TELUS (NYSE: TU) Q1 2026 profit falls as restructuring costs rise

Rhea-AI Filing Summary

TELUS Corporation reported Q1 2026 results showing lower profit on broadly stable revenue. Operating revenues and other income were C$5.013 billion, little changed from C$5.057 billion a year earlier, while net income fell to C$144 million from C$301 million as employee benefits and restructuring and other costs rose.

Basic and diluted net income per common share declined to C$0.09 from C$0.21, even though adjusted EBITDA excluding restructuring and other costs was effectively flat at C$1.837 billion versus C$1.841 billion. Cash provided by operating activities was C$1.050 billion, similar to C$1.077 billion, while higher capital spending and spectrum payments led to negative free cash flow in the quarter.

Net debt to EBITDA excluding restructuring and other costs improved to 3.5x at March 31, 2026, from 3.9x one year earlier, helped by lower net debt of C$25.889 billion versus C$28.682 billion. TELUS continued its dividend program, declaring a quarterly dividend of C$0.4184 per common share, up from C$0.4023, and reported a 12‑month dividend payout ratio of 73% of free cash flow, within its 60%–75% objective range.

Insights

Telecom equity analyst

Underlying cash earnings are steady, but reported profit is compressed by higher restructuring and investment spending.

TELUS generated Q1 2026 operating revenues and other income of C$5.013 billion, essentially flat year over year, while adjusted EBITDA excluding restructuring and other costs held at C$1.837 billion versus C$1.841 billion. This suggests core operations remain stable despite a competitive environment.

Reported net income dropped to C$144 million from C$301 million, largely because employee benefits expense and restructuring and other costs rose to C$315 million. These items reduced operating income to C$534 million from C$752 million, masking steadier underlying profitability.

Leverage metrics improved: net debt fell to C$25.889 billion and net debt to EBITDA excluding restructuring and other costs declined to 3.5x from 3.9x. Over the 12 months ended March 31, 2026, free cash flow reached C$2.303 billion and the dividend payout ratio was 73%, within TELUS’s stated 60%–75% objective range.

Key Figures

Operating revenues and other income: C$5.013B Net income: C$144M Basic EPS: C$0.09 per share +5 more

8 metrics

Operating revenues and other income C$5.013B Three months ended March 31, 2026 (vs C$5.057B in 2025)

Net income C$144M Three months ended March 31, 2026 (vs C$301M in 2025)

Basic EPS C$0.09 per share Three months ended March 31, 2026 (vs C$0.21 in 2025)

Cash from operating activities C$1.050B Three months ended March 31, 2026 (vs C$1.077B in 2025)

Net debt C$25.889B As at March 31, 2026 (vs C$28.682B at March 31, 2025)

Net debt to EBITDA (excl. restructuring) 3.5x Twelve months ended March 31, 2026 (vs 3.9x in 2025)

Quarterly dividend per share C$0.4184 Declared for 2026 Q1 and payable July 2, 2026

Dividend payout ratio 73% TELUS Common Share dividends vs free cash flow, 12 months ended March 31, 2026

Key Terms

EBITDA – excluding restructuring and other costs, free cash flow, Dividend Reinvestment and Share Purchase Plan, International Accounting Standard 34, +2 more

6 terms

EBITDA – excluding restructuring and other costs financial

"Net debt to EBITDA – excluding restructuring and other costs was 3.5 times as at March 31, 2026"

free cash flow financial

"We define free cash flow as EBITDA ... excluding items that we consider to be of limited predictive value"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

Dividend Reinvestment and Share Purchase Plan financial

"We have a Dividend Reinvestment and Share Purchase Plan under which eligible holders of TELUS Corporation Common Shares may acquire additional shares"

A dividend reinvestment and share purchase plan lets shareholders automatically use cash dividends to buy additional shares and often make optional extra purchases directly from the company, sometimes at a reduced fee or price. For investors this acts like an automatic savings program that compounds returns over time, increases ownership without active trading, and changes cash income into growing stock exposure, which can affect portfolio income and voting stakes.

International Accounting Standard 34 regulatory

"Our condensed interim consolidated financial statements comply with International Accounting Standard 34, Interim Financial Reporting"

An international accounting standard that sets rules for companies to publish clear, comparable financial reports between full annual accounts, like taking reliable snapshots of a business’s finances each quarter or half-year. For investors it matters because these standardized interim reports help spot trends, assess short-term risks or progress, and reduce surprises by ensuring consistent, timely information you can compare across companies.

net debt financial

"Net debt is one component of a ratio used to determine compliance with certain debt covenants"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

cash flow hedges financial

"Change in unrealized fair value of 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.

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

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 May 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 x

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: May 8, 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)

MARCH 31, 2026

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

					Three months
Periods ended March 31 (millions except per share amounts)		Note			2026				2025
OPERATING REVENUES
Service					$	4,484			$	4,443
Equipment						505				575
Operating revenues (arising from contracts with customers)		6				4,989				5,018
Other income		7				24				39
Operating revenues and other income						5,013				5,057
OPERATING EXPENSES
Goods and services purchased		16				1,856				1,847
Employee benefits expense		8, 16				1,635				1,466
Depreciation		17				583				592
Amortization of intangible assets		18				405				400
						4,479				4,305
OPERATING INCOME						534				752
Financing costs		9				335				344
INCOME BEFORE INCOME TAXES						199				408
Income taxes		10				55				107
NET INCOME						144				301
OTHER COMPREHENSIVE INCOME		11
Items that may subsequently be reclassified to income
Change in unrealized fair value of derivatives designated as cash flow hedges						—				(11	)
Foreign currency translation adjustment arising from translating financial statements of foreign operations						41				60
						41				49
Items never subsequently reclassified to income
Change in measurement of investment financial assets						(5	)			4
Employee defined benefit plan re-measurements						13				(1	)
						8				3
						49				52
COMPREHENSIVE INCOME					$	193			$	353
NET INCOME ATTRIBUTABLE TO:
Common Shares					$	136			$	321
Non-controlling interests						8				(20	)
					$	144			$	301
COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Common Shares					$	185			$	364
Non-controlling interests						8				(11	)
					$	193			$	353
NET INCOME PER COMMON SHARE		12
Basic					$	0.09			$	0.21
Diluted					$	0.09			$	0.21
TOTAL WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic						1,561				1,514
Diluted						1,562				1,516

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

2 | March 31, 2026

condensed interim consolidated statements of financial position (unaudited)

As at (millions)		Note			March 31, 2026				December 31, 2025
ASSETS
Current assets
Cash and temporary investments, net					$	1,302			$	2,621
Accounts receivable		6(b)				3,754				3,797
Income and other taxes receivable						235				173
Inventories		1(b)				458				482
Contract assets		6(c)				450				457
Costs incurred to obtain or fulfill contracts with customers		20				328				413
Prepaid maintenance and other						565				421
Current derivative assets		4(d)				75				8
						7,167				8,372
Non-current assets
Property, plant and equipment, net		17				17,602				17,503
Intangible assets, net		18				20,541				20,328
Goodwill, net		18				10,491				10,460
Contract assets		6(c)				273				274
Other long-term assets		20				2,780				2,676
						51,687				51,241
					$	58,854			$	59,613
LIABILITIES AND OWNERS’ EQUITY
Current liabilities
Short-term borrowings		22			$	920			$	920
Accounts payable and accrued liabilities		23				3,403				3,494
Income and other taxes payable						164				141
Dividends payable		13				653				649
Advance billings and customer deposits		24				1,037				1,053
Provisions		25				416				300
Current maturities of long-term debt		26				4,092				3,102
Current derivative liabilities		4(d)				27				30
						10,712				9,689
Non-current liabilities
Provisions		25				549				661
Long-term debt		26				26,039				27,437
Other long-term liabilities		27				915				955
Deferred income taxes						4,272				4,292
						31,775				33,345
Liabilities						42,487				43,034
Owners’ equity
Common equity		28				15,560				15,775
Non-controlling interests						807				804
						16,367				16,579
					$	58,854			$	59,613
Contingent liabilities		29

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

March 31, 2026 | 3

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

				Common equity
				Equity contributed																Accumulated
				Common Shares (Note 28)												Retained				other								Non-
(millions)		Note		Number of shares				Share capital				Contributed surplus				earnings (deficit)				comprehensive income (loss)				Total				controlling interests				Total
Balance as at January 1, 2025					1,504			$	13,124			$	1,081			$	1,520			$	(105	)		$	15,620			$	1,178			$	16,798
Net income					—				—				—				321				—				321				(20	)			301
Other comprehensive income		11			—				—				—				(1	)			44				43				9				52
Dividends		13			—				—				—				(610	)			—				(610	)			—				(610	)
Dividends reinvested and optional cash payments		13(b), 14(c)			10				203				—				—				—				203				—				203
Equity accounted share-based compensation					—				—				30				—				—				30				(1	)			29
Change in ownership interests of subsidiaries		28(b)			—				—				—				—				—				—				13				13
Balance as at March 31, 2025					1,514			$	13,327			$	1,111			$	1,230			$	(61	)		$	15,607			$	1,179			$	16,786
Balance as at January 1, 2026					1,549			$	14,096			$	1,577			$	98			$	4			$	15,775			$	804			$	16,579
Net income					—				—				—				136				—				136				8				144
Other comprehensive income		11			—				—				—				13				36				49				—				49
Dividends		13			—				—				—				(653	)			—				(653	)			—				(653	)
Dividends reinvested and optional cash payments		13(b), 14(c)			12				219				—				—				—				219				—				219
Equity accounted share-based compensation		14(b)			—				2				32				—				—				34				—				34
Partnership distributions to non-controlling interest					—				—				—				—				—				—				(5	)			(5	)
Balance as at March 31, 2026					1,561			$	14,317			$	1,609			$	(406	)		$	40			$	15,560			$	807			$	16,367

