and its reconciliation to cash provided by operating activities, is as follows:

^* Free cash flow is not a standardized financial measure under IFRS Accounting Standards and might not be comparable to similar measures presented by other issuers; we define free cash flow as EBITDA (operating revenues and other income less goods and services purchased and employee benefits expense) excluding items that we consider to be of limited predictive value, including certain working capital changes (such as trade receivables and trade payables), proceeds from divested assets, and other sources and uses of cash, as presented in the consolidated statements of cash flows. We have issued guidance on, and report, free cash flow because it is a key financial performance measure that management and investors use to evaluate the financial performance of our business.

  September 30, 2026 | 13

notes to condensed interim consolidated financial statements (unaudited)

				2026												2025
For the 12-month periods ended September 30 (millions)		Note		Cash provided by operating activities (Note 2(b))				Difference				Free cash flow				Cash provided by operating activities (Note 2(b))				Difference				Free cash flow
EBITDA		5		$	6,405			$	—			$	6,405			$	6,946			$	—			$	6,946
Restructuring and other costs, net of disbursements					318				—				318				(29	)			—				(29	)
Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment mobile device financing					(26	)			—				(26	)			(100	)			—				(100	)
Effect of non-discretionary lease principal (a)		31(b)			—				(478	)			(478	)			—				(664	)			(664	)
Items from the Consolidated statements of cash flows:
Share-based compensation, net of employee share purchase plan cash outflows		14			154				4				158				162				7				169
Employee future benefits expense, net		31(a)			57				—				57				46				—				46
Gain on contributions of real estate to joint ventures		7, 21			(38	)			38				—				(29	)			29				—
(Income) loss from equity accounted investments, net					5				—				5				4				—				4
Gain on purchase of long-term debt					(81	)			81				—				(222	)			222				—
Interest paid					(1,556	)			—				(1,556	)			(1,397	)			—				(1,397	)
Interest received					67				—				67				41				—				41
Other					(93	)			93				—				(238	)			238				—
Other working capital items					110				(110	)			—				103				(103	)			—
Capital expenditures (excluding acquisition from related party)		5			—				(2,679	)			(2,679	)			—				(2,375	)			(2,375	)
Capital expenditure for acquisition from related party					—				—				—				—				(93	)			(93	)
Related party construction credit facility repayment made concurrent with capital expenditure for acquisition from related party and similar					—				26				26				—				94				94
					5,322				(3,025	)			2,297				5,287				(2,645	)			2,642
Income taxes paid, net of refunds (b)					(315	)			116				(199	)			(474	)			—				(474	)
				$	5,007			$	(2,909	)		$	2,098			$	4,813			$	(2,645	)		$	2,168

(a) As set out in this note, we may issue new debt to replace existing debt with different characteristics. As a part of managing our capital structure, we chose to replace lease principal of $849 (2025 – $NIL) through discretionary prepayment.

(b) As part of managing our capital structure, we paid incremental income taxes in connection with issuing subsidiary equity and such amount has been excluded from the free cash flow amount shown in this table.

14 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

4 financial instruments

(a) Credit risk

Excluding credit risk, if any, arising from currency swaps settled on a gross basis, the best representation of our maximum exposure (excluding income tax effects) to credit risk, which is a worst-case scenario and does not reflect results we expect, is set out in the following table.

As at (millions)		September 30, 2026				December 31, 2025
Cash and temporary investments, net		$	1,308			$	2,621
Accounts receivable			4,140				4,383
Contract assets			708				731
Derivative assets			184				48
		$	6,340			$	7,783

Cash and temporary investments, net

Credit risk associated with cash and temporary investments is managed by ensuring that these financial assets are placed with: governments; major financial institutions that have been accorded strong investment grade ratings by a primary rating agency; and/or other creditworthy counterparties. An ongoing review evaluates changes in the status of counterparties.

Accounts receivable

Credit risk associated with accounts receivable is inherently managed through the size and diversity of our large customer base, which encompasses substantially all consumer and business sectors in Canada. A program of credit evaluations of customers is followed and the amount of credit extended is limited when we deem it to be necessary. Accounts are considered to be past due (in default) when customers have failed to make contractually required payments when due, which is generally within 30 days of the billing date. Any late payment charges are levied at an industry-based market rate or a negotiated rate on outstanding non-current customer account balances.

Customer accounts receivable, net of allowance for doubtful accounts
As at (millions)		Note		Gross				Allowance				Net 1
September 30, 2026
Less than 30 days past billing date				$	1,073			$	(20	)		$	1,053
30-60 days past billing date					341				(18	)			323
61-90 days past billing date					167				(22	)			145
More than 90 days past billing date					208				(45	)			163
Unbilled customer finance receivables					1,489				(37	)			1,452
				$	3,278			$	(142	)		$	3,136
Current 2		6(b)		$	2,694			$	(129	)		$	2,565
Non-current 3		20			584				(13	)			571
				$	3,278			$	(142	)		$	3,136
December 31, 2025
Less than 30 days past billing date				$	1,002			$	(23	)		$	979
30-60 days past billing date					466				(19	)			447
61-90 days past billing date					146				(21	)			125
More than 90 days past billing date					206				(45	)			161
Unbilled customer finance receivables					1,588				(35	)			1,553
				$	3,408			$	(143	)		$	3,265
Current 2		6(b)		$	2,809			$	(130	)		$	2,679
Non-current 3		20			599				(13	)			586
				$	3,408			$	(143	)		$	3,265

1 Net amounts represent customer accounts receivable for which an allowance had not been made as at the dates of the Consolidated statements of financial position (see Note 6(b)).

2 Presented in the Consolidated statements of financial position as Accounts receivable.

3 Presented in the Consolidated statements of financial position as Other long-term assets.

We maintain allowances for lifetime expected credit losses related to doubtful accounts. Factors considered when determining allowances for past-due accounts include: current economic conditions (including forward-looking macroeconomic data); historical information (including credit agency reports, if available); reasons for the accounts being past due; and the line of business from which the customer accounts receivable originated. These factors are also considered when determining whether to write off amounts charged to the allowance for doubtful accounts against customer accounts receivable. The doubtful accounts expense is calculated on a specific-identification basis for customer accounts receivable balances above a specific threshold and on a statistically derived allowance basis for the remainder. No customer accounts receivable are written off directly to the doubtful accounts expense; doubtful accounts expense is included in the Consolidated statements of income and other comprehensive income as a part of Goods and services purchased.

  September 30, 2026 | 15

notes to condensed interim consolidated financial statements (unaudited)

The following table presents a summary of the activity related to our allowance for doubtful accounts.

		Three months								Nine months
Periods ended September 30 (millions)		2026				2025				2026				2025
Balance, beginning of period		$	139			$	139			$	143			$	134
Additions (doubtful accounts expense)			32				39				95				126
Accounts written off 1 less than recoveries			(34	)			(42	)			(106	)			(127	)
Other			5				2				10				5
Balance, end of period		$	142			$	138			$	142			$	138

1 For the three-month and nine-month periods ended September 30, 2026, accounts that were written off but were still subject to enforcement activity totalled $59 (2025 – $63) and $177 (2025 – $194), respectively.

Contract assets

Credit risk associated with contract assets is inherently managed through the size and diversity of our large customer base, which encompasses substantially all consumer and business sectors in Canada. A program of credit evaluations of customers is followed and the amount of credit extended is limited when we deem it to be necessary.

Contract assets, net of impairment allowance
As at (millions)		Gross				Allowance				Net (Note 6(c))
September 30, 2026
To be billed and thus reclassified to accounts receivable during:
The 12-month period ending one year hence		$	575			$	(23	)		$	552
The 12-month period ending two years hence			235				(9	)			226
Thereafter			43				(2	)			41
		$	853			$	(34	)		$	819
December 31, 2025
To be billed and thus reclassified to accounts receivable during:
The 12-month period ending one year hence		$	612			$	(22	)		$	590
The 12-month period ending two years hence			240				(9	)			231
Thereafter			44				(1	)			43
		$	896			$	(32	)		$	864

We maintain allowances for lifetime expected credit losses related to contract assets. Factors considered when determining the amounts of these allowances include: current economic conditions; historical information (including credit agency reports, if available); and the line of business from which the contract assets originated. These same factors are considered when determining whether to write off amounts charged to the impairment allowance for contract assets against contract assets.

Derivative assets (and derivative liabilities)

Counterparties to our material foreign exchange derivatives are major financial institutions that have been accorded investment grade ratings by a primary credit rating agency. Credit exposure to any single financial institution is limited and counterparties’ credit ratings are monitored. We do not give or receive collateral on swap agreements and hedging items due to our credit rating and those of our counterparties. While we are exposed to the risk of credit losses due to the potential non-performance of our counterparties, we consider this risk remote. Our derivative liabilities do not have credit risk-related contingent features.

(b) Liquidity risk

As a component of our capital structure financial policies, discussed further in Note 3, we manage liquidity risk by:

· maintaining a daily cash pooling process that enables us to manage our available liquidity and our liquidity requirements according to our actual needs;

· maintaining a short-term borrowing agreement associated with trade receivables and unbilled customer finance receivables (Note 22), a non-revolving syndicated credit facility (Note 22), bilateral bank facilities (Note 22), a supply chain financing program (Note 23), a commercial paper program (Note 26(c)) and syndicated credit facilities (Note 26(d));

· maintaining an in-effect shelf prospectus;

· continuously monitoring forecast and actual cash flows; and

· managing maturity profiles of financial assets and financial liabilities.

Our debt maturities in future years are disclosed in Note 26(i). As at September 30, 2026, unchanged from December 31, 2025, TELUS Corporation could offer an unlimited amount of securities in Canada, and $1.9 billion of securities in the United States, qualified pursuant to a Canadian shelf prospectus in effect until January 2029 (December 31, 2025 – January 2029). We believe our investment grade credit ratings contribute to reasonable access to capital markets.

16 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

We closely match the contractual maturities of our derivative financial liabilities with those of the risk exposures they are being used to manage.

The expected maturities of our undiscounted financial liabilities do not differ significantly from the contractual maturities, other than as noted in the accompanying tables. The contractual maturities of our undiscounted financial liabilities, including interest thereon (where applicable), are set out in the accompanying tables.

		Non-derivative																Derivative
										Composite long-term debt
		Non-interest bearing financial				Short-term				Long-term debt, excluding leases 1				Leases				Currency swap agreement amounts to be exchanged												Currency swap agreement amounts to be exchanged 3
(millions)		liabilities				borrowings 1				(Note 26)				(Note 26)				(Receive) 2				Pay				Other				(Receive)				Pay				Total
As at September 30, 2026
2026 (remainder of year)		$	3,099			$	17			$	1,596			$	177			$	(1,446	)		$	1,403			$	3			$	(259	)		$	252			$	4,842
2027			570				1,610				3,302				676				(2,465	)			2,311				6				(676	)			644				5,978
2028			73				—				3,111				601				(386	)			347				4				(485	)			505				3,770
2029			8				—				2,492				498				(386	)			347				3				—				—				2,962
2030			7				—				2,694				396				(1,379	)			1,309				3				—				—				3,030
2031 - 2035			7				—				10,592				876				(4,671	)			4,379				17				—				—				11,200
Thereafter			—				—				24,271				1,075				(3,129	)			2,937				23				—				—				25,177
Total		$	3,764			$	1,627			$	48,058			$	4,299			$	(13,862	)		$	13,033			$	59			$	(1,420	)		$	1,401			$	56,959
										Total (Note 26(i))												$	51,528
As at December 31, 2025
2026		$	3,106			$	37			$	3,754			$	837			$	(1,373	)		$	1,356			$	3			$	(845	)		$	841			$	7,716
2027			108				939				2,799				739				(1,917	)			1,841				3				(52	)			47				4,507
2028			62				—				3,137				589				(373	)			347				3				(469	)			505				3,801
2029			8				—				2,519				422				(373	)			347				3				—				—				2,926
2030			6				—				2,977				276				(1,332	)			1,309				3				—				—				3,239
2031 - 2035			7				—				10,500				648				(4,512	)			4,379				11				—				—				11,033
Thereafter			—				—				23,842				646				(3,023	)			2,937				3				—				—				24,405
Total		$	3,297			$	976			$	49,528			$	4,157			$	(12,903	)		$	12,516			$	29			$	(1,366	)		$	1,393			$	57,627
										Total												$	53,298

1 Cash outflows in respect of interest payments on our short-term borrowings, sustainability-linked notes, commercial paper, amounts drawn under our credit facilities (if any), other (unsecured) and junior subordinated notes have been calculated based upon the interest rates and, if applicable, foreign exchange rates, in effect as at the relevant statement of financial position date.

2 The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swap receive column, have been determined based upon the foreign exchange rates in effect as at the relevant statement of financial position date. The contractual amounts of hedged U.S. dollar-denominated long-term debt at maturity, in effect, are reflected in the long-term debt currency swap pay column as gross cash flows are exchanged pursuant to the currency swap agreements; however, the maturities and gross cash flows for the TELUS Corporation junior subordinated notes reflect the initial fixed-rate reset date.

3 The amounts included in undiscounted short-term borrowings in respect of U.S. dollar-denominated short-term borrowings, and the corresponding derivative liability amounts, if any, included in the currency swap pay column amounts, have been determined based upon the foreign exchange rates in effect as at the relevant statement of financial position date. The derivative liability hedging amounts, if any, for the contractual amounts of hedged U.S. dollar-denominated short-term borrowings are included in the currency swap pay column amounts as net cash flows are exchanged pursuant to the currency swap agreements. Gross cash flows are exchanged pursuant to European euro – U.S. dollar currency swaps and have been calculated based upon the interest rates and foreign exchange rates in effect as at the relevant statement of financial position date.

  September 30, 2026 | 17

notes to condensed interim consolidated financial statements (unaudited)

(c) Market risks

Net income and other comprehensive income for the nine-month periods ended September 30, 2026 and 2025, could have varied if the Canadian dollar: U.S. dollar exchange rate, the U.S. dollar: European euro exchange rate, market interest rates and virtual power purchase agreement forward element valuation varied by reasonably possible amounts from their actual statement of financial position date amounts.

The sensitivity analysis of our exposure to currency risk has been determined based upon a hypothetical change taking place at the relevant statement of financial position date. We used the U.S. dollar-denominated and European euro-denominated balances and the notional amounts of our derivative financial instruments as at the relevant statement of financial position dates in these calculations.

The sensitivity analysis of our exposure to interest rate risk has been determined based upon a hypothetical change taking place at the beginning of the relevant fiscal year and being held constant through to the statement of financial position date. We used the principal and notional amounts as at the relevant statement of financial position dates in these calculations.

The sensitivity analysis of our exposure to wind discount risk and solar premium risk is based upon a hypothetical change taking place at the relevant statement of financial position date. The notional amounts of the virtual power purchase agreements as at the relevant statement of financial position dates have been used in these calculations.

In the sensitivity analysis, income tax expense is presented on a net basis, using the applicable statutory income tax rates for the reporting periods.

Nine-month periods ended September 30		Net income								Other comprehensive income								Comprehensive income
(increase (decrease) in millions)		2026				2025				2026				2025				2026				2025
Reasonably possible changes in market risks 1
10% change in C$: US$ exchange rate
Canadian dollar appreciates		$	(7	)		$	(5	)		$	(34	)		$	(98	)		$	(41	)		$	(103	)
Canadian dollar depreciates		$	7			$	5			$	34			$	98			$	41			$	103
10% change in US$: € exchange rate
U.S. dollar appreciates		$	(40	)		$	(32	)		$	(11	)		$	(30	)		$	(51	)		$	(62	)
U.S. dollar depreciates		$	40			$	32			$	11			$	30			$	51			$	62
25 basis point change in interest rates
Interest rates increase
Canadian interest rate		$	(5	)		$	(4	)		$	91			$	58			$	86			$	54
U.S. interest rate		$	(1	)		$	(4	)		$	(86	)		$	(80	)		$	(87	)		$	(84	)
Combined		$	(6	)		$	(8	)		$	5			$	(22	)		$	(1	)		$	(30	)
Interest rates decrease
Canadian interest rate		$	5			$	4			$	(93	)		$	(60	)		$	(88	)		$	(56	)
U.S. interest rate		$	1			$	2			$	89			$	84			$	90			$	86
Combined		$	6			$	6			$	(4	)		$	24			$	2			$	30
20 basis point change in wind discount
Wind discount increases		$	—			$	—			$	(21	)		$	(23	)		$	(21	)		$	(23	)
Wind discount decreases		$	—			$	—			$	21			$	22			$	21			$	22
20 basis point change in solar premium
Solar premium increases		$	—			$	—			$	12			$	12			$	12			$	12
Solar premium decreases		$	—			$	—			$	(12	)		$	(13	)		$	(12	)		$	(13	)

1 These sensitivities are hypothetical and should be used with caution. Changes in net income and/or other comprehensive income generally cannot be extrapolated because the relationship of the change in assumption to the change in net income and/or other comprehensive income may not be linear. In this table, the effect of a variation in a particular assumption on the amount of net income and/or other comprehensive income is calculated without changing any other factors; in reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities.

The sensitivity analysis assumes that we would realize the changes in exchange rates, market interest rates, wind discount and solar premium; in reality, the competitive marketplaces in which we operate would have an effect on this assumption.

(d) Fair values

General

The carrying values of cash and temporary investments, accounts receivable, short-term obligations, short-term borrowings, accounts payable and certain provisions (including restructuring provisions) approximate their fair values due to their immediate or short-term maturity. The fair values are determined directly by reference to quoted market prices in active markets.

18 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

The fair values of our investment financial assets are based on quoted market prices in active markets or other clear and objective evidence of fair value.

The fair value of our long-term debt, excluding leases, is based on quoted market prices in active markets.

For derivative financial instruments used to manage our exposure to currency risk, we estimated their fair values based on either quoted market prices in active markets for the same or similar financial instruments or the current rates offered to us for financial instruments of the same maturity, as well as discounted future cash flows determined using current rates for similar financial instruments of similar maturities subject to similar risks (such fair value estimates being largely based on the Canadian dollar: U.S. dollar forward exchange rate as at the statements of financial position dates). The fair values of the derivative financial instruments we use to manage our exposure to price risk associated with the purchase of nature-dependent electricity are currently estimated using a discounted cash flow approach and are based on industry-standard forecasts from EDC Associates Ltd. utilizing observable market data. The significant unobservable inputs used in the fair value measurement of the Level 3 derivative financial instruments were wind discount, reflecting 55% (December 31, 2025 – 76%) of the Alberta Interconnected Electrical System pool price, and solar premium, reflecting 82% (December 31, 2025 – 82%) of the Alberta Interconnected Electrical System pool price.

Derivative

The derivative financial instruments that we measure at fair value on a recurring basis subsequent to initial recognition are set out in the following table.

				September 30, 2026												December 31, 2025
As at ($ in millions except price or rate)		Designation		Maximum maturity date		Notional amount				Fair value 1 and carrying value			Price or rate			Maximum maturity date		Notional amount				Fair value 1 and carrying value			Price or rate
Current derivative assets 2
Derivatives used to manage currency risk associated with
U.S. dollar-denominated transactions		HFT 4		—		$	—			$	—			—		2026		$	30			$	—			US$1.00: ₱59
U.S. dollar-denominated transactions		HFH 3		2027		$	567				16			US$1.00: C$1.37		2026		$	134				1			US$1.00: C$1.35
U.S. dollar-denominated debt (Notes 22, 26(b)-(c))		HFH 3		2027		$	4,642				124			US$1.00: C$1.37		2026		$	1,170				1			US$1.00: C$1.37
European euro-denominated transactions swapped to  U.S. dollar-denominated transactions		HFT 4		2028		$	48				13			€1.00: US$1.09		2028		$	33				6			€1.00: US$1.09
										$	153											$	8
Other long-term assets 2 (Note 20)
Derivatives used to manage currency risk associated with
U.S. dollar-denominated long-term debt 5 (Note 26(b))		HFH 3		2055		$	2,628			$	31			US$1.00: C$1.32		2055		$	4,219			$	40			US$1.00: C$1.32
Current derivative liabilities 2
Derivatives used to manage currency risk associated with
U.S. dollar-denominated transactions		HFT 4		2027		$	258			$	10			US$1.00: ₱60		2026		$	254			$	6			US$1.00: ₱58
U.S. dollar-denominated transactions		HFH 3		2027		$	11				—			US$1.00: C$1.40		2026		$	374				7			US$1.00: C$1.39
U.S. dollar-denominated debt (Notes 22, 26(c))		HFH 3		2026		$	120				—			US$1.00: C$1.41		2026		$	733				10			US$1.00: C$1.39
Derivatives used to manage other price risk associated with
Purchase of electrical power		HFH 3		2047			0.3 TWh 6				12			$23.49/MWh 6		2047			0.3 TWh 6				7			$32.41/MWh 6
										$	22											$	30

  September 30, 2026 | 19

notes to condensed interim consolidated financial statements (unaudited)

				September 30, 2026												December 31, 2025
As at ($ in millions except price or rate)		Designation		Maximum maturity date		Notional amount				Fair value 1 and carrying value			Price or rate			Maximum maturity date		Notional amount				Fair value 1 and carrying value			Price or rate
Other long-term liabilities 2 (Note 27)
Derivatives used to manage currency risk associated with
U.S. dollar-denominated long-term debt 5 (Note 26(c))		HFH 3		2056		$	7,209			$	98			US$1.00: C$1.33		2056		$	7,332			$	102			US$1.00: C$1.33
European euro-denominated transactions swapped to  U.S. dollar-denominated transactions		HFT 4		2028		$	517				25			€1.00: US$1.09		2028		$	568				44			€1.00: US$1.09
Derivatives used to manage other price risk associated with
Purchase of electrical power		HFH 3		2047			4.6 TWh 6				47			$41.99/MWh 6		2047			4.9 TWh 6				21			$40.92/MWh 6
										$	170											$	167

1 Fair value measured at the reporting date using significant other observable inputs (Level 2), except the fair value of virtual power purchase agreements (which we use to manage the price risk associated with the purchase of electrical power), which is measured at the reporting date using significant unobservable inputs (Level 3). Changes in the fair value of derivative financial instruments classified as Level 3 in the fair value hierarchy were as follows:

			Nine months
	Periods ended September 30		2026				2025
	Unrealized changes in virtual power purchase agreements forward element
	Included in net income, excluding income taxes (see (e))		$	4			$	3
	Included in other comprehensive income, excluding income taxes (see (e))			(35	)			(2	)
	Balance, beginning of period – asset (liability)			(28	)			(38	)
	Balance, end of period – asset (liability)		$	(59	)		$	(37	)

2 Caption reflects line item in which derivative financial instruments are presented in the Consolidated statements of financial position. Derivative financial assets and liabilities are not set off.

3 Designated as held for hedging (HFH) upon initial recognition (cash flow hedging item), except for derivatives used to manage other price risk associated with the purchase of electrical power which were entered into prior to fiscal 2025 and were designated as HFH on January 1, 2025; hedge accounting is applied. Unless otherwise noted, hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items (variable notional amounts of hedging items and variable notional amounts of associated hedged items in respect of virtual power purchase agreements).

4 Designated as held for trading (HFT) and classified as fair value through net income upon initial recognition; hedge accounting is not applied.

5 We designate only the spot element as the hedging item. As at September 30, 2026, the foreign currency basis spread included in the fair value of the derivative instruments, which is used for purposes of assessing hedge ineffectiveness, was $(20) (December 31, 2025 – $(39)).

6 Terawatt hours (TWh) are 1x10⁹ kilowatt hours and megawatt hours (MWh) are 1x10³ kilowatt hours.

Non-derivative

Our long-term debt, which is measured at amortized cost, and the fair value thereof, are set out in the following table.

As at (millions)		September 30, 2026								December 31, 2025
		Carrying value				Fair value				Carrying value				Fair value
Long-term debt, excluding leases (Note 26)		$	26,546			$	25,865			$	27,225			$	27,507

(e) Recognition of derivative gains and losses

The following table sets out the gains and losses, excluding income tax effects, arising from derivative instruments that are classified as cash flow hedging items and their location within the Consolidated statements of income and other comprehensive income.

Credit risk associated with such derivative instruments, as discussed further in (a), would be the primary source of hedge ineffectiveness. With the exception of the virtual power purchase agreement derivatives, there was no ineffective portion of derivative instruments classified as cash flow hedging items for the periods presented. The ineffective portion of the virtual power purchase agreements arises because they are considered off-market hedging instruments by the transition rules of the amendments to IFRS Accounting Standards in respect of nature-dependent electricity.

20 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

		Amount of gain (loss) recognized in other comprehensive income								Gain (loss) reclassified from other comprehensive income to income (effective portion) (Note 11)
Periods ended		(effective portion) (Note 11)										Amount
September 30 (millions)		2026				2025				Location		2026				2025
THREE-MONTH
Derivatives used to manage currency risk associated with
U.S. dollar-denominated purchases		$	2			$	12			Goods and services purchased		$	2			$	1
U.S. dollar-denominated debt 1 (Notes 22, 26(b)-(c))			(68	)			176			Financing costs			(19	)			161
Net investment in a foreign operation			—				15			Financing costs			—				(6	)
			(66	)			203						(17	)			156
Derivatives used to manage other market risks
Purchase of electrical power			(13	)			(18	)		Goods and services purchased			1				1
Other			—				2			Financing costs			—				(1	)
			(13	)			(16	)					1				—
		$	(79	)		$	187					$	(16	)		$	156
NINE-MONTH
Derivatives used to manage currency risk associated with
U.S. dollar-denominated purchases		$	23			$	(11	)		Goods and services purchased		$	2			$	8
U.S. dollar-denominated debt 1 (Notes 22,26(b)-(c))			179				(52	)		Financing costs			375				(172	)
Net investment in a foreign operation			—				(57	)		Financing costs			—				—
			202				(120	)					377				(164	)
Derivatives used to manage other market risks
Purchase of electrical power			(31	)			1			Goods and services purchased			4				3
Other			—				—			Financing costs			—				—
			(31	)			1						4				3
		$	171			$	(119	)				$	381			$	(161	)

1 Amounts recognized in other comprehensive income are net of the change in the foreign currency basis spread (which is used for purposes of assessing hedge ineffectiveness) included in the fair value of the derivative instruments; such amounts for the three-month and nine-month periods ended September 30, 2026, totalled $4 (2025 – $(8)) and $19 (2025 – $(16)), respectively.

The following table sets out the ineffectiveness gains and losses included in Goods and services purchased in the Consolidated statements of income and other comprehensive income that arise from derivative instruments classified as held for hedging and designated as being in a hedging relationship.

		Gain (loss) on derivatives recognized in income
Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
Derivatives used to manage other market risks (purchase of electrical power)		$	—			$	—			$	—			$	3

  September 30, 2026 | 21

notes to condensed interim consolidated financial statements (unaudited)

The following table sets out the gains and losses included in Financing costs in the Consolidated statements of income and other comprehensive income that arise from derivative instruments classified as held for trading and not designated as being in a hedging relationship.

		Gain (loss) on derivatives recognized in income
Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
Derivatives used to manage currency risk		$	(5	)		$	19			$	(13	)		$	19

5 segment information

Operating segments are components of an entity that engage in business activities from which they earn revenues and incur expenses (including revenues and expenses related to transactions with the other component(s)), the operations of which can be clearly distinguished and for which the operating results are regularly reviewed by a chief operating decision-maker to make resource allocation decisions and to assess performance. We have embarked upon the modification of our internal and external reporting processes, systems and internal controls arising from organizational changes announced in July 2026 and correspondingly we are assessing our segmented reporting structure.

The TELUS technology solutions segment presently includes: network revenues and equipment sales arising from mobile technologies; data revenues (which include internet protocol; television; hosting, managed information technology and cloud-based services; and home and business security and automation); agriculture and consumer goods services (software, data management and data analytics-driven smart-food chain and consumer goods technologies); voice and other telecommunications services revenues; and equipment sales.

The TELUS health segment includes: healthcare services, software and technology solutions (including employee and family assistance programs and benefits administration) (see Note 18(c)).

The TELUS digital experience segment, which has the U.S. dollar as its primary functional currency, includes key service lines: digital solutions; artificial intelligence and data solutions; trust and safety; and customer experience management. Subsequent to TELUS Corporation’s acquisition of the TELUS International (Cda) Inc. non-controlling interests in fiscal 2025, our internal and external reporting processes, systems and internal controls were transitioned to match the post-privatization operational realignment; commencing with the three-month period ended March 31, 2026, our segmented reporting structure was correspondingly transitioned and comparative amounts have been restated on a comparable basis.

Intersegment sales are recorded at the exchange value, which is the amount agreed to by the parties.

The segment information regularly reported to our Chief Executive Officer (our chief operating decision-maker), and the reconciliation thereof to our products and services view of revenues, other revenues and income before income taxes, are set out in the following table.

22 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

		TELUS technology solutions																															TELUS digital
		Mobile								Fixed							Segment total								TELUS health								experience								Eliminations								Total
Three-month periods ended September 30 (millions)		2026				2025				2026			2025 (restated*)				2026				2025 (restated*)				2026				2025 (restated*)				2026				2025 (restated*)				2026				2025 (restated*)				2026				2025
Operating revenues
External revenues
Service		$	1,809			$	1,780			$	1,508		$	1,499			$	3,317			$	3,279			$	527			$	516			$	637			$	712			$	—			$	—			$	4,481			$	4,507
Equipment			487				493				50			66				537				559				2				1				—				—				—				—				539				560
Revenues arising from contracts with customers		$	2,296			$	2,273			$	1,558		$	1,565				3,854				3,838				529				517				637				712				—				—				5,020				5,067
										Other income (Note 7)								—				29				—				10				6				—				—				—				6				39
																		3,854				3,867				529				527				643				712				—				—				5,026				5,106
										Intersegment revenues								5				6				1				1				94				109				(100	)			(116	)			—				—
																	$	3,859			$	3,873			$	530			$	528			$	737			$	821			$	(100	)		$	(116	)		$	5,026			$	5,106
										EBITDA 1							$	1,494			$	1,657			$	77			$	85			$	1			$	30			$	(23	)		$	(19	)		$	1,549			$	1,753
										Restructuring and other costs included in EBITDA (Note 16)								135				60				15				12				61				37				—				—				211				109
										Adjusted EBITDA 1							$	1,629			$	1,717			$	92			$	97			$	62			$	67			$	(23	)		$	(19	)		$	1,760			$	1,862
										Capital expenditures 2							$	631			$	570			$	52			$	56			$	41			$	42			$	(23	)		$	(16	)		$	701			$	652
										Adjusted EBITDA less capital expenditures 1							$	998			$	1,147			$	40			$	41			$	21			$	25			$	—			$	(3	)		$	1,059			$	1,210
										Operating revenues – external, other income and intersegment (above)							$	3,859			$	3,873			$	530			$	528			$	737			$	821			$	(100	)		$	(116	)		$	5,026			$	5,106
										Goods and services purchased								1,757				1,622				182				176				173				211				(77	)			(67	)			2,035				1,942
										Employee benefits expense								608				594				271				267				563				580				—				(30	)			1,442				1,411
										EBITDA (above)								1,494				1,657				77				85				1				30				(23	)			(19	)			1,549				1,753
										Depreciation								550				529				14				21				53				71				—				—				617				621
										Amortization of intangible assets								220				224				94				105				66				61				—				—				380				390
										Impairment of intangible assets and goodwill								—				—				800				—				—				—				—				—				800				—
										Operating income (loss)							$	724			$	904			$	(831	)		$	(41	)		$	(118	)		$	(102	)		$	(23	)		$	(19	)			(248	)			742
																																										Financing costs								376				154
																																										Income (loss) before income taxes							$	(624	)		$	588

  September 30, 2026 | 23

notes to condensed interim consolidated financial statements (unaudited)

		TELUS technology solutions																															TELUS digital
		Mobile								Fixed							Segment total								TELUS health								experience								Eliminations								Total
Nine-month periods ended September 30 (millions)		2026				2025				2026			2025 (restated*)				2026				2025 (restated*)				2026				2025 (restated*)				2026				2025 (restated*)				2026				2025 (restated*)				2026				2025
Operating revenues
External revenues
Service		$	5,353			$	5,292			$	4,488		$	4,497			$	9,841			$	9,789			$	1,582			$	1,500			$	1,984			$	2,152			$	—			$	—			$	13,407			$	13,441
Equipment			1,343				1,458				175			213				1,518				1,671				4				4				—				—				—				—				1,522				1,675
Revenues arising from contracts with customers		$	6,696			$	6,750			$	4,663		$	4,710				11,359				11,460				1,586				1,504				1,984				2,152				—				—				14,929				15,116
										Other income (Note 7)								20				118				1				11				18				—				—				—				39				129
																		11,379				11,578				1,587				1,515				2,002				2,152				—				—				14,968				15,245
										Intersegment								16				17				5				5				322				310				(343	)			(332	)			—				—
																	$	11,395			$	11,595			$	1,592			$	1,520			$	2,324			$	2,462			$	(343	)		$	(332	)		$	14,968			$	15,245
										EBITDA 1							$	4,480			$	4,853			$	220			$	251			$	34			$	119			$	(75	)		$	(47	)		$	4,659			$	5,176
										Restructuring and other costs included in EBITDA (Note 16)								470				194				64				28				181				117				—				—				715				339
										Adjusted EBITDA 1							$	4,950			$	5,047			$	284			$	279			$	215			$	236			$	(75	)		$	(47	)		$	5,374			$	5,515
										Capital expenditures 2							$	1,844			$	1,676			$	149			$	159			$	112			$	126			$	(75	)		$	(44	)		$	2,030			$	1,917
										Adjusted EBITDA less capital expenditures 1							$	3,106			$	3,371			$	135			$	120			$	103			$	110			$	—			$	(3	)		$	3,344			$	3,598
										Operating revenues – external, other income and intersegment (above)							$	11,395			$	11,595			$	1,592			$	1,520			$	2,324			$	2,462			$	(343	)		$	(332	)		$	14,968			$	15,245
										Goods and services purchased								4,963				4,858				535				504				530				540				(268	)			(255	)			5,760				5,647
										Employee benefits expense								1,952				1,884				837				765				1,760				1,803				—				(30	)			4,549				4,422
										EBITDA (above)								4,480				4,853				220				251				34				119				(75	)			(47	)			4,659				5,176
										Depreciation								1,593				1,593				45				44				153				177				—				—				1,791				1,814
										Amortization of intangible assets								734				702				288				299				197				192				—				—				1,219				1,193
										Impairment of intangible assets and goodwill								—				—				800				—				2,135				500				—				—				2,935				500
										Operating income (loss)							$	2,153			$	2,558			$	(913	)		$	(92	)		$	(2,451	)		$	(750	)		$	(75	)		$	(47	)			(1,286	)			1,669
																																										Financing costs								1,131				871
																																										Income (loss) before income taxes							$	(2,417	)		$	798

* As required by IFRS Accounting Standards, comparative amounts have been restated to conform with the reportable segments presented in the current period.

1 Earnings before interest, income taxes, depreciation and amortization (EBITDA), both unadjusted and adjusted, are not standardized financial measures under IFRS Accounting Standards and may not be comparable to similar measures disclosed by other issuers; we define EBITDA as operating revenues and other income less goods and services purchased and employee benefits expense. We calculate adjusted EBITDA to exclude items that do not reflect our ongoing operations and, in our opinion, should not be considered in a long-term valuation metric or included in an assessment of our ability to service or incur debt. We report EBITDA, adjusted EBITDA and adjusted EBITDA less capital expenditures because they are key measures that management uses to evaluate the performance of our business, and EBITDA is also utilized in determining compliance with certain debt covenants.

24 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

2 See Note 31(a) for a reconciliation of capital asset additions, excluding spectrum licences, to cash payments for capital assets, excluding spectrum licences, reported in the consolidated statements of cash flows.

For the three-month and nine-month periods ended September 30, 2026, TELUS technology solutions capital expenditures include real estate development amounts of $12 (2025 – $36) and $47 (2025 – $65), respectively. Real estate development capital expenditures are not a standardized financial measure under IFRS Accounting Standards and may not be comparable to similar measures disclosed by other issuers; we define real estate capital expenditures as including amounts for both investment properties and certain owner-occupied properties.

6 revenue from contracts with customers

(a) Revenues

In the determination of the minimum transaction prices in contracts with customers, amounts are allocated to fulfilling, or the completion of fulfilling, future contracted performance obligations, which are largely in respect of services to be provided over the duration of the contract. The following table sets out our aggregate estimated minimum transaction prices allocated to remaining unfulfilled, or partially unfulfilled, future contracted performance obligations and the timing of when we might expect to recognize the associated revenues; actual amounts could differ from these estimates due to a variety of factors, including the unpredictable nature of: customer behaviour; industry regulation; the economic environments in which we operate; and competitor behaviour.

As at (millions)		September 30, 2026				December 31, 2025
Estimated minimum transaction price allocated to remaining unfulfilled, or partially unfulfilled, performance obligations to be recognized as revenue in a future period 1, 2
During the 12-month period ending one year hence		$	2,441			$	2,399
During the 12-month period ending two years hence			1,037				972
Thereafter			122				127
		$	3,600			$	3,498

1 Excludes constrained variable consideration amounts, amounts arising from contracts originally expected to have a duration of one year or less and, as a permitted practical expedient, amounts arising from contracts that are not affected by revenue recognition timing differences arising from transaction price allocation or from contracts under which we may recognize and bill revenue in an amount that corresponds directly with our completed performance obligations.

2 IFRS Accounting Standards require the explanation of when we might expect to recognize as revenue the amounts disclosed as the estimated minimum transaction price allocated to remaining unfulfilled, or partially unfulfilled, performance obligations. The estimated amounts disclosed are based upon contractual terms and maturities. Actual minimum transaction price revenues recognized, and the timing thereof, will differ from these estimates primarily due to the frequency with which the actual duration of contracts with customers does not match their contractual maturities.

(b) Accounts receivable

As at (millions)		Note				September 30, 2026				December 31, 2025
Customer accounts receivable						$	2,694			$	2,809
Allowance for doubtful accounts			4(a)				(129	)			(130	)
Billed customer accounts receivable, net of allowance for doubtful accounts							2,565				2,679
Accrued receivables – customer							579				658
Billed and unbilled customer accounts receivable, net of allowance for doubtful accounts							3,144				3,337
Accrued receivables – other							425				460
Accounts receivable – current						$	3,569			$	3,797

(c) Contract assets

Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
Balance, beginning of period		$	817			$	862			$	864			$	939
Net additions arising from operations			469				412				1,334				1,160
Amounts billed in the period and thus reclassified to accounts receivable			(465	)			(433	)			(1,378	)			(1,263	)
Change in impairment allowance, net (Note 4(a))			(1	)			(4	)			(2	)			—
Other			(1	)			2				1				3
Balance, end of period 1		$	819			$	839			$	819			$	839
Reconciliation of contract assets presented in the Consolidated statements of financial position – current
Gross contract assets										$	552			$	582
Reclassification to contract liabilities of contracts with contract assets less than contract liabilities (Note 24)											(14	)			(17	)
Reclassification from contract liabilities of contracts with contract liabilities less than contract assets (Note 24)											(97	)			(120	)
										$	441			$	445

1 Timing of amounts to be billed and thus reclassified to accounts receivable is set out in Note 4(c).

  September 30, 2026 | 25

notes to condensed interim consolidated financial statements (unaudited)

7 other income

Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
Government assistance		$	6			$	—			$	6			$	2
Lease and other sublease revenue			4				4				11				53
Gain on contributions of real estate to joint ventures (Note 21(a))			—				13				15				21
Income (loss) from equity accounted investments, net			(6	)			(1	)			(5	)			1
Investment income (loss), gain (loss) on disposal of assets and other			(4	)			23				(2	)			42
Changes in provisions related to business combinations (Note 25)			6				—				14				10
		$	6			$	39			$	39			$	129

8 employee benefits expense

Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
Employee benefits expense – gross
Wages and salaries		$	1,369			$	1,408			$	4,208			$	4,295
Share-based compensation 1 (Note 14)			42				47				110				144
Pensions – defined benefit (Note 15(a))			14				16				45				45
Pensions – defined contribution (Note 15(b))			33				32				95				95
Restructuring costs (Note 16(a))			82				37				294				181
Employee health and other benefits			63				68				184				204
			1,603				1,608				4,936				4,964
Capitalized internal labour costs, net
Contract acquisition costs (Note 20)
Capitalized			(38	)			(30	)			(127	)			(95	)
Amortized 2			30				29				220				78
Contract fulfilment costs (Note 20)
Capitalized			(7	)			(9	)			(23	)			(22	)
Amortized			4				3				9				8
Property, plant and equipment			(75	)			(75	)			(238	)			(236	)
Intangible assets subject to amortization			(75	)			(115	)			(228	)			(275	)
			(161	)			(197	)			(387	)			(542	)
		$	1,442			$	1,411			$	4,549			$	4,422

1 For the three-month and nine-month periods ended September 30, 2026, $10 (2025 – $NIL) and $28 (2025 – $NIL), respectively, of share-based compensation in the TELUS technology solutions segment was included in restructuring costs.

2 For the three-month and nine-month periods ended September 30, 2026, $NIL (2025 – $NIL) and $130 (2025 – $NIL), respectively, of amortization of costs incurred to obtain contracts with customers was included in restructuring and other costs (see Note 16).

26 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

9 financing costs

Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
Interest expense
From transactions that only involve the raising of finance
Long-term debt, excluding lease liabilities and other (secured)
Gross		$	318			$	331			$	973			$	921
Capitalized 1 (Notes 17, 18(a))			(3	)			(1	)			(9	)			(10	)
Net			315				330				964				911
Short-term borrowings and other			22				25				52				54
Gain on purchase of long-term debt 2 (Note  26(b))			—				(222	)			—				(222	)
Long-term debt prepayment premium 3 (Note 26(e))			—				48				51				48
			337				181				1,067				791
From transactions that do not only involve the raising of finance
Long-term debt – lease liabilities (Notes 19, 26(h))			43				36				127				119
Long-term debt – other (secured) (Note 26(g))			6				6				17				20
Employee defined benefit plans net interest (Note 15)			(11	)			3				(4	)			9
Accretion on provisions (Note 25)			9				7				22				21
			47				52				162				169
			384				233				1,229				960
Other
Foreign exchange			(2	)			(64	)			(46	)			(52	)
			382				169				1,183				908
Interest income			(6	)			(15	)			(52	)			(37	)
		$	376			$	154			$	1,131			$	871
Net interest cost										$	1,144			$	1,094
Interest expense on long-term debt, excluding lease liabilities and other – capitalized 1											(9	)			(10	)
Gain on purchase of long-term debt											—				(222	)
Employee defined benefit plans net interest											(4	)			9
										$	1,131			$	871

1 Interest on long-term debt, excluding lease liabilities, at a composite rate of 5.3% (2025 – 5.3%) was capitalized to property, plant and equipment assets under construction and to intangible assets with indefinite lives during the period.

2 During the periods ended September 30, 2025, the gain on purchase of long-term debt is net of a $17 loss on the corresponding foreign exchange derivatives (cross currency interest rate swap agreements) terminated.

3 During the periods ended September 30, 2025, long-term debt prepayment premium included a $38 effect of a hedging relationship becoming ineffective.

10 income taxes

Expense composition and rate reconciliation

Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
Current income tax expense
For the current reporting period		$	41			$	261			$	155			$	526
Adjustments recognized in the current period for income taxes of prior periods			(32	)			(22	)			(59	)			(45	)
Pillar Two global minimum tax			—				—				1				1
			9				239				97				482
Deferred income tax expense
Arising from the origination and reversal of temporary differences			17				(93	)			(279	)			(182	)
Adjustments recognized in the current period for income taxes of prior periods			2				11				14				11
Arising from write-down of deferred tax asset			8				—				97				—
			27				(82	)			(168	)			(171	)
		$	36			$	157			$	(71	)		$	311

  September 30, 2026 | 27

notes to condensed interim consolidated financial statements (unaudited)

Our income tax expense and effective income tax rate differ from those computed by applying the applicable statutory rates for the following reasons:

Three-month periods ended September 30 ($ in millions)		2026								2025
Income taxes computed at applicable statutory rates		$	(170	)			27.2	%		$	150				25.5	%
Adjustments recognized in the current period for income taxes of prior periods			(30	)			4.8				(11	)			(1.9	)
Impairment of intangible assets and goodwill			197				(31.6	)			—				—
(Non-taxable) non-deductible amounts, net			4				(0.6	)			16				2.8
Withholding and other taxes			6				(1.0	)			5				0.9
Losses not recognized			32				(5.1	)			(1	)			(0.2	)
Foreign tax differential			(3	)			0.5				(1	)			(0.2	)
Other			—				—				(1	)			(0.2	)
Income tax expense (recovery) per Consolidated statements of income and other comprehensive income		$	36				(5.8	)%		$	157				26.7	%

Nine-month periods ended September 30 ($ in millions)		2026								2025
Income taxes computed at applicable statutory rates		$	(620	)			25.7	%		$	196				24.6	%
Adjustments recognized in the current period for income taxes of prior periods			(45	)			1.9				(34	)			(4.3	)
Pillar Two global minimum tax			1				(0.1	)			1				0.1
Impairment of intangible assets and goodwill			426				(17.6	)			107				13.4
Write down of deferred tax asset			89				(3.7	)			—				—
(Non-taxable) non-deductible amounts, net			(8	)			0.3				19				2.4
Withholding and other taxes			19				(0.9	)			24				3.0
Losses not recognized			71				(2.9	)			2				0.3
Foreign tax differential			(4	)			0.2				(4	)			(0.5	)
Income tax expense (recovery) per Consolidated statements of income and other comprehensive income		$	(71	)			2.9	%		$	311				39.0	%

28 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

11 other comprehensive income

				Three-month period ended September 30, 2025																				Three-month period ended September 30, 2026
(millions)		Note		Accumulated balance, beginning of period				Amount arising				Income taxes				Net				Accumulated balance, end of period				Accumulated balance, beginning of period				Amount arising				Income taxes				Net				Accumulated balance, end of period
Items that may subsequently be reclassified to income
Change in unrealized fair value of derivatives designated as cash flow hedges		4(e)
Derivatives used to manage currency risk
Unrealized gains (losses) arising								$	203			$	31															$	(66	)		$	(14	)
Realized (gains) losses reclassified to net income									(156	)			(25	)															17				1
				$	(284	)			47				6			$	41			$	(243	)		$	(310	)			(49	)			(13	)		$	(36	)		$	(346	)
Derivatives used to manage other market risks
Unrealized gains (losses) arising									(16	)			(5	)															(13	)			(3	)
Realized (gains) losses reclassified to net income									—				—																(1	)			—
					9				(16	)			(5	)			(11	)			(2	)			(12	)			(14	)			(3	)			(11	)			(23	)
Total					(275	)			31				1				30				(245	)			(322	)			(63	)			(16	)			(47	)			(369	)
Cumulative foreign currency translation adjustment					151				59				—				59				210				253				(22	)			—				(22	)			231
Item never reclassified to income
Change in measurement of investment financial assets
Unrealized gains (losses) arising									—				—																(2	)			(1	)
Realized gains (losses)									1				—																(23	)			(2	)
					65				1				—				1				66				57				(25	)			(3	)			(22	)			35
Accumulated other comprehensive income (loss)				$	(59	)			91				1				90			$	31			$	(12	)			(110	)			(19	)			(91	)		$	(103	)
Attributable to:
Common Shares				$	(85	)														$	(27	)		$	(12	)														$	(103	)
Non-controlling interests					26																58				—																—
				$	(59	)														$	31			$	(12	)														$	(103	)
Item never reclassified to income
Employee defined benefit plan re-measurements		15(a)							22				6				16												1,283				333				950
Other comprehensive income								$	113			$	7			$	106											$	1,173			$	314			$	859

  September 30, 2026 | 29

notes to condensed interim consolidated financial statements (unaudited)

				Nine-month period ended September 30, 2025																				Nine-month period ended September 30, 2026
(millions)		Note		Accumulated balance, beginning of period				Amount arising				Income taxes				Net				Accumulated balance, end of period				Accumulated balance, beginning of period				Amount arising				Income taxes				Net				Accumulated balance, end of period
Items that may subsequently be reclassified to income
Change in unrealized fair value of derivatives designated as cash flow hedges		4(e)
Derivatives used to manage currency risk
Unrealized gains (losses) arising								$	(120	)		$	1															$	202			$	15
Realized (gains) losses reclassified to net income									164				26																(377	)			(58	)
				$	(260	)			44				27			$	17			$	(243	)		$	(214	)			(175	)			(43	)		$	(132	)		$	(346	)
Derivatives used to manage other market risks
Unrealized gains (losses) arising									1				—																(31	)			(7	)
Realized (gains) losses reclassified to net income									(3	)			(1	)															(4	)			(1	)
					(1	)			(2	)			(1	)			(1	)			(2	)			4				(35	)			(8	)			(27	)			(23	)
Total					(261	)			42				26				16				(245	)			(210	)			(210	)			(51	)			(159	)			(369	)
Cumulative foreign currency translation adjustment					169				41				—				41				210				150				81				—				81				231
Item never reclassified to income
Change in measurement of investment financial assets
Unrealized gains (losses) arising									3				—																(5	)			(1	)
Realized gains (losses)									7				2																(28	)			(3	)
					58				10				2				8				66				64				(33	)			(4	)			(29	)			35
Accumulated other comprehensive income (loss)				$	(34	)			93				28				65			$	31			$	4				(162	)			(55	)			(107	)		$	(103	)
Attributable to:
Common Shares				$	(105	)														$	(27	)		$	4															$	(103	)
Non-controlling interests					71																58				—																—
				$	(34	)														$	31			$	4															$	(103	)
Item never reclassified to income
Employee defined benefit plan re-measurements		15(a)							57				15				42												1,299				337				962
Other comprehensive income								$	150			$	43			$	107											$	1,137			$	282			$	855

30 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

12 per share amounts

Basic net income (loss) per Common Share is calculated by dividing net income (loss) attributable to Common Shares by the total weighted average number of Common Shares outstanding during the period. Diluted net income (loss) per Common Share is calculated to give effect to share option awards and restricted share unit awards.

The following table presents reconciliations of the denominators of the basic and diluted per share computations. Net income (loss) was equal to diluted net income (loss) for all periods presented.

Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
Basic total weighted average number of Common Shares outstanding			1,589				1,535				1,575				1,525
Effect of dilutive securities – Restricted share units			—				8				—				6
Diluted total weighted average number of Common Shares outstanding			1,589				1,543				1,575				1,531

For the three-month and nine-month periods ended September 30, 2026 and 2025, all and no, respectively, outstanding equity-settled restricted share unit awards were excluded in the calculation of diluted income per Common Share. For the three-month and nine-month periods ended September 30, 2026, all (2025 – 1 million) and all (2025 – 1 million), respectively, TELUS Corporation share option awards were excluded in the calculation of diluted income per Common Share.

13 dividends per share

(a) TELUS Corporation Common Share dividends declared

Nine-month periods ended September 30 (millions except per share amounts)
TELUS Corporation		Declared						Paid to
Common Share dividends		Effective		Per share				shareholders		Total
2026
Quarter 1 dividend		Mar. 11, 2026		$	0.4184			Apr. 1, 2026		$	653
Quarter 2 dividend		Jun. 10, 2026			0.4184			July 2, 2026			659
Quarter 3 dividend		Sept. 10, 2026			0.1875			Oct. 1, 2026			296
				$	1.0243					$	1,608
2025
Quarter 1 dividend		Mar. 11, 2025		$	0.4023			Apr. 1, 2025		$	610
Quarter 2 dividend		Jun. 10, 2025			0.4163			July 2, 2025			634
Quarter 3 dividend		Sept. 10, 2025			0.4163			Oct. 1, 2025			639
				$	1.2349					$	1,883

On November 5, 2026, our Board of Directors declared a quarterly dividend of $0.1875 per share on issued and outstanding TELUS Corporation Common Shares payable on January 4, 2027, to holders of record at the close of business on December 11, 2026. The final amount of the dividend payment depends upon the number of TELUS Corporation Common Shares issued and outstanding at the close of business on December 11, 2026.

(b) Dividend Reinvestment and Share Purchase Plan

We have a Dividend Reinvestment and Share Purchase Plan under which eligible holders of TELUS Corporation Common Shares may acquire additional TELUS Corporation Common Shares by reinvesting dividends and by making additional optional cash payments to the trustee. Under this plan, we have the option of offering TELUS Corporation Common Shares from Treasury or having the trustee acquire TELUS Corporation Common Shares in the stock market. At our discretion, under the plan, we may offer TELUS Corporation Common Shares at a discount of up to 5% from the market price. During the three-month and nine-month periods ended September 30, 2026, eligible shareholders who participated in the plan elected to reinvest dividends declared of $20 million (2025 –$211 million) and $425 million (2025 – $614 million), respectively.

  September 30, 2026 | 31

notes to condensed interim consolidated financial statements (unaudited)

14 share-based compensation

(a) Details of share-based compensation expense

Included in Employee benefits expense in the Consolidated statements of income and other comprehensive income, and in Cash provided by operating activities in the Consolidated statements of cash flows, are the share-based compensation amounts set out in the accompanying table.

Periods ended September 30 (millions)				2026												2025
		Note		Employee benefits expense 1				Associated operating cash outflows				Statement of cash flows adjustment				Employee benefits expense				Associated operating cash outflows				Statement of cash flows adjustment
THREE-MONTH
Restricted share units		(b)		$	47			$	—			$	47			$	43			$	(1	)		$	42
Employee share purchase plan		(c)			4				(4	)			—				4				(4	)			—
Share option awards		(d)			1				—				1				—				—				—
				$	52			$	(4	)		$	48			$	47			$	(5	)		$	42
NINE-MONTH
Restricted share units		(b)		$	130			$	—			$	130			$	126			$	(6	)		$	120
Employee share purchase plan		(c)			7				(7	)			—				17				(17	)			—
Share option awards		(d)			1				—				1				1				—				1
				$	138			$	(7	)		$	131			$	144			$	(23	)		$	121

1 Within employee benefits expense (see Note 8) for the three-month and nine-month periods ended September 30, 2026, restricted share units expense of $10 (2025 – $NIL) and $28 (2025 – $NIL), respectively, is included in restructuring costs (see Note 16) of the TELUS technology solutions segment and the balance is presented as share-based compensation.

(b) Restricted share units

TELUS Corporation restricted share units

We also award restricted share units that largely have the same features as our general restricted share units, but have a variable payout (0% – 200%) that depends upon the achievement of: our total customer connections performance condition (with a weighting of 33-1/3%; 2024 and prior awards, 25%); our free cash flow^* performance condition (with a weighting of 33-1/3%; 2024 and prior awards, NIL%); and the total shareholder return on TELUS Corporation Common Shares relative to international peer groups of telecommunications companies (with a weighting of 33-1/3%; 2024 and prior awards, 75%). The grant-date fair values of the notional subsets of our restricted share units affected by the total customer connections performance condition and the free cash flow performance condition equal the fair market value of the corresponding TELUS Corporation Common Shares at the grant date; we include these notional subsets in the presentation of our restricted share units with only service conditions. For the notional subset of restricted share units affected by the relative total shareholder return performance condition, we estimate fair value using a Monte Carlo simulation due to their variable payout. Restricted share units granted in 2026 and 2025 are accounted for as equity-settled, based on their expected settlement method when granted.

The following table presents a summary of outstanding TELUS Corporation non-vested restricted share units.

As at		September 30, 2026				December 31, 2025
Restricted share units without market performance conditions
Restricted share units with service conditions only			17,828,176				12,212,381
Notional subset affected by non-market performance conditions			2,805,626				1,148,939
			20,633,802				13,361,320
Restricted share units with market performance conditions
Notional subset affected by relative total shareholder return performance condition			2,286,524				1,330,323
Number of non-vested restricted share units			22,920,326				14,691,643

The following table presents a summary of the activity related to TELUS Corporation restricted share units without market performance conditions.

* Free cash flow is not a standardized financial measure under IFRS Accounting Standards and might not be comparable to similar measures disclosed by other issuers (see Note 3).

32 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

		Number of restricted share units 1								Weighted average grant-
		Non-vested				Vested				date fair value
THREE-MONTH PERIOD
Outstanding, April 1, 2026
Non-vested			21,593,850				—			$	18.48
Vested			—				52,964			$	23.52
Granted
Initial award			444,001				—			$	13.03
In lieu of dividends			575,968				1,405			$	15.60
Vested			(1,670,484	)			1,670,484			$	20.08
Settled
In equity			—				(1,665,142	)		$	20.26
In cash			—				(5,893	)		$	20.22
Forfeited			(309,533	)			—			$	19.92
Outstanding, September 30, 2026
Non-vested			20,633,802				—			$	19.08
Vested			—				53,818			$	23.44
NINE-MONTH PERIOD
Outstanding, January 1, 2026
Non-vested			13,361,320				—			$	21.88
Vested			—				53,519			$	23.69
Granted
Initial award			9,942,321				—			$	17.74
In lieu of dividends			1,215,565				3,865			$	16.76
Vested			(2,709,564	)			2,709,564			$	20.27
Settled
In equity			—				(2,691,699	)		$	20.44
In cash			—				(21,431	)		$	21.96
Forfeited			(1,175,840	)			—			$	20.87
Outstanding, September 30, 2026
Non-vested			20,633,802				—			$	19.08
Vested			—				53,818			$	23.44

1 Excluding the notional subset of restricted share units affected by the relative total shareholder return performance condition.

(c) TELUS Corporation employee share purchase plan

We have an employee share purchase plan under which eligible employees can purchase TELUS Corporation Common Shares through regular payroll deductions. In respect of TELUS Corporation Common Shares held within the employee share purchase plan, dividends declared thereon during the three-month and nine-month period ended September 30, 2026, of $6 million (2025 – $15 million) and $35 million (2025 – $43 million), respectively, were to be reinvested in TELUS Corporation Common Shares acquired by the trustee from Treasury, with a discount, if and as applicable, as set out in Note 13(b).

(d) Share option awards

TELUS Corporation share option awards

Employees may be granted share option awards to purchase TELUS Corporation Common Shares at an exercise price equal to the fair market value at the time of grant. Share option awards granted under the plan may be exercised over specific periods not to exceed, generally, seven years from the date of grant.

These share option awards have a net-equity settlement feature. The optionee does not have the choice of exercising the net-equity settlement feature; it is at our option whether the exercise of a share option award is settled as a share option or settled using the net-equity settlement feature.

The following table presents a summary of the activity related to the TELUS Corporation share option plan.

Periods ended September 30, 2026		Three months								Nine months
		Number of share options				Weighted average share option price 1				Number of share options				Weighted average share option price 1
Outstanding, beginning of period			3,560,288			$	20.70				2,087,608			$	22.48
Granted			—			$	-				1,000,000			$	18.48
Forfeited and other			(36,676	)		$	21.78				436,004			$	20.23
Outstanding, end of period			3,523,612			$	20.69				3,523,612			$	20.69
Exercisable, end of period											1,964,835			$	21.84

1 The weighted average remaining contractual life is 3.6 years.

The weighted average fair value of share option awards granted, and the weighted average assumptions used in the fair value estimation at time of grant, calculated using the Black-Scholes model (a closed-form option pricing model) are as follows:

Periods ended September 30, 2026		Three months				Nine months
Share option award fair value (per share option)			—			$	0.85
Risk-free interest rate			—				2.9	%
Expected lives 1 (years)			—				4.9
Expected volatility			—				18.9	%
Dividend yield			—				9.1	%

1 The maximum contractual term of the share option awards granted in 2026 was 10 years.

  September 30, 2026 | 33

notes to condensed interim consolidated financial statements (unaudited)

15 employee future benefits

(a) Defined benefit pension plans – summary

Amounts in the primary financial statements related to defined benefit pension plans

Three-month periods ended September 30				2026												2025
($ in millions)		Note		Plan assets				Defined benefit obligations accrued 1				Net				Plan assets				Defined benefit obligations accrued 1				Net
Employee benefits expense		8
Benefits earned for current service				$	—			$	(17	)						$	—			$	(19	)
Benefits earned for past service					—				—								—				—
Employees’ contributions					4				—								4				—
Administrative fees					(1	)			—								(1	)			—
					3				(17	)		$	(14	)			3				(19	)		$	(16	)
Financing costs		9
Notional income on plan assets 2 and interest on defined benefit obligations accrued					115				(101	)							108				(97	)
Interest effect on asset ceiling limit					(3	)			—								(14	)			—
					112				(101	)			11				94				(97	)			(3	)
DEFINED BENEFIT (COST) INCLUDED IN NET INCOME 3													(3	)											(19	)
Other comprehensive income		11
Difference between actual results and estimated plan assumptions 4					(259	)			—								173				—
Changes in plan financial assumptions 5					—				537								—				(10	)
Changes in the effect of limiting net defined benefit plan assets to the asset ceiling					1,005				—								(141	)			—
					746				537				1,283				32				(10	)			22
DEFINED BENEFIT (COST) INCLUDED IN COMPREHENSIVE INCOME 3												$	1,280											$	3

34 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

Nine-month periods ended September 30								2026								2025
($ in millions)		Note		Plan assets				Defined benefit obligations accrued 1				Net				Plan assets				Defined benefit obligations accrued 1				Net
Employee benefits expense		8
Benefits earned for current service				$	—			$	(51	)						$	—			$	(55	)
Benefits earned for past service					—				(4	)							—				—
Employees’ contributions					13				—								13				—
Administrative fees					(3	)			—								(3	)			—
					10				(55	)		$	(45	)			10				(55	)		$	(45	)
Financing costs		9
Notional income on plan assets 2 and interest on defined benefit obligations accrued					344				(304	)							323				(289	)
Interest effect on asset ceiling limit					(36	)			—								(43	)			—
					308				(304	)			4				280				(289	)			(9	)
DEFINED BENEFIT (COST) INCLUDED IN NET INCOME 3													(41	)											(54	)
Other comprehensive income		11
Difference between actual results and estimated plan assumptions 4					(106	)			—								211				—
Changes in plan financial assumptions 5					—				479								—				90
Changes in the effect of limiting net defined benefit plan assets to the asset ceiling					926				—								(244	)			—
					820				479				1,299				(33	)			90				57
DEFINED BENEFIT (COST) INCLUDED IN COMPREHENSIVE INCOME 3													1,258												3
AMOUNTS INCLUDED IN OPERATING ACTIVITIES CASH FLOWS
Employer contributions					15				—				15				16				—				16
Funding of TELUS Defined Contribution Pension Plan from surplus 6					(19	)			—				(19	)			—				—				—
BENEFITS PAID BY PLANS					(351	)			351				—				(352	)			352				—
PLAN ACCOUNT BALANCES 6
Change in period					783				471				1,254				(79	)			98				19
Balance, beginning of period					8,258				(8,476	)			(218	)			8,262				(8,452	)			(190	)
Balance, end of period				$	9,041			$	(8,005	)		$	1,036			$	8,183			$	(8,354	)		$	(171	)
FUNDED STATUS – PLAN SURPLUS (DEFICIT)
Pension plans that have plan assets in excess of defined benefit obligations accrued 7		20		$	9,030			$	(7,544	)		$	1,486			$	8,173			$	(7,900	)		$	273
Pension plans that have defined benefit obligations accrued in excess of plan assets 8
Funded					11				(255	)			(244	)			10				(229	)			(219	)
Unfunded					—				(206	)			(206	)			—				(225	)			(225	)
		27			11				(461	)			(450	)			10				(454	)			(444	)
				$	9,041			$	(8,005	)		$	1,036			$	8,183			$	(8,354	)		$	(171	)

1 Defined benefit obligations accrued are the actuarial present values of benefits attributed to employee services rendered to a particular date.

2 The interest income on the plan assets portion of the employee defined benefit plans net interest amount included in Financing costs reflects a rate of return on plan assets equal to the discount rate used in determining the defined benefit obligations accrued, as at the end of the immediately preceding fiscal year.

3 Excluding income taxes.

4 Financial assumptions in respect of plan assets (interest income on plan assets included in Financing costs reflects a rate of return on plan assets equal to the discount rate used in determining the defined benefit obligations accrued) and demographic assumptions in respect of the actuarial present values of the defined benefit obligations accrued, as at the end of the immediately preceding fiscal year for both.

5 The discount rate used to measure the defined benefit obligations accrued at September 30, 2026, was 5.39% (December 31, 2025 – 4.90%).

6 Effect of asset ceiling limit at September 30, 2026, was $461 (December 31, 2025 – $1,351). During the three-month period ended September 30, 2026, the TELUS Defined Contribution Pension Plan was merged into both the TELUS Corporation Pension Plan (as amended) and the Pension Plan for Management and Professional Employees of TELUS Corporation (as amended); such amendments do not affect the defined benefit obligations accrued. The amendments to these defined benefit pension plans allow for the plans’ surpluses, not previously recognized for accounting purposes (due to the asset ceiling limits), to be used to make future employer contributions for the defined contribution components, should sufficient surpluses be available to do so.

7 Presented in the Consolidated statements of financial position as Other long-term assets.

8 Presented in the Consolidated statements of financial position as Other long-term liabilities

  September 30, 2026 | 35

notes to condensed interim consolidated financial statements (unaudited)

(b) Defined contribution plans – expense

Our total defined contribution pension plan costs included as Employee benefits expense in the Consolidated statements of income and other comprehensive income are as follows:

Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
Union pension plan contributions		$	3			$	3			$	9			$	9
Other defined contribution pension plans			30				29				86				86
		$	33			$	32			$	95			$	95

16 restructuring and other costs

(a) Details of restructuring and other costs

With the objective of reducing ongoing costs, we incur associated incremental non-recurring restructuring costs, as further discussed in (b) following. We may also incur atypical charges when undertaking major or transformational changes to our business or operating models or during post-acquisition business integration. In other costs, we include incremental atypical external costs incurred in connection with business acquisition or disposition activity; significant litigation costs in respect of losses or settlements; and adverse retrospective regulatory decisions.

Restructuring and other costs presented in the Consolidated statements of income and other comprehensive income are as follows:

Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
Restructuring 1 (b)
Goods and services purchased		$	110			$	47			$	223			$	123
Employee benefits expense			82				37				294				181
			192				84				517				304
Other (c)
Goods and services purchased			19				25				49				35
Employee benefits expense			—				—				149				—
			19				25				198				35
Total
Goods and services purchased			129				72				272				158
Employee benefits expense			82				37				443				181
		$	211			$	109			$	715			$	339

1 For the three-month and nine-month periods ended September 30, 2026, excludes real estate rationalization-related restructuring net impairments of property, plant and equipment of $1 (2025 – $(4)) and $5 (2025 – $NIL), respectively, which are included in depreciation.

(b) Restructuring provisions

Employee-related provisions and other provisions, as presented in Note 25, include amounts for restructuring activities. In 2026, restructuring activities included ongoing and incremental efficiency initiatives, some involving employee-related costs and real estate rationalization. These initiatives were intended to enhance our long-term operating productivity and competitiveness.

(c) Other

During the three-month and nine-month periods ended September 30, 2026 and 2025, we incurred incremental external costs in connection with business combinations. Non-recurring atypical business integration expenditures associated with these business acquisitions, which qualify as neither restructuring costs nor part of the fair value of the net assets acquired, have been included as a part of other costs.

36 | September 30, 2026  

notes to consolidated financial statements (unaudited)

17 property, plant and equipment

		Owned assets																												Right-of-use lease assets (Note 19)
(millions)		Network assets				Buildings and leasehold improvements				Computer hardware and other				Land				Investment property				Assets under construction				Total				Network assets				Real estate				Other				Total				Total
AT COST
Balance as at January 1, 2026		$	38,005			$	4,018			$	1,898			$	85			$	46			$	721			$	44,773			$	2,150			$	2,818			$	80			$	5,048			$	49,821
Additions			598				14				32				1				—				635				1,280				726				255				33				1,014				2,294
Assets under construction put into service			(7	)			179				54				—				127				(353	)			—				—				—				—				—				—
Transfers			1,082				—				24				—				—				—				1,106				(1,106	)			—				—				(1,106	)			—
Dispositions, retirements and other			(535	)			(53	)			—				(3	)			—				—				(591	)			—				(132	)			(3	)			(135	)			(726	)
Net foreign exchange differences			2				6				10				—				—				3				21				—				13				—				13				34
Balance as at September 30, 2026		$	39,145			$	4,164			$	2,018			$	83			$	173			$	1,006			$	46,589			$	1,770			$	2,954			$	110			$	4,834			$	51,423
ACCUMULATED DEPRECIATION
Balance as at January 1, 2026		$	26,410			$	2,556			$	1,392			$	—			$	1			$	—			$	30,359			$	374			$	1,565			$	20			$	1,959			$	32,318
Depreciation 1			1,215				120				129				—				2				—				1,466				93				207				25				325				1,791
Transfers			324				—				11				—				—				—				335				(335	)			—				—				(335	)			—
Dispositions, retirements and other			(575	)			(43	)			(54	)			—				—				—				(672	)			—				(146	)			(5	)			(151	)			(823	)
Net foreign exchange differences			2				4				7				—				—				—				13				—				9				—				9				22
Balance as at September 30, 2026		$	27,376			$	2,637			$	1,485			$	—			$	3			$	—			$	31,501			$	132			$	1,635			$	40			$	1,807			$	33,308
NET BOOK VALUE
Balance as at December 31, 2025		$	11,595			$	1,462			$	506			$	85			$	45			$	721			$	14,414			$	1,776			$	1,253			$	60			$	3,089			$	17,503
Balance as at September 30, 2026		$	11,769			$	1,527			$	533			$	83			$	170			$	1,006			$	15,088			$	1,638			$	1,319			$	70			$	3,027			$	18,115

1 For the nine-month periods ended September 30, 2026, depreciation includes $2 in respect of impairment of real estate right-of-use lease assets.

As at September 30, 2026, our contractual commitments for the property, plant and equipment acquisitions totalled $194 million over a period ending December 31, 2028 (December 31, 2025 – $184 million over a period ending December 31, 2027).

  September 30, 2026 | 37

notes to condensed interim consolidated financial statements (unaudited)

18 intangible assets and goodwill

(a) Intangible assets and goodwill, net

				Intangible assets subject to amortization																				Intangible assets with indefinite lives
(millions)		Note		Customer contracts, related customer relationships and subscriber base				Software				Access to rights-of-way, crowdsource assets and other				Assets under construction				Total				Spectrum licences				Total intangible assets				Goodwill 1				Total intangible assets and goodwill
AT COST
Balance as at January 1, 2026				$	5,962			$	9,396			$	585			$	517			$	16,460			$	13,217			$	29,677			$	11,325			$	41,002
Additions					—				72				34				669				775				373				1,148				—				1,148
Assets under construction put into service					22				552				—				(574	)			—				—				—				—				—
Dispositions, retirements and other (including capitalized interest)		9			(265	)			(303	)			(33	)			—				(601	)			1				(600	)			—				(600	)
Net foreign exchange differences					67				5				10				4				86				—				86				99				185
Balance as at September 30, 2026				$	5,786			$	9,722			$	596			$	616			$	16,720			$	13,591			$	30,311			$	11,424			$	41,735
ACCUMULATED AMORTIZATION AND IMPAIRMENT
Balance as at January 1, 2026				$	2,503			$	6,533			$	313			$	—			$	9,349			$	—			$	9,349			$	865			$	10,214
Amortization					456				721				42				—				1,219				—				1,219				—				1,219
Impairment		(b)			500				—				—				—				500				—				500				2,435				2,935
Dispositions, retirements and other					(276	)			(299	)			(17	)			—				(592	)			—				(592	)			—				(592	)
Net foreign exchange differences					28				2				6				—				36				—				36				27				63
Balance as at September 30, 2026				$	3,211			$	6,957			$	344			$	—			$	10,512			$	—			$	10,512			$	3,327			$	13,839
NET BOOK VALUE
Balance as at December 31, 2025				$	3,459			$	2,863			$	272			$	517			$	7,111			$	13,217			$	20,328			$	10,460			$	30,788
Balance as at September 30, 2026				$	2,575			$	2,765			$	252			$	616			$	6,208			$	13,591			$	19,799			$	8,097			$	27,896

1 Accumulated amortization and impairment of goodwill is comprised of amortization of $364 recorded before 2002 and impairments (inclusive of net foreign exchange differences) recorded subsequently.

As at September 30, 2026, our contractual commitments for intangible asset acquisitions totalled $110 million over a period ending December 31, 2031 (December 31, 2025 – $70 million over a period ending December 31, 2031).

The Innovation, Science and Economic Development Canada 2026 auction of residual spectrum licences occurred during January 2026. We were the successful auction participant for 103 spectrum licences with a total purchase price of $318 million, all of which was paid during the three-month period ended March 31, 2026. We may not commercially use the licences until such time as Innovation, Science and Economic Development Canada determines that we qualify as a radio communications carrier and comply with the Canadian Ownership and Control rules.

During the three-month period ended June 30, 2026, we obtained the use of 2500 MHz band spectrum and 3500 MHz band spectrum from the previous licensee for $55 million; such subordination of licences has been approved by Innovation, Science and Economic Development Canada.

38 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

(b) Impairment testing

The cash-generating units’ goodwill carrying amounts are as follows:

As at (millions)		September 30, 2026				December 31, 2025
TELUS technology solutions		$	7,691			$	7,024
TELUS health			406				935
TELUS digital experience			—				2,501
		$	8,097			$	10,460

General

The estimates of the recoverable amounts of the cash-generating units have been calculated using the fair value less costs of disposal method and are, in total, categorized as Level 3 fair value measures. There is a material degree of uncertainty with respect to the estimates of the recoverable amounts of the cash-generating units, given the need to make key economic assumptions about the future.

The fair value less costs of disposal method uses discounted cash flow projections that employ the following key assumptions: future cash flows and growth projections; associated economic risk assumptions and estimates of the likelihood of achieving key operating metrics and drivers; and the future weighted average cost of capital.

To validate the results of our recoverable amounts calculations, we employ a market-comparable approach and an analytical review of industry facts and facts that are specific to us.

TELUS health

As at September 30, 2026, the relevant circumstances of the TELUS health cash-generating unit were not consistent with those existing at the time of the December 2025 test, including due to structural changes in our operations as discussed following in TELUS digital experience.

As part of our ongoing consideration of trends, commitments, events and uncertainties informing our significant estimates and assumptions, in the context of cash-generating unit impairment testing, we determine if, and how, it is necessary to update the estimates of the recoverable amounts of the cash-generating units, including adjustment of growth projections in the projection periods. During the three-month period ended September 30, 2026, we informed the TELUS health cash-generating unit recoverable amount by the active programme to identify potential strategic partners for our TELUS Health business (see (c) following). In turn, we determined it necessary to downward adjust the growth projections in the projection period used for our impairment testing so as to reflect current economic conditions and updated historical information. The September 30, 2026, test of the TELUS health cash-generating unit, using an estimated recoverable amount of $2.6 billion, resulted in an irreversible goodwill impairment of $0.8 billion. Such recoverable amount used a discount rate of 9.0% (December 31, 2025 – 8.0%), a perpetual growth rate of 2.5% (December 31, 2025 – 2.5%) and cash flow projections through the end of 2030 (December 31, 2025 – 2029).

Had growth projections declined in the projection period by more than trivial amounts, or had the discount rate increased by more than a trivial amount, the September 30, 2026, estimate of the recoverable amount of the TELUS health cash-generating unit would be less; we believe that any reasonably possible change in other key assumptions on which our calculation of the recoverable amount of the TELUS health cash-generating unit is based would not cause its carrying value to further exceed its recoverable amount. If the future were to adversely differ from management’s best estimates for the key assumptions and associated cash flows were to be materially adversely affected, we could potentially experience future material impairment charges in respect of the TELUS health cash-generating unit.

TELUS digital experience

As at June 30, 2026, the relevant circumstances of the TELUS digital experience cash-generating unit were not consistent with those existing at the time of the December 2025 test, including due to structural changes in our operations, as referenced in Note 5, which arose in 2026 associated with the privatization of TELUS International (Cda) Inc. in fiscal 2025. These structural changes necessitated the reallocation of $0.9 billion of goodwill that had previously been attributed to the TELUS digital experience cash-generating unit. Specifically, $0.7 billion was reallocated to the TELUS technology solutions cash-generating unit and $0.2 billion was reallocated to the TELUS health cash-generating unit. Due to these structural changes and resulting goodwill reallocation, IFRS Accounting Standards required us to concurrently test the carrying values of the affected cash-generating units’ goodwill amounts. As at March 31, 2026, the recoverable amount of the TELUS digital experience cash-generating unit was slightly in excess of its carrying amount. Had growth projections in the projection period been lower by more than trivial amounts, or had the discount rate been greater by more than a trivial amount, the March 31, 2026, estimate of the recoverable amount of the TELUS digital cash-generating unit would have been less; we believed that any reasonably possible change in other key assumptions on which our calculation of the recoverable amount of the TELUS digital experience cash-generating unit was based would not have caused its carrying value to exceed its recoverable amount.

  September 30, 2026 | 39

notes to condensed interim consolidated financial statements (unaudited)

On a multi-year basis, the TELUS digital experience cash-generating unit’s competitive industry continues to experience, and be increasingly challenged by, competitors and customers both actively building scale on an accelerated basis and, increasingly, technological innovation. These dynamics adversely affected both the level, timing and nature of customer demand in legacy services, specifically for content moderation and ad-relevancy, search-related services as these are being automated by the transition to AI. The customer demand dynamic is further affected by contract durations that vary by service line and have termination rights for our customers with limited notice and without penalty or termination fees, allowing them to make adjustments to service levels that can adversely, and relatively quickly, impact our revenue.

In the context of this multi-year experience for the TELUS digital experience cash-generating unit, during the three-month period ended June 30, 2024, we determined that updated growth projections had resulted in its estimated recoverable amount to be slightly in excess of its carrying amount; and, during the three-month period ended June 30, 2025, we determined that updated growth projections had resulted in its estimated recoverable amount being exceeded by its carrying amount and thus recorded a $0.5 billion goodwill impairment.

As part of our ongoing consideration of trends, commitments, events and uncertainties informing our significant estimates and assumptions, in the context of cash-generating unit impairment testing, we determine if, and how, it is necessary to update the estimates of the recoverable amounts of the cash-generating units, including adjustment of growth projections in the projection periods. During the three-month period ended June 30, 2026, we experienced demand ramp-downs and more pronounced churn in legacy services provided to certain hyperscale customers as these services are being automated faster than anticipated. We have also reassessed our AI-enabling services growth trajectory and, while these services are expected to grow: customer adoption is slower than we previously anticipated, notably for certain larger customers; sales cycles have become further extended, both for existing and new customers; and, deal sizes have compressed. The extended sales cycles affect and challenge the entirety of the projection period. During the three-month period ended June 30, 2026, we determined it necessary to further downward adjust the growth projections in the projection period used for our impairment testing so as to reflect current economic conditions and updated historical information.

The June 30, 2026, test, using an estimated recoverable amount of $1.8 billion, resulted in an impairment of $2.1 billion, of which $1.6 billion was an irreversible goodwill impairment (which reduced the carrying value of the TELUS digital experience cash-generating unit’s goodwill to $NIL) and the remainder of $0.5 billion was allocated to related customer relationships. Such recoverable amount used a discount rate of 9.6% (December 31, 2025 – 9.6%), a perpetual growth rate of 2.5% (December 31, 2025 – 2.5%) and cash flow projections through the end of 2030 (December 31, 2025 – 2029).

Had growth projections declined in the projection period by more than trivial amounts, or had the discount rate increased by more than a trivial amount, the June 30, 2026, estimate of the recoverable amount of the TELUS digital experience cash-generating unit would be less; we believed that any reasonably possible change in other key assumptions on which our calculation of the recoverable amount of the TELUS digital experience cash-generating unit was based would not cause its carrying value to further exceed its recoverable amount.

As at September 30, 2026, relevant events and circumstances continued to be inconsistent with those existing at the time of the December 2025 annual test and were such that it was considered appropriate to again test the carrying value of the TELUS digital experience cash-generating unit; the September 30, 2026, test, using an estimated recoverable amount of $1.8 billion, resulted in neither a further impairment nor a reversal of previously recorded impairment charges in respect of the TELUS digital experience cash-generating unit’s related customer relationships. Such recoverable amount used a discount rate of 9.6%, a perpetual growth rate of 2.5% and cash flow projections through the end of 2030.

If the future were to adversely differ from management’s best estimates for the key assumptions and associated cash flows were to be materially adversely affected, we could potentially experience future material impairment charges in respect of the TELUS digital experience cash-generating unit.

(c) Partnership and monetisation strategy TELUS Health and TELUS Agriculture & Consumer Goods

In 2026, we have initiated, and have continued to progress, an active programme to identify potential strategic partners for our TELUS Health and TELUS Agriculture & Consumer Goods businesses. The monetisation strategy is part of our long-term orientation consistent with our approach to value creation.

In the event it became highly probable that a part of the TELUS Health or TELUS Agriculture & Consumer Goods businesses were to be sold, IFRS Accounting Standards would require us to treat such disposal group as a cash-generating unit. This would require a partial reallocation of goodwill that had been previously attributed to the TELUS health or TELUS Agriculture & Consumer Goods cash-generating units, respectively, to the disposal group cash-generating unit, requiring us to concurrently test the carrying values of the newly-defined cash-generating units' goodwill amounts. Depending on the disposal group and proceeds of sale, this could result in a further impairment.

19 leases

Maturity analyses of lease liabilities are set out in Note 4(b) and Note 26(i); the period interest expense in respect thereof is set out in Note 9. The additions to, depreciation charges for, and carrying amounts of, right-of-use lease assets are set out in Note 17. We have not currently elected to exclude low-value and short-term leases from lease accounting.

40 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

		Three months								Nine months
Periods ended September 30 (millions)		2026				2025				2026				2025
Income from subleasing right-of-use lease assets
Co-location sublease revenue included in Operating revenues – service		$	6			$	5			$	18			$	21
Other sublease revenue included in Other income (Note 7)		$	2			$	2			$	5			$	5
Lease payments 1		$	184			$	172			$	1,213			$	623

1 In the Consolidated statements of cash flows, the principal component of lease payments is included in Cash used by financing activities (see Note 31(b)) and the interest component of lease payments is included in Interest paid.

20 other long-term assets

As at (millions)		Note		September 30, 2026				December 31, 2025
Pension assets		15		$	1,486			$	235
Unbilled customer finance receivables		4(a)			571				586
Derivative assets		4(d)			31				40
Deferred income taxes					82				74
Costs incurred to obtain or fulfill contracts with customers					401				370
Investments in real estate joint ventures		21(a)			253				240
Investments in associates		21(b)			201				198
Portfolio investments 1
At fair value through net income					100				78
At fair value through other comprehensive income					673				648
Prepaid maintenance					55				38
Refundable security deposits and other					152				169
				$	4,005			$	2,676

1 Fair value measured at reporting date using significant other observable inputs (Level 2).

The costs incurred to obtain and fulfill contracts with customers are as follows:

		Costs incurred to
(millions)		Obtain contracts with customers				Fulfill contracts with customers				Total
Balance as at July 1, 2026		$	614			$	93			$	707
Additions			125				7				132
Amortization 1			(104	)			(4	)			(108	)
Balance as at  September 30, 2026		$	635			$	96			$	731
Balance as at January 1, 2026		$	701			$	82			$	783
Additions			386				23				409
Amortization 1			(452	)			(9	)			(461	)
Balance as at September 30, 2026		$	635			$	96			$	731
Current		$	310			$	20			$	330
Non-current			325				76				401
		$	635			$	96			$	731

1 For the three-month and nine-month periods ended September 30, 2026, $NIL (2025 – $NIL) and $130 (2025 – $NIL), respectively, of amortization of costs incurred to obtain contracts with customers was included in restructuring and other costs.