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

4 | March 31, 2026

condensed interim consolidated statements of cash flows (unaudited)

					Three months
Periods ended March 31 (millions)		Note			2026				2025
OPERATING ACTIVITIES
Net income					$	144			$	301
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization						988				992
Income taxes expense		10				55				107
Income taxes paid, net						(116	)			(154	)
Investment tax credits and tax other						(8	)			(12	)
Share-based compensation expense, net		14(a)				31				42
Net employee defined benefit plans expense		15(a)				13				15
Employer contributions to employee defined benefit plans		15(a)				(5	)			(5	)
Gain on contributions of real estate to joint ventures		7, 21				(5	)			(8	)
(Income) loss from equity accounted investments, net		7, 21				(1	)			—
Other						(15	)			(11	)
Net change in non-cash operating working capital		31(a)				(31	)			(190	)
Cash provided by operating activities						1,050				1,077
INVESTING ACTIVITIES
Cash payments for capital assets, excluding spectrum licences		31(a)				(757	)			(654	)
Cash payments for spectrum licences		18(a)				(318	)			—
Cash payments for acquisitions, net						—				(11	)
Real estate joint venture receipts		21				6				1
Proceeds on disposition						9				66
Investment in portfolio investments and other						(84	)			(4	)
Cash used by investing activities						(1,144	)			(602	)
FINANCING ACTIVITIES		31(b)
Dividends paid to holders of Common Shares		13(a)				(430	)			(402	)
Issue (repayment) of short-term borrowings, net						3				399
Long-term debt issued		26				1,360				1,663
Redemptions and repayment of long-term debt		26				(2,153	)			(1,990	)
Partnership distributions to non-controlling interest		28(b)				(5	)			—
Cash used by financing activities						(1,225	)			(330	)
CASH POSITION
Increase (decrease) in cash and temporary investments, net						(1,319	)			145
Cash and temporary investments, net, beginning of period						2,621				869
Cash and temporary investments, net, end of period					$	1,302			$	1,014
SUPPLEMENTAL DISCLOSURE OF OPERATING CASH FLOWS		2(b)
Interest paid					$	(430	)		$	(371	)
Interest received					$	25			$	5

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

March 31, 2026 | 5

notes to condensed interim consolidated financial statements (unaudited)

MARCH 31, 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 was wholly owned as at March 31, 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		8
4.	Financial instruments		13
Consolidated results of operations focused
5.	Segment information		19
6.	Revenue from contracts with customers		21
7.	Other income		22
8.	Employee benefits expense		22
9.	Financing costs		22
10.	Income taxes		23
11.	Other comprehensive income		24
12.	Per share amounts		25
13.	Dividends per share		25
14.	Share-based compensation		26
15.	Employee future benefits		28
16.	Restructuring and other costs		29
Consolidated financial position focused
17.	Property, plant and equipment		30
18.	Intangible assets and goodwill		31
19.	Leases		32
20.	Other long-term assets		32
21.	Real estate joint ventures and investments in associates		33
22.	Short-term borrowings		34
23.	Accounts payable and accrued liabilities		34
24.	Advance billings and customer deposits		35
25.	Provisions		36
26.	Long-term debt		37
27.	Other long-term liabilities		43
28.	Owners’ equity		43
29.	Contingent liabilities		45
Other
30.	Related party transactions		46
31.	Additional statement of cash flow information		47

6 | March 31, 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 period ended March 31, 2026, were authorized by our Board of Directors for issue on May 8, 2026.

(b) Inventories

Inventories primarily consist of mobile handsets, parts and accessories, which totalled $353 million as at March 31, 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 period ended March 31, 2026, totalled $0.5 billion (2025 – $0.6 billion).

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. 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

  March 31, 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
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 will be presented with other non-standardized financial measures in our segment information note
Enhance the requirements for aggregation and disaggregation of financial statement amounts		Our existing aggregation and disaggregation practices are compliant with the new standard
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 (on an indirect basis) to within financing activities (on a direct basis) and within investing activities (on a direct basis), respectively; our existing dividend cash flow classification is 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.

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;

● 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.

8 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

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, March 31 ($ in millions)		Objective			2026				2025
Components of debt and coverage ratios
Net debt 1					$	25,889			$	28,682
EBITDA – excluding restructuring and other costs 2					$	7,350			$	7,318
Net interest cost 3 (Note 9)					$	1,448			$	1,381
Debt ratio
Net debt to EBITDA – excluding restructuring and other costs		2.2 – 2.7 4				3.5				3.9
Coverage ratios
Earnings coverage 5						1.9				2.1
EBITDA – excluding restructuring and other costs interest coverage 6						5.1				5.3

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

As at March 31		Note			2026				2025
Long-term debt		26			$	30,131			$	28,724
TELUS Corporation junior subordinated notes equity credit deducted in calculating net debt		26(f)				(3,661	)			—
Debt issuance costs netted against long-term debt						162				118
Derivative (assets) liabilities used to manage interest rate and currency risks associated with U.S. dollar-denominated debt, net						(112	)			(71	)
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						(249	)			(400	)
Cash and temporary investments, net						(1,302	)			(1,014	)
Short-term borrowings		22				920				1,325
Net debt						25,889				28,682
Common equity						15,560				15,607
Non-controlling interests						807				1,179
Add: TELUS Corporation junior subordinated notes equity credit deducted in calculating net debt						3,661				—
Less: accumulated other comprehensive (income) loss amounts included above in common equity and non-controlling interests						(40	)			(19	)
Total managed capitalization					$	45,877			$	45,449

^* 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 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.

  March 31, 2026 | 9

notes to condensed interim consolidated financial statements (unaudited)

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
Three-month period ended March 31, 2026		$	1,522			$	315			$	1,837
Year ended December 31, 2025			6,922				432				7,354
Deduct
Three-month period ended March 31, 2025			(1,744	)			(97	)			(1,841	)
EBITDA – excluding restructuring and other costs		$	6,700			$	650			$	7,350

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 2.2 – 2.7 times. The ratio as at March 31, 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), but we will endeavour to return this ratio to circa 2.7 times in the medium term (following the spectrum auctions in 2021 and 2023, and the mmWave spectrum auction upcoming), consistent with our long-term strategy. We have an objective of achieving a ratio of circa 3.0 times in 2027. 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 3.5 times as at March 31, 2026, compared to 3.9 times one year earlier. The decrease was largely due to the effect of the decrease in net debt levels, primarily due to the junior subordinated notes equity credit and the equity issued by our Terrion subsidiary to a non-controlling interest, partially offset by spectrum acquisitions and business acquisitions; net debt levels were already elevated in the current and comparative periods due to our spectrum acquisitions and business acquisitions.

The earnings coverage ratio for the twelve-month period ended March 31, 2026, was 1.9 times, down from 2.1 times one year earlier. An increase in borrowing costs lowered the ratio by 0.2. The EBITDA – excluding restructuring and other costs interest coverage ratio for the twelve-month period ended March 31, 2026, was 5.1 times, down from 5.3 times one year earlier. An increase of $67 million in net interest costs lowered the ratio by 0.2.

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). The historical measure for the twelve-month period ended March 31, 2026, is presented for illustrative purposes in evaluating our objective range.

^* 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 performance measure that management and investors use to evaluate the performance of our business.

10 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

For the 12-month periods ended March 31		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							117	%			96	%
Determined using management measures
TELUS Corporation Common Share dividend payout ratio – net of dividend reinvestment plan effects			60%–75% 1				73	%			76	%

1 Our objective range for the TELUS Corporation Common Share dividend payout ratio is 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 March 31 (millions)		2026				2025
TELUS Corporation Common Share dividends declared		$	2,575			$	2,370
Amount of TELUS Corporation Common Share dividends declared reinvested in TELUS Corporation Common Shares			(890	)			(791	)
TELUS Corporation Common Share dividends declared – net of dividend reinvestment plan effects		$	1,685			$	1,579

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

  March 31, 2026 | 11

notes to condensed interim consolidated financial statements (unaudited)

For the 12-month periods ended March 31 (millions)				2026												2025
		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			$	6,700			$	—			$	6,700			$	6,946			$	—			$	6,946
Restructuring and other costs, net of disbursements						244				—				244				(59	)			—				(59	)
Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment mobile device financing						32				—				32				(207	)			—				(207	)
Effect of non-discretionary lease principal (a)		31(b)				—				(549	)			(549	)			—				(676	)			(676	)
Items from the Consolidated statements of cash flows:
Share-based compensation, net of employee share purchase plan cash outflows		14				133				10				143				166				11				177
Net employee defined benefit plans expense		15				58				—				58				71				—				71
Employer contributions to employee defined benefit plans						(23	)			—				(23	)			(19	)			—				(19	)
Gain on contributions of real estate to joint ventures		7, 21				(41	)			41				—				(84	)			84				—
(Income) loss from equity accounted investments, net						(2	)			—				(2	)			13				—				13
Gain on purchase of long-term debt						(303	)			303				—				—				—				—
Interest paid						(1,443	)			—				(1,443	)			(1,367	)			—				(1,367	)
Interest received						73				—				73				27				—				27
Other						(126	)			126				—				(122	)			122				—
Other working capital items						(21	)			21				—				41				(41	)			—
Capital expenditures (excluding acquisition from related party)		5				—				(2,630	)			(2,630	)			—				(2,404	)			(2,404	)
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
						5,281				(2,652	)			2,629				5,406				(2,903	)			2,503
Income taxes paid, net of refunds (b)						(442	)			116				(326	)			(432	)			—				(432	)
					$	4,839			$	(2,536	)		$	2,303			$	4,974			$	(2,903	)		$	2,071

(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.