  September 30, 2026 | 41

notes to condensed interim consolidated financial statements (unaudited)

21 real estate joint ventures and investments in associates

(a) Real estate joint ventures

During 2026 and 2025, we partnered, as equals, with arm’s-length parties in real estate redevelopment projects in Alberta and British Columbia.

Summarized financial information

As at (millions)		September 30, 2026				December 31, 2025
ASSETS
Current assets
Cash and temporary investments, net		$	8			$	6
Other			2				2
			10				8
Non-current assets
Investment property under development			517				466
Promissory notes 1			430				411
			947				877
		$	957			$	885
LIABILITIES AND OWNERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities		$	6			$	5
Non-current liabilities
Long-term debt			32				21
Liabilities			38				26
Owners’ equity
TELUS 2			460				430
Other partners 1			459				429
			919				859
		$	957			$	885

1 Other partners’ equity is gross of $430 (December 31, 2025 – $411) promissory notes issued to the joint ventures by the arm’s-length parties in the real estate redevelopment projects in British Columbia; in the event of dissolution or other wind-up of the partnerships, the other partner’s equity will first be reduced by any amounts of the promissory notes outstanding when determining the equity of the joint ventures. The primary intended method of repayment of the promissory notes is through contribution of in-kind development costs, but may optionally include cash payments.

2 The equity amounts recorded by the real estate joint ventures differ from those recorded by us by the amount of the deferred gains on our real estate contributed and the valuation provision we have recorded in excess of that recorded by the real estate joint ventures.

Our real estate joint ventures activity

Our real estate joint ventures investment activity is set out in the following table.

		Three months								Nine months
Periods ended September 30 (millions)  1		2026				2025				2026				2025
Balance, beginning of period		$	253			$	189			$	237			$	178
Valuation provision reversal			—				—				—				3
Related to real estate joint ventures’ statements of financial position
Items not affecting currently reported cash flows
Our real estate contributed			—				28				35				45
Deferred gains on our remaining interests in our real estate contributed			—				(13	)			(14	)			(21	)
Cash flows in the current reporting period
Funds we advanced or contributed			—				1				1				1
Funds repaid to us and earnings distributed			—				—				(6	)			(1	)
Balance, end of period		$	253			$	205			$	253			$	205

1 We account for our interests in the real estate joint ventures using the equity method of accounting and such interests are included in our Consolidated statements of financial position as Other long-term assets (see Note 20).

(b) Investments in associates

As set out in Note 20, we include our investments in associates in our Consolidated statements of financial position as Other long-term assets. As at September 30, 2026, and December 31, 2025, we held an equity interest in Miovision Technologies Incorporated, a Canadian incorporated entity that is complementary to, and is viewed to grow, our existing Internet of Things business; our judgment is that we obtained significant influence over the associate when we acquired our initial equity interest. Miovision Technologies Incorporated is developing a suite of hardware and cloud-based solutions that provide cities with the data and tools they need to reduce traffic congestion, make better urban planning decisions and improve safety on their roads. Our aggregate interests in other individually immaterial associates as at September 30, 2026, totalled $35 million (December 31, 2025 – $29 million).

42 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

Miovision Technologies Incorporated

As at, or for the periods ended, ($ in millions)		September 30, 2026				September 30, 2025				December 31, 2025
Statement of financial position 1
Current assets		$	127							$	82
Non-current assets		$	420							$	411
Current liabilities		$	43							$	74
Non-current liabilities		$	54							$	31
Net assets		$	450							$	388
Statement of income and other comprehensive income 1
THREE-MONTH
Revenue and other income		$	61			$	42
Net income (loss)		$	2			$	(11	)
Comprehensive income (loss)		$	3			$	(5	)
NINE-MONTH
Revenue and other income		$	160			$	127
Net income (loss)		$	(2	)		$	(24	)
Comprehensive income (loss)		$	1			$	(20	)
Reconciliation of statement of financial position summarized financial information to carrying amounts
Net assets (above)		$	450							$	388
Our interest			36.9	%							43.4	%
Our interest in net assets (our carrying amounts)		$	166							$	169

1 As required by IFRS Accounting Standards, this summarized financial information is not just our share of these amounts.

22 short-term borrowings

On May 22, 2024, we entered into an agreement with an arm’s-length securitization trust associated with a major Schedule I bank allowing us to borrow up to $1.6 billion, secured by certain trade receivables and unbilled customer finance receivables; the term of this revolving-period securitization agreement ends May 22, 2027, and requires minimum cash advances of $920 million. Funding under the agreement may be provided in either Canadian dollars or U.S. dollars. Currency risk associated with funding denominated in U.S. dollars is managed through the use of foreign currency forward contracts.

As at September 30, 2026, TELUS Corporation has an unsecured non-revolving $650 million (or US$ equivalent) bank credit facility, maturing June 2027, with a syndicate of financial institutions, which is to be used for general corporate purposes. Currency risk associated with funding denominated in U.S. dollars is managed through the use of foreign currency forward contracts.

Short-term borrowings of $1.6 billion (December 31, 2025 – $0.9 billion) are comprised of amounts advanced to us by the arm’s-length securitization trust ($0.9 billion; December 31, 2025 – $0.9 billion) and the non-revolving $650 million bank credit facility ($0.7 billion; December 31, 2025 – $NIL); all amounts advanced were denominated in U.S. dollars.

The balance of short-term borrowings (if any) is comprised of amounts drawn on bilateral bank facilities and/or other.

23 accounts payable and accrued liabilities

As at (millions)		September 30, 2026				December 31, 2025
Trade accounts payable 1
Supply chain financing – arm’s-length third party has paid supplier		$	28			$	16
Supply chain financing – eligible payable 2			18				11
Amounts that are part of supply chain financing			46				27
Amounts that are not part of supply chain financing			1,296				955
			1,342				982
Accrued liabilities			1,375				1,246
Payroll and other employee-related liabilities			689				651
Interest payable			331				389
Indirect taxes payable and other			166				226
		$	3,903			$	3,494

	1	The composition of trade accounts payable fluctuates due to various factors, including suppliers’ invoice timing, our data processing cycle timing and the seasonal nature of certain business activities, as well as whether the statement of financial position date falls on a business day. Trade accounts payable represent future payments for invoices received in respect of both operating and capital activities, and may include amounts for assessed and self-assessed government remittances.
	2	Amounts eligible for suppliers to choose to be paid in advance of industry-standard payment terms.

In 2023, we introduced a supply chain financing program that allows suppliers with qualifying trade accounts payable to opt for early payment from an arm’s-length third party, in advance of industry-standard payment terms; in turn, we reimburse the arm’s-length third party for those payments when the trade accounts payable would originally have been due.

  September 30, 2026 | 43

notes to condensed interim consolidated financial statements (unaudited)

The weighted average due dates for trade accounts payable are largely similar, within and outside the supply chain financing program, and generally payment is due within one quarter.

24 advance billings and customer deposits

As at (millions)		September 30, 2026				December 31, 2025
Advance billings		$	827			$	877
Deferred customer activation and connection fees			4				3
Customer deposits			18				13
Contract liabilities			849				893
Other			102				160
		$	951			$	1,053

Contract liabilities represent our future performance obligations to customers for services and/or equipment for which we have already received consideration or for which an amount is due from the customer. Our contract liability balances, and the changes in those balances, are as follows:

		Three months								Nine months
Periods ended September 30 (millions)		2026				2025				2026				2025
Balance, beginning of period		$	1,124			$	1,176			$	1,161			$	1,102
Revenue deferred in previous period and recognized in current period			(661	)			(690	)			(648	)			(631	)
Net additions arising from operations			676				652				626				644
Additions arising from business acquisitions			—				—				—				23
Balance, end of period		$	1,139			$	1,138			$	1,139			$	1,138
Current										$	960			$	992
Non-current  (Note 27)
Deferred revenues											179				143
Deferred customer activation and connection fees											—				3
										$	1,139			$	1,138
Reconciliation of contract liabilities presented in the Consolidated statements of financial position – current
Gross contract liabilities										$	960			$	992
Reclassification to contract assets of contracts with contract liabilities less than contract assets (Note 6(c))											(97	)			(120	)
Reclassification from contract assets of contracts with contract assets less than contract liabilities (Note 6(c))											(14	)			(17	)
										$	849			$	855

44 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

25 provisions

(millions)		Note		Asset retirement obligations 1				Employee- related 2				Written put options and contingent consideration 3				Regulatory 2				Other 2				Total
Balance as at July 1, 2026				$	305			$	128			$	237			$	139			$	156			$	965
Additions					—				73				1				2				100				176
Reversals					—				—				(1	)			—				(14	)			(15	)
Uses					(3	)			(70	)			—				(6	)			(62	)			(141	)
Interest effects 4		9			4				—				2				3				—				9
Effects of foreign exchange, net 4					—				—				—				—				(1	)			(1	)
Balance as at September 30, 2026				$	306			$	131			$	239			$	138			$	179			$	993
Balance as at January 1, 2026				$	301			$	110			$	233			$	142			$	175			$	961
Additions					—				281				4				21				195				501
Reversals					—				(1	)			(3	)			—				(29	)			(33	)
Uses					(6	)			(260	)			(9	)			(29	)			(161	)			(465	)
Interest effects 4		9			11				—				7				4				—				22
Effects of foreign exchange, net 4					—				1				7				—				(1	)			7
Balance as at September 30, 2026				$	306			$	131			$	239			$	138			$	179			$	993
Current				$	10			$	128			$	187			$	41			$	89			$	455
Non-current					296				3				52				97				90				538
Balance as at September 30, 2026				$	306			$	131			$	239			$	138			$	179			$	993

1 Additions and reversals for Asset retirement obligations are included in the Consolidated statements of financial position as Property, plant and equipment, net. Uses, to the extent that such items include a flow of cash, are included net in Cash used by investing activities in the Consolidated statements of cash flows (see Note 31(a)).

2 Additions and reversals for Employee-related, Regulatory and Other are generally included in the Consolidated statements of income and other comprehensive income as Employee benefits expense, Goods and services purchased and Goods and services purchased, respectively. Uses, to the extent that such items include a flow of cash, are generally included net in Cash provided by operating activities in the Consolidated statements of cash flows.

3 Additions and reversals for Written put options and contingent consideration are included in the Consolidated statements of financial position as Goodwill, net, and in the Consolidated statements of income and other comprehensive income as Other income, respectively. Uses, to the extent that such items include a flow of cash, are included in Cash used by investing activities in the Consolidated statements of cash flows.

4 Interest effects, excepting those arising from provision re-measurement due to change in discount rates, and Effects of foreign exchange, net, are included in the Consolidated statements of income and other comprehensive income as Financing costs.

Asset retirement obligations

We establish provisions for liabilities associated with the retirement of property, plant and equipment when these obligations result from the acquisition, construction, development and/or normal operation of the assets. We expect that the associated cash outflows in respect of the balance accrued as at the financial statement date will occur proximate to the retirement dates of these assets.

Employee-related

Our employee-related provisions are largely in respect of restructuring activities (as discussed further in Note 16(b)). The timing of the associated cash outflows in respect of the balance accrued as at the financial statement date is substantially short-term in nature.

Written put options and contingent consideration

In connection with certain business acquisitions, we have established provisions for written put options in respect of non-controlling interests. Some of these provisions are determined based on the net present value of estimated future earnings, requiring us to make key economic assumptions about the future. We have also established provisions for contingent consideration. We do not expect cash outflows in respect of the written put options to occur before their initial exercisability, nor do we expect cash outflows in respect of contingent consideration to occur before completion of the related earning periods; in some instances, we may settle the provision for written put options using equity instruments. During the three-month and nine-month periods ended September 30, 2026, $NIL and $3 million, respectively, of provisions for written put options and contingent consideration were settled using equity instruments.

Regulatory

The regulatory regime under which we operate as a telecommunications carrier in Canada sets out, among other matters, rates, terms and conditions for the provision of telecommunications services, and in turn, we may need to record associated provisions. We cannot reasonably determine the timing of cash outflows in respect of regulatory accounts.

  September 30, 2026 | 45

notes to condensed interim consolidated financial statements (unaudited)

Other

The provisions for other include: legal claims; real estate rationalization and other non-employee-related restructuring activities; and contract termination costs and onerous contracts (including those related to business acquisitions). Except as noted below, we expect the cash outflows associated with the balance accrued as at the financial statement date to occur over an indeterminate multi-year period.

As discussed further in Note 29(a), we are involved in a number of legal claims and we are aware of certain other possible legal claims. We establish provisions for legal claims when warranted, considering legal assessments, current information, and the expected availability of recourse. We cannot reasonably determine the timing of cash outflows in respect of legal claims.

In connection with business acquisitions, we have established provisions for contract termination costs and onerous contracts acquired.

26 long-term debt

(a) Details of long-term debt

As at (millions)		Note		September 30, 2026				December 31, 2025
Senior unsecured
TELUS Corporation senior notes		(b)		$	16,945			$	18,191
TELUS Corporation commercial paper		(c)			1,701				952
Other		(e)			34				295
Junior unsecured
TELUS Corporation junior subordinated notes		(f)			7,397				7,250
Secured
Other		(g)			469				537
					26,546				27,225
Lease liabilities		(h)			3,238				3,314
Long-term debt				$	29,784			$	30,539
Current				$	3,854			$	3,102
Non-current					25,930				27,437
Long-term debt				$	29,784			$	30,539

(b) TELUS Corporation senior notes

The notes are senior unsecured and unsubordinated obligations, ranking equally with all of our existing and future unsecured unsubordinated obligations, are senior in right of payment to all of our existing and future subordinated indebtedness, and are effectively subordinated to all existing and future obligations of, or guaranteed by, our subsidiaries. The notes’ indentures contain covenants that, among other things, limit our ability, and that of certain of our subsidiaries, to: grant security in respect of indebtedness; enter into sale-leaseback transactions; and incur new indebtedness.

Interest is payable semi-annually. Upon a change in control triggering event, as defined in the supplemental trust indenture, we must offer to repurchase the notes at a price equal to 101% of their principal amount plus accrued and unpaid interest to the repurchase date.

Notes issued before September 2023 are redeemable at our option, in whole at any time, or in part from time to time, on not fewer than 30 days’ and not more than 60 days’ prior notice before their respective maturity dates; for notes issued subsequent to August 2023, the notice period is not fewer than 10 days’ and not more than 60 days’ prior notice. On or after the respective redemption present value spread cessation dates set out in the table below, notes issued before September 2023 are redeemable at our option, in whole but not in part, on not fewer than 30 days’ and not more than 60 days’ prior notice, at redemption prices equal to 100% of their principal amounts; for notes issued subsequent to August 2023, the notice period is not fewer than 10 days’ and not more than 60 days’ prior notice. Accrued and unpaid interest, if any, will be paid to the date fixed for redemption.

46 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

Principal face amount

Redemption present value spread

TELUS Corporation senior note series

Issued

Maturity

Issue price

Effective interest rate 1

Originally issued

Outstanding at financial statement date

Basis points 2

Cessation date

3.75% Notes, Series CV

December 2015

March 2026 3

$992.14

3.84

%

$600 million

$NIL

53.5

Dec. 10, 2025

2.75% Notes, Series CZ

July 2019

July 2026 4

$998.73

2.77

%

$800 million

$NIL 4

33

May 8, 2026

2.80% U.S. Dollar Notes 5

September 2016

February 2027

US$991.89

2.89

%

US$600 million

US$600 million

20

Nov. 16, 2026

3.70% U.S. Dollar Notes 5

March 2017

September 2027

US$998.95

3.71

%

US$500 million

US$500 million

20

June 15, 2027

2.35% Notes, Series CAC

May 2020

January 2028

$997.25

2.39

%

$600 million

$600 million

48

Nov. 27, 2027

3.625% Notes, Series CX

March 2018

March 2028

$989.49

3.75

%

$600 million

$600 million

37

Dec. 1, 2027

4.80% Notes, Series CAO

February 2024

December 2028

$998.95

4.83

%

$700 million

$700 million

28

Nov. 15, 2028

3.30% Notes, Series CY

April 2019

May 2029

$991.75

3.40

%

$1.0 billion

$1.0 billion

43.5

Feb. 2, 2029

5.00% Notes, Series CAI

September 2022

September 2029

$995.69

5.07

%

$350 million

$350 million

46.5

July 13, 2029

3.15% Notes, Series CAA

December 2019

February 2030

$996.49

3.19

%

$600 million

$600 million

39.5

Nov. 19, 2029

5.60% Notes, Series CAM

September 2023

September 2030

$998.85

5.62

%

$500 million

$500 million

46

July 9, 2030

2.05% Notes, Series CAD

October 2020

October 2030

$997.93

2.07

%

$500 million

$500 million

38

July 7, 2030

4.95% Notes, Series CAP

February 2024

February 2031

$997.07

5.00

%

$600 million

$600 million

34.5

Dec. 18, 2030

4.65% Notes, Series CAQ

August 2024

August 2031

$999.11

4.66

%

$700 million

$700 million

38.5

June 13, 2031

2.85% Sustainability-Linked Notes, Series CAF

June 2021

November 2031

$997.52

2.88

% 6

$750 million

$750 million

34

Aug. 13, 2031

3.40% U.S. Dollar Sustainability-Linked Notes 5

February 2022

May 2032

US$997.13

3.43

% 6

US$900 million

US$900 million

25

Feb. 13, 2032

5.25% Sustainability-Linked Notes, Series CAG

September 2022

November 2032

$996.73

5.29

% 6

$1.1 billion

$1.1 billion

51.5

Aug. 15, 2032

4.95% Sustainability-Linked Notes, Series CAJ

March 2023

March 2033

$998.28

4.97

% 6

$500 million

$500 million

54.5

Dec. 28, 2032

5.75% Sustainability-Linked Notes, Series CAK

September 2023

September 2033

$997.82

5.78

% 6

$850 million

$850 million

52

June 8, 2033

5.10% Sustainability-Linked Notes, Series CAN

February 2024

February 2034

$996.44

5.15

% 6

$500 million

$500 million

38.5

Nov. 15, 2033

4.40% Notes, Series CL

April 2013

April 2043

$997.68

4.41

%

$600 million

$129 million 7

47

Oct. 1, 2042

5.15% Notes, Series CN

November 2013

November 2043

$995.00

5.18

%

$400 million

$400 million

50

May 26, 2043

4.85% Notes, Series CP

Multiple 8

April 2044

$987.91 8

4.93

% 8

$500 million 8

$900 million 8

46

Oct. 5, 2043

4.75% Notes, Series CR

September 2014

January 2045

$992.91

4.80

%

$400 million

$400 million

51.5

July 17, 2044

4.40% Notes, Series CU

March 2015

January 2046

$999.72

4.40

%

$500 million

$60 million 7

60.5

July 29, 2045

4.70% Notes, Series CW

Multiple 9

March 2048

$998.06 9

4.71

% 9

$325 million 9

$89 million 7, 9

58.5

Sept. 6, 2047

4.60% U.S. Dollar Notes 5

June 2018

November 2048

US$987.60

4.68

%

US$750 million

US$561 million 7

25

May 16, 2048

4.30% U.S. Dollar Notes 5

May 2019

June 2049

US$990.48

4.36

%

US$500 million

US$371 million 7

25

Dec. 15, 2048

3.95% Notes, Series CAB

Multiple 10

February 2050

$997.54 10

3.97

% 10

$400 million 10

$73 million 7, 10

57.5

Aug. 16, 2049

4.10% Notes, Series CAE

April 2021

April 2051

$994.70

4.13

%

$500 million

$49 million 7

53

Oct. 5, 2050

5.65% Notes, Series CAH

September 2022

September 2052

$996.13

5.68

%

$550 million

$550 million

61.5

Mar. 13, 2052

5.95% Notes, Series CAL

September 2023

September 2053

$992.67

6.00

%

$400 million

$400 million

61.5

Mar. 8, 2053

	1	The effective interest rate represents the yield the notes would provide to an initial debt holder if held to maturity and, in respect of sustainability-linked notes, if no trigger events or MFN step-ups occur.
	2	For Canadian dollar-denominated notes, the redemption price is the greater of (i) the present value of the notes discounted at the Government of Canada yield plus the redemption present value spread calculated over the period to the cessation date, or (ii) 100% of the principal amount thereof.

For U.S. dollar-denominated notes, the redemption price is the greater of (i) the present value of the notes discounted at the U.S. Adjusted Treasury Rate (at the U.S. Treasury Rate for the 3.40% U.S. Dollar Sustainability-Linked Notes) plus the redemption present value spread calculated over the period to the cessation date, or (ii) 100% of the principal amount thereof.

	3	On December 16, 2025, we exercised our right to, and did, early redeem, on January 16, 2026, all of our 3.75% Notes, Series CV.
	4	On March 9, 2026, we exercised our right to, and did, early redeem, on May 8, 2026, $500 million of our 2.75% Notes, Series CZ; the balance was repaid at maturity.
	5	We have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively convert the principal payments and interest obligations to Canadian dollar obligations as follows:

  September 30, 2026 | 47

notes to condensed interim consolidated financial statements (unaudited)

TELUS Corporation senior note series		Interest rate fixed at				Canadian dollar equivalent principal		Exchange rate
2.80% U.S. Dollar Notes			2.95	%		$792 million		$	1.3205
3.70% U.S. Dollar Notes			3.41	%		$667 million		$	1.3348
3.40% U.S. Dollar Sustainability-Linked Notes			3.89	%		$1.1 billion		$	1.2753
4.60% U.S. Dollar Notes			4.41	%		$728 million		$	1.2985
4.30% U.S. Dollar Notes			4.27	%		$498 million		$	1.3435

6 If we have not obtained a sustainability performance target verification assurance certificate for the fiscal year ending December 31, 2030, the sustainability-linked notes will incur increased interest rates from the trigger date through to their individual maturities. The interest rate on certain sustainability-linked notes may also increase (MFN step-up) if we fail to meet additional sustainability and/or environmental, social or governance targets specified in a sustainability-linked bond; the interest rate on these notes, however, in no event can exceed the initial rate by more than the combined MFN step-up and trigger event limit, whether as a result of not obtaining a sustainability performance target verification assurance certificate and/or any targets provided for in one or more future sustainability-linked bonds. Similarly, if we redeem any sustainability-linked notes without having obtained a sustainability performance target verification assurance certificate at the end of the fiscal year immediately preceding the redemption date, any interest accrued will be determined using the following rates:

		Sustainability performance target verification assurance certificate
TELUS Corporation senior note series		Fiscal year			Trigger date			Post- trigger event interest rate				Aggregate MFN step-up and trigger event limit				Redemption interest accrual rate if certificate not obtained
2.85% Sustainability-Linked Notes, Series CAF		2030			Nov. 14, 2030				3.85	%			N/A				3.85	%
3.40% U.S. Dollar Sustainability-Linked Notes		2030			Nov. 14, 2030				4.40	%			1.50	%			4.40	%
5.25% Sustainability-Linked Notes, Series CAG		2030			Nov. 15, 2030				6.00	%			1.50	%			6.00	%
4.95% Sustainability-Linked Notes, Series CAJ		2030			Mar. 28, 2031				5.70	%			1.50	%			5.70	%
5.75% Sustainability-Linked Notes, Series CAK		2030			Apr. 30, 2031				6.35	%			1.20	%			6.35	%
5.10% Sustainability-Linked Notes, Series CAN		2030			Feb. 15, 2031				5.60	%			1.00	%			5.60	%

7 In the year ended December 31, 2025, we acquired TELUS Corporation senior notes pursuant to our tender offers, as set out in the following table.

					Tender offer principal face amount acquired (millions)
TELUS Corporation senior note series		Maturity			June 2025				Dec. 2025				Total
4.40% Notes, Series CL		April 2043				—			$	471			$	471
4.40% Notes, Series CU		Jan. 2046			$	267			$	173			$	440
4.70% Notes, Series CW		Mar. 2048				—			$	386			$	386
4.60% U.S. Dollar Notes		Nov. 2048			US$	189				—			US$	189
4.30% U.S. Dollar Notes		June 2049			US$	129				—			US$	129
3.95% Notes, Series CAB		Feb. 2050			$	695			$	32			$	727
4.10% Notes, Series CAE		April 2051			$	422			$	29			$	451

	8	$500 million of 4.85% Notes, Series CP were issued in April 2014 at an issue price of $998.74 and an effective interest rate of 4.86%. This series of notes was reopened in December 2015 and a further $400 million of notes were issued at an issue price of $974.38 and an effective interest rate of 5.02%.
	9	$325 million of 4.70% Notes, Series CW were issued in March 2017 at an issue price of $990.65 and an effective interest rate of 4.76%. This series of notes was reopened in February 2018 and a further $150 million of notes were issued in March 2018 at an issue price of $1,014.11 and an effective interest rate of 4.61%.
	10	$400 million of 3.95% Notes, Series CAB were issued in December 2019 at an issue price of $991.54 and an effective interest rate of 4.00%. This series of notes was reopened in May 2020 and a further $400 million of notes were issued at an issue price of $1,003.53 and an effective interest rate of 3.93%.

(c) TELUS Corporation commercial paper

TELUS Corporation has an unsecured commercial paper program, backstopped by our $2.75 billion revolving syndicated credit facility (see (d)), which is used for general corporate purposes, including capital expenditures and investments. Subject to conditions related to debt ratings, this program allows us to issue commercial paper up to a maximum aggregate equivalent amount at any one time of $2.1 billion (US$1.5 billion maximum). We use foreign currency forward contracts to manage currency risk arising from U.S. dollar-denominated commercial paper. Although commercial paper debt matures within one year, we classify it as a current portion of long-term debt as these amounts are supported by the revolving credit facility and we expect that they will continue to be supported by the revolving credit facility, which has no repayment requirements within the next year. As at September 30, 2026, we had $1.7 billion (December 31, 2025 – $1.0 billion) of commercial paper outstanding, all of which was denominated in U.S. dollars (US$1.2 billion; December 31, 2025 – US$0.7 billion), with an effective average interest rate of 4.5%, maturing through February 2027.

(d) TELUS Corporation credit facilities

As at September 30, 2026, TELUS Corporation had a $2.75 billion unsecured revolving syndicated bank credit facility, expiring on August 21, 2030 (December 31, 2025 – August 21, 2030), with a syndicate of financial institutions, which is used for general corporate purposes, including the backstopping of commercial paper.

48 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

The TELUS Corporation credit facilities incur interest at prime rate, U.S. Dollar Base Rate, Canadian Overnight Repo Rate Average (CORRA) or term secured overnight financing rate (SOFR) (as such terms are used or defined in the credit facilities), plus applicable margins. The credit facilities include customary representations, warranties and covenants, including two financial quarter-end ratio tests: our leverage ratio must not exceed 4.25:1.00; and our operating cash flow to interest expense ratio must not be less than 2.00:1.00, all as defined in the credit facilities.

TELUS Corporation’s continued access to these credit facilities does not depend upon TELUS Corporation maintaining a specific credit rating.

As at (millions)		September 30, 2026				December 31, 2025
Net available		$	1,049			$	1,798
Backstop of commercial paper			1,701				952
Gross available revolving $2.75 billion bank credit facility		$	2,750			$	2,750

As at September 30, 2026, we had letters of credit outstanding of $61 million (December 31, 2025 – $67 million), issued under various uncommitted facilities. These letter of credit facilities are in addition to our ability to provide letters of credit under our committed revolving bank credit facility.

(e) Other (unsecured)

In 2025, a wholly owned subsidiary issued preferred shares for US$200 million to a private equity investor, in connection with the acquisition of Workplace Options; IFRS Accounting Standards required that the preferred shares be accounted for as financial liabilities. In the first quarter of 2026, the preferred shares were exchanged with the private equity investor for a US$200 million promissory note issued by the wholly owned subsidiary. The promissory note, and previously the preferred shares, were similarly featured in that they were: unsubordinated obligations, senior in right of payment to all of our existing and future subordinated indebtedness, and effectively subordinated to all existing and future obligations of, or guaranteed by, our subsidiaries; redeemable, in whole but not in part, at our option and, after May 13, 2030, also at the holder’s option; change in control events, as defined in the preferred investment agreement, may also have required redemption of the preferred shares; the redemption price was generally equal to a multiple of invested capital; and any accrued and un-reinvested interest would have been included in determining the redemption amount.

During the three-month period ended June 30, 2026, at our option, the promissory note was repaid and a prepayment premium of $51 million was recorded.

(f) TELUS Corporation junior subordinated notes

The notes are direct unsecured obligations, are subordinated to all existing and future senior indebtedness, and are effectively subordinated to all existing and future indebtedness and obligations of, or guaranteed by, our subsidiaries. For purposes of calculating leverage ratios, only one-half of the principal is included as debt in the initial post-issuance decade.

Interest is payable semi-annually and has a fixed rate reset at the interest payment date coinciding with the cessation date of the no-call period and every five years thereafter. Upon a rating event, as defined in the supplemental trust indenture, we must offer to repurchase the notes at a price equal to 102% of their principal amount plus accrued and unpaid interest to the repurchase date.

After the initial no-call period, the notes are redeemable at our option, in whole at any time, or in part from time to time, on not fewer than 10 days’ and not more than 60 days’ prior notice, on any interest payment date (prior to elapsing of the initial no-call periods, the notes are redeemable, on not fewer than 10 days’ and not more than 90 days’ prior notice, on each note’s unique first rate reset date) at redemption prices equal to 100% of their principal amounts. Accrued and unpaid interest, if any, will be paid to the date fixed for redemption.

  September 30, 2026 | 49

notes to condensed interim consolidated financial statements (unaudited)

Principal face amount

TELUS Corporation junior subordinated note series

Issued

Maturity

Issue price

Initial effective interest rate 1

Originally issued

Outstanding at financial statement date

No-call period cessation date

Rate reset minimum 2

6.25% Fixed-to-Fixed Rate, Series CAR

Multiple 3

July 2055

$1,006.41 3

6.09

% 3

$1.1 billion 3

$1.5 billion 3

July 21, 2030

6.25

%

6.75% Fixed-to-Fixed Rate, Series CAS

Multiple 4

July 2055

$1,020.45 4

6.46

% 4

$500 million 4

$925 million 4

July 21, 2035

6.75

%

U.S. Dollar 6.625% Fixed-to-Fixed Rate, Series A 5

June 2025

Oct. 2055

US$1,000.00

6.625

%

US$700 million

US$700 million

Oct. 15, 2030

6.625

%

U.S. Dollar 7.000% Fixed-to-Fixed Rate, Series B 5

June 2025

Oct. 2055

US$1,000.00

7.000

%

US$800 million

US$800 million

Oct. 15, 2035

7.000

%

U.S. Dollar 6.375% Fixed-to-Fixed Rate, Series C 5

Dec. 2025

June 2056

US$1,000.00

6.375

%

US$800 million

US$800 million

June 9, 2031

6.375

%

U.S. Dollar 6.625% Fixed-to-Fixed Rate, Series D 5

Dec. 2025

June 2056

US$1,000.00

6.625

%

US$700 million

US$700 million

June 9, 2036

6.625

%

5.375% Fixed-to-Fixed Rate, Series CAT

Dec. 2025

June 2056

$1,000.00

5.375

%

$400 million

$400 million

June 9, 2031

5.375

%

5.875% Fixed-to-Fixed Rate, Series CAU

Dec. 2025

June 2056

$1,000.00

5.875

%

$400 million

$400 million

June 9, 2036

5.875

%

	1	The effective interest rate represents the minimum yield the notes would provide to an initial debt holder if held to maturity.
	2	For the Canadian dollar-denominated notes, the rate reset is based upon a spread to the Five Year Government of Canada Bond Yield at the rate reset date, but is subject to a rate reset minimum.

For the U.S. Dollar-denominated notes the rate reset is based upon a spread to Five-Year U.S. Treasury Rate at the rate reset date, but is subject to a reset minimum.

	3	$1.1 billion of 6.25% Fixed-to-Fixed Rate, Series CAR Notes were issued in April 2025 at an issue price of $999.65 and an initial effective interest rate of 6.25%. This series of notes was reopened in June 2025 and a further $375 million of notes were issued at an issue price of $1,026.25 and an initial effective interest rate of 5.61%.
	4	$500 million of 6.75% Fixed-to-Fixed Rate, Series CAS Notes were issued in April 2025 at an issue price of $999.59 and an initial effective interest rate of 6.75%. This series of notes was reopened in June 2025 and a further $425 million of notes were issued at an issue price of $1,045.00 and an initial effective interest rate of 6.13%.
	5	We have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that, during the first no-call periods, effectively convert the principal payments and interest obligations to Canadian dollar obligations as follows:

TELUS Corporation junior subordinated note series		First no-call period interest rate fixed at				Canadian dollar equivalent principal		Exchange rate
U.S. Dollar 6.625% Fixed-to-Fixed Rate, Series A			5.79	%		$1.0 billion		$	1.3743
U.S. Dollar 7.000% Fixed-to-Fixed Rate, Series B			6.42	%		$1.1 billion		$	1.3743
U.S. Dollar 6.375% Fixed-to-Fixed Rate, Series C			5.64	%		$1.1 billion		$	1.3957
U.S. Dollar 6.625% Fixed-to-Fixed Rate, Series D			6.07	%		$1.0 billion		$	1.3955

(g) Other (secured)

Other liabilities incur interest at 4.4%, are secured by the AWS-4 spectrum licences associated with these other liabilities, and are subject to amortization schedules, so that the principal is repaid over the periods to maturity, the last period ending March 31, 2035.

(h) Lease liabilities

Lease liabilities are subject to amortization schedules, so that the principal is repaid over various periods, which include reasonably expected renewals. The weighted average interest rate on lease liabilities was approximately 5.2% as at September 30, 2026.

50 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

(i) Long-term debt maturities

Anticipated requirements for long-term debt repayments, calculated for long-term debt owed as at September 30, 2026, are as follows:

Composite long-term debt denominated in		Canadian dollars												U.S. dollars																				Other currencies
		Long-term debt,												Long-term debt,								Currency swap agreement amounts to be exchanged
Years ending December 31 (millions)		excluding leases				Leases (Note 19)				Total				excluding leases				Leases (Note 19)				(Receive) 1				Pay				Total				Leases (Note 19)				Total
2026 (remainder of year)		$	11			$	107			$	118			$	1,231			$	11			$	(1,231	)		$	1,218			$	1,229			$	16			$	1,363
2027			50				425				475				2,030				35				(2,030	)			1,923				1,958				58				2,491
2028			1,952				387				2,339				—				34				—				—				34				49				2,422
2029			1,404				311				1,715				—				38				—				—				38				42				1,795
2030			1,652				242				1,894				—				39				(993	)			962				8				32				1,934
2031 - 2035			5,251				500				5,751				1,277				34				(3,547	)			3,364				1,128				72				6,951
Thereafter			6,284				781				7,065				5,578				—				(2,709	)			2,204				5,073				2				12,140
Future cash outflows in respect of composite long-term debt principal repayments			16,604				2,753				19,357				10,116				191				(10,510	)			9,671				9,468				271				29,096
Future cash outflows in respect of associated interest and like carrying costs 2			11,240				929				12,169				10,098				65				(3,352	)			3,362				10,173				90				22,432
Undiscounted contractual maturities (Note 4(b))		$	27,844			$	3,682			$	31,526			$	20,214			$	256			$	(13,862	)		$	13,033			$	19,641			$	361			$	51,528

	1	Where applicable, cash flows reflect foreign exchange rates as at September 30, 2026. Maturities and gross cash flows for the TELUS Corporation junior subordinated notes reflect the initial fixed rate reset date.
	2	Future cash outflows in respect of associated interest and like carrying costs for sustainability-linked notes, commercial paper, amounts drawn under our credit facilities (if any), other (unsecured) and junior subordinated notes have been calculated based upon the rates in effect as at September 30, 2026.

  September 30, 2026 | 51

notes to condensed interim consolidated financial statements (unaudited)

27 other long-term liabilities

As at (millions)		Note			September 30, 2026				December 31, 2025
Contract liabilities		24			$	179			$	132
Other						—				2
Deferred revenues						179				134
Pension benefit liabilities		15				450				453
Other post-employment benefit liabilities						95				98
Derivative liabilities		4(d)				170				167
Deferred capital expenditure government grants						66				66
Other						65				34
						1,025				952
Deferred customer activation and connection fees		24				—				3
					$	1,025			$	955

28 owners’ equity

(a) TELUS Corporation Common Share capital – general

Our authorized share capital is as follows:

As at		September 30, 2026		December 31, 2025
First Preferred Shares		1 billion		1 billion
Second Preferred Shares		1 billion		1 billion
Common Shares		4 billion		4 billion

Only holders of Common Shares may vote at our general meetings, with each holder entitled to one vote per Common Share held, provided that no less than 66-2/3% of the issued and outstanding Common Shares are owned by Canadians. With respect to priority in the payment of dividends and in the distribution of assets in the event of our liquidation, dissolution or winding-up, whether voluntary or involuntary, or any other distribution of our assets among our shareholders for the purpose of winding up our affairs, preferences are as follows: First Preferred Shares; Second Preferred Shares; and finally Common Shares.

As at September 30, 2026, we had reserved for issuance from Treasury: approximately 81 million Common Shares under a dividend reinvestment and share purchase plan (see Note 13(b)); approximately 64 million Common Shares under restricted share unit plans (see Note 14(b)); and approximately 12 million Common Shares under share option plans (see Note 14(d)).

(b) Subsidiaries with significant non-controlling interests

TELUS International (Cda) Inc.

Our TELUS International (Cda) Inc. subsidiary was incorporated under the Business Corporations Act (British Columbia) and had geographically dispersed operations, with its principal places of business located in Asia, Central America, Europe and North America.

Summarized financial information

Summarized financial information for our TELUS International (Cda) Inc. subsidiary is set out in the accompanying table.

For the periods ended September 30, 2025 (millions)
Statement of income and other comprehensive income 1, 2
THREE-MONTH
Revenue and other income		$	957
Net income (loss)		$	(133	)
Comprehensive income (loss)		$	(59	)
Net income (loss) allocated to non-controlling interest		$	(65	)
Other comprehensive income allocated to non-controlling interest		$	32
Comprehensive income (loss) allocated to non-controlling interest		$	(33	)
NINE-MONTH
Revenue and other income		$	2,885
Net income (loss)		$	(544	)
Comprehensive income (loss)		$	(575	)
Net income (loss) allocated to non-controlling interest		$	(337	)
Other comprehensive income allocated to non-controlling interest		$	(13	)
Comprehensive income (loss) allocated to non-controlling interest		$	(350	)
Statement of cash flows 1, 2
THREE-MONTH
Cash provided by operating activities		$	(19	)
Cash used by investing activities		$	(48	)
Cash provided by financing activities		$	375
NINE-MONTH
Cash provided by operating activities		$	83
Cash used by investing activities		$	(130	)
Cash provided by financing activities		$	307

	1	As required by IFRS Accounting Standards, this summarized financial information excludes inter-company eliminations.
	2	Amounts for periods in the year ended December 31, 2025, are prior to privatization on October 31, 2025.

52 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

Terrion

Our Terrion subsidiary was established under the Partnership Act (Ontario) on July 24, 2025, and its principal place of business is Canada. Terrion is a wireless tower infrastructure operator enabling wholesale access and co-location.

During the 160-day period (hereinafter referred to as “the year”) from the date of establishment of the partnership through December 31, 2025, Terrion capitalization activity included issuing equity in Terrion to a non-controlling interest. Subsequent to the capitalization activity, TELUS Corporation retained a 50.1% voting and economic interest in Terrion. TELUS has a call option, exercisable in whole but not in part, in respect of the non-controlling interest either in September 2027 (if there is a dispute among the partners) or after September 2057. The call option price is generally the greater of fair value and a multiple of invested capital.

Summarized financial information

Summarized financial information for Terrion is set out in the accompanying table.

As at, or for the periods 1 ended, ($ in millions)		September 30, 2026				September 30, 2025				December 31, 2025
Statement of financial position 2
Current assets		$	66							$	33
Non-current assets		$	796							$	658
Current liabilities		$	60							$	37
Non-current liabilities		$	431							$	314
Accumulated non-controlling interest in Terrion in Consolidated statement of changes in owners’ equity		$	801							$	799
Statement of income and other comprehensive income 2
THREE-MONTH
Revenue and other income		$	48			$	10
Net income 3		$	14			$	4
Comprehensive income 3		$	14			$	4
Net income and comprehensive income allocated to non-controlling interest		$	7			$	2
NINE-MONTH
Revenue and other income		$	140			$	10
Net income 3		$	46			$	4
Comprehensive income 3		$	46			$	4
Net income and comprehensive income allocated to non-controlling interest		$	23			$	2
Statement of cash flows 1
THREE-MONTH
Cash provided by operating activities		$	38			$	2
Cash used by investing activities 4		$	(18	)		$	—
Cash used by financing activities		$	(18	)		$	(2	)
Partnership distributions to non-controlling interest (included as a use of cash in financing activities)		$	7			$	—
NINE-MONTH
Cash provided by operating activities		$	107			$	2
Cash used by investing activities 4		$	(51	)		$	—
Cash used by financing activities		$	(46	)		$	(2	)
Partnership distributions to non-controlling interest (included as a use of cash in financing activities)		$	21			$	—

	1	Amounts for periods in the year ended December 31, 2025, are for the 160-day period from the date of establishment, July 24, 2025, through December 31, 2025, inclusive.
	2	As required by IFRS Accounting Standards, this summarized financial information excludes inter-company eliminations.
	3	As Terrion is a partnership, no provision is made for income taxes in respect of the partners in determining Terrion’s net income and comprehensive income.
	4	For the three-month period ended September 30, 2026, includes additions (excluding additions from leases) to property, plant and equipment of $19 (2025 – $3) and (source) use in associated non-cash investing working capital of $(9) (2025 – $(3)). For the nine-month period ended September 30, 2026, Includes additions (excluding additions from leases) to property, plant and equipment of $47 (2025 – $3), and (source) use in associated non-cash investing working capital of $(18) (2025 – $(3)).