12 | March 31, 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)		March 31, 2026				December 31, 2025
Cash and temporary investments, net		$	1,302			$	2,621
Accounts receivable			4,322				4,383
Contract assets			723				731
Derivative assets			165				48
		$	6,512			$	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
March 31, 2026
Less than 30 days past billing date				$	1,168			$	(22	)		$	1,146
30-60 days past billing date					294				(19	)			275
61-90 days past billing date					122				(22	)			100
More than 90 days past billing date					221				(46	)			175
Unbilled customer finance receivables					1,547				(36	)			1,511
				$	3,352			$	(145	)		$	3,207
Current 2		6(b)		$	2,771			$	(132	)		$	2,639
Non-current 3		20			581				(13	)			568
				$	3,352			$	(145	)		$	3,207
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.

March 31, 2026 | 13

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
Periods ended March 31 (millions)		2026				2025
Balance, beginning of period		$	143			$	134
Additions (doubtful accounts expense)			28				49
Accounts written off 1 less than recoveries			(29	)			(48	)
Other			3				4
Balance, end of period		$	145			$	139

1 For the three-month period ended March 31, 2026, accounts that were written off but were still subject to enforcement activity totalled $58 (2025 – $65).

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))
March 31, 2026
To be billed and thus reclassified to accounts receivable during:
The 12-month period ending one year hence		$	598			$	(22	)		$	576
The 12-month period ending two years hence			240				(9	)			231
Thereafter			43				(1	)			42
		$	881			$	(32	)		$	849
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), 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 March 31, 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.

14 | March 31, 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
											Long-term								Currency swap agreement												Currency swap agreement
			Non-interest								debt,								amounts to be exchanged												amounts to be exchanged 3
			bearing								excluding
			financial				Short-term				leases 1				Leases
(millions)			liabilities				borrowings 1				(Note 26)				(Note 26)				(Receive) 2				Pay				Other				(Receive)				Pay				Total
As at March 31, 2026
2026 (remainder of year)			$	2,936			$	22			$	3,822			$	438			$	(2,076	)		$	2,010			$	4			$	(718	)		$	704			$	7,142
2027				167				935				2,792				542				(1,950	)			1,841				5				(241	)			229				4,320
2028				64				—				3,104				466				(379	)			347				3				(477	)			505				3,633
2029				8				—				2,485				373				(379	)			347				4				—				—				2,838
2030				6				—				2,687				291				(1,355	)			1,309				3				—				—				2,941
2031 - 2035				7				—				10,537				681				(4,589	)			4,379				17				—				—				11,032
Thereafter				—				—				24,041				690				(3,074	)			2,937				18				—				—				24,612
Total			$	3,188			$	957			$	49,468			$	3,481			$	(13,802	)		$	13,170			$	54			$	(1,436	)		$	1,438			$	56,518
											Total (Note 26(i))												$	52,317
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.

March 31, 2026 | 15

notes to condensed interim consolidated financial statements (unaudited)

(c) Market risks

Net income and other comprehensive income for the three-month periods ended March 31, 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.

Three-month periods ended March 31		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		$	(8	)		$	(6	)		$	(57	)		$	93			$	(65	)		$	87
Canadian dollar depreciates		$	8			$	6			$	57			$	(93	)		$	65			$	(87	)
10% change in US$: € exchange rate
U.S. dollar appreciates		$	(40	)		$	15			$	(14	)		$	(72	)		$	(54	)		$	(57	)
U.S. dollar depreciates		$	40			$	(15	)		$	14			$	72			$	54			$	57
25 basis point change in interest rates
Interest rates increase
Canadian interest rate		$	(2	)		$	(2	)		$	104			$	76			$	102			$	74
U.S. interest rate		$	(2	)		$	—			$	(101	)		$	(64	)		$	(103	)		$	(64	)
Combined		$	(4	)		$	(2	)		$	3			$	12			$	(1	)		$	10
Interest rates decrease
Canadian interest rate		$	2			$	2			$	(107	)		$	(79	)		$	(105	)		$	(77	)
U.S. interest rate		$	2			$	—			$	104			$	67			$	106			$	67
Combined		$	4			$	2			$	(3	)		$	(12	)		$	1			$	(10	)
20 basis point change in wind discount
Wind discount increases		$	—			$	—			$	(23	)		$	(19	)		$	(23	)		$	(19	)
Wind discount decreases		$	—			$	—			$	24			$	19			$	24			$	19
20 basis point change in solar premium
Solar premium increases		$	—			$	—			$	13			$	11			$	13			$	11
Solar premium decreases		$	—			$	—			$	(13	)		$	(11	)		$	(13	)		$	(11	)

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.

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

(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.

16 | March 31, 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.

					March 31, 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			$	508				9			US$1.00: C$1.36			2026			$	134				1			US$1.00: C$1.35
U.S. dollar-denominated debt (Notes 22, 26(b)-(c))		HFH 3			2027			$	2,276				58			US$1.00: C$1.35			2026			$	1,170				1			US$1.00: C$1.37
European euro-denominated transactions swapped to  U.S. dollar-denominated transactions		HFT 4			2028			$	33				8			€1.00: US$1.09			2028			$	33				6			€1.00: US$1.09
												$	75													$	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			2048			$	6,651			$	90			US$1.00: C$1.31			2032			$	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			$	303			$	14			US$1.00: ₱58			2026			$	254			$	6			US$1.00: ₱58
U.S. dollar-denominated transactions		HFH 3			2027			$	39				—			US$1.00: C$1.39			2026			$	374				7			US$1.00: C$1.39
U.S. dollar-denominated debt (Notes 22, 26(c))		HFH 3			2026			$	1,104				1			US$1.00: C$1.39			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			$30.84/MWh	6		2047				0.3 TWh	6			7			$32.41/MWh	6
												$	27													$	30

March 31, 2026 | 17

notes to condensed interim consolidated financial statements (unaudited)

					March 31, 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			2049			$	4,061			$	35			US$1.00: C$1.35			2049			$	7,332			$	102			US$1.00: C$1.33
European euro-denominated transactions swapped to  U.S. dollar-denominated transactions		HFT 4			2028			$	555				33			€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				4.8 TWh	6			42			$41.16/MWh 6			2047				4.9 TWh	6			21			$40.92/MWh	6
												$	110													$	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:

		Three months
Periods ended March 31		2026				2025
Unrealized changes in virtual power purchase agreements forward element
Included in net income, excluding income taxes (see (e))		$	1			$	1
Included in other comprehensive income, excluding income taxes (see (e))			(27	)			(18	)
Balance, beginning of period – asset (liability)			(28	)			(38	)
Balance, end of period – asset (liability)		$	(54	)		$	(55	)

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 March 31, 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 $(34) (December 31, 2025 – $(22)).

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.

		March 31, 2026								December 31, 2025
As at (millions)		Carrying value				Fair value				Carrying value				Fair value
Long-term debt, excluding leases (Note 26)		$	27,417			$	27,278			$	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.

18 | March 31, 2026

 notes to condensed interim consolidated financial statements (unaudited)

Three-month periods		Amount of gain (loss) recognized in other comprehensive income								Gain (loss) reclassified from other comprehensive income to income (effective portion) (Note 11)
ended March 31		(effective portion) (Note 11)										Amount
(millions)		2026				2025				Location		2026				2025
Derivatives used to manage currency risk associated with
U.S. dollar-denominated purchases		$	11			$	1			Goods and services purchased		$	(3	)		$	6
U.S. dollar-denominated debt 1 (Notes 22,26(b)-(c))			190				40			Financing costs			177				(5	)
Net investment in a foreign operation			—				(21	)		Financing costs			—				5
			201				20						174				6
Derivatives used to manage other market risks
Purchase of electrical power			(26	)			(16	)		Goods and services purchased			1				2
Other			—				(2	)		Financing costs			—				—
			(26	)			(18	)					1				2
		$	175			$	2					$	175			$	8

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 periods ended March 31, 2026, totalled $5 (2025 – $(16)).

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
		Three months
Periods ended March 31 (millions)		2026				2025
Derivatives used to manage other market risks (purchase of electrical power)		$	1			$	1

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
		Three months
Periods ended March 31 (millions)		2026				2025
Derivatives used to manage currency risk		$	(1	)		$	1

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.

The TELUS technology solutions segment 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).

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; for 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.

March 31, 2026 | 19

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 March 31 (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		$	1,778			$	1,757			$	1,490		$	1,504			$	3,268			$	3,261			$	522			$	470			$	694			$	712			$	—			$	—			$	4,484			$	4,443
Equipment			446				499			58				75				504				574				1				1				—				—				—				—				505				575
Revenues arising from contracts with customers		$	2,224			$	2,256			$	1,548		$	1,579				3,772				3,835				523				471				694				712				—				—				4,989				5,018
										Other income (Note 7)								12				39				1				—				11				—				—				—				24				39
																		3,784				3,874				524				471				705				712				—				—				5,013				5,057
										Intersegment								6				6				2				2				108				102				(116	)			(110	)			—				—
																	$	3,790			$	3,880			$	526			$	473			$	813			$	814			$	(116	)		$	(110	)		$	5,013			$	5,057
										EBITDA 1							$	1,423			$	1,611			$	68			$	75			$	50			$	71			$	(19	)		$	(13	)		$	1,522			$	1,744
										Restructuring and other costs included in EBITDA (Note 16)								259				79				25				9				31				9				—				—				315				97
										Adjusted EBITDA 1							$	1,682			$	1,690			$	93			$	84			$	81			$	80			$	(19	)		$	(13	)		$	1,837			$	1,841
										Capital expenditures 2							$	580			$	515			$	53			$	44			$	37			$	41			$	(19	)		$	(13	)		$	651			$	587
										Adjusted EBITDA less capital expenditures 1							$	1,102			$	1,175			$	40			$	40			$	44			$	39			$	—			$	—			$	1,186			$	1,254
										Operating revenues – external, other income and intersegment (above)							$	3,790			$	3,880			$	526			$	473			$	813			$	814			$	(116	)		$	(110	)		$	5,013			$	5,057
										Goods and services purchased								1,609				1,616				169				165				175				163				(97	)			(97	)			1,856				1,847
										Employee benefits expense								758				653				289				233				588				580				—				—				1,635				1,466
										EBITDA (above)								1,423				1,611				68				75				50				71				(19	)			(13	)			1,522				1,744
										Depreciation								517				529				16				13				50				50				—				—				583				592
										Amortization of intangible assets								241				240				99				94				65				66				—				—				405				400
										Operating income (loss)							$	665			$	842			$	(47	)		$	(32	)		$	(65	)		$	(45	)		$	(19	)		$	(13	)			534				752
																																									Financing costs									335				344
																																									Income before income taxes								$	199			$	408

* 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.

20 | March 31, 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.

TELUS technology solutions capital expenditures include real estate development amounts of $16 (2025 – $8). 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)		March 31, 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		$	2,353			$	2,399
During the 12-month period ending two years hence			935				972
Thereafter			119				127
		$	3,407			$	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		March 31, 2026				December 31, 2025
Customer accounts receivable				$	2,771			$	2,809
Allowance for doubtful accounts		4(a)			(132	)			(130	)
Billed customer accounts receivable, net of allowance for doubtful accounts					2,639				2,679
Accrued receivables – customer					647				658
Billed and unbilled customer accounts receivable, net of allowance for doubtful accounts					3,286				3,337
Accrued receivables – other					468				460
Accounts receivable – current				$	3,754			$	3,797

(c) Contract assets

				Three months
Periods ended March 31 (millions)		Note		2026				2025
Balance, beginning of period				$	864			$	939
Net additions arising from operations					432				378
Amounts billed in the period and thus reclassified to accounts receivable					(449	)			(409	)
Change in impairment allowance, net		4(a)			—				5
Other					2				—
Balance, end of period 1				$	849			$	913
Reconciliation of contract assets presented in the Consolidated statements of financial position – current
Gross contract assets				$	576			$	609
Reclassification to contract liabilities of contracts with contract assets less than contract liabilities		24			(13	)			(17	)
Reclassification from contract liabilities of contracts with contract liabilities less than contract assets		24			(113	)			(123	)
				$	450			$	469

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

  March 31, 2026 | 21

notes to condensed interim consolidated financial statements (unaudited)

7 other income

Periods ended March 31						Three months
(millions)		Note				2026				2025
Lease and other sublease revenue			19			$	4			$	4
Gain on contributions of real estate to joint ventures			21(a)				5				8
Income (loss) from equity accounted investments, net			21				1				—
Investment income, gain on disposal of assets and other							4				17
Changes in provisions related to business combinations			25				10				10
						$	24			$	39

8 employee benefits expense

Periods ended March 31				Three months
(millions)		Note		2026				2025
Employee benefits expense – gross
Wages and salaries				$	1,440			$	1,418
Share-based compensation 1		14			30				50
Pensions – defined benefit		15(a)			13				15
Pensions – defined contribution		15(b)			31				31
Restructuring costs		16(a)			115				57
Employee health and other benefits					60				69
					1,689				1,640
Capitalized internal labour costs, net
Contract acquisition costs		20
Capitalized					(48	)			(35	)
Amortized 2					159				24
Contract fulfilment costs		20
Capitalized					(7	)			(6	)
Amortized					2				2
Property, plant and equipment					(80	)			(80	)
Intangible assets subject to amortization					(80	)			(79	)
					(54	)			(174	)
				$	1,635			$	1,466

	1	For the three-month periods ended March 31, 2026, $2 (2025 – $NIL) of share-based compensation in the TELUS technology solutions segment was included in restructuring costs.
	2	For the three-month periods ended March 31, 2026, $130 (2025 – $NIL) of amortization of costs incurred to obtain contracts with customers was included in restructuring and other costs (see Note 16).

9 financing costs

Periods ended March 31				Three months
(millions)		Note		2026				2025
Interest expense
From transactions that only involve the raising of finance
Long-term debt, excluding lease liabilities and other (secured)
Gross				$	328			$	284
Capitalized 1		17, 18(a)			(3	)			(9	)
Net					325				275
Short-term borrowings and other					13				17
					338				292
From transactions that do not only involve the raising of finance
Long-term debt – lease liabilities		19, 26(h)			43				41
Long-term debt – other (secured)		26(g)			5				6
Employee defined benefit plans net interest		15			3				3
Accretion on provisions		25			8				7
					59				57
					397				349
Other
Foreign exchange					(37	)			—
					360				349
Interest income					(25	)			(5	)
				$	335			$	344
Net interest cost		3		$	335			$	350
Interest expense on long-term debt, excluding lease liabilities and other – capitalized 1					(3	)			(9	)
Employee defined benefit plans net interest					3				3
				$	335			$	344

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.

22 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

10 income taxes

Expense composition and rate reconciliation

Periods ended		Three months
March 31 (millions)		2026				2025
Current income tax expense
For the current reporting period		$	89			$	117
Adjustments recognized in the current period for income taxes of prior periods			—				(5	)
Pillar Two global minimum tax			—				1
			89				113
Deferred income tax expense
Arising from the origination and reversal of temporary differences			(34	)			(6	)
		$	55			$	107

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 March 31 ($ in millions)		2026								2025
Income taxes computed at applicable statutory rates		$	53				26.8	%		$	101				24.8	%
Adjustments recognized in the current period for income taxes of prior periods			—				—				(5	)			(1.2	)
Pillar Two global minimum tax			—				—				1				0.2
(Non-taxable) non-deductible amounts, net			(7	)			(3.6	)			(1	)			(0.2	)
Withholding and other taxes			8				3.9				9				2.2
Losses not recognized			1				0.5				1				0.2
Foreign tax differential			—				—				(1	)			(0.2	)
Other			—				—				2				0.4
Income tax expense per Consolidated statements of income and other comprehensive income		$	55				27.6	%		$	107				26.2	%

  March 31, 2026 | 23

notes to condensed interim consolidated financial statements (unaudited)

11 other comprehensive income

			Three-month period ended March 31, 2025																					Three-month period ended March 31, 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								$	20			$	11															$	201			$	33
Realized (gains) losses reclassified to net income									(6	)			(1	)															(174	)			(26	)
				$	(260	)			14				10			$	4			$	(256	)		$	(214	)			27				7			$	20			$	(194	)
Derivatives used to manage other market risks
Unrealized gains (losses) arising									(18	)			(4	)															(26	)			(7	)
Realized (gains) losses reclassified to net income									(2	)			(1	)															(1	)			—
					(1	)			(20	)			(5	)			(15	)			(16	)			4				(27	)			(7	)			(20	)			(16	)
Total					(261	)			(6	)			5				(11	)			(272	)			(210	)			—				—				—				(210	)
Cumulative foreign currency translation adjustment					169				60				—				60				229				150				41				—				41				191
Item never reclassified to income
Change in measurement of investment financial assets
Unrealized gains (losses) arising									2				—																—				—
Realized gains (losses)									3				1																(6	)			(1	)
					58				5				1				4				62				64				(6	)			(1	)			(5	)			59
Accumulated other comprehensive income (loss)				$	(34	)			59				6				53			$	19			$	4				35				(1	)			36			$	40
Attributable to:
Common Shares				$	(105	)														$	(61	)		$	4															$	40
Non-controlling interests					71																80				—																—
				$	(34	)														$	19			$	4															$	40
Item never reclassified to income
Employee defined benefit plan re-measurements		15(a)							(1	)			—				(1	)											17				4				13
Other comprehensive income								$	58			$	6			$	52											$	52			$	3			$	49

24 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

12 per share amounts

Basic net income per Common Share is calculated by dividing net income attributable to Common Shares by the total weighted average number of Common Shares outstanding during the period. Diluted net income 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 was equal to diluted net income for all periods presented.

Periods ended March 31		Three months
(millions)		2026				2025
Basic total weighted average number of Common Shares outstanding			1,561				1,514
Effect of dilutive securities – Restricted share units			1				2
Diluted total weighted average number of Common Shares outstanding			1,562				1,516

For the three-month periods ended March 31, 2026 and 2025, no outstanding equity-settled restricted share unit awards were excluded in the calculation of diluted income per Common Share. For the three-month periods ended March 31, 2026, 3 million (2025 – 1 million) 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

Three-month periods ended March 31 (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
2025
Quarter 1 dividend		Mar. 11, 2025		$	0.4023			Apr. 1, 2025		$	610

On May 7, 2026, our Board of Directors declared a quarterly dividend of $0.4184 per share on issued and outstanding TELUS Corporation Common Shares payable on July 2, 2026, to holders of record at the close of business on June 10, 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 June 10, 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 periods ended March 31, 2026, eligible shareholders who participated in the plan elected to reinvest dividends declared of $204 million (2025 – $191 million).

  March 31, 2026 | 25

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.

(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.

* 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).

Periods ended March 31 (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)		$	31			$	—			$	31			$	41			$	—			$	41
Employee share purchase plan		(c)			1				(1	)			—				8				(8	)			—
Share option awards		(d)			—				—				—				1				—				1
				$	32			$	(1	)		$	31			$	50			$	(8	)		$	42

1 Within employee benefits expense (see Note 8) for the three-month periods ended March 31, 2026, restricted share units expense of $2 (2025 – $NIL) is included in restructuring costs (see Note 16) of the TELUS technology solutions segment and the balance is presented as share-based compensation.