(c) Purchase of Common Shares for cancellation pursuant to normal course issuer bid

As referred to in Note 3, we may purchase a portion of our Common Shares for cancellation pursuant to normal course issuer bids in order to maintain or adjust our capital structure.

On December 15, 2025, we announced that we had received approval for a normal course issuer bid to purchase and cancel up to 28 million of our Common Shares (up to a maximum of $500 million) from December 17, 2025, to December 16, 2026, through the facilities of the Toronto Stock Exchange, the New York Stock Exchange and/or alternative trading platforms or otherwise as may be permitted by applicable securities laws and regulations, including privately negotiated block purchases. Additionally, we are able to enter into an automatic share purchase plan with a broker for the purpose of permitting us to purchase our Common Shares under the normal course issuer bid at times we would not otherwise be permitted to trade in our own Common Shares, including during regularly scheduled quarterly internal blackout periods. Such purchases will be determined by the broker in its sole discretion based on parameters we have established. We record a liability and charge share capital and retained earnings for purchases that may occur during such blackout periods based upon the parameters of the normal course issuer bid as at the statement of financial position date.

  September 30, 2026 | 53

notes to condensed interim consolidated financial statements (unaudited)

The excess of the purchase price over the average stated value of Common Shares purchased for cancellation is charged to retained earnings. We cease to consider the Common Shares to be outstanding on the date of our purchase of the Common Shares, although the actual cancellation of the Common Shares by the transfer agent and registrar occurs on a timely basis on a date shortly thereafter.

29 contingent liabilities

Claims and lawsuits

General

A number of claims and lawsuits (including class actions and intellectual property infringement claims) seeking damages and other relief are pending against us and, in some cases, other mobile carriers and telecommunications service providers. As well, we have received notice of, or are aware of, certain possible claims (including intellectual property infringement claims) against us and, in some cases, other mobile carriers and telecommunications service providers.

It is not currently possible for us to predict the outcome of such claims, possible claims and lawsuits due to various factors, including: the preliminary nature of some claims; uncertain damage theories and demands; an incomplete factual record; uncertainty concerning legal theories and procedures and their resolution by the courts, at both the trial and the appeal levels; and the unpredictable nature of opposing parties and their demands.

However, subject to the foregoing limitations, management is of the opinion, based upon legal assessments and information presently available, that it is unlikely that any liability, to the extent not provided for through insurance or otherwise, would have a material effect on our financial position and the results of our operations, including cash flows, with the exception of the following items.

Certified class actions

Certified class actions against us include the following:

System access fee class action

In 2004, a class action was brought in Saskatchewan against a number of past and present wireless service providers, including us, which alleged breach of contract, misrepresentation, unjust enrichment and violation of competition, trade practices and consumer protection legislation across Canada in connection with the collection of system access fees. In September 2007, a national opt-in class was certified by the Saskatchewan Court of Queen’s Bench in relation to the unjust enrichment claim only. In February 2008, the Saskatchewan Court of Queen’s Bench granted an order amending the certification order so as to exclude from the class of plaintiffs any customer bound by an arbitration clause with us. After a long period of dormancy, the Plaintiff sought, in 2024, to advance the class action. The defendants applied to dismiss the class action for want of prosecution. The court granted the applications and dismissed the class action, a decision that the Plaintiff is appealing.

Per minute billing class action

In 2008, a class action was brought in Ontario against us alleging breach of contract, breach of the Ontario Consumer Protection Act, breach of the Competition Act and unjust enrichment, in connection with our practice of “rounding up” mobile airtime to the nearest minute and charging for the full minute. The action sought certification of a national class. In November 2014, an Ontario class only was certified by the Ontario Superior Court of Justice in relation to the breach of contract, breach of Consumer Protection Act, and unjust enrichment claims; all appeals of the certification decision have now been exhausted. At the same time, the Ontario Superior Court of Justice declined to stay the claims of our business customers, notwithstanding an arbitration clause in our customer service agreements with those customers. This latter decision was appealed and on May 31, 2017, the Ontario Court of Appeal dismissed our appeal. The Supreme Court of Canada granted us leave to appeal this decision and on April 4, 2019, granted our appeal and stayed the claims of business customers. Notice of this certified class action was provided to potential class members in 2022. A summary judgment hearing has been set for February 1 to 19, 2027.

54 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

Uncertified class actions

Uncertified class actions against us include:

9-1-1 class actions

In 2008, a class action was brought in Saskatchewan against us and other Canadian telecommunications carriers alleging that, among other matters, we failed to provide proper notice of 9-1-1 charges to the public, have been deceitfully passing them off as government charges, and have charged 9-1-1 fees to customers who reside in areas where 9-1-1 service is not available. The plaintiffs advance causes of action in breach of contract, misrepresentation and false advertising and seek certification of a national class. A virtually identical class action was filed in Alberta at the same time, but the Alberta Court of Queen’s Bench declared that class action expired against us as of 2009. No steps have been taken in this proceeding since 2016.

Public Mobile class actions

In 2014, class actions were brought against us in Quebec and Ontario on behalf of Public Mobile’s customers, alleging that changes to the technology, services and rate plans made by us contravene our statutory and common law obligations. In particular, the Quebec action alleges that our actions constitute a breach of the Quebec Consumer Protection Act, the Quebec Civil Code, and the Ontario Consumer Protection Act. On June 28, 2021, the Quebec Superior Court approved the discontinuance of this claim against TELUS. The Ontario class action alleges negligence, breach of express and implied warranty, breach of the Competition Act, unjust enrichment, and waiver of tort. No steps have been taken in this proceeding since it was filed and served. We have proposed that the proceeding be discontinued on consent, failing which we intend to bring a motion to dismiss the action.

Summary

We believe that we have good defences to the above matters. Should the ultimate resolution of these matters differ from management’s assessments and assumptions, a material adjustment to our financial position and the results of our operations, including cash flows, could result. Management’s assessments and assumptions include that reliable estimates of any such exposure cannot be made considering the continued uncertainty about: the nature of the damages that may be sought by the plaintiffs; the causes of action that are being, or may ultimately be, pursued; and, in the case of the uncertified class actions, the causes of action that may ultimately be certified.

30 related party transactions

(a) Transactions with key management personnel

Our key management personnel, consisting of our Board of Directors and our Executive Team, have authority and responsibility for overseeing, planning, directing and controlling our activities.

Total compensation expense for key management personnel and its composition, included in the Consolidated statements of income and other comprehensive income as Employee benefits expense, is as follows:

Periods ended		Three month								Nine months
September 30 (millions)		2026				2025				2026				2025
Short-term benefits		$	9			$	4			$	18			$	12
Post-employment pension 1 and other benefits			2				1				10				5
Share-based compensation 2			26				15				68				47
		$	37			$	20			$	96			$	64

	1	The members of our Executive Team are members of our Pension Plan for Management and Professional Employees of TELUS Corporation and certain other non-registered, non-contributory supplementary defined benefit and defined contribution pension plans.
	2	We accrue an expense for the notional subset of our restricted share units with market performance conditions using a fair value determined by a Monte Carlo simulation. Restricted share units with an equity settlement feature are accounted for as equity instruments. The expense in respect of restricted share units that do not ultimately vest is reversed against the expense that was previously recorded in their respect.

As disclosed in Note 14, we made awards of share-based compensation in 2026 and 2025 to our key management personnel, as set out in the following table. As most of these awards are cliff-vesting or graded-vesting with multi-year requisite service periods, the related expense is being recognized rateably over a period of years and thus only a portion of the 2026 and 2025 initial awards is included in the amounts in the table above.

Nine-month periods ended September 30 ($ in millions)		Number of units				Notional value 1				Grant-date fair value 1
2026
TELUS Corporation
Restricted share units			4,034,323			$	67			$	56
Share options			1,000,000				1				1
						$	68			$	57

  September 30, 2026 | 55

notes to condensed interim consolidated financial statements (unaudited)

Nine-month periods ended September 30 ($ in millions)		Number of units				Notional value 1				Grant-date fair value 1
2025
TELUS Corporation
Restricted share units			1,601,848			$	35			$	43
TELUS International (Cda) Inc.
Restricted share units			1,229,346				5				5
						$	40			$	48

1 The notional value of restricted share units is determined by multiplying the equity share price at the time of award by the number of units awarded; the grant-date fair value differs from the notional value because the fair values of some awards have been determined using a Monte Carlo simulation (see Note 14(b)). The notional value and grant-date fair value of share options is determined using a Black-Scholes model (a closed-form option pricing model).

Our Directors’ Deferred Share Unit Plan provides that, in addition to his or her annual equity grant of deferred share units, a director may elect to receive his or her annual retainer and meeting fees in deferred share units, TELUS Corporation Common Shares or cash. Deferred share units entitle directors to a specified number of TELUS Corporation Common Shares. Deferred share units are settled when a director ceases to be a director, for any reason, at a time elected by the director in accordance with the Directors’ Deferred Share Unit Plan. As at September 30, 2026 and December 31, 2025, no share-based compensation awards accounted for as liabilities were outstanding.

Executive Team members’ employment agreements typically provide for severance payments if an executive’s employment is terminated without cause: generally, 18 months of base salary, benefits and accrual of pension service in lieu of notice, and 50% of base salary in lieu of an annual cash bonus. In the event of a change in control, Executive Team members are not entitled to treatment any different than that given to our other employees with respect to non-vested share-based compensation.

(b) Transactions with defined benefit pension plans

During the three-month and nine-month periods ended September 30, 2026, we provided our defined benefit pension plans with management and administrative services on a cost recovery basis and actuarial services on an arm’s-length basis; the charges for these services amounted to $4 million (2025 – $3 million) and $10 million (2025 – $9 million), respectively, and are included net in the Consolidated statements of income and other comprehensive income as Goods and services purchased.

31 additional statement of cash flow information

(a) Statements of cash flows – operating activities and investing activities

Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
OPERATING ACTIVITIES
Employee future benefits expense, net
Defined benefit pension plans (Note 15(a))
Employee benefits expense (Note 8)		$	14			$	16			$	45			$	45
Employer contributions			(6	)			(6	)			(15	)			(16	)
			8				10				30				29
Defined contribution pension plans (Note 15(b))
Employee benefits expense (Note 8)			33				32				95				95
Employer contributions			(14	)			(32	)			(76	)			(95	)
			19				—				19				—
		$	27			$	10			$	49			$	29
Net change in non-cash operating working capital
Current
Accounts receivable		$	(50	)		$	(139	)		$	228			$	86
Inventories			3				30				24				174
Contract assets			(8	)			8				16				20
Costs incurred to obtain or fulfill contracts with customers (Note 20)			5				(8	)			83				(29	)
Prepaid maintenance and other			89				68				(91	)			(103	)
Unrealized change in held for trading derivatives			(4	)			(14	)			(3	)			(17	)
Accounts payable and accrued liabilities (Note 23)			363				300				292				(19	)
Advance billings and customer deposits (Note 24)			(29	)			(44	)			(102	)			(85	)
Provisions			62				6				79				7
			431				207				526				34

56 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

Periods ended		Three months								Nine months
September 30 (millions)		2026				2025				2026				2025
Non-current
Contract assets			(4	)			16				7				68
Unbilled customer finance receivables			(19	)			19				15				41
Unrealized change in held for trading derivatives			(5	)			42				(19	)			42
Costs incurred to obtain or fulfill contracts with customers (Note 20)			(29	)			(15	)			(31	)			(43	)
Prepaid maintenance			2				3				(17	)			11
Refundable security deposits and other			18				(7	)			17				(12	)
Provisions (Note 25)			(30	)			—				(61	)			(110	)
Contract liabilities (Note 24, 27)			20				(4	)			42				31
Other post-employment benefit liabilities			1				4				(3	)			10
Other long-term liabilities			(14	)			(4	)			31				(4	)
			(60	)			54				(19	)			34
		$	371			$	261			$	507			$	68
INVESTING ACTIVITIES
Cash payments for capital assets, excluding spectrum licences
Capital asset additions
Gross capital expenditures
Property, plant and equipment (Note 17)		$	(872	)		$	(739	)		$	(2,294	)		$	(2,136	)
Intangible assets subject to amortization (Note 18)			(251	)			(256	)			(775	)			(705	)
			(1,123	)			(995	)			(3,069	)			(2,841	)
Additions arising from leases (Note 17)			422				343				1,014				907
Additions arising from non-monetary transactions and other			—				—				25				17
Capital expenditures 1 (Note 5)			(701	)			(652	)			(2,030	)			(1,917	)
Other non-cash items included above
Change in associated non-cash investing working capital			105				18				80				31
		$	(596	)		$	(634	)		$	(1,950	)		$	(1,886	)

1 For the three-month period ended September 30, 2026, includes capital expenditures of  $19 (2025 – $3) and for the nine-month period ended September 30, 2026, includes capital expenditures of $47 (2025 – $3), in respect of our Terrion subsidiary (see Note 28(b)).

  September 30, 2026 | 57

notes to condensed interim consolidated financial statements (unaudited)

(b) Changes in liabilities arising from financing activities

		Three-month period ended September 30, 2025																								Three-month period ended September 30, 2026
						Statement of cash flows								Non-cash changes																Statement of cash flows								Non-cash changes
(millions)		Beginning of period				Issued or received				Redemptions, repayments or payments				Foreign exchange movement (Note 4(e))				Other				End of period				Beginning of period				Issued or received				Redemptions, repayments or payments				Foreign exchange movement (Note 4(e))				Other				End of period
Dividends payable to holders of Common Shares		$	634			$	—			$	(634	)		$	—			$	639			$	639			$	659			$	—			$	(659	)		$	—			$	296			$	296
Dividends reinvested in shares from Treasury			—				—				226				—				(226	)			—				—				—				215				—				(215	)			—
		$	634			$	—			$	(408	)		$	—			$	413			$	639			$	659			$	—			$	(444	)		$	—			$	81			$	296
Short-term borrowings		$	922			$	4			$	(23	)		$	19			$	—			$	922			$	1,225			$	370			$	(19	)		$	—			$	—			$	1,576
Net-settled derivatives used to manage currency risk arising from U.S. dollar-denominated short-term borrowings – liability (asset)			1				26				(4	)			(21	)			—				2				(1	)			21				(19	)			(15	)			—				(14	)
		$	923			$	30			$	(27	)		$	(2	)		$	—			$	924			$	1,224			$	391			$	(38	)		$	(15	)		$	—			$	1,562

58 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

		Three-month period ended September 30, 2025																								Three-month period ended September 30, 2026
						Statement of cash flows								Non-cash changes																Statement of cash flows								Non-cash changes
(millions)		Beginning of period				Issued or received				Redemptions, repayments or payments				Foreign exchange movement (Note 4(e))				Other				End of period				Beginning of period				Issued or received				Redemptions, repayments or payments				Foreign exchange movement (Note 4(e))				Other				End of period
Long-term debt
TELUS Corporation senior notes		$	21,045			$	—			$	(1,549	)		$	79			$	(241	)		$	19,334			$	17,247			$	—			$	(300	)		$	(7	)		$	5			$	16,945
TELUS Corporation commercial paper			991				1,066				(1,037	)			20				—				1,040				2,093				1,137				(1,518	)			(11	)			—				1,701
TELUS Corporation credit facilities			—				—				—				—				—				—				—				—				—				—				—				—
Other (unsecured)			273				21				—				5				—				299				34				—				—				—				—				34
TELUS Corporation junior subordinated notes			4,414				—				—				42				8				4,464				7,403				—				—				(6	)			—				7,397
Other (secured)			568				—				(13	)			—				—				555				479				—				(10	)			—				—				469
Lease liabilities			3,093				—				(137	)			(3	)			344				3,297				2,975				—				(142	)			(12	)			417				3,238
Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset)			219				1,056				(1,080	)			(137	)			(82	)			(24	)			(154	)			1,518				(1,486	)			24				41				(57	)
TELUS Communications Inc. debentures			200				—				(200	)			—				—				—
TELUS International (Cda) Inc. credit facility			1,610				294				(1,950	)			36				10				—
			32,413				2,437				(5,966	)			42				39				28,965				30,077				2,655				(3,456	)			(12	)			463				29,727
To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt			—				(1,056	)			1,056				—				—				—				—				(1,518	)			1,518				—				—				—
		$	32,413			$	1,381			$	(4,910	)		$	42			$	39			$	28,965			$	30,077			$	1,137			$	(1,938	)		$	(12	)		$	463			$	29,727
Partnership distributions payable to non-controlling interests		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	(7	)		$	—			$	7			$	—

  September 30, 2026 | 59

notes to condensed interim consolidated financial statements (unaudited)

		Nine-month period ended September 30, 2025																								Nine-month period ended September 30, 2026
						Statement of cash flows								Non-cash changes																Statement of cash flows								Non-cash changes
(millions)		Beginning of period				Issued or received				Redemptions, repayments or payments				Foreign exchange movement (Note 4(e))				Other				End of period				Beginning of period				Issued or received				Redemptions, repayments or payments				Foreign exchange movement (Note 4(e))				Other				End of period
Dividends payable to holders of Common Shares		$	605			$	—			$	(1,849	)		$	—			$	1,883			$	639			$	649			$	—			$	(1,961	)		$	—			$	1,608			$	296
Dividends reinvested in shares from Treasury			—				—				634				—				(634	)			—				—				—				653				—				(653	)			—
		$	605			$	—			$	(1,215	)		$	—			$	1,249			$	639			$	649			$	—			$	(1,308	)		$	—			$	955			$	296
Short-term borrowings		$	922			$	417			$	(374	)		$	(43	)		$	—			$	922			$	920			$	855			$	(228	)		$	29			$	—			$	1,576
Net-settled derivatives used to manage currency risk arising from U.S. dollar-denominated short-term borrowings – liability (asset)			2				35				(66	)			31				—				2				—				85				(47	)			(52	)			—				(14	)
		$	924			$	452			$	(440	)		$	(12	)		$	—			$	924			$	920			$	940			$	(275	)		$	(23	)		$	—			$	1,562

60 | September 30, 2026  

notes to condensed interim consolidated financial statements (unaudited)

		Nine-month period ended September 30, 2025																								Nine-month period ended September 30, 2026
						Statement of cash flows								Non-cash changes																Statement of cash flows								Non-cash changes
(millions)		Beginning of period				Issued or received				Redemptions, repayments or payments				Foreign exchange movement (Note 4(e))				Other				End of period				Beginning of period				Issued or received				Redemptions, repayments or payments				Foreign exchange movement (Note 4(e))				Other				End of period
Long-term debt
TELUS Corporation senior notes		$	22,077			$	—			$	(2,349	)		$	(163	)		$	(231	)		$	19,334			$	18,191			$	—			$	(1,400	)		$	141			$	13			$	16,945
TELUS Corporation commercial paper			1,404				3,190				(3,477	)			(77	)			—				1,040				952				3,835				(3,148	)			62				—				1,701
TELUS Corporation credit facilities			—				770				(764	)			(6	)			—				—				—				—				—				—				—				—
Other (unsecured)			—				301				—				(2	)			—				299				295				13				(273	)			(1	)			—				34
TELUS Corporation junior subordinated notes			—				4,451				—				37				(24	)			4,464				7,250				—				—				145				2				7,397
Other (secured)			588				—				(150	)			—				117				555				537				—				(31	)			—				(37	)			469
Lease liabilities			2,882				—				(506	)			16				905				3,297				3,314				—				(1,087	)			(8	)			1,019				3,238
Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset)			(68	)			3,535				(3,578	)			273				(186	)			(24	)			71				3,148				(3,102	)			(348	)			174				(57	)
TELUS Communications Inc. debentures			200				—				(200	)			—				—				—
TELUS International (Cda) Inc. credit facility			1,703				801				(2,459	)			(57	)			12				—
			28,786				13,048				(13,483	)			21				593				28,965				30,610				6,996				(9,041	)			(9	)			1,171				29,727
To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt			—				(3,535	)			3,535				—				—				—				—				(3,148	)			3,148				—				—				—
		$	28,786			$	9,513			$	(9,948	)		$	21			$	593			$	28,965			$	30,610			$	3,848			$	(5,893	)		$	(9	)		$	1,171			$	29,727
Partnership distributions payable to non-controlling interests		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	(21	)		$	—			$	21			$	—

  September 30, 2026 | 61

Exhibit 99.2

TELUS CORPORATION

Management’s discussion and analysis

2026 Q3

TELUS Corporation – Management’s discussion and analysis – 2026 Q3 

Caution regarding forward-looking statements

The terms TELUS, the Company, we, us and our refer to TELUS Corporation and, where the context of the narrative permits or requires, its subsidiaries.

This document contains forward-looking statements about expected events and our financial and operating performance. Forward-looking statements include any statements that do not refer to historical facts. They include, but are not limited to, statements relating to our objectives and our strategies to achieve those objectives; our expectations regarding trends in the telecommunications industry (including demand for data and ongoing subscriber base growth); our expectations regarding growth in different areas of our business and regarding our targeted net debt to EBITDA ratio and deleveraging plans; the nature, timing and benefits of our asset monetization and deleveraging plans; our dividend payout ratio range, expected impact of our dividend reset and the termination of the discount under our dividend reinvestment and share purchase plan; and our financing plans. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target and other similar expressions, or verbs such as aim, anticipate, believe, could, expect, intend, may, plan, predict, seek, should, strive and will. These statements are made pursuant to the “safe harbour” provisions of applicable securities laws in Canada and the United States Private Securities Litigation Reform Act of 1995.

By their nature, forward-looking statements are subject to inherent risks and uncertainties and are based on assumptions, including assumptions about future economic conditions and courses of action. These assumptions may ultimately prove to have been inaccurate and, as a result, our actual results or other events may differ materially from expectations expressed in, or implied by, the forward-looking statements.

These assumptions underlying our forward-looking statements are described in Section 9 General trends, outlook and assumptions, and regulatory developments and proceedings in our 2025 annual Management’s discussion and analysis (MD&A) and updated in Section 9 of this MD&A.

Risks and uncertainties that could cause actual performance or other events to differ materially from the forward-looking statements made herein and in other TELUS filings include, but are not limited to, the following:

· Regulatory matters. We operate in a number of highly regulated industries and conduct business in many jurisdictions and are therefore subject to a wide variety of laws and regulations domestically and internationally. Policies and approaches advanced by elected officials and regulatory decisions, reviews and other government activity may have strategic, operational and/or financial impacts (including on revenue and free cash flow).

Risks and uncertainties include:

o potential changes to our regulatory regime or the outcomes of proceedings, cases or inquiries relating to its application, including, but not limited to, those set out in Section 9.1 Communications industry regulatory developments and proceedings in this MD&A;

o our ability to comply with complex and changing regulation of the healthcare, virtual care and medical devices industries in the jurisdictions in which we operate, including as an operator of health clinics; and

o our ability to comply with, or facilitate our clients’ compliance with, numerous, complex and sometimes conflicting legal regimes, both domestically and internationally.

· Competitive environment. Competitor expansion, activity and intensity (pricing, including discounting, bundling), as well as non-traditional competition, including low-earth orbit satellite internet services, disruptive technology and disintermediation, may alter the nature of the markets in which we compete and impact our market share and financial results (including revenue and free cash flow). The reduction in the number of new permanent and temporary residents in Canada may intensify competitive pressure. Different areas of our business including TELUS Health and TELUS Digital also face intense competition in the different markets in which we compete.

· Technology. Consumer adoption of alternative technologies and changing customer expectations have the potential to impact our revenue streams and customer churn rates.

Risks and uncertainties include:

o disruptive technologies, including software-defined networks in the business market and AI, that may displace or cause us to reprice our existing data services, and self-installed technology solutions;

o any failure to innovate, maintain technological advantages or respond effectively and in a timely manner to changes in technology;

o the roll-out, anticipated benefits and efficiencies, and ongoing evolution of wireless broadband technologies and systems;

o our reliance on wireless network access agreements, which have facilitated our deployment of mobile technologies;

o our expected long-term need to acquire additional spectrum through future spectrum auctions and from third parties to meet growing demand for data, and our ability to utilize spectrum we acquire;

o deployment and operation of new fixed broadband network technologies at a reasonable cost and the availability and success of new products and services to be rolled out using such network technologies;

o our deployment of self-learning tools and automation, which may change the way we interact with customers; and

o the ability to integrate TELUS’ wireless network and AST SpaceMobile’s space-based network to support broadband data services, voice calls and text messaging directly between smartphones and satellites.

· Security and data protection. Our ability to prevent, detect and identify potential threats and vulnerabilities depends on the effectiveness of our security controls in protecting our infrastructure and operating environment, and our timeliness in responding to attacks and restoring business operations. A successful attack may impede the operations of our network or lead to the unauthorized access to, interception, destruction, use or dissemination of, customer, team member or business information and confidential data. The necessary use of sensitive personal information by our business may expose us to the risk of non-compliance with applicable law in a jurisdiction or compromise perceptions of our brand.

· Generative AI (GenAI). GenAI exposes us to numerous risks, including risks related to operational reliability, responsible AI usage, data privacy and cybersecurity, the possibility that our use of AI may generate inaccurate or inappropriate content or create negative perceptions among customers, the risk that we may not develop and adopt AI technologies effectively and could fail to achieve improved efficiency through our use of GenAI or that the use of AI could reduce demand or prices for our services, and that regulation could affect future implementation of AI. The rapid advancement of frontier AI is reshaping the cybersecurity threat landscape, enabling more sophisticated and scalable attacks, accelerating vulnerability discovery, and increasing the speed at which threat actors can exploit security weaknesses.

  Page 2 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

· Climate and the environment. Natural disasters, pandemics, disruptive events and the effects of climate change may impact our operations, customer satisfaction and team member experience.

Our goals to achieve carbon neutrality and reduce our greenhouse gas (GHG) emissions in our operations are subject to our ability to identify, procure and implement solutions that reduce energy consumption and adopt cleaner sources of energy, our ability to identify and make suitable investments in renewable energy, including in the form of virtual power purchase agreements, and our ability to continue to realize significant absolute reductions in energy use and the resulting GHG emissions from our operations.

· Operational performance, business combinations and divestitures, and TELUS Digital privatization. Investments and acquisitions present opportunities to expand our operational scope, but may expose us to new risks. We may be unsuccessful in gaining market traction/share or in integrating acquisitions into our operations within expected timelines or at all, we may not realize the expected benefits of acquisitions, and integration efforts may divert resources from other priorities. There is no assurance that we will realize any or all of the anticipated benefits of the privatization of TELUS International (Cda) Inc. in the timeframe anticipated or at expected cost levels, that we will be able to drive cross-selling opportunities, or that our estimates and expectations in relation to future economic and business conditions and the resulting impact on growth and various financial metrics will prove to be accurate. Failure to complete asset monetization processes as part of our deleveraging plans or achieve the anticipated benefits of those asset monetization processes could increase our cost of capital.

Risks relating to operational performance include:

o our reliance on third-party cloud-based computing services to deliver our IT services; and

o economic, political and other risks associated with doing business globally (including war and other geopolitical developments).

We may not be able to deliver the service excellence our customers expect or maintain our competitive advantage in this area.

· Our systems and processes. Systems and technology innovation, maintenance and management may impact our IT systems and network reliability, as well as our operating costs.

Risks and uncertainties include:

o our ability to maintain customer service and operate our network in the event of human error or human-caused threats, such as cyberattacks and equipment failures that could cause network outages;

o technical disruptions and infrastructure breakdowns;

o delays and rising costs, including as a result of government restrictions or trade actions; and

o the completeness and effectiveness of business continuity and disaster recovery plans and responses.

· Our team. The rapidly evolving and highly competitive nature of our markets and operating environment, along with the globalization and evolving demographic profile of our workforce, and the effectiveness of our internal training, development, succession and health and well-being programs, may impact our ability to attract, develop and retain team members with the skills required to meet the changing needs of our customers and our business. Team members may face greater mental health challenges associated with the significant change initiatives at the organization, which may result in the loss of key team members through short-term and long-term disability and churn. Integration of international business acquisitions and concurrent integration activities may impact operational efficiency, organizational culture and engagement.

· Suppliers. We may be impacted by supply chain disruptions and lack of resiliency in relation to global or local events. Dependence on a single supplier for products, components, service delivery or support may impact our ability to efficiently meet constantly changing and rising customer expectations while maintaining quality of service. Our suppliers’ ability to maintain and service their product lines could affect the success of upgrades to, and evolution of, technology that we offer.

· Real estate matters. Real estate investments are exposed to possible financing risks and uncertainty related to future demand, occupancy and rental rates. Future real estate developments may not be completed on budget or on time and may not obtain lease commitments as planned. We may be exposed to the risk of loss in relation to our investments if the business plans of our real estate developments including joint ventures are not successfully executed.

· Financing, debt and dividends. Our ability to access funding at optimal pricing may be impacted by general market conditions and changing assessments in the fixed-income and equity capital markets regarding our ability to generate sufficient future cash flow to service our debt. Failure to complete planned deleveraging initiatives or to achieve the anticipated benefits of those initiatives could increase our cost of capital. Our current intention to pay dividends to shareholders could constrain our ability to invest in our operations to support future growth.

Risks and uncertainties include:

o our ability to use equity as a form of consideration in business acquisitions is impacted by stock market valuations of TELUS Common Shares;

o our capital expenditure levels and potential outlays for spectrum licences in auctions or purchases from third parties affect and are affected by: our broadband initiatives; our ongoing deployment of newer mobile technologies; investments in network technology required to comply with laws and regulations relating to the security of cyber systems, including bans on the products and services of certain vendors; investments in network resiliency and reliability; the allocation of resources to acquisitions and future spectrum auctions held by Innovation, Science and Economic Development Canada (ISED). Our capital expenditure levels could be impacted if we do not achieve our targeted operational and financial results or if there are changes to our regulatory environment; and

  Page 3 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

o lower than planned free cash flow could constrain our ability to invest in operations, reduce leverage or return capital to shareholders. Quarterly dividend decisions are made by our Board of Directors based on our financial position and outlook. Common Shares may be purchased under our normal course issuer bid (NCIB) when and if we consider it opportunistic, based on our financial position and outlook, and the market price of our Common Shares. There can be no assurance that our NCIB will be maintained, unchanged and/or completed.

· Tax matters. Complexity of domestic and foreign tax laws, regulations and reporting requirements that apply to TELUS and our international operating subsidiaries may impact financial results. International acquisitions and expansion of operations heighten our exposure to multiple forms of taxation.

· The economy. Changing global economic conditions, including a potential recession and varying expectations about inflation, as well as our effectiveness in monitoring and revising growth assumptions and contingency plans, may impact the achievement of our corporate objectives, our financial results (including free cash flow), and our defined benefit pension plans. Geopolitical uncertainties and changes in trade policies and agreements, including tariffs or trade restrictions, could increase our costs, disrupt our supply chains and adversely affect our operations and financial results. They present a risk of recession and may cause customers to reduce or delay discretionary spending, impacting new service purchases or volumes of use, and to consider substitution by lower-priced alternatives.

· Litigation and legal matters. Complexity of, and compliance with, laws, regulations, commitments and expectations may have a financial and reputational impact.

Risks include:

o our ability to defend against existing and potential claims or our ability to negotiate and exercise indemnity rights or other protections in respect of such claims; and

o the complexity of legal compliance in domestic and foreign jurisdictions, including compliance with competition, anti-bribery and foreign corrupt practices laws.

These risks are described in Section 10 Risks and risk management in our 2025 annual MD&A. Those descriptions are incorporated by reference in this cautionary statement but are not intended to be a complete list of the risks that could affect the Company. Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation. Except as otherwise indicated in this document, the forward-looking statements made herein do not reflect the potential impact of any non-recurring or special items or any mergers, acquisitions, dispositions or other business combinations or transactions that may be announced or that may occur after the date of this document.

Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements in this document describe our expectations, and are based on our assumptions, as at the date of this document and are subject to change after this date. We disclaim any intention or obligation to update or revise any forward-looking statements except as required by law.

This cautionary statement qualifies all of the forward-looking statements in this MD&A.

  Page 4 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Management’s discussion and analysis (MD&A)

November 6, 2026

Contents

Section		Page	Subsection
1.	Introduction	6	1.1 Preparation of the MD&A
		6	1.2 The environment in which we operate
		8	1.3 Consolidated highlights
2.	Core business and strategy	11
3.	Strategic financial and operational priorities	12
4.	Capabilities	12	4.1 Principal markets addressed and competition
		12	4.2 Operational resources
		13	4.3 Liquidity and capital resources
		14	4.4 Changes in internal control over financial reporting
5.	Discussion of operations	14	5.1 General
		15	5.2 Summary of consolidated quarterly results and trends
		16	5.3 Consolidated operations
		20	5.4 TELUS technology solutions segment
		25	5.5 TELUS health segment
		28	5.6 TELUS digital experience segment
6.	Changes in financial position	31
7.	Liquidity and capital resources	32	7.1 Overview
		33	7.2 Cash provided by operating activities
		34	7.3 Cash used by investing activities
		36	7.4 Cash used by financing activities
		37	7.5 Liquidity and capital resource measures
		38	7.6 Credit facilities
		39	7.7 Short-term borrowings
		39	7.8 Credit ratings
		39	7.9 Financial instruments and contingent liabilities
		40	7.10 Outstanding share information
		40	7.11 Transactions between related parties
8.	Accounting matters	40	8.1 Critical accounting estimates and judgments
		41	8.2 Accounting policy developments
9.	Update to general trends, outlook and assumptions, and regulatory developments and proceedings	41	9.1 Communications industry regulatory developments and proceedings
10.	Risks and risk management	47
11.	Definitions and reconciliations	47	11.1 Non-GAAP and other specified financial measures
		55	11.2 Operating indicators

© 2026 TELUS Corporation. All rights reserved. The symbols ™ and ^® indicate trademarks owned by TELUS Corporation or its subsidiaries used under license. All other trademarks are the property of their respective owners.

  Page 5 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

1. Introduction

The forward-looking statements in this section, including, for example, estimates regarding economic growth, inflation, unemployment, housing starts and immigration, are qualified by the Caution regarding forward-looking statements at the beginning of this Management’s discussion and analysis (MD&A).

1.1 Preparation of the MD&A

The following sections are a discussion of our consolidated financial position and financial performance for the three-month and nine-month periods ended September 30, 2026, and should be read together with our September 30, 2026 condensed interim consolidated statements of income and other comprehensive income, statements of financial position, statements of changes in owners’ equity and statements of cash flows, and the related notes (collectively referred to as the interim consolidated financial statements). The generally accepted accounting principles (GAAP) that we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards), and Canadian GAAP. In this MD&A, the term IFRS Accounting Standards refers to these standards. In our discussion, we also use certain non-GAAP and other specified financial measures to evaluate our performance, monitor compliance with debt covenants and manage our capital structure. These measures are defined, qualified and reconciled all, if and as necessary, with their nearest GAAP measures, as required by National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure, in Section 11.1. All currency amounts are stated in Canadian dollars, unless otherwise specified.

Additional information related to the Company, including our Annual Information Form and other filings with securities commissions or similar regulatory authorities in Canada, is available on SEDAR+ (sedarplus.com). Our information filed with, or furnished to, the Securities and Exchange Commission in the United States, including Form 40-F, is available on EDGAR (sec.gov).

Our disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and reported to senior management on a timely basis, so that appropriate decisions can be made regarding public disclosure. This MD&A and the interim consolidated financial statements were reviewed by our Audit Committee and authorized by our Board of Directors (Board) for issuance on November 6, 2026.

In this MD&A, unless otherwise indicated, results for the third quarter of 2026 (three-month period ended September 30, 2026) and the nine-month period ended September 30, 2026 are compared with results for the third quarter of 2025 (three-month period ended September 30, 2025) and the nine-month period ended September 30, 2025.

Effective January 1, 2026, we are retrospectively restating our segmented reporting information to reflect our new reporting structure following the October 2025 privatization of TELUS Digital and the associated post-privatization operational realignment. This reporting structure will also be applied prospectively. The captive business process outsourcing business that previously resided in TELUS digital experience and that provided services to TELUS technology solutions and TELUS health has now been operationally realigned and integrated into TELUS technology solutions and TELUS health. See Section 5.1 General for additional details.

1.2 The environment in which we operate

The success of our business and the challenges we face can best be understood with reference to the environment in which we operate, including broader economic conditions that affect both TELUS and our customers, and the competitive nature of our business operations.

TELUS technology solutions segment (TTech)

Across TTech, we are leveraging our leading technology and our social purpose to enable remarkable human outcomes. Our long-standing Customers First priority continues to fuel every aspect of our business across the full range of our differentiated solutions spanning mobile, data, IP, voice, TV, entertainment, video, and security and automation, delivered over our reliable, expansive, award-winning networks. Leveraging data analytics and artificial intelligence (AI) to enhance our services has strengthened our customer service excellence and loyalty, demonstrating our commitment to providing Canadians with access to superior technology that connects all of us to the people, resources and information that matter most. We are also implementing innovative technology solutions to help feed the world, putting data to work for customers in the agriculture, food, consumer goods and animal agriculture sectors. This efficient and effective collaboration helps ensure the quality and safety of food and consumer goods.

TELUS health segment (TELUS Health)

TELUS Health operates at the forefront of modern healthcare innovation, with technology that is fundamentally transforming the way people access and receive health services. We stand at the critical intersection of digital innovation and human care, bridging traditional healthcare settings with virtual well-being platforms to support the mental, physical and financial health of organizations and individuals all over the world. As a global technology leader, we connect and empower all participants in the health ecosystem, from healthcare professionals, payors and employers, to patients and other individuals. We achieve our objective of enabling people to live healthier lives by making health information and support services easily accessible, leveraging advanced technology and data-driven insights. Our comprehensive approach integrates primary and preventive care with ongoing wellness support. By revolutionizing healthcare delivery and enhancing well-being, we are improving health outcomes and helping consumers, patients, healthcare professionals, employers and employees thrive in today’s digital world.

  Page 6 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

TELUS digital experience segment (TELUS Digital)

We are dedicated to servicing our clients’ customer journeys end-to-end from customer acquisition, to apps and websites, to customer experiences and support, all underpinned by AI and data. Every day, we help our clients “win the moments that matter” with their customers. Our portfolio of integrated capabilities is structured around four key service lines: digital solutions, AI and data solutions, trust and safety, and customer experience management (CXM). All our service lines are evolving rapidly, driven by technology and innovation, and significantly shaped by GenAI. We are able to provide meaningful value to our customers by combining our capabilities into an integrated offering, for example bringing our digital capabilities into our CXM environment resulting in world-class automation and optimization to our clients. TELUS Digital’s relationship with other TELUS reportable segments is a critical advantage, permitting us to partner in a real-life lab environment, where we test and scale novel and differentiated solutions, which we then roll out to our external clients.

Economic estimates

Our estimates regarding our economic and operational environment, including economic growth, inflation, unemployment, housing starts and immigration, serve as important inputs for the assumptions on which our targets are based. The extent of the impact these estimates will have on us, and the timing of that impact, will depend upon the actual future outcomes in specific sectors of the Canadian economy.

		Economic growth								Inflation								Unemployment												Housing starts												Immigration
		(percentage points)								(percentage points)								(percentage points)												(thousands of units)												(thousands)
		Estimated gross domestic product (GDP) growth rates				Our estimated GDP growth rates1				Estimated inflation rates				Our estimated annual inflation rates1				Unemployment rates								Our estimated annual unemployment rates1				Seasonally adjusted annual rate of housing starts2								Our estimated annual rate of housing starts on an unadjusted basis1				Overall planned permanent resident and temporary resident admissions3
																		For the month of												For the month of
																		Sept.				Sept.								Sept.				Sept.
		2026				2026				2026				2026				20264				20254				2026				2026				2025				2026				2026				2027				2028
Canada			1.0	5			1.0				2.9	5			2.8				6.5				7.1				6.6				249				279				242				765				750				750
B.C.			0.9	6			0.7				2.5	6			2.8				6.4				6.4				6.4				53				37				42				n/a				n/a				n/a
Alberta			2.3	6			2.4				2.6	6			3.2				6.4				7.8				6.7				55				55				47				n/a				n/a				n/a
Ontario			0.5	6			0.8				2.3	6			2.3				7.0				7.9				7.2				48				90				63				n/a				n/a				n/a
Quebec			1.1	6			0.5				2.3	6			3.2				6.0				5.7				5.7				53				60				59				n/a				n/a				n/a

		Annual average foreign exchange rates1,7
		2026
C$: US$		C$1.37: US$1.00
US$: €		US$1.19: €1.00

n/a – not applicable

	1	Assumptions are as of November 2, 2026 and are based on a composite of estimates from Canadian banks and other sources.
	2	Source: Statistics Canada. Table 34-10-0158-01 Canada Mortgage and Housing Corporation, housing starts, all areas, Canada and provinces, seasonally adjusted at annual rates, monthly (x 1,000).
	3	Source: canada.ca/en/immigration-refugees-citizenship/corporate/mandate/corporate-initiatives/levels/supplementary-immigration-levels-2026-2028.html, November 5, 2025. Previously on October 24, 2024, overall planned permanent resident and temporary resident admissions for 2025, 2026 and 2027 were 1,069,000, 897,000 and 909,000, respectively, canada.ca/en/immigration-refugees-citizenship/news/notices/supplementary-immigration-levels-2025-2027.html.
	4	Source: Statistics Canada Labour Force Survey, September 2026 and September 2025, respectively.
	5	Source: Bank of Canada Monetary Policy Report, October 2026.
	6	Source: British Columbia Ministry of Finance, First Quarterly Report, September 14, 2026; Alberta Ministry of Treasury Board and Finance, 2026 – 27 First Quarter Fiscal Update and Economic Statement, August 27, 2026; Ontario Ministry of Finance, 2026 Ontario Economic Outlook and Fiscal Review: A Plan to Protect Ontario, October 29, 2026; and Ministère des Finances du Québec, Budget 2026 – 2027, March 18, 2026, respectively.
	7	2025 annual average foreign exchange rates: C$1.40: US$1.00; US$1.13: €1.00.