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

As at		March 31, 2026				December 31, 2025
Restricted share units without market performance conditions
Restricted share units with service conditions only			12,976,258				12,212,381
Notional subset affected by non-market performance conditions			1,229,332				1,148,939
			14,205,590				13,361,320
Restricted share units with market performance conditions
Notional subset affected by relative total shareholder return performance condition			1,423,641				1,330,323
Number of non-vested restricted share units			15,629,231				14,691,643

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

26 | March 31, 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, January 1, 2026
Non-vested			13,361,320				—			$	21.88
Vested			—				53,519			$	23.69
Granted
Initial award			980,097				—			$	18.42
In lieu of dividends			313,975				1,231			$	17.68
Vested			(71,664	)			71,664			$	22.36
Settled
In equity			—				(60,133	)		$	22.54
In cash			—				(13,801	)		$	22.62
Forfeited			(378,138	)			—			$	21.52
Outstanding, March 31, 2026
Non-vested			14,205,590				—			$	21.48
Vested			—				52,480			$	23.58

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 period ended March 31, 2026, of $15 million (2025 – $14 million) were to be reinvested in TELUS Corporation Common Shares acquired by the trustee from Treasury, with a discount 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.

Period ended March 31, 2026		Three months
		Number of share options				Weighted average share option price 1
Outstanding, beginning of period			2,087,608			$	22.48
Granted			1,000,000			$	18.48
Forfeited and other			628,626			$	20.52
Outstanding, end of period			3,716,234			$	20.71
Exercisable, end of period			2,024,235			$	21.86

1 The weighted average remaining contractual life is 4.0 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 close-form option pricing model) are as follows:

Period ended March 31, 2026		Three 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.

  March 31, 2026 | 27

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 March 31				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				$	—			$	(16	)						$	—			$	(18	)
Employees’ contributions					4				—								4				—
Administrative fees					(1	)			—								(1	)			—
					3				(16	)		$	(13	)			3				(18	)		$	(15	)
Financing costs		9
Notional income on plan assets 2 and interest on defined benefit obligations accrued					115				(101	)							107				(96	)
Interest effect on asset ceiling limit					(17	)			—								(14	)			—
					98				(101	)			(3	)			93				(96	)			(3	)
DEFINED BENEFIT (COST) INCLUDED IN NET INCOME 3													(16	)											(18	)
Other comprehensive income		11
Difference between actual results and estimated plan assumptions 4					(63	)			—								53				—
Changes in plan financial assumptions					—				127								—				(50	)
Changes in the effect of limiting net defined benefit plan assets to the asset ceiling					(47	)			—								(4	)			—
					(110	)			127				17				49				(50	)			(1	)
DEFINED BENEFIT (COST) INCLUDED IN COMPREHENSIVE INCOME 3													1												(19	)
AMOUNTS INCLUDED IN OPERATING ACTIVITIES CASH FLOWS
Employer contributions					5				—				5				5				—				5
BENEFITS PAID BY PLANS					(117	)			117				—				(117	)			117				—
PLAN ACCOUNT BALANCES 5
Change in period					(121	)			127				6				33				(47	)			(14	)
Balance, beginning of period					8,258				(8,476	)			(218	)			8,262				(8,452	)			(190	)
Balance, end of period				$	8,137			$	(8,349	)		$	(212	)		$	8,295			$	(8,499	)		$	(204	)
FUNDED STATUS – PLAN SURPLUS (DEFICIT)
Pension plans that have plan assets in excess of defined benefit obligations accrued 6		20		$	8,128			$	(7,888	)		$	240			$	7,440			$	(7,186	)		$	254
Pension plans that have defined benefit obligations accrued in excess of plan assets 7
Funded					9				(245	)			(236	)			855				(1,086	)			(231	)
Unfunded					—				(216	)			(216	)			—				(227	)			(227	)
		27			9				(461	)			(452	)			855				(1,313	)			(458	)
				$	8,137			$	(8,349	)		$	(212	)		$	8,295			$	(8,499	)		$	(204	)

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.

28 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

	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 March 31, 2026, was 5.03% (December 31, 2025 – 4.90%).
	6	Effect of asset ceiling limit at March 31, 2026, was $1,415 (December 31, 2025 – $1,351).
	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

(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 March 31		Three months
(millions)		2026				2025
Union pension plan contributions		$	3			$	3
Other defined contribution pension plans			28				28
		$	31			$	31

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 March 31		Three months
(millions)		2026				2025
Restructuring 1 (b)
Goods and services purchased		$	57			$	34
Employee benefits expense			115				57
			172				91
Other (c)
Goods and services purchased			13				6
Employee benefits expense			130				—
			143				6
Total
Goods and services purchased			70				40
Employee benefits expense			245				57
		$	315			$	97

1 For the three-month period ended March 31, 2026, excludes real estate rationalization-related restructuring net impairments of property, plant and equipment of $4 (2025 – $3), 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 periods ended March 31, 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.

  March 31, 2026 | 29

notes to condensed interim consolidated financial statements (unaudited)

17 property, plant and equipment

				Owned assets																												Right-of-use lease assets (Note 19)
(millions)		Note		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					196				5				9				—				—				201				411				166				70				—				236				647
Assets under construction put into service					(39	)			18				13				—				—				8				—				—				—				—				—				—
Transfers					1,082				—				24				—				—				—				1,106				(1,106	)			—				—				(1,106	)			—
Dispositions, retirements and other					(216	)			(21	)			(19	)			—				—				—				(256	)			(1	)			2				1				2				(254	)
Net foreign exchange differences					1				2				3				—				—				3				9				—				5				—				5				14
Balance as at March 31, 2026				$	39,029			$	4,022			$	1,928			$	85			$	46			$	933			$	46,043			$	1,209			$	2,895			$	81			$	4,185			$	50,228
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					391				41				45				—				1				—				478				31				69				5				105				583
Transfers					324				—				11				—				—				—				335				(335	)			—				—				(335	)			—
Dispositions, retirements and other					(219	)			(24	)			(27	)			—				—				—				(270	)			—				(14	)			—				(14	)			(284	)
Net foreign exchange differences					1				2				3				—				—				—				6				—				3				—				3				9
Balance as at March 31, 2026				$	26,907			$	2,575			$	1,424			$	—			$	2			$	—			$	30,908			$	70			$	1,623			$	25			$	1,718			$	32,626
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 March 31, 2026				$	12,122			$	1,447			$	504			$	85			$	44			$	933			$	15,135			$	1,139			$	1,272			$	56			$	2,467			$	17,602

1 For the three-month period ended March 31, 2026, depreciation includes $4 in respect of impairment of real estate right-of-use lease assets.

As at March 31, 2026, our contractual commitments for the property, plant and equipment acquisitions totalled $219 million over a period ending December 31, 2028 (December 31, 2025 – $184 million over a period ending December 31, 2027).

30 | March 31, 2026  

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, 2				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					—				28				27				210				265				318				583				—				583
Assets under construction put into service					—				286				—				(286	)			—				—				—				—				—
Dispositions, retirements and other (including capitalized interest)		9			(14	)			(215	)			1				—				(228	)			—				(228	)			—				(228	)
Net foreign exchange differences					24				1				5				—				30				—				30				36				66
Balance as at March 31, 2026				$	5,972			$	9,496			$	618			$	441			$	16,527			$	13,535			$	30,062			$	11,361			$	41,423
ACCUMULATED AMORTIZATION
Balance as at January 1, 2026				$	2,503			$	6,533			$	313			$	—			$	9,349			$	—			$	9,349			$	865			$	10,214
Amortization					135				255				15				—				405				—				405				—				405
Dispositions, retirements and other					(18	)			(224	)			—				—				(242	)			—				(242	)			—				(242	)
Net foreign exchange differences					6				1				2				—				9				—				9				5				14
Balance as at March 31, 2026				$	2,626			$	6,565			$	330			$	—			$	9,521			$	—			$	9,521			$	870			$	10,391
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 March 31, 2026				$	3,346			$	2,931			$	288			$	441			$	7,006			$	13,535			$	20,541			$	10,491			$	31,032

1 Accumulated amortization of goodwill of $364 is amortization recorded before 2002, and impairments of $501 (inclusive of net foreign exchange differences of $1) recorded in the year ended December 31, 2025.

2 During the three-month period ended March 31, 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. This change in circumstances, as referenced in Note 5, arose from structural changes in 2026 of our operations associated with the privatization of TELUS International (Cda) Inc. in fiscal 2025. Due to such structural changes, IFRS Accounting Standards require us to 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. Such recoverable amount was determined based on a fair value less costs of disposal method (such method categorized as a Level 3 fair value measure) and 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). We validated the results of the recoverable amount through a market-comparable approach and an analytical review of industry facts and facts that are specific to us.

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. Had growth projections declined in the projection period by more than trivial amounts, or if the discount rate increased by more than a trivial amount, the March 31, 2026, estimate of the recoverable amount of the TELUS digital experience 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 digital experience cash-generating unit is based would not cause its carrying value to 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 digital experience cash-generating unit’s goodwill amount.

  March 31, 2026 | 31

notes to condensed interim consolidated financial statements (unaudited)

As at March 31, 2026, our contractual commitments for intangible asset acquisitions totalled $44 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.

(b) TELUS Health partnership and monetisation strategy

Subsequent to March 31, 2026, we had initiated an active programme to identify potential strategic partners for our TELUS Health business. The monetisation strategy is part of our capital allocation framework and long-term orientation consistent with our approach to value creation.

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.

				Three months
Periods ended March 31 (millions)		Note		2026				2025
Income from subleasing right-of-use lease assets
Co-location sublease revenue included in Operating revenues – service				$	6			$	4
Other sublease revenue included in Other income		7		$	2			$	1
Lease payments 1				$	889			$	233

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		March 31, 2026				December 31, 2025
Pension assets		15		$	240			$	235
Unbilled customer finance receivables		4(a)			568				586
Derivative assets		4(d)			90				40
Deferred income taxes					80				74
Costs incurred to obtain or fulfill contracts with customers					354				370
Investments in real estate joint ventures		21(a)			245				240
Investments in associates		21(b)			199				198
Portfolio investments 1
At fair value through net income					89				78
At fair value through other comprehensive income					688				648
Prepaid maintenance					54				38
Refundable security deposits and other					173				169
				$	2,780			$	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 January 1, 2026		$	701			$	82			$	783
Additions			136				8				144
Amortization 1			(242	)			(3	)			(245	)
Balance as at March 31, 2026		$	595			$	87			$	682
Current		$	302			$	26			$	328
Non-current			293				61				354
		$	595			$	87			$	682

1 For the three-month periods ended March 31, 2026, $130 (2025 – $NIL) of amortization of costs incurred to obtain contracts with customers was included in restructuring and other costs.