  Page 7 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

1.3 Consolidated highlights

Changes to the Board of Directors

The Board has approved the appointments of Marc Allera and Bill Thomas to the Board, effective January 1, 2027.

Marc Allera’s career spans more than three decades of executive leadership in global telecommunications and network operations. Based in London, U.K., he served as Chief Executive Officer of EE and also BT Group’s Consumer Division from 2016 to 2025, where he oversaw commercial strategy, customer retention, and brand loyalty across nearly 30 million customers connecting to mobile, broadband and TV while orchestrating the deployment of next-generation 5G and fibre networks. Prior to his tenure at BT Group, Marc held senior executive roles including CEO of EE, a joint venture between Deutsche Telekom and France Télécom, and Chief Commercial Officer at Three UK. He currently serves as Chair of CVC’s Global Sport Group and Jagex – The RuneScape Company.

Bill Thomas is the former Global Chair and CEO of KPMG International, leading over 265,000 professionals across 143 countries and territories, stewarding multi-billion-dollar enterprise growth, audit quality, and strategic enterprise risk management. Originally from Vancouver, Bill earned his Bachelor of Science at the University of British Columbia and began his KPMG career in the firm’s Vancouver office in 1990. His extensive background in financial oversight and corporate reporting directly reinforces the Board’s audit committee stewardship. He currently serves on the Board of Directors of Bank of America and previously served as Chair of KPMG’s Americas region from 2014 to 2017 and as CEO and Senior Partner of KPMG in Canada from 2009 to 2016. A recipient of the Queen Elizabeth II Diamond Jubilee Medal and a Catalyst Canada Honours Champion, Bill served on the International Integrated Reporting Council, the Business Roundtable, the International Business Council, and the Sustainable Markets Initiative.

  Page 8 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Consolidated highlights

		Three-month periods ended September 30												Nine-month periods ended September 30
($ millions, except footnotes and unless noted otherwise)		2026				2025				Change				2026				2025				Change
Consolidated statements of income
Service revenues			4,481				4,507				(1	)%			13,407				13,441				—	%
Equipment revenues			539				560				(4	)%			1,522				1,675				(9	)%
Other income			6				39				(85	)%			39				129				(70	)%
Operating revenues and other income			5,026				5,106				(2	)%			14,968				15,245				(2	)%
Operating income (loss)1			(248	)			742				n/m				(1,286	)			1,669				n/m
Income (loss) before income taxes			(624	)			588				n/m				(2,417	)			798				n/m
Net income (loss)			(660	)			431				n/m				(2,346	)			487				n/m
Net income (loss) attributable to Common Shares			(667	)			493				n/m				(2,371	)			821				n/m
Adjusted Net income2			251				370				(32	)%			861				1,100				(22	)%
Earnings (loss) per share (EPS) ($)
Basic EPS			(0.42	)			0.32				n/m				(1.51	)			0.54				n/m
Adjusted basic EPS2			0.16				0.24				(33	)%			0.55				0.72				(24	)%
Diluted EPS			(0.42	)			0.32				n/m				(1.51	)			0.54				n/m
Dividends declared per Common Share ($)			0.1875				0.4163				(55	)%			1.0243				1.2349				(17	)%
Basic weighted-average Common Shares outstanding (millions)			1,589				1,535				4	%			1,575				1,525				3	%
Consolidated statements of cash flows
Cash provided by operating activities			1,485				1,493				(1	)%			3,877				3,736				4	%
Cash used by investing activities			(665	)			(660	)			1	%			(2,481	)			(2,355	)			5	%
Acquisitions			—				(3	)			(100	)%			—				(464	)			(100	)%
Capital expenditures3			(701	)			(652	)			8	%			(2,030	)			(1,917	)			6	%
Cash used by financing activities			(899	)			(2,688	)			(67	)%			(2,709	)			(423	)			n/m
Other highlights
Telecom subscriber connections4 (thousands)															18,329				17,214				6	%
Healthcare lives covered (millions)															154.5				160.6				(4	)%
Earnings before interest, income taxes, depreciation and amortization2 (EBITDA)			1,549				1,753				(12	)%			4,659				5,176				(10	)%
EBITDA margin2 (%)			30.8				34.3				(3.5	) pts.			31.1				34.0				(2.9	) pts.
Restructuring and other costs			211				109				94	%			715				339				n/m
Adjusted EBITDA2			1,760				1,862				(5	)%			5,374				5,515				(3	)%
Adjusted EBITDA margin2 (%)			35.0				36.5				(1.5	) pts.			35.9				36.2				(0.3	) pts.
Free cash flow2			396				611				(35	)%			1,524				1,634				(7	)%
Net debt to EBITDA – excluding restructuring and other costs2 (times)															3.6				3.5				0.1

Notations used in MD&A: n/m – not meaningful; pts. – percentage points.

1 See Note 2(b) of the interim consolidated financial statements for IFRS 18 impacts which is effective for annual reporting periods beginning on or after January 1, 2027, and will newly define what income and expenses are to be classified in Operating income.

2 These are non-GAAP and other specified financial measures. See Section 11.1 Non-GAAP and other specified financial measures.

3 Capital expenditures include assets purchased, excluding right-of-use lease assets, but not yet paid for, and consequently differ from Cash payments for capital assets, excluding spectrum licences, as reported in the interim consolidated financial statements. Refer to Note 31 of the interim consolidated financial statements for further information.

4 The sum of active mobile phone subscribers, connected device subscribers and internet subscribers, measured at the end of the respective periods based on information in billing and other source systems. Effective January 1, 2026 with retrospective application to January 1, 2025, we have revised our subscriber reporting to apply a product-intensive focus on our core bundling foundation of mobility and internet and thus will no longer report TV, security and automation and residential voice subscribers. This change concentrates our disclosure on our core bundling foundation and enables us to better serve our customers, while supporting the migration from legacy products and services to integrated IP streaming, mobile-first connectivity, and smart home solutions. Effective January 1, 2026, we made certain subscriber adjustments on a prospective basis, reducing our subscriber base for mobile phones (18,000), connected devices (78,000) and internet (30,000). See Section 5.4 for further details.

  Page 9 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Operating highlights

· Consolidated Operating revenues and other income decreased by $80 million in the third quarter of 2026 and $277 million in the first nine months of 2026.

Service revenues decreased by $26 million in the third quarter of 2026, largely as a result of: (i) lower external revenues in TELUS Digital; (ii) a decline in fixed legacy voice revenue; and (iii) lower business-to-business (B2B) data services revenue. These factors were partially offset by: (i) network revenue growth driven by subscriber base growth across mobile, supported by a stabilization in mobile phone ARPU; (ii) higher TELUS Health service revenues; (iii) growth in internet subscribers; (iv) increased security and automation revenues; and (v) greater agriculture and consumer goods services revenues. Service revenues decreased by $34 million in the first nine months of 2026, due to the same factors as the quarter, with the exception of agriculture and consumer goods services revenues which decreased during the nine-month period.

Equipment revenues decreased by $21 million in the third quarter of 2026 and $153 million in the first nine months of 2026. These decreases were driven by lower mobile equipment revenues due to a reduction in contracted volumes, which were most pronounced in the first six months of 2026, and lower fixed premises equipment sales, partially offset by the impact of higher-value smartphones in the sales mix.

Other income decreased by $33 million in the third quarter of 2026, largely due to lower gains on real estate projects. Other income decreased by $90 million in the first nine months of 2026, due to the same factors as the third quarter, in addition to the non-recurrence of lease and other sublease revenue in the comparative period, the non-recurrence of net gains from the divestiture of non-core assets in the comparative period, partially offset by higher net reversals of provisions related to business combinations.

For additional details on Operating revenues and other income, see Section 5.4 TELUS technology solutions segment, Section 5.5 TELUS health segment and Section 5.6 TELUS digital experience segment.

· Operating income decreased by $990 million in the third quarter of 2026 and $3.0 billion in the first nine months of 2026, primarily due to Impairment of intangible assets and goodwill. (See Section 5.3 Consolidated operations for additional details.)

EBITDA decreased by $204 million in the third quarter of 2026 and $517 million in the first nine months of 2026. In addition to the drivers discussed in the following paragraph, EBITDA reflected net changes in restructuring and other costs during the three-month and nine-month periods. Restructuring and other costs increased by $102 million in the third quarter of 2026, resulting from cost efficiency and effectiveness programs. In the first nine months of 2026, restructuring and other costs increased by $376 million, due to the same factors as the third quarter, as well as costs associated with the privatization of TELUS Digital.

Consolidated Adjusted EBITDA decreased by $102 million in the third quarter of 2026 and $141 million in the first nine months of 2026 which reflects varied results across our reportable segments. TTech Adjusted EBITDA decreased by 5% in the third quarter of 2026. This decline was driven by: (i) lower Other income, largely due to lower gains on real estate projects; (ii) fixed legacy voice decline; (iii) increased costs of subscription-based licences and cloud usage; (iv) higher network operations costs; (v) lower B2B data services revenue; and (vi) lower mobile equipment margins. These factors were partially offset by: (i) network revenue growth driven by subscriber base growth across mobile, supported by a stabilization in mobile phone ARPU; (ii) growth in internet subscribers; (iii) lower bad debt expense; (iv) security and automation revenue growth; and (v) increased agriculture and consumer goods margin. TTech Adjusted EBITDA decreased by 2% in the first nine months of 2026, due to the same factors as the third quarter, with the exception of lower agriculture and consumer goods margins as a result of the divestiture of non-core assets. TELUS Health Adjusted EBITDA decreased by 5% in the third quarter of 2026 primarily due to lower Other income from the impact of the one-time item recorded in retirement and benefit solutions in the third quarter of 2025. TELUS Health Adjusted EBITDA increased by 2% in the first nine months of 2026, due to revenue growth as well as ongoing cost savings related to cost efficiency programs, partially offset by the same factors as the third quarter. TELUS Digital Adjusted EBITDA decreased by 9% in both the third quarter and first nine months of 2026, driven by lower Operating revenues, partially offset by lower operating costs and higher Other income. (See Section 5.3 Consolidated operations for additional details.)

· Income before income taxes decreased by $1.2 billion in the third quarter of 2026 and $3.2 billion in the first nine months of 2026. This reflects a decline in Operating income, primarily due to Impairment of intangible assets and goodwill, as well as greater Financing costs, across both periods. (See Financing costs in Section 5.3.)

· Income tax expense decreased by $121 million in the third quarter of 2026 and $382 million in the first nine months of 2026. The effective tax rate decreased from 26.7% to (5.8%) in the third quarter of 2026 and from 39.0% to 2.9% in the first nine months of 2026. These changes were primarily attributable to the impairment of intangible assets and goodwill in the respective periods.

  Page 10 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

· Net income attributable to Common Shares decreased by $1.2 billion in the third quarter of 2026 and $3.2 billion in the first nine months of 2026, both reflecting the after-tax impacts of a decline in Operating income, primarily due to Impairment of intangible assets and goodwill, and greater Financing costs.

Adjusted Net income excludes the effects of restructuring and other costs, real estate rationalization-related restructuring impairments, long-term debt prepayment premium, gain on purchase of long-term debt, impairment of intangible assets and goodwill, and income tax-related adjustments. Adjusted Net income decreased by $119 million in the third quarter of 2026 and $239 million in the first nine months of 2026.

· Basic EPS decreased by $0.74 in the third quarter of 2026 and $2.05 in the first nine months of 2026, both reflecting the after-tax impacts of a decline in Operating income, primarily due to Impairment of intangible assets and goodwill, and greater Financing costs, as well as the effect of a higher number of Common Shares outstanding.

Adjusted basic EPS excludes the effects of restructuring and other costs, real estate rationalization-related restructuring impairments, long-term debt prepayment premium, gain on purchase of long-term debt, impairment of intangible assets and goodwill, and income tax-related adjustments. Adjusted basic EPS decreased by $0.08 in the third quarter of 2026 and $0.17 in the first nine months of 2026.

· Dividends declared per Common Share were $0.1875 in the third quarter of 2026, compared to dividends declared per share of $0.4163 in the third quarter of 2025. On November 5, 2026, the Board declared a fourth quarter dividend of $0.1875 per share on our issued and outstanding Common Shares, payable on January 4, 2027, to shareholders of record at the close of business on December 11, 2026 (see Section 4.3 Liquidity and capital resources).

· During the 12-month period ended on September 30, 2026, our total telecom subscriber connections increased by 1,115,000 or 6%. This reflected growth of 2% in mobile phone subscribers, 24% in connected device subscribers and 3% in internet subscribers (each excluding first quarter 2026 subscriber base adjustments). (See Section 5.4 TELUS technology solutions segment for additional details.)

Liquidity and capital resource highlights

· Cash provided by operating activities decreased by $8 million in the third quarter of 2026. Cash provided by operating activities increased by $141 million in the first nine months of 2026, primarily driven by: (i) a decrease in income taxes paid; (ii) other working capital changes; and (iii) lower restructuring and other costs disbursements net of expenses. These factors were partially offset by: (i) lower EBITDA; and (ii) an increase in interest paid. (See Section 7.2 Cash provided by operating activities.)

· Cash used by investing activities increased by $5 million in the third quarter of 2026. Cash used by investing activities increased by $126 million in the first nine months of 2026, primarily attributable to cash payments for spectrum licences and greater cash payments for investment in portfolio investments and other, partially offset by the impact of the Workplace Options acquisition in May 2025. (See Section 7.3 Cash used by investing activities.)

· Cash used by financing activities decreased by $1.8 billion in the third quarter of 2026, primarily reflecting lower redemptions and repayment of long-term debt, partially offset by the equity of subsidiary issued to non-controlling interest in the comparative period. Cash used by financing activities increased by $2.3 billion in the first nine months of 2026 due to the same factors as the third quarter, in addition to lower issuances of long-term debt. (See Section 7.4 Cash used by financing activities.)

· Net debt to EBITDA – excluding restructuring and other costs ratio was 3.6 times at September 30, 2026, up from 3.5 times at September 30, 2025. In addition to a decrease in EBITDA – excluding restructuring and other costs, the increase in the ratio was also due to the effect of the increase in net debt levels arising from current and prior period acquisitions of spectrum and businesses, offset by the junior subordinated notes equity credit. As at September 30, 2026, the acquisition of spectrum licences increased the ratio by approximately 0.6, while the junior subordinated notes equity credit decreased the ratio by approximately 0.5 and equity issued by our Terrion^TM subsidiary to a non-controlling interest decreased the ratio by approximately 0.2. (See Section 4.3 Liquidity and capital resources and Section 7.5 Liquidity and capital resource measures.)

· Free cash flow decreased by $215 million in the third quarter of 2026, largely driven by lower EBITDA and increased capital expenditures. Free cash flow decreased by $110 million in the first nine months of 2026 due to the same factors as the third quarter, alongside higher interest paid, partially offset by lower income taxes paid and non-discretionary lease principal.

2. Core business and strategy

Our core business and our strategic imperatives were described in our 2025 annual MD&A.

  Page 11 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

3. Strategic financial and operational priorities

We have identified three near-term financial and operational priorities to guide our performance and capital allocation going forward.

Strengthen our financial foundation

We are prioritizing balance sheet flexibility and a sustainable capital returns framework. This includes reducing net debt to Adjusted EBITDA to 3.0 times or lower by year-end 2028, supported by the July 31, 2026 dividend reset, disciplined capital expenditures and proceeds from asset monetization processes currently underway.

Hone our operational discipline and control costs

We launched an efficiency program targeting annualized cash savings. The multi-year program will be driven by operational cost and margin improvements, and capital efficiency. The program focuses on improving customer care, customer growth and improving revenue per product, optimizing the channel experience between physical and digital, procurement optimization, and network and field force efficiency.

Deploy resources to drive profitable, sustained growth and returns

We will concentrate investment where it has the strongest competitive position and clearest path to returns – including our wireless and TELUS PureFibre^® networks, and the AI infrastructure that supports Canada’s technological independence and economic prosperity.

4. Capabilities

The forward-looking statements in this section, including statements regarding our operational and investment plans, financial objectives and deleveraging plans, are qualified by the Caution regarding forward-looking statements at the beginning of this MD&A.

4.1 Principal markets addressed and competition

For a discussion of our principal markets and an overview of competition, refer to Section 4.1 in our 2025 annual MD&A.

4.2 Operational resources

TELUS technology solutions (TTech)

From mid-2013 through September 30, 2026, we invested over $8.5 billion to acquire wireless spectrum licences in spectrum auctions and other private transactions. These investments have more than doubled our national spectrum holdings in support of our top priority to put customers first.

Mobile data consumption has been increasing rapidly and is expected to continue growing at a fast rate as the industry continues to transition to 5G. We have responded by investing in the coverage, capacity, performance and reliability of our network to ensure we are able to support additional data consumption and growth in our mobile subscriber base in a geographically diverse country, while maintaining the high quality of our network. This includes investments in wireless small cells connected directly to our TELUS PureFibre technology to improve coverage and capacity utilized in our 5G network.

As at September 30, 2026, our 4G LTE technology covered 99% of Canada’s population, consistent with September 30, 2025. We have continued to invest in the roll-out of our LTE advanced technology, which covered over 96% of Canada’s population at September 30, 2026, up from approximately 96% at September 30, 2025. Furthermore, our 5G network covered 93% of Canada’s population at September 30, 2026, up from approximately 89% at September 30, 2025.

We are continuing to invest in urban and rural communities across our incumbent local exchange carrier (ILEC) communities in B.C., Alberta and Eastern Quebec, as well as non-ILEC communities in Ontario and Quebec, with commitments to deliver broadband technology capabilities to as many Canadians in these communities as possible, including expanding our PureFibre footprint by connecting more homes and businesses directly to PureFibre. In addition, we have increased broadband internet speeds, expanded our IP TV video-on-demand library and high-definition content, including 4K TV and 4K HDR capabilities, and enhanced the marketing of data products and bundles. Our PureFibre technology is also an essential component of our wireless access technology and has enabled our 5G deployment. Our home and business security and automation solutions integrate safety and security monitoring with smart devices.

As at September 30, 2026, over 3.8 million households and businesses in B.C., Alberta and Eastern Quebec were connected to fibre-optic cable. This is up from over 3.6 million households and businesses in the third quarter of 2025.

Our agriculture and consumer goods solutions include precision agronomy tools, record-keeping and recommendations, rebate management services, supplier management, order management, index labelling, compliance management, animal agriculture solutions, food traceability and quality assurance, data management solutions and software solutions for trade promotion management, optimization and analytics (TPx), retail execution, supply chain solutions and analytics capabilities.

  Page 12 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

TELUS health (TELUS Health)

TELUS Health leverages the power of technology and passion of our team members to support the mental, physical and financial health and well-being of organizations and individuals around the globe. Our core areas of focus in the global healthcare marketplace are: employers (small, medium and large enterprise), payors (insurers, third-party payors and third-party administrators, and public sector), providers (clinics and physicians, pharmacists and allied health professionals) and consumer solutions. We offer a variety of integrated health and well-being products, solutions and services including: employee and family assistance programs (EFAP), cognitive behavioural therapy (CBT), absence and disability management, executive, preventive and occupational health services, corporate reward, recognition and perks programs, and training programs; pension and benefits administration solutions, and retirement and financial consulting; virtual care (encompassing comprehensive primary care, mental health support, wellness offerings, and pet care); virtual pharmacy and pharmacy management systems, including medication management services; remote patient monitoring; personal emergency response services; personal health records and electronic medical records (EMR) management; claims management solutions; and curation of health content.

TELUS digital experience (TELUS Digital)

TELUS Digital creates future-focused digital transformations and provides digitally enabled customer experience solutions fuelled by AI that can withstand disruption and deliver value for our clients.

Over decades, we have grown through organic investments and strategic acquisitions to serve a global client base with an equally global team, expanding our delivery hubs to span the Americas, Europe, Asia-Pacific, the Middle East and Africa.

Our delivery locations are strategically selected based on factors such as: access to diverse, skilled talent; proximity to clients; and ability to deliver our services over multiple time zones and in multiple languages. They are connected through a robust infrastructure backed by cloud technologies, enabling globally distributed and virtualized teams.

4.3 Liquidity and capital resources

Capital structure financial policies

Our objective when managing financial capital is to maintain a flexible capital structure that optimizes the cost and availability of capital at acceptable risk. In our definition of financial capital, we include:

· Common equity (excluding Accumulated other comprehensive income);

· Non-controlling interests;

· Long-term debt (including long-term credit facilities, commercial paper backstopped by long-term credit facilities and any hedging assets or liabilities associated with Long-term debt items, net of amounts recognized in Accumulated other comprehensive income);

· Cash and temporary investments;

· Short-term borrowings (including those arising from securitized trade receivables and unbilled customer finance receivables and any hedging assets or liabilities associated with short-term borrowings, net of amounts recognized in Accumulated other comprehensive income); and

· Other long-term debt.

We manage our financial capital structure and make adjustments to it in light of changes in economic conditions and the risk characteristics of our business. In order to maintain or adjust our financial capital structure, we may:

· Adjust the amount of dividends paid to holders of Common Shares;

· Adjust the discount at which Common Shares are offered under the Dividend Reinvestment and Share Purchase Plan;

· Purchase Common Shares for cancellation pursuant to normal course issuer bids (NCIB);

· Issue new equity (including Common Shares and subsidiary equity);

· Issue new debt, issue new debt to replace existing debt with different characteristics; and/or

· Increase or decrease the amount of short-term borrowings arising from securitized trade receivables and unbilled customer finance receivables.

We monitor financial capital utilizing a number of measures, including net debt to EBITDA – excluding restructuring and other costs ratio, coverage ratios and dividend payout ratios. (See definitions in Section 11.1 Non-GAAP and other specified financial measures.)

Financing and capital structure management plans

Report on financing and capital structure management plans

Pay dividends to the holders of the Common Shares of TELUS Corporation

·       As announced on July 31, 2026, we reset our quarterly dividend. On November 5, 2026, the Board elected to declare a fourth quarter dividend of $0.1875 per share, payable on January 4, 2027, to shareholders of record at the close of business on December 11, 2026. This compares to the quarterly dividend of $0.4184 per share declared one year earlier. Dividend decisions will continue to be subject to our Board’s assessment and the determination of our financial position and outlook on a quarterly basis. Our long-term Common Share dividend payout ratio objective range is 45 to 60% of free cash flow on a trailing 12-month basis. (See Section 7.5 Liquidity and capital resource measures, Caution regarding forward-looking statements – Financing, debt and dividends and Section 10.15 Financing, debt and dividends in our 2025 annual MD&A.)

·       Dividends declared in the third quarter of 2026 were $0.1875 per share, compared to dividends declared in the third quarter of 2025 of $0.4163 per share.

·      Our dividend reinvestment and share purchase (DRISP) plan trustee may acquire shares from Treasury, at our option, for the DRISP plan, rather than acquiring Common Shares in the stock market. We may, at our discretion, offer Common Shares at a discount of up to 5% from the market price under the DRISP plan. In February 2026, we announced a step down of our previous discount on shares issued from Treasury to 1.75% from the average market price for shares acquired through the DRISP plan, applicable to the dividends paid on April 1, 2026. As announced in our second quarter 2026 earnings release, we removed the discount under the DRISP, effective October 1, 2026.

Purchase Common Shares

·       During the three-month period ended September 30, 2026, and up to the date of this MD&A, we did not repurchase or cancel any shares pursuant to our NCIB.

  Page 13 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Use proceeds from securitized receivables (Short-term borrowings), bank facilities and commercial paper as needed, to supplement free cash flow and meet other cash requirements

·       Our issued and outstanding commercial paper was $1.7 billion at September 30, 2026, all of which was denominated in U.S. dollars (US$1.2 billion), compared to $1.0 billion (US$0.7 billion) at both December 31, 2025 and September 30, 2025.

·       Proceeds from securitized trade receivables and unbilled customer finance receivables were $0.9 billion at September 30, 2026, compared to $0.9 billion at both December 31, 2025 and September 30, 2025 (see Section 7.7). Proceeds from an unsecured non-revolving bank credit facility were $0.7 billion at September 30, 2026. Funding under the agreements may be provided in either Canadian dollars or U.S. dollars. Foreign currency forward contracts are used to manage currency risk associated with funding denominated in U.S. dollars.

Maintain compliance with financial objectives

·        Maintain investment-grade credit ratings – On November 6, 2026, investment-grade credit ratings from all rating agencies that cover TELUS were in the desired range. (See Section 7.8 Credit ratings.)

·       Net debt to EBITDA – excluding restructuring and other costs ratio of 2.5 to 3.0 times – As measured at September 30, 2026, this ratio was 3.6 times, outside of the objective range, primarily due to the current and prior period acquisition of spectrum licences (as spectrum is our largest indefinite-life asset) and businesses. We have an objective of achieving a ratio of 3.0 times by year-end 2028. (See Section 7.5 Liquidity and capital resource measures.)

·      Common Share dividend payout ratio of 45 to 60% of free cash flow on a trailing 12-month basis – Our objective range is on a trailing 12-months basis. The Common Share dividend payout ratio¹ we present in this MD&A is a historical measure utilizing the dividends declared in the most recent four quarters, net of dividend reinvestment plan effects, and free cash flow. As at September 30, 2026, the ratio was 75%. (See Section 7.5 Liquidity and capital resource measures.)

·       Generally maintain a minimum of $1 billion in available liquidity – As at September 30, 2026, our available liquidity¹ was more than $3.0 billion. (See Section 7.6 Credit facilities and Liquidity risk in Section 7.9.)

1 These are non-GAAP and other specified financial measures. See Section 11.1 Non-GAAP and other specified financial measures.

4.4 Changes in internal control over financial reporting

For the three-month and nine-month periods ended September 30, 2026, there were no changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

5. Discussion of operations

This section contains forward-looking statements, including those with respect to mobile phone average revenue per subscriber per month (ARPU) growth, products and services trends regarding loading and retention spending, equipment margins, subscriber growth and various future trends. There can be no assurance that we have accurately identified these trends based on past results or that these trends will continue. See Caution regarding forward-looking statements at the beginning of this MD&A.

5.1 General

Operating segments are components of an entity that engage in business activities from which they earn revenues and incur expenses (including revenues and expenses related to transactions with the other component(s)), the operations of which can be clearly distinguished and for which the operating results, and in particular, Adjusted EBITDA, are regularly reviewed by a chief operating decision-maker to make resource allocation decisions and to assess performance. Segmented information in Note 5 of the interim consolidated financial statements is regularly reported to our Chief Executive Officer (CEO) (our chief operating decision-maker). We have embarked upon the modification of our internal and external reporting processes, systems and internal controls arising from organizational changes announced in July 2026 and correspondingly we are assessing our segmented reporting structure.

The TELUS technology solutions segment (TTech) presently includes: network revenues and equipment sales arising from mobile technologies; data revenues (which include internet protocol; television; hosting, managed information technology and cloud-based services; and home and business security and automation); agriculture and consumer goods services (software, data management and data analytics-driven smart-food chain and consumer goods technologies); voice and other telecommunications services revenues; and equipment sales.

The TELUS health segment (TELUS Health) includes: healthcare services, software and technology solutions (including employee and family assistance programs and benefits administration).

The TELUS digital experience segment (TELUS Digital), which has the U.S. dollar as its primary functional currency, includes key service lines: digital solutions; AI and data solutions; trust and safety; and customer experience management. Subsequent to TELUS Corporation’s acquisition of the TELUS International (Cda) Inc. non-controlling interests in fiscal 2025, our internal and external reporting processes, systems and internal controls were transitioned to match the post-privatization operational realignment; commencing with the three-month period ended March 31, 2026, our segmented reporting structure was correspondingly transitioned and comparative amounts have been restated on a comparable basis.

  Page 14 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

5.2 Summary of consolidated quarterly results and trends

Summary of quarterly results

($ millions, except per share amounts)		2026 Q3				2026 Q2				2026 Q1				2025 Q4				2025 Q3				2025 Q2				2025 Q1				2024 Q4
Operating revenues
Service revenues			4,481				4,442				4,484				4,571				4,507				4,491				4,443				4,507
Equipment revenues			539				478				505				659				560				540				575				824
Other income			6				9				24				31				39				51				39				50
Operating revenues and other income			5,026				4,929				5,013				5,261				5,106				5,082				5,057				5,381
Operating expenses
Goods and services purchased1			2,035				1,869				1,856				2,059				1,942				1,858				1,847				2,136
Employee benefits expense1			1,442				1,472				1,635				1,456				1,411				1,545				1,466				1,475
Depreciation and amortization			997				1,025				988				1,052				1,011				1,004				992				1,011
Impairment of intangible assets and goodwill			800				2,135				—				—				—				500				—				—
Total operating expenses			5,274				6,501				4,479				4,567				4,364				4,907				4,305				4,622
Operating income (loss)			(248	)			(1,572	)			534				694				742				175				752				759
Financing costs before gain on purchase of long-term debt and long-term debt prepayment premium			376				369				335				371				328				373				344				321
Gain on purchase of long-term debt			—				—				—				(81	)			(222	)			—				—				—
Long-term debt prepayment premium			—				51				—				—				48				—				—				—
Income (loss) before income taxes			(624	)			(1,992	)			199				404				588				(198	)			408				438
Income taxes			36				(162	)			55				114				157				47				107				118
Net income (loss)			(660	)			(1,830	)			144				290				431				(245	)			301				320
Net income (loss) attributable to Common Shares			(667	)			(1,840	)			136				292				493				7				321				358
Net income (loss) per Common Share:
Basic EPS			(0.42	)			(1.17	)			0.09				0.19				0.32				—				0.21				0.24
Adjusted basic EPS2			0.16				0.16				0.23				0.20				0.24				0.22				0.26				0.25
Diluted EPS			(0.42	)			(1.17	)			0.09				0.19				0.32				—				0.21				0.24
Dividends declared per Common Share			0.1875				0.4184				0.4184				0.4184				0.4163				0.4163				0.4023				0.4023
Additional information:
EBITDA			1,549				1,588				1,522				1,746				1,753				1,679				1,744				1,770
Restructuring and other costs			211				189				315				93				109				133				97				68
Adjusted EBITDA			1,760				1,777				1,837				1,839				1,862				1,812				1,841				1,838
Cash provided by operating activities			1,485				1,342				1,050				1,130				1,493				1,166				1,077				1,077
Free cash flow			396				545				583				574				611				535				488				534

1       Goods and services purchased and Employee benefits expense amounts include restructuring and other costs.

2       See Section 11.1 Non-GAAP and other specified financial measures.

Trends

For further discussion of trends related to revenues, EBITDA and Adjusted EBITDA, see Section 5.4 TELUS technology solutions segment, Section 5.5 TELUS health segment and Section 5.6 TELUS digital experience segment.

The trend of general year-over-year increases in Depreciation and amortization reflects greater additions of Property, plant and equipment and Intangible assets, and business acquisitions. Our expenditures have supported the expansion of our broadband footprint, including our generational investment to connect homes and businesses to TELUS PureFibre and 5G technology coverage, as well as successful fixed products and services subscriber loading. Investments in our PureFibre technology also support our technology strategy to improve network coverage and capacity, including the ongoing build-out of our 5G network.

  Page 15 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

The underlying components of increases in Financing costs reflect greater long-term debt outstanding and increases in effective interest rates attributable to both floating-rate debt and recent fixed-rate issuances, though year-over-year trends were moderated by foreign exchange and elevated interest income impacts. Financing costs are net of capitalized interest related to spectrum licences acquired during the 3500 MHz spectrum auction held in 2021 and during the 3800 MHz spectrum auction held in 2023 (payments made in fiscal 2024). Financing costs also include Interest accretion on provisions (asset retirement obligations and written put options) and Employee defined benefit plans net interest. Additionally, for the eight periods shown, Financing costs include varying amounts of foreign exchange gains or losses, varying amounts of interest income and unrealized changes in VPPA forward element, which contributed to losses up to the fourth quarter of 2024. Effective for the first quarter of 2025, arising from a prospective change in accounting policy which applies hedge accounting, unrealized fair value adjustments for VPPAs, which were previously included within Financing costs, are now included within Other comprehensive income.

5.3 Consolidated operations

The following is a discussion of our consolidated financial performance. Segment information in Note 5 of the interim consolidated financial statements is regularly reported to our CEO. We discuss the performance of our segments in Section 5.4 TELUS technology solutions segment, Section 5.5 TELUS health segment and Section 5.6 TELUS digital experience segment.

Operating revenues

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025				Change				2026				2025				Change
Operating revenues
Service			4,481				4,507				(1	)%			13,407				13,441				—	%
Equipment			539				560				(4	)%			1,522				1,675				(9	)%
Operating revenues (arising from contracts with customers)			5,020				5,067				(1	)%			14,929				15,116				(1	)%
Other income			6				39				(85	)%			39				129				(70	)%
Operating revenues and other income			5,026				5,106				(2	)%			14,968				15,245				(2	)%

Consolidated Operating revenues and other income decreased by $80 million in the third quarter of 2026 and $277 million in the first nine months of 2026.

· Service revenues decreased by $26 million in the third quarter of 2026, largely as a result of: (i) lower external revenues in TELUS Digital; (ii) a decline in fixed legacy voice revenue; and (iii) lower business-to-business (B2B) data services revenue. These factors were partially offset by: (i) network revenue growth driven by subscriber base growth across mobile, supported by a stabilization in mobile phone ARPU; (ii) higher TELUS Health service revenues; (iii) growth in internet subscribers; (iv) increased security and automation revenues; and (v) greater agriculture and consumer goods services revenues. Service revenues decreased by $34 million in the first nine months of 2026, due to the same factors as the quarter, with the exception of agriculture and consumer goods services revenues which decreased during the nine-month period.

· Equipment revenues decreased by $21 million in the third quarter of 2026 and $153 million in the first nine months of 2026. These decreases were driven by lower mobile equipment revenues due to a reduction in contracted volumes, which were most pronounced in the first six months of 2026, and lower fixed premises equipment sales, partially offset by the impact of higher-value smartphones in the sales mix.

· Other income decreased by $33 million in the third quarter of 2026, largely due to lower gains on real estate projects. Other income decreased by $90 million in the first nine months of 2026, due to the same factors as the third quarter, in addition to the non-recurrence of lease and other sublease revenue in the comparative period, the non-recurrence of net gains from the divestiture of non-core assets in the comparative period, partially offset by higher net reversals of provisions related to business combinations.

  Page 16 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Operating expenses

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025				Change				2026				2025				Change
Goods and services purchased			2,035				1,942				5	%			5,760				5,647				2	%
Employee benefits expense			1,442				1,411				2	%			4,549				4,422				3	%
Depreciation			617				621				(1	)%			1,791				1,814				(1	)%
Amortization of intangible assets			380				390				(3	)%			1,219				1,193				2	%
Impairment of intangible assets and goodwill			800				—				n/m				2,935				500				n/m
Operating expenses			5,274				4,364				21	%			16,254				13,576				20	%

Consolidated operating expenses increased by $910 million in the third quarter of 2026 and $2,678 million in the first nine months of 2026. See Adjusted EBITDA below for further details on Goods and services purchased and Employee benefits expense.

· Depreciation decreased by $4 million in the third quarter of 2026 and $23 million in the first nine months of 2026, largely due to lower asset retirement activity.

· Amortization of intangible assets decreased by $10 million in the third quarter of 2026, largely due to fewer business acquisitions. Amortization increased by $26 million in the first nine months of 2026, in alignment with greater business acquisitions.

· Non-cash Impairment of intangible assets and goodwill increased by $800 million in the third quarter of 2026 as the recoverable amount of the TELUS health cash-generating unit was less than its carrying amount as at September 30, 2026. In the second quarter of 2026, we recorded a $2.1 billion impairment related to the TELUS digital experience cash-generating unit. See Note 18(b) of the interim consolidated financial statements for additional details.

Operating income

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
TTech EBITDA1 (see Section 5.4)			1,494				1,657				(10	)%			4,480				4,853				(8	)%
TELUS Health EBITDA1 (see Section 5.5)			77				85				(10	)%			220				251				(13	)%
TELUS Digital EBITDA1 (see Section 5.6)			1				30				(99	)%			34				119				(72	)%
Eliminations			(23	)			(19	)			21	%			(75	)			(47	)			60	%
EBITDA			1,549				1,753				(12	)%			4,659				5,176				(10	)%
Depreciation and amortization (discussed above)			(997	)			(1,011	)			(1	)%			(3,010	)			(3,007	)			—	%
Impairment of intangible assets and goodwill (discussed above)			(800	)			—				n/m				(2,935	)			(500	)			n/m
Operating income (loss) (consolidated earnings (loss) before interest and income taxes (EBIT))			(248	)			742				n/m				(1,286	)			1,669				n/m

1    See Section 11.1 Non-GAAP and other specified financial measures.

Operating income decreased by $990 million in the third quarter of 2026 and $3.0 billion in the first nine months of 2026. EBITDA decreased by $204 million in the third quarter of 2026 and $517 million in the first nine months of 2026. In addition to the drivers discussed within Adjusted EBITDA below, EBITDA reflected net changes in restructuring and other costs during the three-month and nine-month periods. Restructuring and other costs were $102 million higher in the third quarter of 2026, resulting from cost efficiency and effectiveness programs. Restructuring and other costs increased by $376 million in the first nine months of 2026, due to the same factors as the third quarter, in addition to costs associated with the privatization of TELUS Digital.

  Page 17 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Adjusted EBITDA

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
TTech Adjusted EBITDA1 (see Section 5.4)			1,629				1,717				(5	)%			4,950				5,047				(2	)%
TELUS Health Adjusted EBITDA1 (see Section 5.5)			92				97				(5	)%			284				279				2	%
TELUS Digital Adjusted EBITDA1  (see Section 5.6)			62				67				(9	)%			215				236				(9	)%
Eliminations			(23	)			(19	)			21	%			(75	)			(47	)			60	%
Adjusted EBITDA			1,760				1,862				(5	)%			5,374				5,515				(3	)%

1         See Section 11.1 Non-GAAP and other specified financial measures.

Consolidated Adjusted EBITDA decreased by $102 million or 5% in the third quarter of 2026 and $141 million or 3% in the first nine months of 2026. These declines reflect varied results across our reportable segments.

TTech Adjusted EBITDA decreased by 5% in the third quarter of 2026. This decline was driven by: (i) lower Other income, largely due to lower gains on real estate projects; (ii) fixed legacy voice decline; (iii) increased costs of subscription-based licences and cloud usage; (iv) higher network operations costs; (v) lower B2B data services revenue; and (vi) lower mobile equipment margins. These factors were partially offset by: (i) network revenue growth driven by subscriber base growth across mobile, supported by a stabilization in mobile phone ARPU; (ii) growth in internet subscribers; (iii) lower bad debt expense; (iv) security and automation revenue growth; and (v) increased agriculture and consumer goods margin. TTech Adjusted EBITDA decreased by 2% in the first nine months of 2026, due to the same factors as the third quarter, with the exception of lower agriculture and consumer goods margins as a result of the divestiture of non-core assets. See Section 5.4 for further details.

TELUS Health Adjusted EBITDA decreased by 5% in the third quarter of 2026 primarily due to lower Other income from the impact of the one-time item recorded in retirement and benefit solutions in the third quarter of 2025. TELUS Health Adjusted EBITDA increased by 2% in the first nine months of 2026, due to revenue growth as well as ongoing cost savings related to cost efficiency programs, partially offset by the same factors as the third quarter. See Section 5.5 for further details.

TELUS Digital Adjusted EBITDA decreased by 9% in both the third quarter and first nine months of 2026, driven by lower Operating revenues, partially offset by lower operating costs and higher Other income. See Section 5.6 for further details.

Financing costs

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025				Change				2026				2025				Change
From transactions that only involve the raising of finance
Interest on long-term debt, excluding lease liabilities and other (secured) – gross			318				331				(4	)%			973				921				6	%
Interest on long-term debt, excluding lease liabilities and other (secured) – capitalized			(3	)			(1	)			n/m				(9	)			(10	)			(10	)%
Interest on short-term borrowings and other			22				25				(12	)%			52				54				(4	)%
Gain on purchase of long-term debt			—				(222	)			(100	)%			—				(222	)			(100	)%
Long-term debt prepayment premium			—				48				(100	)%			51				48				6	%
			337				181				86	%			1,067				791				35	%
From transactions that do not only involve the raising of finance
Interest on long-term debt – lease liabilities			43				36				19	%			127				119				7	%
Interest on long-term debt – other (secured)			6				6				—	%			17				20				(15	)%
Employee defined benefit plans net interest			(11	)			3				n/m				(4	)			9				n/m
Interest accretion on provisions			9				7				29	%			22				21				5	%
			47				52				(10	)%			162				169				(4	)%
Interest expense			384				233				65	%			1,229				960				28	%
Foreign exchange gains			(2	)			(64	)			(97	)%			(46	)			(52	)			(12	)%
Interest income			(6	)			(15	)			(60	)%			(52	)			(37	)			41	%
Financing costs			376				154				n/m				1,131				871				30	%

  Page 18 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Financing costs increased by $222 million in the third quarter of 2026 and $260 million in the first nine months of 2026, mainly due to the following factors:

· Interest expense increased by $151 million in the third quarter of 2026 and $269 million in the first nine months of 2026, largely resulting from:

· Gross interest expense increased by $52 million in the first nine months of 2026, which was largely a reflection of an increase in the effective interest rate in addition to an increase in average long-term debt. Our weighted average interest rate on long-term debt (excluding commercial paper, TELUS bank credit facilities, lease liabilities and other long-term debt) was 4.84% at September 30, 2026, compared to 4.61% one year earlier. (See Long-term debt issued and Redemptions and repayment of long-term debt in Section 7.4.)