32 | March 31, 2026  

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)		March 31, 2026				December 31, 2025
ASSETS
Current assets
Cash and temporary investments, net		$	8			$	6
Other			1				2
			9				8
Non-current assets
Investment property under development			487				466
Promissory notes 1			416				411
			903				877
		$	912			$	885
LIABILITIES AND OWNERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities		$	7			$	5
Non-current liabilities
Long-term debt			27				21
Liabilities			34				26
Owners’ equity
TELUS 2			439				430
Other partners 1			439				429
			878				859
		$	912			$	885

1 Other partners’ equity is gross of $416 (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.

Periods ended March 31		Three months
(millions) 1		2026				2025
Balance, beginning of period		$	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			16				17
Deferred gains on our remaining interests in our real estate contributed			(5	)			(8	)
Cash flows in the current reporting period
Funds repaid to us and earnings distributed			(6	)			(1	)
Balance, end of period		$	242			$	189

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 March 31, 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 March 31, 2026, totalled $31 million (December 31, 2025 – $29 million).

  March 31, 2026 | 33

notes to condensed interim consolidated financial statements (unaudited)

Miovision Technologies Incorporated      

As at, or for the periods ended, ($ in millions)		March 31, 2026				March 31, 2025				December 31, 2025
Statement of financial position 1
Current assets		$	78							$	82
Non-current assets		$	414							$	411
Current liabilities		$	53							$	74
Non-current liabilities		$	55							$	31
Net assets		$	384							$	388
Statement of income and other comprehensive income 1
THREE-MONTH
Revenue and other income		$	41			$	44
Net income (loss)		$	2			$	(11	)
Comprehensive income (loss)		$	(5	)		$	(11	)
Reconciliation of statement of financial position summarized financial information to carrying amounts
Net assets (above)		$	384							$	388
Our interest			43.4	%							43.4	%
Our interest in net assets (our carrying amounts)		$	168							$	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.

Short-term borrowings of $0.9 billion (December 31, 2025 – $0.9 billion) are comprised of amounts advanced to us by the arm’s-length securitization trust; 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)		March 31, 2026				December 31, 2025
Trade accounts payable 1
Supply chain financing – arm’s-length third party has paid supplier		$	18			$	16
Supply chain financing – eligible payable 2			11				11
Amounts that are part of supply chain financing			29				27
Amounts that are not part of supply chain financing			965				955
			994				982
Accrued liabilities			1,282				1,246
Payroll and other employee-related liabilities			534				651
Interest payable			340				389
Indirect taxes payable and other			253				226
		$	3,403			$	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.

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.

34 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

24 advance billings and customer deposits

As at (millions)		March 31, 2026				December 31, 2025
Advance billings		$	888			$	877
Deferred customer activation and connection fees			4				3
Customer deposits			16				13
Contract liabilities			908				893
Other			129				160
		$	1,037			$	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
Periods ended March 31 (millions)		Note		2026				2025
Balance, beginning of period				$	1,161			$	1,102
Revenue deferred in previous period and recognized in current period					(648	)			(631	)
Net additions arising from operations					669				664
Balance, end of period				$	1,182			$	1,135
Current				$	1,034			$	1,010
Non-current		27
Deferred revenues					147				123
Deferred customer activation and connection fees					1				2
				$	1,182			$	1,135
Reconciliation of contract liabilities presented in the Consolidated statements of financial position – current
Gross contract liabilities				$	1,034			$	1,010
Reclassification to contract assets of contracts with contract liabilities less than contract assets		6(c)			(113	)			(123	)
Reclassification from contract assets of contracts with contract assets less than contract liabilities		6(c)			(13	)			(17	)
				$	908			$	870

  March 31, 2026 | 35

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 January 1, 2026				$	301			$	110			$	233			$	142			$	175			$	961
Additions					—				110				2				8				61				181
Reversals					—				—				(1	)			—				(13	)			(14	)
Uses					(1	)			(115	)			—				(5	)			(53	)			(174	)
Interest effects 4		9			4				—				3				1				—				8
Effects of foreign exchange, net 4					—				—				3				—				—				3
Balance as at March 31, 2026				$	304			$	105			$	240			$	146			$	170			$	965
Current				$	15			$	100			$	174			$	41			$	86			$	416
Non-current					289				5				66				105				84				549
Balance as at March 31, 2026				$	304			$	105			$	240			$	146			$	170			$	965

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.

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.

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, 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.

36 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

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			March 31, 2026				December 31, 2025
Senior unsecured
TELUS Corporation senior notes		(b)			$	17,664			$	18,191
TELUS Corporation commercial paper		(c)				1,643				952
Other		(e)				299				295
Junior unsecured
TELUS Corporation junior subordinated notes		(f)				7,322				7,250
Secured
Other		(g)				489				537
						27,417				27,225
Lease liabilities		(h)				2,714				3,314
Long-term debt					$	30,131			$	30,539
Current					$	4,092			$	3,102
Non-current						26,039				27,437
Long-term debt					$	30,131			$	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.

  March 31, 2026 | 37

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

$800 million 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.

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:

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:

38 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

		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 June 2025 and December 2025 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 March 31, 2026, we had $1.6 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 4.2%, maturing through September 2026.

(d) TELUS Corporation credit facilities

As at March 31, 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.

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)		March 31, 2026				December 31, 2025
Net available		$	1,107			$	1,798
Backstop of commercial paper			1,643				952
Gross available revolving $2.75 billion bank credit facility		$	2,750			$	2,750

  March 31, 2026 | 39

notes to condensed interim consolidated financial statements (unaudited)

As at March 31, 2026, we had letters of credit outstanding of $67 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)

As at March 31, 2026, other (unsecured) included a US$200 million promissory note issued by a wholly owned subsidiary to a private equity investor, which was senior in right of payment to all of our existing and future subordinated indebtedness, and was effectively subordinated to all existing and future obligations of, or guaranteed by, our subsidiaries.

The promissory note was redeemable, in whole but not in part, at our option and, after May 13, 2030, also at the holder’s option. Subsequent to March 31, 2026, the promissory note was repaid and a prepayment premium of $51 million was recorded.

The promissory note was issued in exchange for preferred shares that had been issued by the wholly owned subsidiary to the 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. 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.

(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.

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

$1,006.413

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%.

40 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

	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 5.4% as at March 31, 2026.

  March 31, 2026 | 41

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 March 31, 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 1 (Note 19)				Total				excluding leases				Leases (Note 19)				(Receive) 2				Pay				Total				Leases (Note 19)				Total
2026 (remainder of year)		$	837			$	261			$	1,098			$	1,996			$	28			$	(1,643	)		$	1,625			$	2,006			$	44			$	3,148
2027			50				335				385				1,533				33				(1,533	)			1,459				1,492				51				1,928
2028			1,952				291				2,243				—				34				—				—				34				42				2,319
2029			1,404				221				1,625				—				38				—				—				38				34				1,697
2030			1,652				174				1,826				—				34				(976	)			962				20				23				1,869
2031 - 2035			5,251				398				5,649				1,255				29				(3,485	)			3,364				1,163				67				6,879
Thereafter			6,270				538				6,808				5,480				—				(2,661	)			2,204				5,023				2				11,833
Future cash outflows in respect of composite long-term debt principal repayments			17,416				2,218				19,634				10,264				196				(10,298	)			9,614				9,776				263				29,673
Future cash outflows in respect of associated interest and like carrying costs 3			11,641				649				12,290				10,147				71				(3,504	)			3,556				10,270				84				22,644
Undiscounted contractual maturities (Note 4(b))		$	29,057			$	2,867			$	31,924			$	20,411			$	267			$	(13,802	)		$	13,170			$	20,046			$	347			$	52,317

1 Where applicable, cash flows reflect foreign exchange rates as at March 31, 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 March 31, 2026.

42 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

27 other long-term liabilities

As at (millions)		Note		March 31, 2026				December 31, 2025
Contract liabilities		24		$	147			$	132
Other					2				2
Deferred revenues					149				134
Pension benefit liabilities		15			452				453
Other post-employment benefit liabilities					95				98
Derivative liabilities		4(d)			110				167
Deferred capital expenditure government grants					66				66
Other					42				34
					914				952
Deferred customer activation and connection fees		24			1				3
				$	915			$	955

28 owners’ equity

(a) TELUS Corporation Common Share capital – general

Our authorized share capital is as follows:

As at			March 31, 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 March 31, 2026, we had reserved for issuance from Treasury: approximately 32 million Common Shares under a dividend reinvestment and share purchase plan (see Note 13(b)); approximately 53 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.

The following table sets out the statement of income and other comprehensive income amounts allocated to non-controlling interests.

For the three-month period ended March 31 (millions)		2025
Net income (loss)		$	(20	)
Other comprehensive income			9
Comprehensive income		$	(11	)

1 Amounts for periods in the year ended December 31, 2025, reflect amounts allocated to non-controlling interests prior to privatization on October 31, 2025.

Summarized financial information

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

For the period ended March 31 (millions)		2025
Statement of income and other comprehensive income 1, 2
THREE-MONTH
Revenue and other income		$	962
Net income (loss)		$	(35	)
Comprehensive income (loss)		$	(12	)
Statement of cash flows 1, 2
THREE-MONTH
Cash provided by operating activities		$	59
Cash used by investing activities		$	(39	)
Cash used by financing activities		$	(76	)

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.

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.

  March 31, 2026 | 43

notes to condensed interim consolidated financial statements (unaudited)

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.

The following table sets out the Consolidated statements of income and other comprehensive income amounts allocated to non-controlling interests.

For the period ended March 31, 2026 (millions)		Three-month
Net income and comprehensive income		$	8

As at March 31, 2026, the accumulated non-controlling interest totalled $802 million (December 31, 2025 – $799 million). Partnership distributions to the non-controlling interest for the three-month period ended March 31, 2026, were $5 million.

Summarized financial information

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

As at, or for the period 1 ended, (millions)		March 31, 2026				December 31, 2025
Statement of financial position 2
Current assets		$	46			$	33
Non-current assets		$	678			$	658
Current liabilities		$	38			$	37
Non-current liabilities		$	323			$	314
Statement of income and other comprehensive income 2
THREE-MONTH
Revenue and other income		$	46
Net income 3		$	16
Comprehensive income 3		$	16
Statement of cash flows 1
THREE-MONTH
Cash provided by operating activities		$	33
Cash used by investing activities 4		$	(10	)
Cash provided by financing activities		$	(16	)

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 Includes additions (excluding additions from leases) to property, plant and equipment of $9 and change in associated non-cash investing working capital of $(5).

(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.

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.

44 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

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 have applied to dismiss the class action for want of prosecution.

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.

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.

  March 31, 2026 | 45

notes to condensed interim consolidated financial statements (unaudited)

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:

		Three months
Periods ended March 31 (millions)		2026				2025
Short-term benefits		$	4			$	4
Post-employment pension 1 and other benefits			2				2
Share-based compensation 2			12				13
		$	18			$	19

	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.

Three-month periods ended March 31 ($ in millions)		Number of units				Notional value 1				Grant-date fair value 1
2026
TELUS Corporation
Restricted share units			80,038			$	2			$	2
Share options			1,000,000				1				1
						$	3			$	3
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 of share options and the grant date fair value has been 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 March 31, 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.

46 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

(b) Transactions with defined benefit pension plans

During the three-month period ended March 31, 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 $3 million (2025 – $3 million) 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

				Three months
Periods ended March 31 (millions)		Note		2026				2025
OPERATING ACTIVITIES
Net change in non-cash operating working capital
Current
Accounts receivable				$	39			$	191
Inventories					24				63
Contract assets					7				(4	)
Costs incurred to obtain or fulfill contracts with customers		20			85				(17	)
Prepaid maintenance and other					(144	)			(106	)
Unrealized change in held for trading derivatives					6				(2	)
Accounts payable and accrued liabilities					(46	)			(249	)
Advance billings and customer deposits		24			(17	)			(12	)
Provisions		25			37				6
					(9	)			(130	)
Non-current
Contract assets					1				21
Unbilled customer finance receivables					18				2
Unrealized change in held for trading derivatives					(11	)			—
Costs incurred to obtain or fulfill contracts with customers		20			16				(14	)
Prepaid maintenance					(16	)			5
Refundable security deposits and other					(4	)			—
Provisions		25			(44	)			(84	)
Contract liabilities		24, 27			13				10
Other post-employment benefit liabilities					(3	)			5
Other long-term liabilities					8				(5	)
					(22	)			(60	)
				$	(31	)		$	(190	)
INVESTING ACTIVITIES
Cash payments for capital assets, excluding spectrum licences
Capital asset additions
Gross capital expenditures
Property, plant and equipment		17		$	(647	)		$	(601	)
Intangible assets subject to amortization		18			(265	)			(201	)
					(912	)			(802	)
Additions arising from leases		17			236				215
Additions arising from non-monetary transactions and other					25				—
Capital expenditures 1		5			(651	)			(587	)
Change in associated non-cash investing working capital					(106	)			(67	)
				$	(757	)		$	(654	)

1 Includes capital expenditures of $9 (2025 – $NIL) in respect of our Terrion subsidiary (see Note 28(b)).

  March 31, 2026 | 47

notes to condensed interim consolidated financial statements (unaudited)

(b) Changes in liabilities arising from financing activities

						Three-month period ended March 31, 2025																								Three-month period ended March 31, 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			$	—			$	(605	)		$	—			$	610			$	610			$	649			$	—			$	(649	)		$	—			$	653			$	653
Dividends reinvested in shares from Treasury			—				—				203				—				(203	)			—				—				—				219				—				(219	)			—
		$	605			$	—			$	(402	)		$	—			$	407			$	610			$	649			$	—			$	(430	)		$	—			$	434			$	653
Short-term borrowings		$	922			$	394			$	(2	)		$	11			$	—			$	1,325			$	920			$	10			$	(21	)		$	11			$	—			$	920
Net-settled derivatives used to manage currency risk arising from U.S. dollar-denominated short-term borrowings – liability (asset)			2				9				(2	)			(15	)			—				(6	)			—				23				(9	)			(14	)			—				—
		$	924			$	403			$	(4	)		$	(4	)		$	—			$	1,319			$	920			$	33			$	(30	)		$	(3	)		$	—			$	920

48 | March 31, 2026  

notes to condensed interim consolidated financial statements (unaudited)

						Three-month period ended March 31, 2025																								Three-month period ended March 31, 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			$	—			$	(800	)		$	(4	)		$	4			$	21,277			$	18,191			$	—			$	(600	)		$	68			$	5			$	17,664
TELUS Corporation commercial paper			1,404				1,462				(750	)			—				—				2,116				952				1,360				(697	)			28				—				1,643
Other (unsecured)			—				—				—				—				—				—				295				—				—				4				—				299
TELUS Corporation junior subordinated notes			—				—				—				—				—				—				7,250				—				—				70				2				7,322
Other (secured)			588				—				(8	)			—				—				580				537				—				(11	)			—				(37	)			489
Lease liabilities			2,882				—				(193	)			12				201				2,902				3,314				—				(845	)			1				244				2,714
Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset)			(68	)			770				(756	)			28				(39	)			(65	)			71				697				(697	)			(166	)			(17	)			(112	)
TELUS Communications Inc. debentures			200				—				—				—				—				200
TELUS International (Cda) Inc. credit facility			1,703				201				(253	)			(2	)			—				1,649
			28,786				2,433				(2,760	)			34				166				28,659				30,610				2,057				(2,850	)			5				197				30,019
To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt			—				(770	)			770				—				—				—				—				(697	)			697				—				—				—
		$	28,786			$	1,663			$	(1,990	)		$	34			$	166			$	28,659			$	30,610			$	1,360			$	(2,153	)		$	5			$	197			$	30,019
Partnership distributions payable to non-controlling interests		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	(5	)		$	—			$	5			$	—

  March 31, 2026 | 49

Exhibit 99.2

TELUS CORPORATION

Management’s discussion and analysis

2026 Q1

TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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 the nature, timing and benefits of our asset monetization and deleveraging plans, and our financing plans (including our targeted dividend payments). 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 risks and the assumptions underlying our forward-looking statements are described in additional detail in Section 9 General trends, outlook and assumptions, and regulatory developments and proceedings and Section 10 Risks and risk management in our 2025 annual Management’s discussion and analysis (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, or of our assumptions.

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, 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; and

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

· 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 for our services, and that regulation could affect future implementation of AI.

  Page 2 of 45

TELUS Corporation – Management’s discussion and analysis – 2026 Q1

· 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.

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, especially following the pandemic. 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 joint venture developments 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 45

TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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 we will resume increases under our dividend growth program, or 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.

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 45

TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Management’s discussion and analysis (MD&A)

May 8, 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.	Corporate priorities for 2026	11
4.	Capabilities	13		4.1 Principal markets addressed and competition
		13		4.2 Operational resources
		14		4.3 Liquidity and capital resources
		15		4.4 Changes in internal control over financial reporting and limitations on scope of design
5.	Discussion of operations	16		5.1 General
		17		5.2 Summary of consolidated quarterly results and trends
		18		5.3 Consolidated operations
		20		5.4 TELUS technology solutions segment
		25		5.5 TELUS health segment
		26		5.6 TELUS digital experience segment
6.	Changes in financial position	29
7.	Liquidity and capital resources	30		7.1 Overview
		31		7.2 Cash provided by operating activities
		31		7.3 Cash used by investing activities
		32		7.4 Cash used by financing activities
		33		7.5 Liquidity and capital resource measures
		34		7.6 Credit facilities
		35		7.7 Short-term borrowings
		35		7.8 Credit ratings
		35		7.9 Financial instruments and contingent liabilities
		36		7.10 Outstanding share information
		36		7.11 Transactions between related parties
8.	Accounting matters	36		8.1 Critical accounting estimates and judgments
		36		8.2 Accounting policy developments
9.	Update to general trends, outlook and assumptions, and regulatory developments and proceedings	37		9.1 Communications industry regulatory developments and proceedings
10.	Risks and risk management	40
11.	Definitions and reconciliations	40		11.1 Non-GAAP and other specified financial measures
		45		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 45

TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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 provide a discussion of our consolidated financial position and financial performance for the three-month period ended March 31, 2026, and should be read together with our March 31, 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 May 8, 2026.

In this MD&A, unless otherwise indicated, results for the first quarter of 2026 (three-month period ended March 31, 2026) are compared with results for the first quarter of 2025 (three-month period ended March 31, 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 (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 leading position in customer service excellence and loyalty, and demonstrating our commitment to provide 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 and consumer goods 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 45

TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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.