· Gain on purchase of long-term debt was in respect of the tender offer process described in our 2025 annual MD&A and was net of a $17 million loss on the corresponding foreign exchange derivatives (cross currency interest rate swap agreements) terminated.

· Long-term debt prepayment premium in 2026 relates to the promissory note issued by a wholly owned subsidiary to a private equity investor which was repaid during the second quarter of 2026. See Note 26(e) of the interim consolidated financial statements for further details.

· Employee defined benefit plans net interest decreased by $14 million in the third quarter of 2026 and $13 million in the first nine months of 2026. This was primarily due to the merger of the TELUS Defined Contribution Pension Plan into both the TELUS Corporation Pension Plan and the Pension Plan for Management and Professional Employees of TELUS Corporation, which allowed for the reversal of asset ceiling limits. See Note 15(a) of the interim consolidated financial statements for further details.

· Foreign exchange gains were $62 million lower in the third quarter of 2026 and $6 million lower in the first nine months of 2026, primarily reflecting changes in the value of the U.S. dollar relative to the Canadian dollar and the European euro relative to the Canadian dollar.

· Interest income decreased by $9 million in the third quarter of 2026. In the first nine months of 2026, interest income increased by $15 million, primarily as a result of higher interest on income tax refunds.

Income taxes

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions, except tax rates)		2026				2025				Change				2026				2025				Change
Income taxes computed at applicable statutory rates (%)			27.2				25.5				1.7	pts.			25.7				24.6				1.1	pts.
Adjustments recognized in the current period for income taxes of prior periods (%)			4.8				(1.9	)			6.7	pts.			1.9				(4.3	)			6.2	pts.
Pillar Two global minimum tax (%)			—				—				—	pts.			(0.1	)			0.1				(0.2	)pts.
Impairment of intangible assets and goodwill (%)			(31.6	)			—				(31.6	)pts.			(17.6	)			13.4				(31.0	)pts.
Write down of deferred tax asset (%)			—				—				—	pts.			(3.7	)			—				(3.7	)pts.
(Non-taxable) non-deductible amounts, net (%)			(0.6	)			2.8				(3.4	)pts.			0.3				2.4				(2.1	)pts.
Withholding and other taxes (%)			(1.0	)			0.9				(1.9	)pts.			(0.9	)			3.0				(3.9	)pts.
Losses not recognized (%)			(5.1	)			(0.2	)			(4.9	)pts.			(2.9	)			0.3				(3.2	)pts.
Foreign tax differential (%)			0.5				(0.2	)			0.7	pts.			0.2				(0.5	)			0.7	pts.
Other (%)			—				(0.2	)			0.2	pts.			—				—				—	pts.
Effective tax rate (%)			(5.8	)			26.7				(32.5	)pts.			2.9				39.0				(36.1	)pts.
Income taxes computed at applicable statutory rates			(170	)			150				n/m				(620	)			196				n/m
Adjustments recognized in the current period for income taxes of prior periods			(30	)			(11	)			n/m				(45	)			(34	)			32	%
Pillar Two global minimum tax			—				—				n/m				1				1				—	%
Impairment of intangible assets and goodwill			197				—				n/m				426				107				n/m
Write down of deferred tax asset			—				—				n/m				89				—				n/m
(Non-taxable) non-deductible amounts, net			4				16				(75	)%			(8	)			19				n/m
Withholding and other taxes			6				5				20	%			19				24				(21	)%
Losses not recognized			32				(1	)			n/m				71				2				n/m
Foreign tax differential			(3	)			(1	)			n/m				(4	)			(4	)			—	%
Other			—				(1	)			(100	)%			—				—				n/m
Income taxes			36				157				(77	)%			(71	)			311				n/m

  Page 19 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Total income tax expense decreased by $121 million in the third quarter of 2026 and $382 million in the first nine months of 2026. The effective tax rate decreased from 26.7% to (5.8%) in the third quarter of 2026 and from 39.0% to 2.9% in the first nine months of 2026. These changes were primarily attributable to the impairment of intangible assets and goodwill in the respective periods.

Comprehensive income

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025				Change				2026				2025				Change
Net income (loss)			(660	)			431				n/m				(2,346	)			487				n/m
Other comprehensive income (net of income taxes):
Items that may be subsequently reclassified to income			(69	)			89				n/m				(78	)			57				n/m
Items never subsequently reclassified to income			928				17				n/m				933				50				n/m
Comprehensive income (loss)			199				537				(63	)%			(1,491	)			594				n/m

Comprehensive income decreased by $338 million in the third quarter of 2026 and $2.1 billion in the first nine months of 2026, both primarily due to a decrease in Net income, partially offset by employee defined benefit plans re-measurements. Items that may subsequently be reclassified to income include changes in the unrealized fair value of derivatives designated as cash flow hedges and foreign currency translation adjustments arising from translating financial statements of foreign operations. Items never subsequently reclassified to income include changes in the measurement of investment financial assets and employee defined benefit plans re-measurement amounts.

5.4 TELUS technology solutions segment

TTech trends and seasonality

The historical trend over the past eight quarters in mobile network revenue primarily reflects a recovery in growth, attributable to continued expansion in our mobile phone subscriber base and an increase in Internet of Things (IoT) connections. This subscriber momentum was supported by strong customer retention, which offsets the impact of slowing population growth from reduced immigration. Furthermore, while larger data allotments and declining retail prices impact domestic ARPU, overall declines have continued to moderate, reflecting our ongoing efforts to restore ARPU growth. Roaming revenues continued to decline, reflecting the uptake of North America-wide plans and competitive roaming packages in the market, as well as lower travel-related roaming volumes.

Mobile equipment revenues have been declining, largely attributable to lower contracted volumes, partially offset by the impact of higher-value smartphones in the sales mix. Higher device costs from manufacturers are also prompting customers to defer upgrades, driving increased adoption of bring-your-own-device (BYOD) plans, reducing the number of customer contracts. We continue to offer certified pre-owned devices and our Bring-It-Back^® program, providing customers with alternative options for handset upgrades while also supporting a circular economy.

Our spectrum investments and capital expenditures for improvements to our network are enhancing its capacity, coverage and reliability, enabling us to drive revenue growth through net additions of new mobile phone and connected device subscribers. Growth in our mobile phone subscriber base is attributable to: (i) industry-leading product offerings with continuous improvements in the speed, performance and reliability of our network, coupled with our enhanced digital capabilities; (ii) the success of our bundling of mobility and home services; (iii) our ability to attract a large share of the Canadian population, with growth that is being driven by immigration (albeit slowing) and changing demographics, as well as ongoing growth in the number of customers with multiple devices; and (iv) our relatively low churn rate, which reflects our Customers First priority and upgrade volume programs.

Our connected device subscriber base has been growing, primarily in response to our expanded IoT offerings across various industries, including transportation, security, healthcare, smart buildings and smart cities, energy, retail and agriculture. Our investments in network infrastructure and the expansion of our IoT product portfolio have also equipped us to deliver reliable and scalable IoT solutions to our customers.

Growth in our internet subscriber base has continued, supported by our ongoing investments in building out our fibre-optic footprint. Bundling of mobility and home services, including our diverse and flexible suite of additional products and services including but not limited to internet, entertainment, security and automation, health, and voice, supports growth in the number of our offerings per home to better meet demand for multiple services, with a positive impact on churn.

  Page 20 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

The trend of growth in our fixed products and services revenue reflects the growth of our internet and security and automation subscriber bases, including our expansion into non-ILEC communities in Ontario and Quebec. This growth is bolstered by sustained demand for faster internet speeds and larger bandwidth which are supported by investments in our fibre-optic footprint. The trends of declining TV revenues and fixed voice revenues are a result of technological substitution. However, the success of our bundled offerings and product diversification and the effectiveness of our customer retention efforts have helped mitigate these trends. The migration of business product and service offerings to IP platforms and the entry of new competitors have resulted in inherently lower margins compared to some of our legacy business product and service offerings. We are continuing to refine and diversify our portfolio of innovative business offerings.

Previous trends in agriculture and consumer goods services were attributable to customer churn, impacting subscription growth, in addition to declines from the divestiture of non-core assets in the first quarter of 2025. As of the second quarter of 2026, year-over-year results are organic, revealing a trend of organic growth, anchored by core demand in animal agriculture and steady execution in consumer goods.

TTech operating indicators¹

At September 30		2026				2025				Change
Subscriber connections (thousands):
Mobile phone2			10,419				10,274				1	%
Connected device3			5,072				4,158				22	%
Internet4			2,838				2,782				2	%
Total telecom subscriber connections			18,329				17,214				6	%
LTE population coverage5 (millions)			36.7				36.7				—	%
5G population coverage5 (millions)			34.4				32.9				5	%
Fibre optic cable coverage (millions of households and businesses)			3.8				3.6				6	%

		Three-month periods ended September 30												Nine-month periods ended September 30
		2026				2025				Change				2026				2025				Change
Mobile phone gross additions (thousands)			395				419				(6	)%			1,171				1,134				3	%
Subscriber connection net additions (thousands):
Mobile phone			84				82				2	%			113				157				(28	)%
Connected device			289				169				71	%			705				429				64	%
Internet			10				40				(75	)%			51				88				(42	)%
Total telecom subscriber connection net additions			383				291				32	%			869				674				29	%
Mobile phone ARPU, per month2,6 ($)			57.22				57.21				—	%			56.71				56.97				(0.5	)%
Mobile phone churn, per month2,7 (%)			1.01				1.11				(0.10	)pts.			1.14				1.07				0.07	pts.

1	Effective January 1, 2026 with retrospective application to January 1, 2025, we have revised our subscriber reporting to apply a product-intensive focus on our core bundling foundation of mobility and internet and thus will no longer report TV, security and automation and residential voice subscribers. This change concentrates our disclosure on our core bundling foundation and enables us to better serve our customers, while supporting the migration from legacy products and services to integrated IP streaming, mobile-first connectivity, and smart home solutions.
2	Effective January 1, 2026, on a prospective basis, we reduced our mobile phone subscriber base by 18,000 subscribers to remove a subset of our public services customers that are now subject to dynamic pricing auction models. We believe adjusting our base for these low-margin customers provides a more meaningful reflection of the underlying performance of our mobile phone business and our focus on profitable growth. As a result of this change, associated operating statistics (ARPU and churn) have also been adjusted.
3	Effective January 1, 2026, on a prospective basis, we adjusted our connected device subscriber base to remove 78,000 subscribers, due to a review of our subscriber base.
4	Effective January 1, 2026, we removed 30,000 internet subscribers from our base, primarily consisting of low-margin subscribers associated with temporary work camps and similar facilities. This adjustment also reflects a minor change in our internet subscriber count following a subscriber base review.
5	Including network access agreements with other Canadian carriers.
6	This is a specified financial measure. See Section 11.1 Non-GAAP and other specified financial measures. This is an industry measure useful in assessing operating performance of a mobile products and services company, but is not a measure defined under IFRS Accounting Standards.
7	See Section 11.2 Operating indicators.

· Mobile phone gross additions were 395,000 in the third quarter of 2026, a decrease of 24,000, driven by a greater emphasis on premium and profitable loading. Mobile phone gross additions were 1,171,000 in the first nine months of 2026, an increase of 37,000, as heightened promotional activity in the first quarter of 2026, which led to elevated customer switching, more than offset the decline in the third quarter of 2026 arising from greater emphasis on premium and profitable loading.

  Page 21 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

· Our mobile phone churn rate was 1.01% in the third quarter of 2026 compared to 1.11% in the third quarter of 2025. The decrease in churn rate was largely a result of our ongoing focus on customer retention and network quality, along with successful promotions. Our mobile phone churn rate was 1.14% in the first nine months of 2026 compared to 1.07% in first nine months of 2025. The increase in churn rate was largely a result of customer switching decisions in response to marketing and promotional price competition in the first quarter of 2026.

· Mobile phone net additions were 84,000 in the third quarter of 2026, an increase of 2,000, driven by a lower mobile phone churn rate, partially offset by a decrease in gross additions. Mobile phone net additions were 113,000 in the first nine months of 2026, a decrease of 44,000, attributable to a higher mobile phone churn rate, partially offset by an increase in gross additions.

· Mobile phone ARPU was $57.22 in the third quarter of 2026, remaining flat year-over-year, highlighting the successful execution of our ongoing efforts to stabilize ARPU. Mobile phone ARPU was $56.71 in the first nine months of 2026, reflecting a decrease of $0.26 or 0.5% for the nine-month period. This decrease was attributable to the adoption of base rate plans with lower prices in response to continuing competitive promotional pricing targeting both new and existing customers, a decline in roaming revenues, and the commoditization of telecommunications services in the public sector, partially offset by the positive impact of ongoing efforts to moderate ARPU declines. We have noted sustained growth in the adoption of unlimited data and Canada-U.S.-Mexico plans, which generate higher and more stable ARPU on a monthly basis while also offering customers greater cost certainty in lower roaming fees to the U.S. and Mexico, and lower data overage fees, respectively.

· Connected device net additions were 289,000 in the third quarter of 2026 and 705,000 in the first nine months of 2026, reflecting increases of 120,000 for the quarter and 276,000 for the nine-month period, driven by growth in gross additions from customers in the transportation and connectivity industries.

· Internet net additions were 10,000 in the third quarter of 2026 and 51,000 in the first nine months of 2026, reflecting decreases of 30,000 for the quarter and 37,000 for the nine-month period. These decreases were attributable to lower gross loading, reflecting a greater emphasis on premium and profitable loading, partially offset by lower churn.

Operating revenues and other income – TTech segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
Mobile network revenue			1,780				1,755				1	%			5,273				5,210				1	%
Mobile equipment and other service revenues			516				518				—	%			1,423				1,540				(8	)%
Fixed data services1			1,186				1,163				2	%			3,536				3,501				1	%
Fixed voice services			155				167				(7	)%			473				507				(7	)%
Fixed equipment and other service revenues			123				143				(14	)%			382				427				(11	)%
Agriculture and consumer goods services			94				92				2	%			272				275				(1	)%
Operating revenues (arising from contracts with customers)			3,854				3,838				—	%			11,359				11,460				(1	)%
Other income			—				29				(100	)%			20				118				(83	)%
External Operating revenues and other income			3,854				3,867				—	%			11,379				11,578				(2	)%
Intersegment revenues			5				6				(17	)%			16				17				(6	)%
TTech Operating revenues and other income			3,859				3,873				—	%			11,395				11,595				(2	)%

1 Excludes agriculture and consumer goods services.

TTech Operating revenues and other income decreased by $14 million in the third quarter of 2026 and $200 million in the first nine months of 2026.

Mobile network revenue increased by $25 million or 1% in the third quarter of 2026 and $63 million or 1% in the first nine months of 2026, largely due to growth in our mobile phone subscriber base, supported by a stabilization in mobile phone ARPU.

Mobile equipment and other service revenues decreased by $2 million in the third quarter of 2026 and $117 million in the first nine months of 2026. The decreases were due to lower contracted volumes, which were most pronounced in the first six months of 2026, partially offset by the impact of higher-value smartphones in the sales mix.

  Page 22 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Fixed data services revenues increased by $23 million in the third quarter of 2026 and $35 million in the first nine months of 2026, driven by internet subscriber growth and value-accretive loading in security and automation. This was partially offset by lower but moderating B2B data services revenue.

Fixed voice services revenues decreased by $12 million in the third quarter of 2026 and $34 million in the first nine months of 2026, reflecting the ongoing decline in legacy voice revenues. This was partially mitigated by the effects of our successful customer retention efforts.

Fixed equipment and other service revenues decreased by $20 million in the third quarter of 2026 and $45 million in the first nine months of 2026, driven primarily by lower premises equipment sales.

Agriculture and consumer goods services revenues increased by $2 million in the third quarter of 2026, largely as a result of favourable foreign exchange rate effects from a weaker Canadian dollar. Agriculture and consumer goods services revenues decreased by $3 million in the first nine months of 2026, primarily reflecting first quarter 2026 headwinds from the divestiture of non-core assets in the first quarter of 2025, alongside lower revenues in agriculture. These factors were partially offset by strength in animal agriculture.

Other income decreased by $29 million in the third quarter of 2026, largely due to lower gains on real estate projects. Other income decreased by $98 million in the first nine months of 2026, due to the same factors as the third quarter, in addition to the non-recurrence of lease and other sublease revenue in the comparative period, the non-recurrence of net gains from the divestiture of non-core assets and net reversals of provisions related to business combinations in the prior year.

Intersegment revenues represent services provided to the TELUS health and TELUS digital experience segments. These revenues are eliminated upon consolidation, together with the associated TELUS health and TELUS digital experience segment expenses.

Direct contribution – TTech segment

		Mobile products and services												Fixed products and services1												Total TTech
Three-month periods ended September 30 ($ in millions)		2026				2025				Change				2026				2025 (restated)				Change				2026				2025 (restated)				Change
Revenues
Service			1,809				1,780				2	%			1,508				1,499				1	%			3,317				3,279				1	%
Equipment			487				493				(1	)%			50				66				(24	)%			537				559				(4	)%
Operating revenues (arising from contracts with customers)			2,296				2,273				1	%			1,558				1,565				—	%			3,854				3,838				—	%
Expenses
Direct expenses			736				748				(2	)%			481				477				1	%			1,217				1,225				(1	)%
Direct contribution			1,560				1,525				2	%			1,077				1,088				(1	)%			2,637				2,613				1	%

Direct contribution – TTech segment

		Mobile products and services												Fixed products and services1												Total TTech
Nine-month periods ended September 30 ($ in millions)		2026				2025				Change				2026				2025 (restated)				Change				2026				2025 (restated)				Change
Revenues
Service			5,353				5,292				1	%			4,488				4,497				—	%			9,841				9,789				1	%
Equipment			1,343				1,458				(8	)%			175				213				(18	)%			1,518				1,671				(9	)%
Operating revenues (arising from contracts with customers)			6,696				6,750				(1	)%			4,663				4,710				(1	)%			11,359				11,460				(1	)%
Expenses
Direct expenses			2,069				2,193				(6	)%			1,437				1,437				—	%			3,506				3,630				(3	)%
Direct contribution			4,627				4,557				2	%			3,226				3,273				(1	)%			7,853				7,830				—	%

1 Includes agriculture and consumer goods services.

The direct expenses included in the direct contribution calculations in the preceding tables represent components of the Goods and services purchased and Employee benefits expense totals included in the table below and have been calculated in accordance with the accounting policies used to prepare the totals presented in the financial statements. TTech direct contribution increased by $24 million or 1% in the third quarter of 2026 and $23 million in the first nine months of 2026.

  Page 23 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

The direct contribution from TTech mobile products and services increased by $35 million in the third quarter of 2026 and $70 million in the first nine months of 2026, reflecting stronger mobile network revenue and subscriber base growth, supported by a stabilization in mobile phone ARPU. These factors were partially offset by a decline in mobile equipment margin from lower contracted volumes.

The direct contribution from TTech fixed products and services decreased by $11 million in the third quarter of 2026 and $47 million in the first nine months of 2026, primarily driven by fixed legacy voice decline and lower B2B data services revenue. These factors were partially offset by continued growth in internet subscribers, security and automation, and TV programming savings. Agriculture and consumer goods margin growth partially offset the third quarter decline, but remained a driver of the decline in the first nine months of 2026 due to the divestiture of non-core assets in the first quarter of 2025.

Operating expenses – TTech segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
Goods and services purchased1			1,757				1,622				8	%			4,963				4,858				2	%
Employee benefits expense1			608				594				2	%			1,952				1,884				4	%
TTech operating expenses			2,365				2,216				7	%			6,915				6,742				3	%

1 Includes restructuring and other costs.

TTech operating expenses increased by $149 million in the third quarter of 2026 and increased by $173 million in the first nine months of 2026. See TTech Adjusted EBITDA below for further details.

EBITDA – TTech segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions, except margins)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
EBITDA			1,494				1,657				(10	)%			4,480				4,853				(8	)%
Add restructuring and other costs included in EBITDA			135				60				n/m				470				194				n/m
Adjusted EBITDA			1,629				1,717				(5	)%			4,950				5,047				(2	)%
EBITDA margin1 (%)			38.7				42.8				(4.1	) pts.			39.3				41.9				(2.6	) pts.
Adjusted EBITDA margin1 (%)			42.2				44.3				(2.1	) pts.			43.4				43.5				(0.1	) pts.

1 These are non-GAAP and other specified financial measures. See Section 11.1 Non-GAAP and other specified financial measures.

TTech EBITDA decreased by $163 million or 10% in the third quarter of 2026 and $373 million or 8% in the first nine months of 2026. In addition to the drivers discussed within TTech Adjusted EBITDA below, EBITDA also reflected an increase in restructuring and other costs of $75 million in the third quarter of 2026, resulting from cost efficiency and effectiveness programs. In the first nine months of 2026, restructuring and other costs increased by $276 million, due to the same factors as the third quarter, as well as costs associated with the privatization of TELUS Digital.

TTech Adjusted EBITDA decreased by $88 million or 5% in the third quarter of 2026, reflecting: (i) lower Other income, largely due to lower gains on real estate projects; (ii) fixed legacy voice decline; (iii) increased costs of subscription-based licences and cloud usage; (iv) higher network operations costs; (v) lower B2B data services revenue; and (vi) lower mobile equipment margins. These factors were partially offset by: (i) network revenue growth driven by subscriber base growth across mobile, supported by a stabilization in mobile phone ARPU; (ii) growth in internet subscribers; (iii) lower bad debt expense; (iv) security and automation revenue growth; and (v) increased agriculture and consumer goods margin. TTech Adjusted EBITDA decreased by $97 million in the first nine months of 2026, due to the same factors as the third quarter, with the exception of lower agriculture and consumer goods margins as a result of the divestiture of non-core assets.

TTech Adjusted EBITDA margin decreased by 2.1 percentage points in the third quarter of 2026 and 0.1 percentage points in the first nine months of 2026. These declines were driven by higher operating expenses and lower Other income.

  Page 24 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Adjusted EBITDA less capital expenditures – TTech segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
Adjusted EBITDA			1,629				1,717				(5	)%			4,950				5,047				(2	)%
Capital expenditures			(631	)			(570	)			11	%			(1,844	)			(1,676	)			10	%
Adjusted EBITDA less capital expenditures1			998				1,147				(13	)%			3,106				3,371				(8	)%

1 See Section 11.1 Non-GAAP and other specified financial measures.

TTech Adjusted EBITDA less capital expenditures decreased by $149 million in the third quarter of 2026 and $265 million in the first nine months of 2026. See Section 7.3 for further discussion of capital expenditures.

EBIT – TTech segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
EBITDA			1,494				1,657				(10	)%			4,480				4,853				(8	)%
Depreciation			(550	)			(529	)			4	%			(1,593	)			(1,593	)			—	%
Amortization of intangible assets			(220	)			(224	)			(2	)%			(734	)			(702	)			5	%
EBIT1			724				904				(20	)%			2,153				2,558				(16	)%

1 See Section 11.1 Non-GAAP and other specified financial measures.

TTech EBIT decreased by $180 million in the third quarter of 2026 and $405 million in the first nine months of 2026, in line with the decreases in EBITDA. TTech depreciation increased by $21 million in the third quarter of 2026, due to higher additions of property, plant and equipment. TTech amortization decreased by $4 million in the third quarter of 2026 due to lower additions of software assets. In the first nine months of 2026, TTech amortization increased by $32 million, primarily due to higher additions of software assets.

5.5 TELUS health segment

TELUS Health trends

The trend of growth in health services revenues has been driven by growth in our offerings of employee and family assistance programs (EFAP), pension plan and benefits administration, which have been augmented by a number of targeted acquisitions globally in 2024, as well as Workplace Options^® and other business acquisitions in 2025. The trend also reflects organic growth in some of our existing health offerings driven by increased adoption and expansion of our digital health solutions and the growing member base across our health services. Our portfolio of health offerings include: (i) employer solutions: offers physical, mental and financial well-being solutions focused on the global employer segment, including EFAP, total mental health, consulting and TELUS Health Wellbeing; (ii) payor and provider solutions: the payor business encompasses both the public and private sectors (health benefits management, e-claims, patient health records and public health managed services) and the provider business includes pharmacy software solutions, collaborative health medical records and virtual pharmacy services; (iii) retirement and benefits solutions: enhancing the financial health and well-being of organizations and individuals with sustainable and flexible pensions and benefits administration and retirement solutions; (iv) TELUS Health care centres: oversees clinic operations and transformation, as well as medical and mental health clinical delivery; and (v) consumer health: offers market leading solutions for primary care, pet care, aging in place and chronic disease management. On May 1, 2025, we acquired Workplace Options, which furthers TELUS Health’s practice of partnering with providers, digital health organizations, health plans and employers to create a more robust and localized offering executed at a global scale, which now covers more than 200 countries and territories. The number of lives covered largely reflects the expansion of our EFAP offerings, which includes the acquisition of Workplace Options and their associated healthcare lives covered.

  Page 25 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

TELUS Health operating indicator

At September 30		2026				2025				Change
Healthcare lives covered (millions)			154.5				160.6				(4	)%

· Healthcare lives covered were 154.5 million as of the end of the third quarter of 2026, a decrease of 6.1 million over the past 12 months, mainly reflecting churn in EFAP in some of our operating regions.

Operating revenues and other income – TELUS health segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025				Change				2026				2025				Change
Health services			527				516				2	%			1,582				1,500				5	%
Health equipment			2				1				100	%			4				4				—	%
Operating revenues (arising from contracts with customers)			529				517				2	%			1,586				1,504				5	%
Other income			—				10				(100	)%			1				11				(91	)%
External Operating revenues and other income			529				527				—	%			1,587				1,515				5	%
Intersegment revenues			1				1				—	%			5				5				—	%
TELUS Health Operating revenues and other income			530				528				—	%			1,592				1,520				5	%

TELUS Health Operating revenues and other income increased by $2 million in the third quarter of 2026 and $72 million in the first nine months of 2026.

Across TELUS Health, the reported rate of revenue growth was positively impacted by prevailing foreign exchange rates, primarily the strengthening of the European euro compared to the first nine months of the prior year and in the third quarter of 2026.

Our health services revenues increased by $11 million in the third quarter of 2026, resulting from: (i) growth in retirement and benefits solutions, inclusive of business acquisitions and organic growth; and (ii) growth in payor and provider solutions, with strong performance in collaborative health records and an increase in recurring revenue related to our electronic medical records solutions, increased patient health records and health benefits management, and virtual pharmacy solutions. These factors were partially offset by a decline in employer solutions driven by the continued impact of prior year churn and pricing pressure. Health services revenues increased by $82 million in the first nine months of 2026, reflecting the same factors as the third quarter, in addition to global business acquisitions in employer solutions, including the acquisition of Workplace Options in May 2025.

Health equipment revenues increased by $1 million in the third quarter of 2026 and were unchanged in the first nine months of 2026.

Other income decreased by $10 million in both the third quarter and first nine months of 2026 due to the impact of the one-time item recorded in retirement and benefit solutions in the third quarter of 2025.

Intersegment revenues represent services provided to the TTech segment. These revenues are eliminated upon consolidation, together with the associated TTech expenses.

Direct contribution – TELUS health segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
Revenues
Service			527				516				2	%			1,582				1,500				5	%
Equipment			2				1				100	%			4				4				—	%
Operating revenues (arising from contracts with customers)			529				517				2	%			1,586				1,504				5	%
Expenses
Direct expenses			248				239				4	%			730				688				6	%
Direct contribution			281				278				1	%			856				816				5	%

  Page 26 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

The direct expenses included in the direct contribution calculations in the preceding table represent components of the Goods and services purchased and Employee benefits expense totals included in the table below and have been calculated in accordance with the accounting policies used to prepare the totals presented in the financial statements. The nature of the direct expenses are mainly counsellor network costs, clinicians, implementation and support costs.

TELUS Health direct contribution increased by $3 million in the third quarter of 2026 and $40 million in the first nine months of 2026, reflecting revenue growth, as discussed in the health services revenues section.

Operating expenses – TELUS health segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
Goods and services purchased1			182				176				3	%			535				504				6	%
Employee benefits expense1			271				267				1	%			837				765				9	%
TELUS Health operating expenses			453				443				2	%			1,372				1,269				8	%

1 Includes restructuring and other costs.

TELUS Health operating expenses increased by $10 million in the third quarter of 2026 and $103 million in the first nine months of 2026. See TELUS Health direct contribution above and TELUS Health Adjusted EBITDA below for further details.

EBITDA – TELUS health segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions, except margins)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
EBITDA			77				85				(10	)%			220				251				(13	)%
Add restructuring and other costs included in EBITDA			15				12				n/m				64				28				n/m
Adjusted EBITDA			92				97				(5	)%			284				279				2	%
EBITDA margin1 (%)			14.5				16.2				(1.7	) pts.			13.8				16.5				(2.7	) pts.
Adjusted EBITDA margin1 (%)			17.3				18.4				(1.1	) pts.			17.8				18.4				(0.6	) pts.

1 These are non-GAAP and other specified financial measures. See Section 11.1 Non-GAAP and other specified financial measures.

TELUS Health EBITDA decreased by $8 million or 10% in the third quarter of 2026 and $31 million or 13% in the first nine months of 2026 reflecting an increase in restructuring and other costs and lower Other income from the one-time item recorded in the third quarter of 2025, partially offset by growth driven by our acquisitions. TELUS Health Adjusted EBITDA decreased by $5 million or 5% in the third quarter of 2026, primarily due to lower Other income. TELUS Health Adjusted EBITDA increased by $5 million or 2% in the first nine months of 2026, due to revenue growth as well as ongoing cost savings related to cost efficiency programs, partially offset by the same factors as the third quarter. The difference between the growth rates of EBITDA and Adjusted EBITDA is attributable to higher restructuring and other costs in the third quarter and first nine months of 2026 related to cost efficiency and effectiveness programs.

TELUS Health Adjusted EBITDA margin decreased by 1.1 percentage points in the third quarter of 2026 and 0.6 percentage points in the first nine months of 2026. These changes were driven by the impact of the one-time item recorded in retirement and benefit solutions in the third quarter of 2025.

  Page 27 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Adjusted EBITDA less capital expenditures – TELUS health segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
Adjusted EBITDA			92				97				(5	)%			284				279				2	%
Capital expenditures			(52	)			(56	)			(7	)%			(149	)			(159	)			(6	)%
Adjusted EBITDA less capital expenditures1			40				41				(2	)%			135				120				13	%

1 See Section 11.1 Non-GAAP and other specified financial measures.

TELUS Health Adjusted EBITDA less capital expenditures decreased by $1 million in the third quarter of 2026 and increased by $15 million in first nine months of 2026. See Section 7.3 for further discussion of capital expenditures.

EBIT – TELUS health segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
EBITDA			77				85				(10	)%			220				251				(13	)%
Depreciation			(14	)			(21	)			(33	)%			(45	)			(44	)			2	%
Amortization of intangible assets			(94	)			(105	)			(10	)%			(288	)			(299	)			(4	)%
Impairment of intangible assets and goodwill			(800	)			—				n/m				(800	)			—				n/m
EBIT1			(831	)			(41	)			n/m				(913	)			(92	)			n/m

1 See Section 11.1 Non-GAAP and other specified financial measures.

TELUS Health EBIT decreased by $790 million in the third quarter of 2026 and $821 million in the first nine months of 2026, primarily driven by goodwill impairment. TELUS Health depreciation decreased by $7 million in the third quarter of 2026 due to accelerated depreciation in the prior year. TELUS Health amortization decreased by $11 million in both the third quarter and first nine months of 2026, primarily from certain software that fully amortized in the comparative period.

5.6 TELUS digital experience segment

TELUS Digital trends

The historical trend over the past eight quarters in TELUS Digital revenues reflects changes in service volume demand from our existing clients and services provided to new clients, as well as a shift in the mix of services that has been evolving over the eight quarters. Revenue growth from new client wins and service expansion with certain clients was offset by lower service volumes from some of our key existing clients, reflecting ongoing cost rationalization measures within the existing client base. Intersegment revenues generally increased year-over-year, comprising approximately 14% of total TELUS Digital revenues.

Over the past eight quarters, goods and services purchased and employee benefits expense increased through 2025, reflecting growth in our team member base, higher average salaries and wages, restructuring and other costs related to cost efficiency programs, increased external labour and crowdsourced-enabled workforce to support our digital services and AI and data solutions businesses, and higher software licensing, administrative and facility costs to support business growth. These expenses have been flat to lower in the first half of 2026, with a further decrease in the third quarter, primarily due to lower spending on contractors and external labour and cost savings from previous restructuring initiatives, partially offset by increased data processing, maintenance and software licensing costs supporting our service delivery. The decrease in employee benefits expense primarily reflected a lower base salary cost consistent with a reduced team member base.

Depreciation and amortization remained relatively stable, as the impact of ongoing capital investments in facilities and costs to maintain our existing operations was largely offset by the timing of assets reaching full depreciation or amortization.

  Page 28 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Operating revenues and other income – TELUS digital experience segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
Operating revenues (arising from contracts with customers)			637				712				(11	)%			1,984				2,152				(8	)%
Other income			6				—				n/m				18				—				n/m
External Operating revenues and other income			643				712				(10	)%			2,002				2,152				(7	)%
Intersegment revenues			94				109				(14	)%			322				310				4	%
TELUS Digital Operating revenues and other income			737				821				(10	)%			2,324				2,462				(6	)%

TELUS Digital Operating revenues and other income decreased by $84 million in the third quarter of 2026 and $138 million in the first nine months of 2026.

Across TELUS Digital, the reported rate of revenue growth was positively impacted in the third quarter of 2026 by prevailing foreign exchange rates, primarily the weakening of the Canadian dollar against the U.S. dollar. In the first nine months of 2026, the reported rate of revenue growth was negatively impacted by the strengthening of the Canadian dollar against the U.S. dollar.

Our Operating revenues (arising from contracts with customers) decreased by $75 million in the third quarter of 2026, primarily attributable to client ramp-downs in our trust and safety service line and our AI and data solutions service line. In the first nine months of 2026, Operating revenues (arising from contracts with customers) decreased by $168 million, primarily attributable to the same factors as the third quarter, as well as the effect of a one-time receipt within our trust and safety service line in the comparative period resulting from a client’s change in contractual scope.

Other income increased by $6 million in the third quarter of 2026 and $18 million in the first nine months of 2026, primarily due to a reversal of a provision related to a business combination.

Intersegment revenues represent services provided to the TTech and TELUS health segments, which include capital expenditures for software that are deferred and amortized. These revenues are eliminated upon consolidation, together with the associated expenses, as well as the TELUS digital experience segment margin on costs capitalized within the TTech segment.

Intersegment revenues decreased by $15 million in the third quarter of 2026, reflecting lower capital expenditures by the TTech and TELUS health segments for work performed by our digital solutions service line. In the first nine months of 2026, intersegment revenues increased by $12 million, reflecting the competitive benefits TELUS derives from the lower cost structure in the TELUS digital experience segment.

Operating expenses – TELUS digital experience segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
Goods and services purchased1			173				211				(18	)%			530				540				(2	)%
Employee benefits expense1			563				580				(3	)%			1,760				1,803				(2	)%
TELUS Digital operating expenses			736				791				(7	)%			2,290				2,343				(2	)%

1 Includes restructuring and other costs.

TELUS Digital operating expenses decreased by $55 million in the third quarter of 2026 and $53 million in the first nine months of 2026. See TELUS Digital Adjusted EBITDA below for further details.

  Page 29 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

EBITDA – TELUS digital experience segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions, except margins)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
EBITDA			1				30				(99	)%			34				119				(72	)%
Add restructuring and other costs included in EBITDA			61				37				n/m				181				117				n/m
Adjusted EBITDA			62				67				(9	)%			215				236				(9	)%
EBITDA margin1 (%)			0.1				3.6				(3.5	) pts.			1.4				4.8				(3.4	) pts.
Adjusted EBITDA margin1 (%)			8.4				8.2				0.2	pts.			9.2				9.6				(0.4	) pts.

1      These are non-GAAP and other specified financial measures. See Section 11.1 Non-GAAP and other specified financial measures.

TELUS Digital EBITDA decreased by $29 million or 99% in the third quarter of 2026 and $85 million or 72% in the first nine months of 2026. TELUS Digital Adjusted EBITDA decreased by $5 million or 9% in the third quarter of 2026 and $21 million or 9% in the first nine months of 2026, while Adjusted EBITDA margin increased by 0.2 percentage points in the third quarter of 2026 and decreased by 0.4 percentage points in the first nine months of 2026. The decrease in EBITDA in both the third quarter and first nine months of 2026 was primarily due to lower Operating revenues and increased restructuring and other costs related to cost efficiency programs associated with client-ramp down from service delivery centres out of Europe, partially offset by: (i) lower operating expenses reflecting cost savings from cost efficiency initiatives and a lower cost base from a reduced team member base, primarily out of Europe; and (ii) higher Other income.

Adjusted EBITDA less capital expenditures – TELUS digital experience segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
Adjusted EBITDA			62				67				(9	)%			215				236				(9	)%
Capital expenditures			(41	)			(42	)			(2	)%			(112	)			(126	)			(11	)%
Adjusted EBITDA less capital expenditures1			21				25				(16	)%			103				110				(6	)%

1       See Section 11.1 Non-GAAP and other specified financial measures.

TELUS Digital Adjusted EBITDA less capital expenditures decreased by $4 million in the third quarter of 2026 and $7 million in the first nine months of 2026, primarily due to lower Adjusted EBITDA, partially offset by lower capital expenditures. The decrease in capital expenditures reflected lower real estate expenditures in Europe and one-time technology investments in the prior year, partially offset by increased site expansions in Asia-Pacific (including Africa) and the Americas. See Section 7.3 for further discussion of capital expenditures.

EBIT – TELUS digital experience segment

		Three-month periods ended September 30												Nine-month periods ended September 30
($ in millions)		2026				2025 (restated)				Change				2026				2025 (restated)				Change
EBITDA			1				30				(99	)%			34				119				(72	)%
Depreciation			(53	)			(71	)			(25	)%			(153	)			(177	)			(14	)%
Amortization of intangible assets			(66	)			(61	)			8	%			(197	)			(192	)			3	%
Impairment of intangible assets and goodwill			—				—				n/m				(2,135	)			(500	)			n/m
EBIT1			(118	)			(102	)			16	%			(2,451	)			(750	)			n/m

1    See Section 11.1 Non-GAAP and other specified financial measures.

TELUS Digital EBIT decreased by $16 million in the third quarter of 2026, primarily due to lower EBITDA, partially offset by lower depreciation. In the first nine months of 2026, EBIT decreased by $1.7 billion, primarily attributable to an impairment charge on intangible assets and goodwill of $2.1 billion recorded in the second quarter of 2026, compared to $500 million in the comparative period. Excluding impairment charges, EBIT decreased by $66 million in the first nine months of 2026, reflecting lower EBITDA, partially offset by lower depreciation.

  Page 30 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

6. Changes in financial position

Financial position at:		Sept. 30		Dec. 31
($ millions)		2026		2025		Change			Change includes:
Current assets
Cash and temporary investments, net		1,308		2,621		(1,313	)		See Section 7 Liquidity and capital resources
Accounts receivable		3,569		3,797		(228	)		A decrease primarily driven by lower mobility customer and accrued receivables, as well as TELUS Digital receivables
Income and other taxes receivable		280		173		107			Instalments to date are more than the expense
Inventories		458		482		(24	)		A decrease primarily driven by a reduction in dealer and retail inventories, as well as a decrease in new handset volumes, partially offset by inventory in transit
Contract assets		441		457		(16	)		Refer to description in non-current contract assets
Costs incurred to obtain or fulfill contracts with customers		330		413		(83	)		A decrease driven by lower commissions
Prepaid maintenance and other		512		421		91			An increase primarily driven by the prepayment of maintenance contracts and statutory employee benefits, partially offset by prepaid licensing fees
Current derivative assets		153		8		145			An increase in the notional amount of hedging items.
Current liabilities
Short-term borrowings		1,576		920		656			See Note 22 of the interim consolidated financial statements
Accounts payable and accrued liabilities		3,903		3,494		409			An increase in trade accounts payable and accrued liabilities, partially offset by a reduction in indirect taxes and interest payable. See Note 23 of the interim consolidated financial statements
Income and other taxes payable		117		141		(24	)		Instalments to date are more than the expense
Dividends payable		296		649		(353	)		Effect of a decrease in the dividend rate, partially offset by an increase in the number of shares outstanding
Advance billings and customer deposits		951		1,053		(102	)		A decrease primarily due to lower inventories across our dealer and retail channels. See Note 24 of the interim consolidated financial statements
Provisions		455		300		155			An increase primarily resulting from the reclassification of long-term written put options
Current maturities of long-term debt		3,854		3,102		752			An increase driven by the reclassifications from non-current to current of US$600 million 2.80% and US$500 million 3.70% U.S. Dollar Notes, as well as higher commercial paper outstanding; partially offset by the redemptions of $800 million Notes, Series CZ and $600 million Notes, Series CV
Current derivative liabilities		22		30		(8	)		A decrease in the notional amount of hedging items.
Working capital (Current assets subtracting Current liabilities)		(4,123	)	(1,317	)	(2,806	)		TELUS normally has a negative working capital position. See Financing and capital structure management plans in Section 4.3 and Note 4(b) of the interim consolidated financial statements.

  Page 31 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Financial position at:		Sept. 30		Dec. 31
($ millions)		2026		2025		Change			Change includes:
Non-current assets
Property, plant and equipment, net		18,115		17,503		612			See Capital expenditures in Section 7.3 Cash used by investing activities and Depreciation in Section 5.3 Consolidated operations
Intangible assets, net		19,799		20,328		(529	)		See Capital expenditures in Section 7.3 Cash used by investing activities and Amortization of intangible assets in Section 5.3 Consolidated operations
Goodwill, net		8,097		10,460		(2,363	)		A decrease due to impairment of goodwill. See Note 18 of the interim consolidated financial statements
Contract assets		267		274		(7	)		A decrease reflecting a lower volume of subsidized devices
Other long-term assets		4,005		2,676		1,329			An increase primarily driven by the recognition of a pension plan surplus. See Note 15(a) of the interim consolidated financial statements.
Non-current liabilities
Provisions		538		661		(123	)		A decrease primarily resulting from the reclassification of long-term written put options
Long-term debt		25,930		27,437		(1,507	)		See Section 7.4 Cash used by financing activities
Other long-term liabilities		1,025		955		70			An increase primarily driven by deferred revenues. See Note 27 of the interim consolidated financial statements
Deferred income taxes		4,416		4,292		124			An overall increase in temporary differences between the accounting and tax basis of assets and liabilities.
Owners’ equity
Common equity		13,443		15,775		(2,332	)		See Consolidated statements of changes in owners’ equity in the interim consolidated financial statements
Non-controlling interests		808		804		4			See Consolidated statements of changes in owners’ equity in the interim consolidated financial statements.

7. Liquidity and capital resources

This section contains forward-looking statements, including those in respect of our TELUS Corporation Common Share dividend payout ratio and net debt to EBITDA – excluding restructuring and other costs ratio. See Caution regarding forward-looking statements at the beginning of this MD&A.

7.1 Overview

Our capital structure financial policies and financing and capital structure management plans are described in Section 4.3.

Cash flows

		Three-month periods ended September 30									Nine-month periods ended September 30
($ millions)		2026			2025			Change			2026			2025			Change
Cash provided by operating activities		1,485			1,493			(8	)		3,877			3,736			141
Cash used by investing activities		(665	)		(660	)		(5	)		(2,481	)		(2,355	)		(126	)
Cash used by financing activities		(899	)		(2,688	)		1,789			(2,709	)		(423	)		(2,286	)
Increase (decrease) in Cash and temporary investments, net		(79	)		(1,855	)		1,776			(1,313	)		958			(2,271	)
Cash and temporary investments, net, beginning of period		1,387			3,682			(2,295	)		2,621			869			1,752
Cash and temporary investments, net, end of period		1,308			1,827			(519	)		1,308			1,827			(519	)

  Page 32 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

7.2 Cash provided by operating activities

Analysis of changes in cash provided by operating activities

		Three-month periods ended September 30									Nine-month periods ended September 30
($ millions)		2026			2025			Change			2026			2025			Change
Operating revenues and other income (see Section 5.3)		5,026			5,106			(80	)		14,968			15,245			(277	)
Goods and services purchased (see Section 5.3)		(2,035	)		(1,942	)		(93	)		(5,760	)		(5,647	)		(113	)
Employee benefits expense (see Section 5.3)		(1,442	)		(1,411	)		(31	)		(4,549	)		(4,422	)		(127	)
Restructuring and other costs, net of disbursements		63			18			45			285			10			275
Share-based compensation expense, net of payments		48			42			6			131			121			10
Employee future benefits expense, net		27			10			17			49			29			20
Gain on contributions of real estate to joint ventures		—			(13	)		13			(15	)		(21	)		6
(Income) loss from equity accounted investments		6			1			5			5			(1	)		6
Gain on purchase of long-term debt (see Section 5.3)		—			(222	)		222			—			(222	)		222
Interest paid		(370	)		(399	)		29			(1,250	)		(1,078	)		(172	)
Interest received		7			16			(9	)		52			38			14
Income taxes paid, net of recoveries received		(81	)		(77	)		(4	)		(209	)		(374	)		165
Other operating working capital changes		236			364			(128	)		170			58			112
Cash provided by operating activities		1,485			1,493			(8	)		3,877			3,736			141

Cash provided by operating activities decreased by $8 million in the third quarter of 2026 and increased by $141 million in the first nine months of 2026.

· Restructuring and other costs, net of disbursements, represented a net change of $45 million in the third quarter of 2026, as we incurred lower restructuring and other costs disbursements net of expenses related to improving our overall cost structure and operational effectiveness. In the first nine months of 2026, restructuring and other costs disbursements net of expenses represented a net change of $275 million, due to the same factors as the third quarter, in addition to recording $130 million of non-cash restructuring and other costs related to the privatization of TELUS Digital.

· Interest paid increased by $172 million in the first nine months of 2026, largely due to: (i) interest paid on the issuance of fixed-to-fixed rate junior subordinated notes issued in 2025; and (ii) interest paid on the promissory note issued in connection with the May 2025 acquisition of Workplace Options and the second quarter 2026 prepayment premium (see Note 26(e) of the interim consolidated financial statements); partially offset by: (i) interest paid in the comparative periods from notes that were repurchased during the 2025 tender offer processes; and (ii) interest paid on the TELUS International (Cda) Inc. credit facility in the comparative periods, which was repaid in the third quarter of 2025.

· Income taxes paid, net of recoveries received, decreased by $165 million in the first nine months of 2026, primarily due to lower required income tax instalments attributable to lower income before income taxes, in addition to greater refunds from the completion of prior years’ tax audits.

· For a discussion of other operating working capital changes, see Section 6 Changes in financial position and Note 31(a) of the interim consolidated financial statements.

  Page 33 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

7.3 Cash used by investing activities

Analysis of changes in cash used by investing activities

		Three-month periods ended September 30									Nine-month periods ended September 30
($ millions)		2026			2025			Change			2026			2025			Change
Cash payments for capital assets, excluding spectrum licences		(596	)		(634	)		38			(1,950	)		(1,886	)		(64	)
Cash payments for spectrum licences		—			—			—			(373	)		—			(373	)
Cash payments for acquisitions, net		—			(3	)		3			—			(464	)		464
Advances to, and investment in, real estate joint ventures and associates		—			(1	)		1			(1	)		(1	)		—
Real estate joint venture receipts		—			—			—			6			1			5
Proceeds on disposition		26			3			23			35			76			(41	)
Investment in portfolio investments and other		(95	)		(25	)		(70	)		(198	)		(81	)		(117	)
Cash used by investing activities		(665	)		(660	)		(5	)		(2,481	)		(2,355	)		(126	)

Cash used by investing activities increased by $5 million in the third quarter of 2026 and $126 million in the first nine months of 2026.

· Cash payments for capital assets, excluding spectrum licences decreased by $38 million in the third quarter of 2026 and increased by $64 million in the first nine months of 2026. These changes were composed of:

· An increase in capital expenditures of $49 million in the third quarter of 2026 and $113 million in the first nine months of 2026 (see Capital expenditure measures table and discussion below).

· Lower capital expenditure payments of $87 million in the third quarter of 2026 and $49 million in the first nine months of 2026 with respect to payment timing differences.

· Cash payments for spectrum licences increased by $373 million in the first nine months of 2026, related to the acquisition of 2500 MHz band spectrum and 3500 MHz band spectrum, in addition to the acquisition of 3800 MHz licences during Innovation, Science and Economic Development Canada’s (ISED) residual auction that concluded in January 2026. We acquired 40 MHz of spectrum on average in markets where we successfully bid, at an average price of $1.23 per MHz-pop (where pop refers to the population in a licence area).

· Cash payments for acquisitions, net, was $3 million lower in the third quarter of 2026. Cash payments for acquisitions, net, was $464 million lower in the first nine months of 2026, primarily due to the impact of the Workplace Options acquisition in May 2025.

· Proceeds on disposition were $23 million higher in the third quarter of 2026 due to right-of-way sublicence receipt. Proceeds on disposition were $41 million lower in the first nine months of 2026, reflecting greater divestitures of non-core assets in the first nine months of 2025.

· Investment in portfolio investments and other increased by $70 million in the third quarter of 2026, primarily as a result of greater capital inventory. Investment in portfolio investments and other increased by $117 million in the first nine months of 2026, attributable to the same factors as the third quarter, in addition to investments in a larger number of portfolio investments.

  Page 34 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Capital expenditure measures

		Three-month periods ended September 30									Nine-month periods ended September 30
($ millions, except capital expenditure intensity)		2026			2025			Change			2026			2025			Change
Capital expenditures1
TELUS technology solutions segment (TTech)
TTech operations		619			534			16	%		1,797			1,611			12	%
TTech real estate development		12			36			(67	)%		47			65			(28	)%
		631			570			11	%		1,844			1,676			10	%
TELUS health segment (TELUS Health)		52			56			(7	)%		149			159			(6	)%
TELUS digital experience segment (TELUS Digital)		41			42			(2	)%		112			126			(11	)%
Eliminations		(23	)		(16	)		44	%		(75	)		(44	)		70	%
Consolidated		701			652			8	%		2,030			1,917			6	%
TTech capital expenditure intensity2 (%)		16			14			2	pts.		16			14			2	pts.
TELUS Health capital expenditure intensity2 (%)		10			11			(1	) pt.		9			10			(1	) pt.
TELUS Digital capital expenditure intensity2,3 (%)		6			5			1	pt.		5			5			—	pts.
Consolidated capital expenditure intensity2 (%)		14			12			2	pts.		13			12			1	pt.

1	Capital expenditures include assets purchased, excluding right-of-use lease assets, but not yet paid for. Consequently, capital expenditures differ from Cash payments for capital assets, excluding spectrum licences, as reported in the interim consolidated statements of cash flows. Refer to Note 31 of the interim consolidated financial statements for further information.
2	See Section 11.1 Non-GAAP and other specified financial measures.
3	2025 restated.

Consolidated capital expenditures increased by $49 million in the third quarter of 2026 and $113 million in the first nine months of 2026.

Capital expenditures in support of TTech operations were $85 million higher in the third quarter of 2026 and $186 million higher in the first nine months of 2026. These increases primarily resulted from greater capital investments in developing new facilities and expanding network infrastructure builds to meet growing industry demand. Our capital investments in TTech operations have enabled: (i) ongoing growth in our internet subscriber base, as well as the connection of more premises to our fibre network; (ii) the extended coverage of our 5G network; and (iii) enhancement of our product and digital development to improve system capacity and reliability. By September 30, 2026, our 5G network covered over 34.4 million Canadians, representing 93% of the population.

Capital expenditures in support of TTech real estate development decreased by $24 million in the third quarter of 2026 and $18 million in the first nine months of 2026, driven by the completion of TELUS Living projects in B.C. and two of our commercial buildings.

TELUS Health capital expenditures decreased by $4 million in the third quarter of 2026 and $10 million in the first nine months of 2026, largely driven by decreased investments in business acquisitions. Our TELUS Health capital expenditures continue to invest in the expansion of our digital health product offerings and capabilities, as well as support for business integration, enabling AI-powered experiences, and embedded care pathways, all of which enhance and evolve our customer experience. The investments in our product offerings and foundational platforms position TELUS Health for scalable growth and operational resilience.

TELUS Digital capital expenditures remained largely unchanged in the third quarter of 2026. TELUS Digital capital expenditures decreased by $14 million in the first nine months of 2026, mainly driven by decreased site expansions in Europe, coupled with prior year software license investment.

  Page 35 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

7.4 Cash used by financing activities

Analysis of changes in cash used by financing activities

		Three-month periods ended September 30									Nine-month periods ended September 30
($ millions)		2026			2025			Change			2026			2025			Change
Dividends paid to holders of Common Shares		(444	)		(408	)		(36	)		(1,308	)		(1,215	)		(93	)
Issue (repayment) of short-term borrowings, net		353			3			350			665			12			653
Long-term debt issued		1,137			1,381			(244	)		3,848			9,513			(5,665	)
Redemptions and repayment of long-term debt		(1,938	)		(4,910	)		2,972			(5,893	)		(9,948	)		4,055
Partnership distributions to non-controlling interest		(7	)		—			(7	)		(21	)		—			(21	)
Equity of subsidiary issued to non-controlling interest		—			1,261			(1,261	)		—			1,261			(1,261	)
Financing activity transaction costs and other		—			(15	)		15			—			(46	)		46
Cash used by financing activities		(899	)		(2,688	)		1,789			(2,709	)		(423	)		(2,286	)

Cash used by financing activities decreased by $1.8 billion in the third quarter of 2026 and increased by $2.3 billion in the first nine months of 2026.

Dividends paid to holders of Common Shares

Our dividend reinvestment and share purchase (DRISP) plan trustee may acquire Common Shares from Treasury, at our option, for the DRISP plan, rather than acquiring shares in the stock market. For the dividends paid on July 2, 2026, the DRISP participation rate for these dividends, calculated as the DRISP investment of $215 million (including the employee share purchase plan) as a percentage of gross dividends, was approximately 33%. By comparison, for the dividends paid on July 2, 2025, the DRISP participation rate was approximately 36%. Cash payments for dividends increased by $36 million in the third quarter of 2026 and $93 million in the first nine months of 2026, which reflected payment of higher-rate dividends and an increase in the number of shares outstanding.

In October 2026, we paid dividends of $270 million to the holders of Common Shares and the trustee acquired dividend reinvestment Common Shares from Treasury for $26 million, totalling $296 million. For these dividends, the DRISP participation rate was approximately 9%.

Issue (repayment) of short-term borrowings, net

During the third quarter of 2026, we drew $0.4 billion under our bank credit facility (see Section 7.7 Short-term borrowings). This is in addition to the draw of $0.3 billion in the second quarter of 2026.

Long-term debt issued and Redemptions and repayment of long-term debt

In the third quarter of 2026, long-term debt issued decreased by $244 million, while redemptions and repayment of long-term debt decreased by $3.0 billion. These changes were primarily composed of:

· A net decrease in commercial paper outstanding, including foreign exchange effects, of $392 million to a balance of $1.7 billion (US$1.2 billion) at September 30, 2026, from a balance of $2.1 billion (US$1.5 billion) at June 30, 2026. Our commercial paper program provides funds at a lower cost than our revolving credit facility and is fully backstopped by the revolving credit facility (see Section 7.6 Credit facilities).

· The repayment upon maturity of the remaining $300 million of Series CZ notes due July 8, 2026.

For the first nine months of 2026, long-term debt issued decreased by $5.7 billion, while redemptions and repayment of long-term debt decreased by $4.1 billion. In addition to some activity from the third quarter of 2026, the change in balance for the first nine months of 2026 was primarily composed of:

· A net increase in commercial paper outstanding, including foreign exchange effects, of $749 million from a balance of $1.0 billion (US$0.7 billion) at December 31, 2025.

· The full redemption of our outstanding $600 million 3.75% Notes, Series CV due March 10, 2026. The redemption was funded through proceeds from our December 2025 offering of fixed-to-fixed rate junior subordinated notes.

· The repayment of a promissory note issued by a wholly owned subsidiary to a private equity investor, as further described in Note 26(e) of the interim consolidated financial statements.

· The partial redemption of $500 million 2.75% Notes, Series CZ, of which there was $800 million aggregate principal amount outstanding. The partial redemption was funded through proceeds from our December 2025 offering of fixed-to-fixed rate junior subordinated notes.

The average term to maturity of our long-term debt (excluding commercial paper, TELUS bank credit facilities, lease liabilities and other long-term debt) was 14.8 years at September 30, 2026, an increase from 14.7 years at December 31, 2025 and from 13.2 years at September 30, 2025. In addition, the weighted average cost of our long-term debt (excluding commercial paper, TELUS bank credit facilities, lease liabilities and other long-term debt) was 4.84% at September 30, 2026, an increase from 4.75% at December 31, 2025 and from 4.61% at September 30, 2025.

  Page 36 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Partnership distributions to non-controlling interest

Our Terrion subsidiary paid distributions of $7 million in the third quarter of 2026 and $21 million in the first nine months of 2026.

Equity of subsidiary issued to non-controlling interest

In the third quarter of 2025, equity of subsidiary issued to non-controlling interest was related to the formation of Terrion.

Financing activity transaction costs and other

In the third quarter of 2025, we incurred debt issuance costs in relation to the formation of Terrion. In the second quarter of 2025, we incurred debt issuance costs in connection with the issuances of our Series CAR, Series CAS, Series A and Series B notes.

7.5 Liquidity and capital resource measures

Net debt was $26.0 billion at September 30, 2026, an increase of $318 million compared to one year earlier, largely as a result of: (i) the note issuances in the fourth quarter of 2025, as described in our 2025 annual MD&A; (ii) increased short-term borrowings from the unsecured non-revolving bank credit facility; (iii) increased commercial paper outstanding; and (iv) lower Cash and temporary investments. These factors were partially offset by: (i) the junior subordinated notes equity credit for fixed-to-fixed junior subordinated notes issued in the fourth quarter of 2025; for purposes of calculating leverage ratios, only one-half of the principal of our junior subordinated notes is included as debt in the initial post-issuance decade; (ii) the notes purchased during the fourth quarter 2025 tender offer process; (iii) the full redemption of 3.75% Notes, Series CV, in the first quarter of 2026, the partial redemption of 2.75% Notes, Series CZ, in the second quarter of 2026, and the repayment upon maturity of the remaining Series CZ notes in the third quarter of 2026; and (iv) the second quarter 2026 repayment of a promissory note issued by a wholly owned subsidiary to a private equity investor.

Fixed-rate debt as a proportion of total indebtedness, which excludes lease liabilities and other long-term debt, was 88% as at September 30, 2026, down from 92% one year earlier. The decrease was primarily a result of: (i) increased short-term borrowings from the unsecured non-revolving bank credit facility; (ii) increased commercial paper outstanding, which is classified as floating-rate debt in this calculation; (iii) the notes purchased during the fourth quarter 2025 tender offer process; (iv) the full redemption of 3.75% Notes, Series CV, in the first quarter of 2026, the partial redemption of 2.75% Notes, Series CZ, in the second quarter of 2026, and the repayment upon maturity of the remaining Series CZ notes in the third quarter of 2026; and (v) the second quarter 2026 repayment of a promissory note issued by a wholly owned subsidiary to a private equity investor. These factors were partially offset by the note issuances in the fourth quarter of 2025, as described in our 2025 annual MD&A.

Our Net debt to EBITDA – excluding restructuring and other costs ratio supports our financial objective of maintaining investment-grade credit ratings, which facilitates reasonable access to capital. This ratio was 3.6 times, as measured at September 30, 2026, up from 3.5 times one year earlier. In addition to a decrease in EBITDA – excluding restructuring and other costs, the increase in the ratio was also due to the effect of the increase in net debt levels arising from current and prior period acquisitions of spectrum and businesses, offset by the junior subordinated notes equity credit. As at September 30, 2026, the acquisition of spectrum licences increased the ratio by approximately 0.6, while the junior subordinated notes equity credit decreased the ratio by approximately 0.5 and equity issued by our Terrion subsidiary to a non-controlling interest decreased the ratio by approximately 0.2. Our recent acquisitions of spectrum licences have increased our national spectrum holdings and represent an investment in building greater network capacity to support the ongoing growth in demand for data, as well as growth in our mobile subscriber base. We have an objective of achieving a ratio of 3.0 times by year-end 2028. While this ratio exceeds our long-term objective range, we are well within compliance with the leverage ratio covenant in our credit facilities, which states that we may not permit our leverage ratio to exceed 4.25 to 1.00 at September 30, 2026 (see Section 7.6 Credit facilities).

  Page 37 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Liquidity and capital resource measures

As at, or for the 12-month periods ended, September 30		2026				2025				Change
Components of debt and coverage ratios ($ millions)
Long-term debt			29,784				28,989				795
Net debt1			25,981				25,663				318
Net income (loss)			(2,056	)			807				(2,863	)
EBITDA – excluding restructuring and other costs1			7,213				7,353				(140	)
Financing costs			1,421				1,192				229
Net interest cost1			1,513				1,418				95
Debt ratios
Fixed-rate debt as a proportion of total indebtedness (excluding lease liabilities and other long-term debt) (%)			88				92				(4	) pts.
Average term to maturity of long-term debt (excluding commercial paper, TELUS bank credit facilities, lease liabilities and other long-term debt) (years)			14.8				13.2				1.6
Weighted average interest rate on long-term debt (excluding commercial paper, TELUS bank credit facilities, lease liabilities and other long-term debt) (%)			4.84				4.61				0.23	pts.
Net debt to EBITDA – excluding restructuring and other costs1 (times)			3.6				3.5				0.1
Coverage ratios1 (times)
Earnings coverage			(0.3	)			2.1				(2.4	)
EBITDA – excluding restructuring and other costs interest coverage			4.8				5.2				(0.4	)
Other measures1 (%)
Determined using most comparable IFRS Accounting Standards measures
Ratio of Common Share dividends declared to cash provided by operating activities – less capital expenditures			97				106				(9	) pts.
Determined using management measures
Common Share dividend payout ratio – net of dividend reinvestment plan effects			75				75				—	pts.

1  See Section 11.1 Non-GAAP and other specified financial measures.

Earnings coverage ratio for the 12-month period ended September 30, 2026 was (0.3) times, down from 2.1 times one year earlier. A decrease in income before borrowing costs and income taxes lowered the ratio by 2.4 and an increase in borrowing costs immaterially lowered the ratio. Excluding restructuring and other costs and impairment of intangible assets and goodwill, the earnings coverage ratio was 2.1 times.

EBITDA – excluding restructuring and other costs interest coverage ratio for the 12-month period ended September 30, 2026 was 4.8 times, down from 5.2 times one year earlier. An increase of $95 million in net interest costs lowered the ratio by 0.3.

Common Share dividend payout ratios: Actual Common Share dividend payout decisions will continue to be subject to our Board’s assessment of our financial position and outlook, as well as our long-term Common Share dividend payout objective range of 45 to 60% of free cash flow on a trailing 12-months basis. So as to be consistent with the way we manage our business, our Common Share dividend payout ratio is presented as a historical measure calculated as the sum of the dividends declared in the most recent four quarters for Common Shares, as recorded in the financial statements, net of dividend reinvestment plan effects, divided by the sum of the most recent four quarters’ free cash flow amounts for interim reporting periods. For fiscal years, the denominator is annual free cash flow.

7.6 Credit facilities

TELUS credit facilities

We have a $2.75 billion (or U.S. dollar equivalent) unsecured revolving credit facility with a syndicate of financial institutions, expiring August 21, 2030. The revolving credit facility is used for general corporate purposes, including the backstop of commercial paper, as required.

TELUS revolving credit facility at September 30, 2026

($ millions)		Expiry			Size			Drawn			Outstanding undrawn letters of credit			Backstop for commercial paper program			Available liquidity
Revolving credit facility1		Aug. 21, 2030			2,750			—			—			(1,701	)		1,049

1 Canadian dollars or U.S. dollar equivalent.

Our credit facilities contain customary covenants, including a requirement that we not permit our consolidated leverage ratio to exceed 4.25 to 1.00 and that we not permit our consolidated coverage ratio to be less than 2.00 to 1.00 at the end of any financial quarter. As at September 30, 2026, our consolidated leverage ratio was 3.6 to 1.00 and our consolidated coverage ratio was 4.8 to 1.00. These ratios are expected to remain well within the covenants. There are certain minor differences in the calculation of the leverage ratio and coverage ratio under the revolving credit facility, as compared with the calculation of Net debt to EBITDA – excluding restructuring and other costs and EBITDA – excluding restructuring and other costs interest coverage. Historically, the calculations are substantially similar. The covenants are not impacted by revaluation, if any, of Property, plant and equipment, Intangible assets or Goodwill for accounting purposes. Continued access to our credit facilities is not contingent on maintaining a specific credit rating.

  Page 38 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Commercial paper

TELUS Corporation has an unsecured commercial paper program, which is backstopped by our revolving credit facility, allowing us to issue commercial paper up to a maximum aggregate equivalent amount at any one time of $2.1 billion (US$1.5 billion maximum) as at September 30, 2026. We use foreign currency forward contracts to manage currency risk arising from U.S. dollar-denominated commercial paper. The commercial paper program is used for general corporate purposes, including, but not limited to, capital expenditures and investments. Our ability to reasonably access the commercial paper market in the United States is dependent on our credit ratings (see Section 7.8 Credit ratings).

Other unsecured long-term debt

In 2025, a wholly owned subsidiary issued preferred shares for US$200 million to a private equity investor, in connection with the acquisition of Workplace Options. In the first quarter of 2026, the preferred shares were exchanged with the private equity investor for a US$200 million promissory note issued by the wholly owned subsidiary.

During the three-month period ended June 30, 2026, at our option, the promissory note was repaid and a prepayment premium of $51 million was recorded.

Junior subordinated notes

The notes are direct unsecured obligations, are subordinated to all existing and future senior indebtedness, and are effectively subordinated to all existing and future indebtedness and obligations of, or guaranteed by, our subsidiaries. For purposes of calculating leverage ratios, only one-half of the principal is included as debt in the initial post-issuance decade. See Note 26(f) of the interim consolidated financial statements for additional details.

Other letter of credit facilities

At September 30, 2026, we had $61 million of letters of credit outstanding issued under various uncommitted facilities. These letter of credit facilities are in addition to our ability to provide letters of credit under our committed revolving bank credit facility. Available liquidity under various uncommitted letter of credit facilities was $124 million at September 30, 2026.

Other secured long-term debt

Other liabilities incur interest at 4.4%, are secured by the AWS-4 spectrum licences associated with these other liabilities, and are subject to amortization schedules, so that the principal is repaid over the periods to maturity, the last period ending March 31, 2035.

Lease liabilities

Lease liabilities are subject to amortization schedules, so that the principal is repaid over various periods, which include reasonably expected renewals. The weighted average interest rate on lease liabilities was approximately 5.2% as at September 30, 2026.

7.7 Short-term borrowings

On May 22, 2024, we entered into an agreement with an arm’s-length securitization trust associated with a major Schedule I bank allowing us to borrow up to a maximum of $1.6 billion, secured by certain trade receivables and unbilled customer finance receivables; the term of this revolving-period securitization agreement ends May 22, 2027, and requires minimum cash advances of approximately $920 million. Funding under the agreement may be provided in either Canadian dollars or U.S. dollars. Currency risk associated with funding denominated in U.S. dollars is managed through the use of foreign currency forward contracts. Available liquidity under this agreement was $680 million as at September 30, 2026.

As at September 30, 2026, TELUS Corporation has an unsecured non-revolving $650 million (or U.S. dollar equivalent) bank credit facility, maturing June 2027, with a syndicate of financial institutions, which is to be used for general corporate purposes. Currency risk associated with funding denominated in U.S. dollars is managed through the use of foreign currency forward contracts. Available liquidity under this agreement was $NIL as at September 30, 2026. (See Note 22 of the interim consolidated financial statements.)

7.8 Credit ratings

We continued to have investment-grade ratings in the third quarter of 2026 and as at November 6, 2026. We believe adherence to most of our stated financial policies (see Section 4.3), coupled with our efforts to maintain constructive relationships with banks, investors and credit rating agencies, continues to provide reasonable access to capital markets.

7.9 Financial instruments and contingent liabilities

Financial instruments

Our financial instruments, their accounting classification and the nature of certain risks to which they may be exposed were described in Section 7.9 in our 2025 annual MD&A.

Liquidity risk

As a component of our capital structure financial policies, discussed in Section 4.3 Liquidity and capital resources, we manage liquidity risk by: maintaining a daily cash pooling process that enables us to manage our available liquidity and our liquidity requirements according to our actual needs; maintaining a short-term borrowing agreement associated with trade receivables and unbilled customer finance receivables; maintaining a non-revolving syndicated credit facility; maintaining bilateral bank facilities and syndicated credit facilities; maintaining a supply chain financing program; maintaining a commercial paper program; maintaining an in-effect shelf prospectus; continuously monitoring forecast and actual cash flows; and managing maturity profiles of financial assets and financial liabilities.

  Page 39 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

As at September 30, 2026, TELUS Corporation could offer an unlimited amount of securities in Canada, and $1.9 billion of securities in the United States, qualified pursuant to a Canadian shelf prospectus in effect until January 2029.

As at September 30, 2026, we had over $1.0 billion of liquidity available from the TELUS revolving credit facility and $680 million available under our trade receivables and unbilled customer finance receivables securitization program (see Section 7.7 Short-term borrowings). Including cash and temporary investments of $1.3 billion, we had over $3.0 billion of liquidity available at September 30, 2026 (see Section 11.1 Non-GAAP and other specified financial measures). This aligns with our objective of generally maintaining at least $1 billion of available liquidity. We believe our investment-grade credit ratings contribute to reasonable access to capital markets.

Contingent liabilities

Claims and lawsuits

A number of claims and lawsuits (including class actions and intellectual property infringement claims) seeking damages and other relief are pending against us and, in some cases, other mobile carriers and telecommunications service providers. As well, we have received notice of, or are aware of, certain possible claims (including intellectual property infringement claims) against us and, in some cases, other mobile carriers and telecommunications service providers.

It is not currently possible for us to predict the outcome of such claims, possible claims and lawsuits due to various factors, including: the preliminary nature of some claims; uncertain damage theories and demands; an incomplete factual record; uncertainty concerning legal theories and procedures and their resolution by the courts, at both the trial and the appeal levels; and the unpredictable nature of opposing parties and their demands.

However, subject to the foregoing limitations, management is of the opinion, based upon legal assessments and information presently available, that it is unlikely that any liability, to the extent not provided for through insurance or otherwise, would have a material effect on our financial position and the results of our operations, including cash flows, with the exception of the items disclosed in Note 29 of the interim consolidated financial statements.

7.10 Outstanding share information

Outstanding shares (millions)		September 30, 2026				October 31, 2026
Common Shares			1,590				1,592
Common Share options			4				3
Restricted share units and deferred share units – equity-settled			23				23

7.11 Transactions between related parties

Transactions with key management personnel

Our key management personnel, consisting of our Board of Directors and our Executive Team, have authority and responsibility for overseeing, planning, directing and controlling our activities. Total compensation expense for key management personnel was $37 million in the third quarter of 2026 and $96 million in the first nine months of 2026, compared to $20 million and $64 million in the respective periods in 2025. The increase in compensation expense for key management personnel was primarily due to greater share-based compensation. See Note 30(a) of the interim consolidated financial statements for additional details.

Transactions with defined benefit pension plans

We provided our defined benefit pension plans with management and administrative services on a cost recovery basis and actuarial services on an arm’s-length basis. Charges for these services were immaterial.

8. Accounting matters

8.1 Critical accounting estimates and judgments

Our significant accounting policies are described in Note 1 of the Consolidated financial statements for the year ended December 31, 2025. The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect: the reported amounts of assets and liabilities at the date of the financial statements; the disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts and classification of income and expense during the reporting period. Actual results could differ from those estimates. Our critical accounting estimates and significant judgments are generally discussed with the Audit Committee each quarter and are described in Section 8.1 in our 2025 annual MD&A, which is hereby incorporated by reference.

  Page 40 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

8.2 Accounting policy developments

Our accounting policy developments were discussed in Section 8.2 Accounting policy developments in our 2025 annual MD&A. See Note 2 of the interim consolidated financial statements for additional details.

9. Update to general trends, outlook and assumptions, and regulatory developments and proceedings

This section contains forward-looking statements, which should be read together with the Caution regarding forward-looking statements at the beginning of this MD&A.

The assumptions for our 2026 outlook, as described in Section 9 in our 2025 annual MD&A, remain the same, except for the following:

· For our revised estimated economic growth rates, inflation rates, annual unemployment rates and annual rates of housing starts on an unadjusted basis, see Section 1.2. The extent to which these economic estimates affect us and the timing of their impact will depend upon the actual experience of specific sectors of the Canadian economy.

· We anticipated growth in TELUS Digital to be supported by our differentiated digital customer experience solutions and continued optimization of the cost structure to mitigate declining industry trends in traditional business process outsourcing. Further, while we anticipated continued scaling of AI-enabling services in TELUS Digital, albeit at a slower pace and scale, this is not expected to offset demand ramp-downs and more pronounced churn in legacy services provided to certain hyperscale customers as these services are being automated faster than anticipated.

· Our restructuring and other costs assumption has been revised to approximately $900 million, from approximately $500 million. The increase is a result of expanded operational effectiveness programs to support EBITDA and cash flow growth. We estimate total cash restructuring and other disbursements of approximately $650 million, from approximately $450 million.

· Our cash income tax payments assumption has been revised downward to a range of approximately $190 million to $290 million from a range of approximately $540 million to $620 million. This decrease was primarily due to higher refunds received, Canadian Bill C-15 receiving royal assent on March 26, 2026, and lower required income tax instalments attributable to lower income before income taxes.

9.1 Communications industry regulatory developments and proceedings^*

Our telecommunications, broadcasting and radiocommunication services are regulated under federal laws by various authorities, including the Canadian Radio-television and Telecommunications Commission (CRTC), ISED, Canadian Heritage and the Competition Bureau. See Section 10.3 Regulatory matters in our 2025 annual MD&A.

The following is a summary of certain significant communications industry regulatory developments and proceedings that are relevant to our telecommunications and broadcasting business and our industry. This summary is not intended to be a comprehensive legal analysis or description of all of the specific issues described. Although we have indicated those issues for which we do not currently expect the outcome of a development or proceeding to be material for us, there can be no assurance that the expected outcome will occur or that our current assessment of its likely impact on us will be accurate. See Section 10.3 Regulatory matters in our 2025 annual MD&A.

Radiocommunication licences and spectrum-related matters

Millimetre wave (mmWave) spectrum auction

On May 14, 2026, ISED released its Policy and Licensing Framework for Spectrum in the 26 GHz and 38 GHz Bands. This decision established the mmWave auction framework rules in the 26 GHz and 38 GHz bands that is set to take place in January 2028. A total of 4,800 MHz will be auctioned, 2,400 MHz in each of the 26 GHz and 38 GHz bands (25.1-27.5 GHz and 37.6-40.0 GHz). There will be a cross-band 1,200 MHz cap, with no set-asides. The deadline for receipt of applications and financial deposits for participation in the auction is August 31, 2027. Auction bidding starts January 25, 2028.

Preliminary consultation on mobile satellite service

On May 13, 2026, ISED launched Preliminary consultation on Mobile Satellite Service (MSS) Developments and the Use of L and S Band Spectrum with comments due July 13, 2026. Alongside this consultation, a moratorium was placed on new MSS licensing in the L and S bands. The consultation emerged during a period of major international regulatory transitions and the rise of direct-to-device (D2D) services for smartphones. It raises important policy and technical matters regarding MSS and the S band, which Terrestar currently sublicenses AWS-4 spectrum to TELUS for use on our network. There is a concern that a revised MSS framework could restrict our future use of its AWS-4 spectrum licences.

* The operations of our health business are also subject to various health laws and regulations internationally, as well as policies, guidelines and directives issued by regulatory and administrative bodies. See Section 10.3 Regulatory matters in our 2025 annual MD&A.

  Page 41 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Regulatory and federal government reviews

The CRTC and the federal government have initiated public proceedings to review various matters. A number of key proceedings are discussed below.

Review of the wholesale high-speed access service framework

On August 13, 2024, the CRTC issued Telecom Regulatory Policy CRTC 2024-180 (TRP 2024-180), Competition in Canada’s Internet service markets. TRP 2024-180 is the CRTC’s final decision pursuant to its consultation on the wholesale high-speed access framework in Canada, which has been ongoing since March 2023. In the March 2023 consultation document, the CRTC sought comment on a number of issues, including whether wholesale access to fibre-to-the-premises (FTTP) service should be offered on an aggregated basis and whether any further regulation, including retail regulation, is warranted.

In TRP 2024-180, the CRTC ruled that TELUS, Bell and SaskTel must provide aggregated wholesale access to their FTTP networks, effective February 13, 2025. As a result, all companies, including TELUS, are permitted to obtain wholesale FTTP access effective February 13, 2025, with two notable restrictions. First, incumbent telephone and cable companies are not able to access the wholesale framework within their traditional wireline serving territories, but may access it outside those territories. Second, any new FTTP deployed by TELUS, Bell or SaskTel after August 13, 2024 will not be eligible for wholesale access until August 13, 2029. On October 25, 2024, the CRTC set out interim rates for the wholesale aggregated FTTP service. On April 24, 2026, the CRTC approved final rates for wholesale FTTP access services.

On September 12, 2024, SaskTel brought two court challenges to TRP 2024-180: an application for leave to appeal the decision pursuant to the Telecommunications Act, and an application for judicial review pursuant to the Federal Courts Act. The Federal Court of Appeal granted SaskTel’s motion for leave to appeal on October 31, 2025. The appeal and judicial review will be heard together, likely in 2027.

In November 2024, multiple parties brought applications to the CRTC to review and vary TRP 2024-180. Among other things, the applications asked the CRTC to prohibit TELUS, Bell and Rogers from accessing wholesale FTTP service pursuant to TRP 2024-180. Bragg Communications Inc., Cogeco Communications Inc., SaskTel, and the Competitive Network Operators of Canada also brought a petition to federal Cabinet asking them to vary TRP 2024-180 in a similar manner should the CRTC fail to do so. On June 20, 2025, the CRTC dismissed the applications to review and vary TRP 2024-180 (the Review and Vary Decision). On August 6, 2025, Cabinet issued a press release stating that it would not grant the relief sought in the petition.

In July 2025, Bragg Communications Inc. and Cogeco Communications Inc. brought an application to the Federal Court of Appeal for leave to appeal the Review and Vary Decision. Leave to appeal was granted in September 2025 and the matter was heard before the Federal Court of Appeal in October 2026. The matter is now under reserve. Bragg Communications Inc. and Cogeco Communications Inc. also brought an application in Federal Court for judicial review of Cabinet’s decision not to allow the petition. The Federal Court struck the judicial review on January 7, 2026.

Further, in September 2025, Rogers Communications Canada Inc., a coalition of Bragg Communications Inc. and Cogeco Communications Inc., and a coalition of TekSavvy Solutions Inc and Competitive Network Operators of Canada brought three separate petitions to Cabinet seeking to overturn the Review and Vary Decision. On April 20, 2026, the Governor in Council declined to vary, rescind, or refer back the Review and Vary Decision further to these petitions.

Application by Every-Day Computers seeking MVNO access

In January 2026, Every-Day Computers Inc., a company located in Terrace, B.C., filed an application with the CRTC alleging that we have refused to provide it with mandated mobile virtual network operator (MVNO) access, contrary to the CRTC’s rules. On February 26, 2026, we filed our answer to the application, denying the allegations because Every-Day Computers Inc. is not eligible to obtain MVNO access under the CRTC’s MVNO framework. On July 7, 2026, the CRTC released its decision (Telecom Decision CRTC 2026-163) in which it found that Every-Day Computers does not meet all the eligibility criteria for the mandated MVNO access service. Accordingly, the Commission ruled that we are not obligated to negotiate or enter into an agreement with Every-Day Computers for mandated MVNO access. However, in that decision, the CRTC also found that Every-Day Computers does meet the spectrum holding requirements to be eligible for mandated MVNO access service. On October 5, 2026, we brought an application to the CRTC to review and vary this finding. Because the CRTC has already found that Every-Day Computers does not meet the other eligibility criteria, this review and vary application should not change the CRTC’s ruling that Every-Day Computers is not eligible to obtain mandated MVNO access service from us.

Amendments to the Telecommunications Act

In June 2024, Parliament passed Bill C-69, the Budget Implementation Act, 2024, No. 1. The Bill makes a number of amendments to the Telecommunications Act, including requirements for providers to offer a self-service option to modify or cancel plans and to provide certain notices in advance of contract expiry. The Bill also prohibits providers from charging activation fees or certain other fees and requires the CRTC to set out details on how providers should comply with these amendments. In November 2024, the CRTC issued Notices of Consultation CRTC 2024-293, 2024-294, and 2024-295, through which it will create regulatory frameworks to implement these amendments. The CRTC entertained submissions in February and March 2025 and the provisions came into force on October 30, 2025 by way of an Order in Council.

  Page 42 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

On March 12, 2026, the Commission issued Telecom Regulatory Policy CRTC 2026-43, Prohibition of fees that are a barrier to switching cellphone and Internet plans. In the decision, the CRTC amended the Wireless Code and Internet Code by adding a definition for activation or modification fee, which includes any fee incurred as a result of activating a new retail telecommunications service plan or modifying an existing one, except for reasonable fees related to the physical installation of a telecommunications service at a customer’s premises and fees related to additional products or services the customer has explicitly chosen to purchase. The Commission also amended the Wireless Code to prohibit providers from charging an early cancellation fee when a subsidized device is not provided as part of the contract. The Commission began enforcing the amendments starting on June 12, 2026, and will monitor industry compliance through the existing Commission for Complaints for Telecom-television Services (CCTS) complaint reporting.

On June 30, 2026, the Commission issued Telecom Notice of Consultation CRTC 2026-155, Show cause and call for comments – Compliance with the prohibition of fees that are a barrier to switching cellphone and Internet plans. In May 2026, Bell Canada introduced a device handling charge and in June 2026, Rogers Communications Canada Inc. introduced a device setup charge, a shipping charge and a SIM fee. We continued our previous practice of charging for SIM cards, including beyond June 12, 2026. The Commission launched a proceeding requiring each of TELUS, Bell and Rogers to show cause why the companies’ respective charges are not in violation of the prohibition established under the Telecommunications Act and Telecom Regulatory Policy CRTC 2026-43. Parties were also asked to comment on enforcement measures, including fines, if a violation is found to have been committed. We are participating fully in this proceeding and filed our intervention on August 31, 2026 and our reply on September 10, 2026. We also sought leave to appeal the CRTC’s denial of our procedural requests with the Federal Court of Appeal. Until the CRTC issues a decision in this proceeding, it is too early to determine its impact on us.

On April 13, 2026, the Commission issued Telecom Regulatory Policy CRTC 2026-67, Enhancing customer notifications. The decision gives effect to the statutory requirement to provide certain notices in advance of contract expiry. The Commission’s decision applies to services covered by the Wireless Code and Internet Code. The decision will supplement existing notices sent to customers 90 days before the expiry of their commitment period, with new requirements to include: (i) a hyperlink to the list of plans available for purchase and their features; (ii) information about the device rental plan (for customers who have a device rental plan), including their options to either return the device or pay the final amount if they want to keep it; and (iii) information on where customers can find the self-service mechanism and how they can use it. The decision will also require service providers to provide notice in advance of the expiry of certain time-limited discounts or promotions. Finally, the decision adds to existing notice requirements regarding international roaming, and will modify the Wireless Code’s cap on international roaming charges to include any fee charged to a customer for data roaming, including daily fixed-rate options and plans that allow a customer to use their device in another country the same way they would at home in Canada. These changes will go into effect on April 13, 2027.

On April 24, 2026, the Commission issued Telecom Regulatory Policy CRTC 2026-78, Enhancing self-service mechanisms. The decision gives effect to the statutory requirement to offer a self-service option to modify or cancel plans. The Commission defined the requirements flexibly, to include any mechanism that is easy to use and enables a customer to perform actions in relation to their telecommunications service plan, including modifying (e.g., upgrading or downgrading) and cancelling it, without interacting with a live customer service representative, for example, through an app, a website, or by email. Self-service mechanisms matching this description must be made available by April 26, 2027.

Parliament also passed Bill C-288, a private member’s bill, which amended the Telecommunications Act to require Canadian carriers to make certain information available in respect of the fixed broadband services that they offer, and obligates the CRTC to hold a public hearing to determine how carriers should comply with these amendments. In December 2024, the CRTC issued Notice of Consultation CRTC 2024-318, through which it will create the regulatory framework to implement these amendments. As required by the amendments, the CRTC held an oral hearing on the matter in June 2025, at which we appeared.

On September 10, 2026, the Commission issued Telecom Regulatory Policy CRTC 2026-238, Making it easier for consumers to shop for Internet services. The decision gives effect to the statutory requirement to disclose typical download and upload speeds during peak periods. The Commission declined to mandate a standardized label format, and instead amended the Internet Code to require the disclosure of typical download and upload speeds and latency ranges in pre-sale offers, marketing materials and customer contracts. The Commission defined typical download and upload speeds as the speeds customers should expect to receive at all times which Internet service providers (ISPs) have committed to delivering during pre-sale. ISPs must measure typical speeds and latency using a sample-based measurement methodology used in the Commission’s prior Measuring Broadband Canada project, with a measurement probe of the ISP’s choice, and must disclose the methodology on their websites. The amendments will take effect on March 10, 2027. We are assessing the decision to determine its impact on us.

  Page 43 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Review of international roaming options

On October 7, 2024, the CRTC sent a letter to TELUS, Bell and Rogers stating that it had conducted a review of roaming fees that Canadians pay when travelling internationally. The letter states that the CRTC found that Canadians lack choice when traveling internationally and that roaming rates are too high. The CRTC directed TELUS, Bell and Rogers to report back to the CRTC on November 4, 2024, on the steps they were taking to address the CRTC’s concerns. Accordingly, TELUS, Bell and Rogers, filed their respective reports on November 4, 2024. On March 7, 2025, the CRTC determined that it will not launch a formal proceeding but called on TELUS, Bell and Rogers to ensure that they continue to make progress on reducing roaming fees. The CRTC also required TELUS, Bell and Rogers to file reports in May 2025 and November 2025. Each report has set out a list of new international roaming offerings that have been launched since the CRTC’s October 2024 letter, along with other specified information. On May 5, 2025, we submitted our first international roaming progress report, highlighting new international roaming offers launched since October 2024. We submitted our second progress report on November 5, 2025. In a letter dated February 5, 2026, the CRTC subsequently requested supplemental information and detailed data for the 2025 calendar year from TELUS, Bell and Rogers as part of the Commission’s ongoing monitoring of roaming fees. The Commission sought information on metrics for roaming subscriptions, usage, and revenues across bundled plans, add-ons, travel passes, and pay-per-use services. We submitted our responses to the CRTC on March 19, 2026.

Cybersecurity and lawful access legislation

On June 15, 2026, Bill C-8, An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts received Royal Assent. The legislation amends the Telecommunications Act to allow the Governor in Council or the Minister of Industry to prohibit telecommunications service providers from using equipment from designated companies in their networks or providing service to specified customers. This allows the federal government to ban the use of Huawei and ZTE equipment in our network and impose penalties for non-compliance. The former Minister of Innovation, Science and Industry stated that the government intends to use its powers under Bill C-8 to require the removal of existing Huawei and ZTE 5G equipment. If we are ultimately subject to an order requiring us to remove a significant amount of equipment from our network, the effect could be material. The legislation also creates a new statute, the Critical Cyber Systems Protection Act (CCSPA). The CCSPA requires designated federally regulated corporations to maintain cybersecurity plans, impose reporting requirements and impose penalties for non-compliance. Many of the measures in the CCSPA reflect our existing processes. The effect of CCSPA is unknown at this time as many of the material provisions are left to regulation-making. In addition, on March 12, 2026, the government tabled Bill C-22, An Act respecting lawful access, which proposes to expand the Governor in Council’s ability to mandate standards and capabilities for lawful access. Until the law is passed and an order is issued under these powers with application to us, it is too early to determine the impact. Bill C-22 is currently at Second Reading in the Senate.

CRTC proceedings to examine network resiliency

On September 4, 2025, the CRTC issued Telecom Decision 2025-225 where it set out its final requirements for telecommunications carriers, including TELUS, to notify the CRTC and various government agencies about network outages on their respective networks. The CRTC expanded the type of outages that carriers must report to the CRTC in comparison to the interim regime that had been in place since March 8, 2023. The CRTC ordered carriers to implement the new reporting requirements by November 4, 2025. TELUS and other major telecom carriers filed an application to the CRTC on October 7, 2025, asking the Commission to review and vary certain elements of the decision to reduce the volume of reporting that the decision currently requires. The carriers also asked for a delay in the decision’s implementation timeline. On October 31, 2025, the CRTC suspended the implementation deadline pending consideration of the review and vary application. On March 11, 2026, the CRTC issued requests for information to the carriers to gather further information as part of its review of the application.

The CRTC also released two new notices of consultation related to network resiliency on September 4, 2025. In Call for comments – Development of a regulatory policy on measures to improve the resiliency of telecommunications networks and the reliability of telecommunications services, the CRTC initiated a comprehensive consultation with a view to develop a regulatory policy relating to network reliability and resiliency for telecommunications service providers. The CRTC has posed a variety of questions to telecommunications service providers to find out their respective views on potential regulatory rules. We are participating fully in this proceeding and we filed our intervention on December 3, 2025, and filed our responses to CRTC requests for information on July 9, 2026. A decision is not expected until late 2026, at the earliest.

In Call for comments – Consumer protections in the event of a service outage or disruption, Telecom and Broadcasting Notice of Consultation 2025-227, the Commission is investigating whether it needs to mandate protections for consumers at the time of network or service outages for telecom or television services. These consumer protections measures include what sort of communications customers should receive at a time of outage and what policies should apply to potential refunds for lost services. We participated fully in this proceeding. The record closed in December 2025 and we anticipate a decision in late 2026 or 2027.

  Page 44 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Development of a network-level blocking framework to limit botnet traffic

On June 13, 2025, following a consultation that commenced in 2022, the CRTC released Development of a framework to limit botnet traffic, Compliance and Enforcement and Telecom Decision CRTC 2025-142 pursuant to which it developed a blocking framework to allow Canadian carriers, including TELUS, to block botnets and other harmful activities within their networks before reaching Canadian devices. The framework was limited to the use of third-party and in-house blocklists.

On June 13, 2025, the Commission also released Call for comments – Proposed modifications to the framework to limit botnet traffic, Compliance and Enforcement and Telecom Notice of Consultation CRTC 2025-143 to gather views on whether the blocking framework should be expanded to include blocking methods other than blocklists. We participated in this consultation and on June 18, 2026, the CRTC released its decision expanding its earlier network-level blocking framework. Under the decision, Canadian carriers are permitted to use other blocking methods to block potential malware on their networks, in compliance with the CRTC’s blocking framework. Carriers must report annually to the CRTC on their blocking activities. The impact of this expanded framework is not material.

Bill C-34, the Safe Social Media Act

On June 10, 2026, the government introduced the Safe Social Media Act. The first part of the Bill, the Digital Safety Act, seeks to promote the safety of persons in Canada, particularly children, reduce harms caused to them as a result of harmful content online and ensure that the operators of regulated social media services, regulated chatbot services and other regulated online services are transparent and accountable with respect to their duties under that Act. The Bill also introduces the Digital Safety Commission of Canada Act, creating a regulator to administer the Digital Safety Act and hear complaints under that Act. Telecommunications service providers’ connectivity services are exempted from the Bill. If enacted, the Bill could impact our content and chatbot-related activities, particularly in relation to health service offerings and content moderation services. The Bill’s impact on us cannot be assessed in detail at this early stage. The Bill is currently at Second Reading in the House of Commons.

Federal and provincial privacy regulators conclude OpenAI’s investigation

In May 2026, Canadian privacy authorities (federal and provincial) concluded their joint investigation into OpenAI’s ChatGPT, determining the company was not compliant with Canadian privacy laws during the platform's initial development. The regulators identified deficiencies in valid user consent, transparency regarding data use for AI training, and the scale of personal data collection. This investigation underscores heightened regulatory oversight of AI safety, consent mechanisms, and data protection practices, signaling the evolving compliance landscape for AI-powered services operating in Canada.

Following the May 2026 conclusion of the joint investigation into OpenAI, we are seeing a cascading effect across the industry. Regulators have begun issuing guidance on what constitutes “valid consent” for large language model (LLM) training, moving away from broad Terms of Service agreements toward more granular, opt-in mechanisms. We are proactively enhancing our AI implementation frameworks to ensure they align with these newly clarified expectations and to further elevate our commitment to transparency.

Bill C-36: Privacy law modernization

Introduced in June 2026, Bill C-36 represents a pivotal step in bringing Canada’s privacy laws into the digital age. As the legislation progresses through the House of Commons, it introduces a more robust enforcement regime and expands the definition of personal information to include inferred data, such as predictive profiles and algorithmic insights. We believe these updates are essential for protecting citizens in an AI-driven economy. We are closely monitoring the legislative process to ensure that our services and the solutions we provide to our clients remain fully aligned with these modernized standards of accountability and explainability.

As regulatory frameworks converge across jurisdictions, including Canada’s Bill C-36, the EU General Data Protection Regulation, U.K. Data Protection Act, and emerging U.S. state-level laws, organizations face increasingly complex and overlapping obligations. Our integrated approach to data privacy and responsible AI positions us well to navigate this evolving global landscape efficiently while maintaining a competitive advantage.

CRTC proceeding on harmonizing consumer protection codes

On June 12, 2026, the CRTC issued Broadcasting and Telecom Notice of Consultation 2026-134, Harmonizing the consumer protection codes. In this proceeding, the CRTC intends to combine the Wireless Code, Television Service Provider Code, Internet Code, and Deposit and Disconnection Code into one combined consumer protection code. The CRTC launched the proceeding to ensure existing consumer protections apply in a consistent and reasonable manner, ensure consumer protections are easy and simple to understand and interpret, and to reduce the administrative burden of compliance on providers, as well as the CCTS. A first round of submissions were filed on August 14, 2026. There will be an oral hearing starting on November 30, 2026, and additional written submissions thereafter. We are participating fully in this proceeding.

  Page 45 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Part 1 Application seeking changes to the Wireless Code’s device unlocking rules

On July 8, 2026, the CRTC posted our application to the CRTC seeking changes to the Wireless Code’s requirement to sell wireless devices that are unlocked to a wireless network. We have asked that wireless service providers be permitted to lock a newly purchased wireless device to a wireless service provider’s wireless network for 60 days. Locking devices in this manner would assist to prevent device theft and wireless services subscription fraud. Interventions on our application were due on July 28, 2026, and we filed our reply on August 4, 2026. A decision on whether the Wireless Code’s unlocking rule should be removed is not expected until a decision on the harmonized consumer codes is released. On August 14, 2026, the Commission issued Telecom Notice of Consultation CRTC 2026-210, Show cause and call for comments – Device unlocking and related procedural matters, regarding a violation and enforcement proceeding against Bell for its locking practices. Pursuant to this notice of consultation, the Commission allowed a temporary two-day locking period while the CRTC reviews the device unlocking rule as part of its ongoing consumer codes harmonization proceeding. We filed comments on August 21, 2026, to reiterate our request for a 60-day locking period to the CRTC. We also filed comments on September 14, 2026, to advocate for a 60-day locking period.

CRTC proceeding on CCTS awareness

On April 23, 2026, the CRTC re-instated Broadcasting and Telecom Notice of Consultation CRTC 2025-274-2 Improving customer awareness of the Commission for Complaints for Telecom-television Services Inc. In this proceeding, the CRTC has taken the preliminary view that consumers need greater awareness of the CCTS and that service providers should inform consumers of the option of taking their complaint to the CCTS earlier in the service provider’s complaint process. This proceeding could result in the CRTC mandating changes to service providers’ CCTS awareness obligations that could drive increased costs in dealing with in-scope and out of scope complaints. The CRTC set a July 23, 2026 deadline for submission of awareness proposals by parties wishing to do so. Interventions were due by October 7, 2026, and replies are due by November 13, 2026. We will participate fully in this proceeding.

Broadcasting and content-related issues

Regulatory plan to modernize Canada’s broadcasting system

Parliament amended the Broadcasting Act in April 2023 to include online streaming services, and as a response, the CRTC has begun to update its regulatory framework through a multi-phase consultation process and has issued its first decisions on this matter. In September 2023, the CRTC determined that the large streaming companies, as well as traditional broadcasting undertakings like TELUS, must register their online services with the CRTC. In March 2024, the CRTC issued a decision requiring online streaming services to pay a portion of the broadcasting fees collected from the industry to cover the CRTC’s operational expenditures. As the regulations expand the pool of payors, our share of overall contributions has decreased. On June 4, 2024, the CRTC determined that online undertakings that are not affiliated with traditional Canadian broadcasting undertakings (generally the large streaming companies) will be required to contribute 5% of their Canadian revenues to support the domestic broadcasting system. Online streaming services operated by TELUS and other traditional Canadian services are not subject to this requirement. Large foreign streamers are challenging this decision with the Federal Court of Appeal, and a stay of payments has been granted pending the outcome of that appeal.

In November 2024, the CRTC launched a consultation to modernize the definition of Canadian content for television and online programming, and to review the contribution framework that will support the creation of Canadian content. A hearing on the matter was held in May 2025, and on November 18, 2025, the CRTC released the first of two determinations on the matter, modernizing the definition of “Canadian program”, while the matter of determining the contribution framework to support the creation of Canadian content was released on May 21, 2026, as set out below.

In June 2025, the CRTC held an oral hearing as part of its consultation on the market dynamics between small, medium, and large programming, distribution, and online services, and the tools available to ensure the sustainability and growth of Canada’s broadcasting system. Among other things, the CRTC considered the effectiveness of current regulations in light of evolving market dynamics, and in particular, the increasing prevalence of online streaming services. We participated in this consultation and appeared at the oral hearing.

On May 21, 2026, the CRTC released Broadcasting Regulatory Policies CRTC 2026-95 and 2026-96, which represent the first major decision to be issued further to the June 2025 market dynamics hearings, and the second decision stemming from the CRTC’s consultation on supporting the creation and distribution of Canadian programming, respectively. These decisions address a number of issues around the discoverability of Canadian programming and its funding. The most notable development for Broadcasting Distribution Undertakings (BDUs) in these decisions comes from CRTC Policy 2026-95, where the CRTC announced that it would create a Service of Exceptional Importance Fund. Services of Exceptional Importance (SEIs) include news, Indigenous programming, and minority language programming. At present, SEIs are funded largely through wholesale fees paid by BDUs based on the number of subscribers they have. The SEI Fund will replace this model with a dedicated fund, to which not only BDUs but also online undertakings, including foreign streaming companies, will be required to contribute. However, on June 3, 2026, the Minister of Heritage announced that he would direct the CRTC to review this decision out of a concern that it would ultimately raise prices for consumers. To this effect, the Minister will develop a new policy direction under the Broadcasting Act. The draft policy direction has not yet been released, but we intend to provide comments once it is released.

  Page 46 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

10. Risks and risk management

The principal risks and uncertainties that could affect our future business results and associated risk mitigation activities were described in our 2025 annual MD&A and have not materially changed since December 31, 2025. Reference is made as well to the summary of risks and uncertainties in the Caution regarding forward-looking statements at the beginning of this MD&A.

11. Definitions and reconciliations

11.1 Non-GAAP and other specified financial measures

We issue guidance on and report certain non-GAAP measures that are used to evaluate the performance of TELUS, as well as to determine compliance with debt covenants and to manage our capital structure. As non-GAAP measures generally do not have standardized meanings, they might not be comparable to similar measures disclosed by other issuers. Securities regulations require that such measures be clearly defined, qualified and reconciled with their nearest GAAP measure. Certain of the metrics do not have generally accepted industry definitions.

Adjusted Net income and adjusted basic earnings per share (EPS): These are non-GAAP measures that do not have any standardized meanings prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other issuers. Adjusted Net income excludes the effects of restructuring and other costs, real estate rationalization-related restructuring impairments, income tax-related adjustments, long-term debt prepayment premium, and other adjustments (identified in the following tables). Adjusted basic EPS is calculated as adjusted Net income divided by the basic weighted-average number of Common Shares outstanding. These measures are used to evaluate performance at a consolidated level and exclude items that, in management’s view, may obscure underlying trends in business performance or items of an unusual nature that do not reflect our ongoing operations. They should not be considered as alternatives to Net income and basic EPS in measuring TELUS’ performance.

  Page 47 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Reconciliation of adjusted Net income

		Three-month periods ended September 30								Nine-month periods ended September 30
($ millions)		2026				2025				2026				2025
Net income attributable to Common Shares			(667	)			493				(2,371	)			821
Add (deduct) amounts net of amount attributable to non-controlling interests:
Restructuring and other costs			210				93				714				290
Tax effect of restructuring and other costs			(48	)			(25	)			(158	)			(74	)
Real estate rationalization-related restructuring impairments			1				(4	)			5				—
Tax effect of real estate rationalization-related restructuring impairments			—				1				(1	)			—
Long-term debt prepayment premium			—				27				51				27
Tax effect of long-term debt prepayment premium			—				(7	)			(14	)			(7	)
Impairment of intangible assets and goodwill			800				—				2,935				285
Tax effect of impairment of intangible assets and goodwill			(15	)			—				(234	)			(13	)
Gain on purchase of long-term debt			—				(222	)			—				(222	)
Tax effect of gain on purchase of long-term debt			—				25				—				25
Income tax-related adjustments			(30	)			(11	)			(66	)			(32	)
Adjusted Net income			251				370				861				1,100

Reconciliation of adjusted basic EPS

		Three-month periods ended September 30								Nine-month periods ended September 30
($)		2026				2025				2026				2025
Basic EPS			(0.42	)			0.32				(1.51	)			0.54
Add (deduct) amounts net of amount attributable to non-controlling interests:
Restructuring and other costs, per share			0.13				0.07				0.45				0.19
Tax effect of restructuring and other costs, per share			(0.02	)			(0.02	)			(0.09	)			(0.05	)
Long-term debt prepayment premium, per share			—				0.02				0.03				0.02
Tax effect of long-term debt prepayment premium, per share			—				(0.01	)			—				(0.01	)
Impairment of intangible assets and goodwill, per share			0.50				—				1.86				0.19
Tax effect of impairment of intangible assets and goodwill, per share			(0.01	)			—				(0.15	)			(0.01	)
Gain on purchase of long-term debt, per share			—				(0.15	)			—				(0.15	)
Tax effect of gain on purchase of long-term debt, per share			—				0.02				—				0.02
Income tax-related adjustments, per share			(0.02	)			(0.01	)			(0.04	)			(0.02	)
Adjusted basic EPS			0.16				0.24				0.55				0.72

Available liquidity: This is a non-GAAP measure that does not have any standardized meaning prescribed by IFRS Accounting Standards and is therefore unlikely to be comparable to similar measures presented by other issuers. Available liquidity is calculated as the sum of Cash and temporary investments, net, amounts available from the revolving credit facility, and amounts available under our trade receivables and unbilled customer finance receivables securitization program, measured at the end of the period. We believe this to be a useful measure because it allows us to monitor compliance with our financial objectives. It should not be considered as an alternative to Cash and temporary investments, net, in measuring TELUS’ performance.

Available liquidity reconciliation

As at September 30 ($ millions)		2026				2025
Cash and temporary investments, net			1,308				1,827
Net amounts available from the TELUS Corporation revolving credit facility			1,049				1,710
Amounts available under trade receivables and unbilled customer finance receivables securitization program			680				680
Available liquidity			3,037				4,217

  Page 48 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Capital expenditure intensity: This measure is calculated as capital expenditures excluding real estate development divided by Operating revenues and other income. It provides a basis for comparing the level of capital expenditures at TELUS to those of other companies of varying size within the same industry.

Calculation of Capital expenditure intensity

		TTech				TELUS Health				TELUS Digital				Eliminations				Total
Three-month periods ended September 30 ($ millions, except ratio)		2026		2025 (restated)		2026		2025		2026		2025 (restated)		2026		2025 (restated)		2026		2025
Numerator – Capital expenditures excluding real estate development		619		534		52		56		41		42		(23	)	(16	)	689		616
Denominator – Operating revenues and other income		3,859		3,873		530		528		737		821		(100	)	(116	)	5,026		5,106
Capital expenditure intensity (%)		16		14		10		11		6		5		n/m		n/m		14		12

Calculation of Capital expenditure intensity

		TTech				TELUS Health				TELUS Digital				Eliminations				Total
Nine-month periods ended September 30 ($ millions, except ratio)		2026		2025 (restated)		2026		2025		2026		2025 (restated)		2026		2025 (restated)		2026		2025
Numerator – Capital expenditures excluding real estate development		1,797		1,611		149		159		112		126		(75	)	(44	)	1,983		1,852
Denominator – Operating revenues and other income		11,395		11,595		1,592		1,520		2,324		2,462		(343	)	(332	)	14,968		15,245
Capital expenditure intensity (%)		16		14		9		10		5		5		n/m		n/m		13		12

TELUS Corporation Common Share dividend payout ratio: This is a historical measure calculated as the sum of the most recent four quarterly dividends declared, as recorded in the financial statements, net of dividend reinvestment plan effects, divided by the sum of free cash flow amounts for the most recent four quarters for interim reporting periods. For fiscal years, the denominator is annual free cash flow. Our objective range for the annual TELUS Corporation Common Share dividend payout ratio is on a trailing 12-month basis. (See Section 4.3 Liquidity and capital resources and Section 7.5 Liquidity and capital resource measures.)

Calculation of ratio of Common Share dividends declared to cash provided by operating activities less capital expenditures

Determined using most comparable IFRS Accounting Standards measures

For the 12-month periods ended September 30 ($ millions, except ratio)		2026				2025
Numerator – Sum of the most recent four quarterly dividends declared			2,257				2,488
Cash provided by operating activities			5,007				4,813
Less:
Capital expenditures			(2,679	)			(2,468	)
Denominator – Cash provided by operating activities less capital expenditures			2,328				2,345
Ratio (%)			97				106

Calculation of Common Share dividend payout ratio, net of dividend reinvestment plan effects

Determined using management measures

For the 12-month periods ended September 30 ($ millions, except ratio)		2026				2025
Sum of the most recent four quarterly dividends declared			2,257				2,488
Sum of the amounts of the most recent four quarterly dividends declared reinvested in Common Shares			(679	)			(860	)
Numerator – Sum of the most recent four quarterly dividends declared, net of dividend reinvestment plan effects			1,578				1,628
Denominator – Free cash flow			2,098				2,168
Ratio (%)			75				75

  Page 49 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Earnings coverage: This measure is defined in the Canadian Securities Administrators’ National Instrument 41-101 and related instruments, and is calculated as follows:

Calculation of Earnings coverage    

For the 12-month periods ended September 30 ($ millions, except ratio)		2026				2025
Net income (loss) attributable to Common Shares			(2,079	)			1,179
Income taxes (attributable to Common Shares)			41				435
Borrowing costs (attributable to Common Shares)1			1,605				1,404
Numerator			(433	)			3,018
Denominator – Borrowing costs			1,605				1,404
Ratio (times)			(0.3	)			2.1

1 Interest on Long-term debt (including dividend obligations on preferred shares that are required to be accounted for as financial liabilities) plus Interest on short-term borrowings and other plus long-term debt prepayment premium, adding capitalized interest and deducting borrowing costs attributable to non-controlling interests.

EBITDA (earnings before interest, income taxes, depreciation and amortization): We issue guidance on and report EBITDA because it is a key measure used to evaluate performance at a consolidated level. EBITDA is commonly reported and widely used by investors and lending institutions as an indicator of a company’s operating performance and ability to incur and service debt, and as a valuation metric. EBITDA should not be considered as an alternative to Net income in measuring TELUS’ performance, nor should it be used as a measure of cash flow. EBITDA as calculated by TELUS is equivalent to Operating revenues and other income less the total of Goods and services purchased expense and Employee benefits expense.

We calculate EBITDA – excluding restructuring and other costs, as it is a component of the EBITDA – excluding restructuring and other costs interest coverage ratio and the Net debt to EBITDA – excluding restructuring and other costs ratio.

We calculate Adjusted EBITDA by excluding items of an unusual nature that do not reflect our ongoing operations and should not, in our opinion, be considered in a long-term valuation metric or should not be included in an assessment of our ability to service or incur debt.

EBIT (earnings (loss) before interest and income taxes) is calculated for our reportable segments because we believe it is a meaningful indicator of our operating performance, as it represents our earnings (loss) from operations before costs of capital structure and income taxes.

EBITDA and Adjusted EBITDA reconciliations

		TTech								TELUS Health								TELUS Digital								Eliminations								Total
Three-month periods ended September 30 ($ millions)		2026				2025 (restated)				2026				2025 (restated)				2026				2025 (restated)				2026				2025				2026				2025
Net income (loss)																																			(660	)			431
Financing costs																																			376				154
Income taxes																																			36				157
EBIT			724				904				(831	)			(41	)			(118	)			(102	)			(23	)			(19	)			(248	)			742
Depreciation			550				529				14				21				53				71				—				—				617				621
Amortization of intangible assets			220				224				94				105				66				61				—				—				380				390
Impairment of intangible assets and goodwill			—				—				800				—				—				—				—				—				800				—
EBITDA			1,494				1,657				77				85				1				30				(23	)			(19	)			1,549				1,753
Add restructuring and other costs included in EBITDA			135				60				15				12				61				37				—				—				211				109
EBITDA – excluding restructuring and other costs and Adjusted EBITDA			1,629				1,717				92				97				62				67				(23	)			(19	)			1,760				1,862

  Page 50 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

EBITDA and Adjusted EBITDA reconciliations

		TTech								TELUS Health								TELUS Digital								Eliminations								Total
Nine-month periods ended September 30 ($ millions)		2026				2025 (restated)				2026				2025 (restated)				2026				2025 (restated)				2026				2025				2026				2025
Net income (loss)																																			(2,346	)			487
Financing costs																																			1,131				871
Income taxes																																			(71	)			311
EBIT			2,153				2,558				(913	)			(92	)			(2,451	)			(750	)			(75	)			(47	)			(1,286	)			1,669
Depreciation			1,593				1,593				45				44				153				177				—				—				1,791				1,814
Amortization of intangible assets			734				702				288				299				197				192				—				—				1,219				1,193
Impairment of intangible assets and goodwill			—				—				800				—				2,135				500				—				—				2,935				500
EBITDA			4,480				4,853				220				251				34				119				(75	)			(47	)			4,659				5,176
Add restructuring and other costs included in EBITDA			470				194				64				28				181				117				—				—				715				339
EBITDA – excluding restructuring and other costs and Adjusted EBITDA			4,950				5,047				284				279				215				236				(75	)			(47	)			5,374				5,515

Adjusted EBITDA less capital expenditures is calculated for our reportable segments, as it represents a TELUS performance measure that may be more comparable to similar measures presented by other issuers.

Adjusted EBITDA less capital expenditures reconciliation

		TTech								TELUS Health								TELUS Digital								Eliminations								Total
Three-month periods ended September 30 ($ millions)		2026				2025 (restated)				2026				2025 (restated)				2026				2025 (restated)				2026				2025				2026				2025
Adjusted EBITDA			1,629				1,717				92				97				62				67				(23	)			(19	)			1,760				1,862
Capital expenditures			(631	)			(570	)			(52	)			(56	)			(41	)			(42	)			23				16				(701	)			(652	)
Adjusted EBITDA less capital expenditures			998				1,147				40				41				21				25				—				(3	)			1,059				1,210

Adjusted EBITDA less capital expenditures reconciliation

		TTech								TELUS Health								TELUS Digital								Eliminations								Total
Nine-month periods ended September 30 ($ millions)		2026				2025 (restated)				2026				2025				2026				2025				2026				2025				2026				2025
Adjusted EBITDA			4,950				5,047				284				279				215				236				(75	)			(47	)			5,374				5,515
Capital expenditures			(1,844	)			(1,676	)			(149	)			(159	)			(112	)			(126	)			75				44				(2,030	)			(1,917	)
Adjusted EBITDA less capital expenditures			3,106				3,371				135				120				103				110				—				(3	)			3,344				3,598

We calculate EBITDA margin and Adjusted EBITDA margin to evaluate the performance of our operating segments and we believe these measures are also used by investors as indicators of a company’s operating performance. We calculate EBITDA margin as EBITDA divided by Operating revenues and other income. Adjusted EBITDA margin is a non-GAAP ratio that does not have any standardized meaning prescribed by IFRS Accounting Standards and is therefore unlikely to be comparable to similar measures presented by other issuers. We calculate Adjusted EBITDA margin as Adjusted EBITDA divided by adjusted Operating revenues and other income.

  Page 51 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Calculation of EBITDA margin

		TTech								TELUS Health								TELUS Digital								Eliminations								Total
Three-month periods ended September 30 ($ millions, except margin)		2026				2025 (restated)				2026				2025 (restated)				2026				2025 (restated)				2026				2025 (restated)				2026				2025
Numerator – EBITDA			1,494				1,657				77				85				1				30				(23	)			(19	)			1,549				1,753
Denominator – Operating revenues and other income			3,859				3,873				530				528				737				821				(100	)			(116	)			5,026				5,106
EBITDA margin (%)			38.7				42.8				14.5				16.2				0.1				3.6				n/m				n/m				30.8				34.3

Calculation of EBITDA margin

		TTech								TELUS Health								TELUS Digital								Eliminations								Total
Nine-month periods ended September 30 ($ millions, except margin)		2026				2025 (restated)				2026				2025 (restated)				2026				2025 (restated)				2026				2025 (restated)				2026				2025
Numerator – EBITDA			4,480				4,853				220				251				34				119				(75	)			(47	)			4,659				5,176
Denominator – Operating revenues and other income			11,395				11,595				1,592				1,520				2,324				2,462				(343	)			(332	)			14,968				15,245
EBITDA margin (%)			39.3				41.9				13.8				16.5				1.4				4.8				n/m				n/m				31.1				34.0

Calculation of Adjusted EBITDA margin

		TTech								TELUS Health								TELUS Digital								Eliminations								Total
Three-month periods ended September 30 ($ millions, except margin)		2026				2025 (restated)				2026				2025 (restated)				2026				2025 (restated)				2026				2025 (restated)				2026				2025
Numerator – Adjusted EBITDA			1,629				1,717				92				97				62				67				(23	)			(19	)			1,760				1,862
Denominator – Operating revenues and other income			3,859				3,873				530				528				737				821				(100	)			(116	)			5,026				5,106
Adjusted EBITDA margin (%)			42.2				44.3				17.3				18.4				8.4				8.2				n/m				n/m				35.0				36.5

Calculation of Adjusted EBITDA margin

		TTech								TELUS Health								TELUS Digital								Eliminations								Total
Nine-month periods ended September 30 ($ millions, except margin)		2026				2025 (restated)				2026				2025 (restated)				2026				2025 (restated)				2026				2025 (restated)				2026				2025
Numerator – Adjusted EBITDA			4,950				5,047				284				279				215				236				(75	)			(47	)			5,374				5,515
Denominator – Operating revenues and other income			11,395				11,595				1,592				1,520				2,324				2,462				(343	)			(332	)			14,968				15,245
Adjusted EBITDA margin (%)			43.4				43.5				17.8				18.4				9.2				9.6				n/m				n/m				35.9				36.2

EBITDA – excluding restructuring and other costs interest coverage:

This measure is defined as EBITDA – excluding restructuring and other costs, divided by net interest cost, calculated on a 12-month trailing basis. It is similar to the coverage ratio covenant in our credit facilities, as described in Section 7.6 Credit facilities.

Calculation of EBITDA – excluding restructuring and other costs interest coverage

For the 12-month periods ended September 30 ($ millions, except ratio)		2026				2025
Numerator – EBITDA – excluding restructuring and other costs			7,213				7,353
Denominator – Net interest cost			1,513				1,418
Ratio (times)			4.8				5.2

  Page 52 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Free cash flow: We report this measure as a supplementary indicator of our operating performance, and there is no generally accepted industry definition of free cash flow. It should not be considered as an alternative to the measures in the condensed interim consolidated statements of cash flows. Free cash flow excludes certain working capital changes (such as trade receivables and trade payables), proceeds from divested assets and other sources and uses of cash, as reported in the condensed interim consolidated statements of cash flows. It provides an indication of the amount of cash generated by operations that is available after capital expenditures and may be used for discretionary purposes, among other things, to pay dividends, repay debt, purchase shares or make other investments. Free cash flow may be supplemented from time to time by proceeds from divested assets or financing activities.

Free cash flow calculation

		Three-month period ended September 30, 2026												Three-month period ended September 30, 2025
($ millions)		Cash provided by operating activities				Difference				Free cash flow				Cash provided by operating activities				Difference				Free cash flow
EBITDA			1,549				—				1,549				1,753				—				1,753
Restructuring and other costs, net of disbursements			63				—				63				18				—				18
Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment® mobile device financing			(10	)			—				(10	)			35				—				35
Effect of non-discretionary lease principal			—				(142	)			(142	)			—				(137	)			(137	)
Items from the condensed interim consolidated statements of cash flows:
Share-based compensation, net of employee share purchase plan cash outflows			48				—				48				42				1				43
Employee future benefits expense, net			27				—				27				10				—				10
Gain on contributions of real estate to joint ventures			—				—				—				(13	)			13				—
(Income) loss from equity accounted investments			6				—				6				1				—				1
Gain on purchase of long-term debt			—				—				—				(222	)			222				—
Interest paid			(370	)			—				(370	)			(399	)			—				(399	)
Interest received			7				—				7				16				—				16
Other			(55	)			55				—				(99	)			99				—
Other working capital items			301				(301	)			—				428				(428	)			—
Capital expenditures			—				(701	)			(701	)			—				(652	)			(652	)
			1,566				(1,089	)			477				1,570				(882	)			688
Income taxes paid, net of refunds			(81	)			—				(81	)			(77	)			—				(77	)
			1,485				(1,089	)			396				1,493				(882	)			611

  Page 53 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Free cash flow calculation

		Nine-month period ended September 30, 2026												Nine-month period ended September 30, 2025
($ millions)		Cash provided by operating activities				Difference				Free cash flow				Cash provided by operating activities				Difference				Free cash flow
EBITDA			4,659				—				4,659				5,176				—				5,176
Restructuring and other costs, net of disbursements			285				—				285				10				—				10
Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment mobile device financing			71				—				71				130				—				130
Effect of non-discretionary lease principal1			—				(355	)			(355	)			—				(506	)			(506	)
Items from the condensed interim consolidated statements of cash flows:
Share-based compensation, net of employee share purchase plan cash outflows			131				—				131				121				6				127
Employee future benefits expense, net			49				—				49				29				—				29
Gain on contributions of real estate to joint ventures			(15	)			15				—				(21	)			21				—
(Income) loss from equity accounted investments			5				—				5				(1	)			—				(1	)
Gain on purchase of long-term debt			—				—				—				(222	)			222				—
Interest paid			(1,250	)			—				(1,250	)			(1,078	)			—				(1,078	)
Interest received			52				—				52				38				—				38
Other			(100	)			100				—				(133	)			133				—
Other working capital items			199				(199	)			—				61				(61	)			—
Capital expenditures			—				(2,030	)			(2,030	)			—				(1,917	)			(1,917	)
			4,086				(2,469	)			1,617				4,110				(2,102	)			2,008
Income taxes paid, net of refunds2			(209	)			116				(93	)			(374	)			—				(374	)
			3,877				(2,353	)			1,524				3,736				(2,102	)			1,634

1 As set out in Note 3 of the interim consolidated financial statements, we may issue new debt to replace existing debt with different characteristics. As part of managing our capital structure, we chose to replace lease principal of $732 through discretionary repayment.

2 As set out in Note 3 of the interim consolidated financial statements, as part of managing our capital structure, we paid incremental income taxes in connection with issuing subsidiary equity and such amount has been excluded from the free cash flow amount shown in this table.

Mobile phone average revenue per subscriber per month (ARPU) is calculated as network revenue derived from monthly service plan, roaming and usage charges; divided by the average number of mobile phone subscribers on the network during the period, and is expressed as a rate per month.

Net debt: We believe that net debt is a useful measure because it represents the amount of Short-term borrowings and long-term debt obligations that are not covered by available Cash and temporary investments. The nearest IFRS Accounting Standards measure to net debt is Long-term debt, including Current maturities of Long-term debt. Net debt is a component of the Net debt to EBITDA – excluding restructuring and other costs ratio.

Net debt to EBITDA – excluding restructuring and other costs: This measure is defined as net debt at the end of the period divided by 12-month trailing EBITDA – excluding restructuring and other costs. (See discussion in Section 7.5 Liquidity and capital resource measures.) This measure is similar to the leverage ratio covenant in our credit facilities, as described in Section 7.6 Credit facilities.

Calculation of Net debt to EBITDA – excluding restructuring and other costs

For the 12-month periods ended September 30 ($ millions, except ratio)		2026				2025
Numerator – Net debt			25,981				25,663
Denominator – EBITDA – excluding restructuring and other costs			7,213				7,353
Ratio (times)			3.6				3.5

  Page 54 of 55

TELUS Corporation – Management’s discussion and analysis – 2026 Q3

Net interest cost: This measure is the denominator in the calculation of EBITDA – excluding restructuring and other costs interest coverage. Net interest cost is defined as financing costs, excluding capitalized long-term debt interest, employee defined benefit plans net interest, unrealized changes in virtual power purchase agreements forward element when accounted for as held for trading, and recoveries on redemption and repayment of debt, calculated on a 12-month trailing basis. Expenses recorded for the long-term debt prepayment premium, if any, are included in net interest cost.

Calculation of net interest cost

For the 12-month periods ended September 30 ($ millions)		2026				2025
Financing costs			1,421				1,192
Add (deduct):
Employee defined benefit plans net interest			1				(11	)
Interest on long-term debt, excluding lease liabilities and other – capitalized			10				18
Gain on purchase of long-term debt			81				222
Unrealized changes in virtual power purchase agreements forward element			—				(3	)
Net interest cost			1,513				1,418

11.2 Operating indicators

The following measures are industry metrics that are useful in assessing the operating performance of a mobile and fixed telecommunications entity, but do not have standardized meanings.

Churn is calculated as the number of subscribers deactivated during a given period divided by the average number of subscribers on the network during the period, and is expressed as a rate per month. Mobile phone churn refers to the aggregate average of both prepaid and postpaid mobile phone churn. A TELUS, Koodo^® or Public Mobile^® brand prepaid mobile phone subscriber is deactivated when the subscriber has no usage for 90 days following expiry of the prepaid credits.

Connected device subscriber means a subscriber on an active TELUS service plan with a recurring revenue-generating portable unit (e.g. tablets, internet keys, Internet of Things, wearables and connected cars) that is supported by TELUS and is intended for limited or no cellular voice capability.

Mobile phone subscriber means a subscriber on an active TELUS service plan with a recurring revenue-generating portable unit (e.g. feature phones and smartphones) where TELUS provides voice, text and/or data connectivity.

Internet subscriber means a subscriber on an active TELUS internet plan with a recurring revenue-generating unit where TELUS provides internet connectivity.

Healthcare lives covered means the number of users (primary members and their dependents) enrolled in various health programs supported by TELUS Health services (e.g. virtual care, health benefits management, preventive care, personal health security, and employee and family assistance programs). This count includes clients who utilize TELUS Health services either directly or indirectly. It is probable that some members and their dependents will be a user of multiple TELUS Health services.

  Page 55 of 55

Filing Exhibits & Attachments

2 documents

Press Releases

• EX-99.1 EXHIBIT 99.1 3.5 MB
• EX-99.2 EXHIBIT 99.2 1.8 MB