  Page 7 of 45

TELUS Corporation – Management’s discussion and analysis – 2026 Q1

		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 annual 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
														March			March						March			March
		2026			2026			2026			2026			20264			20254			2026			2026			2025			2026			2026			2027			2028
Canada		1.2	5		1.2			2.3	5		2.6			6.7			6.7			6.6			236			214			242			765			750			750
B.C.		1.3	6		1.2			2.1	6		2.5			6.7			6.1			6.2			31			31			43			n/a			n/a			n/a
Alberta		1.8	6		2.3			2.1	6		2.6			6.5			7.1			6.6			41			53			49			n/a			n/a			n/a
Ontario		1.0	6		0.8			2.1	6		2.5			7.6			7.5			7.5			53			39			63			n/a			n/a			n/a
Quebec		1.1	6		0.8			2.3	6		2.8			5.4			5.7			5.4			84			58			57			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 April 17, 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 15, 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, March 2026 and March 2025, respectively.
5	Source: Bank of Canada Monetary Policy Report, April 2026.
6	Source: British Columbia Ministry of Finance, Budget and Fiscal Plan, 2026/27 – 2028/29, February 17, 2026; Alberta Ministry of Treasury Board and Finance, Fiscal Plan 2026 – 29, February 26, 2026; Ontario Ministry of Finance, 2026 Ontario Budget: A Plan to Protect Ontario, March 26, 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.

1.3 Consolidated highlights

Leadership changes

On May 8, 2026, we announced that, after a 30-year tenure, Doug French, Chief Financial Officer, will retire on June 30, 2026. Following a comprehensive succession planning process, Gopi Chande has been appointed as Chief Financial Officer, effective July 1, 2026.

Long-term debt

On January 16, 2026, we completed 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 described in our 2025 annual MD&A.

On May 8, 2026, we partially redeemed $500 million aggregate principal amount of the outstanding 2.75% Notes, Series CZ due July 8, 2026, of which there was $800 million aggregate principal amount outstanding. The partial redemption was also funded through proceeds from our December 2025 offering of fixed-to-fixed rate junior subordinated notes described in our 2025 annual MD&A.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Consolidated highlights

Three-month periods ended March 31 ($ millions, except footnotes and unless noted otherwise)		2026				2025				Change
Consolidated statements of income
Service revenues			4,484				4,443				1	%
Equipment revenues			505				575				(12	)%
Other income			24				39				(38	)%
Operating revenues and other income			5,013				5,057				(1	)%
Operating income1			534				752				(29	)%
Income before income taxes			199				408				(51	)%
Net income			144				301				(52	)%
Net income attributable to Common Shares			136				321				(58	)%
Adjusted Net income2			356				388				(8	)%
Earnings per share (EPS) ($)
Basic EPS			0.09				0.21				(57	)%
Adjusted basic EPS2			0.23				0.26				(12	)%
Diluted EPS			0.09				0.21				(57	)%
Dividends declared per Common Share3 ($)			0.4184				0.4023				4	%
Basic weighted-average Common Shares outstanding (millions)			1,561				1,514				3	%

Three-month periods ended March 31 ($ millions, except footnotes and unless noted otherwise)		2026				2025				Change
Consolidated statements of cash flows
Cash provided by operating activities			1,050				1,077				(3	)%
Cash used by investing activities			(1,144	)			(602	)			90	%
Acquisitions			—				(11	)			(100	)%
Capital expenditures4			(651	)			(587	)			11	%
Cash used by financing activities			(1,225	)			(330	)			n/m
Other highlights
Telecom subscriber connections5 (thousands)			17,722				16,729				6	%
Healthcare lives covered6 (millions)			169.6				76.5				n/m
Earnings before interest, income taxes, depreciation and amortization2 (EBITDA)			1,522				1,744				(13	)%
EBITDA margin2 (%)			30.4				34.5				(4.1	) pts.
Restructuring and other costs			315				97				n/m
Adjusted EBITDA2			1,837				1,841				—	%
Adjusted EBITDA margin2 (%)			36.6				36.4				0.2	pts.
Free cash flow2			583				488				19	%
Net debt to EBITDA – excluding restructuring and other costs2 (times)			3.5				3.9				(0.4	)

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	In December 2025, we announced that we would pause our dividend growth while continuing to pay a quarterly dividend at the most recent level of $0.4184 per share.
4	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.
5	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.
6	During the second quarter of 2025, we added 79.3 million healthcare lives covered as a result of the Workplace Options® acquisition and a prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly.

Operating highlights

· Consolidated Operating revenues and other income decreased by $44 million in the first quarter of 2026.

Service revenues increased by $41 million in the first quarter of 2026, reflecting: (i) growth in TELUS Health service revenues, reflecting business acquisitions and growth in payor and provider solutions; (ii) subscriber base growth across mobile, residential internet, security and automation and TV; and (iii) higher residential internet revenue per customer. These factors were partially offset by: (i) mobile phone average revenue per subscriber per month (ARPU) declining at a decelerating rate; (ii) lower external revenues in TELUS Digital attributable to the strengthening of the Canadian dollar against the U.S. dollar; (iii) lower business-to-business (B2B) data services revenue; (iv) lower agriculture and consumer goods services revenues as a result of the planned divestiture of non-core assets; and (v) declines in fixed legacy voice revenue as a result of technological substitution.

Equipment revenues decreased by $70 million in the first quarter of 2026. This decrease was driven by lower mobile equipment revenues due to a reduction in contracted volumes and lower fixed premises equipment sales, partially offset by the impact of higher-value smartphones in the sales mix.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Other income decreased by $15 million in the first quarter of 2026, largely due to the non-recurrence of net gains from the planned divestiture of non-core assets in the comparative period and lower gains on real estate projects, 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 $218 million in the first quarter of 2026. (See Section 5.3 Consolidated operations for additional details.)

EBITDA decreased by $222 million in the first quarter 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 period. Restructuring and other costs increased by $218 million in the first quarter of 2026, as a result of cost efficiency and effectiveness programs, in addition to costs associated with the privatization of TELUS Digital.

Consolidated Adjusted EBITDA decreased by $4 million in the first quarter of 2026 which reflects varied results across our reportable segments. TTech Adjusted EBITDA was relatively unchanged in the first quarter of 2026. This was driven by: (i) lower Other income; (ii) mobile phone ARPU declining at a decelerating rate; (iii) legacy decline attributable to technological substitution; (iv) lower mobile equipment margins; (v) lower agriculture and consumer goods margins as a result of the planned divestiture of non-core assets; (vi) lower B2B data services revenue; and (vii) increased costs of subscription-based licences and cloud usage. These factors were partially offset by: (i) subscriber base growth across mobile, residential internet, security and automation and TV; (ii) cost reduction efforts, including workforce reductions, synergies achieved from the privatization of TELUS Digital, and reductions in marketing and administrative costs; (iii) lower bad debt expense; and (iv) higher residential internet revenue per customer. TELUS Health recorded an 11% Adjusted EBITDA increase in the first quarter of 2026, reflecting revenue growth and the ongoing realization of acquisition integration synergies. TELUS Digital Adjusted EBITDA increased by 2% in the first quarter of 2026, and Adjusted EBITDA margin increased by 0.2 percentage points in the first quarter of 2026. (See Section 5.3 Consolidated operations for additional details.)

· Income before income taxes decreased by $209 million in the first quarter of 2026, reflecting a net decline in Operating income and lower Financing costs. (See Financing costs in Section 5.3.)

· Income tax expense decreased by $52 million in the first quarter of 2026. The effective income tax rate increased from 26.2% to 27.6% in the first quarter of 2026, primarily attributable to an increased portion of income earned in jurisdictions with higher statutory income tax rates.

· Net income attributable to Common Shares decreased by $185 million in the first quarter of 2026, reflecting the net after-tax impacts of a decline in Operating income and lower Financing costs.

Adjusted Net income excludes the effects of restructuring and other costs, income tax-related adjustments and real estate rationalization-related restructuring impairments. Adjusted Net income decreased by $32 million in the first quarter of 2026.

· Basic EPS decreased by $0.12 in the first quarter of 2026, reflecting the net after-tax impacts of a decline in Operating income and lower 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, income tax-related adjustments and real estate rationalization-related restructuring impairments. Adjusted basic EPS decreased by $0.03 in the first quarter of 2026.

· Dividends declared per Common Share were $0.4184 in the first quarter of 2026, compared to dividends declared per share of $0.4023 in the first quarter of 2025. On May 7, 2026, the Board declared a second quarter dividend of $0.4184 per share on our issued and outstanding Common Shares, payable on July 2, 2026, to shareholders of record at the close of business on June 10, 2026, as we have paused our dividend growth program. This compares to the quarterly dividend of $0.4163 per share declared one year earlier (see Section 4.3 Liquidity and capital resources).

· During the 12-month period ended on March 31, 2026, our total telecom subscriber connections increased by 993,000 or 6%. This reflected growth of 2% in mobile phone subscribers, 21% in connected device subscribers and 5% in internet subscribers (each excluding first quarter 2026 subscriber base adjustments). (See Section 5.4 TELUS technology solutions segment for additional details.)

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Liquidity and capital resource highlights

· Cash provided by operating activities decreased by $27 million in the first quarter of 2026, primarily driven by: (i) lower EBITDA; and (ii) an increase in interest paid. These factors were partially offset by: (i) a decrease in income taxes paid, net of recoveries received; and (ii) an increase in interest received. (See Section 7.2 Cash provided by operating activities.)

· Cash used by investing activities increased by $542 million in the first quarter of 2026, largely attributable to cash payments for 3800 MHz spectrum licences, in addition to greater cash payments for capital assets. (See Section 7.3 Cash used by investing activities.)

· Cash used by financing activities increased by $895 million in the first quarter of 2026, as amounts drawn under an arm’s-length securitization trust were greater in the first quarter of 2025. In addition, we had lower issuances of long-term debt and greater redemptions and repayment of long-term debt in the first quarter of 2026. (See Section 7.4 Cash used by financing activities.)

· Net debt to EBITDA – excluding restructuring and other costs ratio was 3.5 times at March 31, 2026, down from 3.9 times at March 31, 2025. The decrease was largely due to the effect of the decrease in net debt levels, primarily due to the junior subordinated notes equity credit and the equity issued by our Terrion™ subsidiary to a non-controlling interest, partially offset by spectrum auctions and business acquisitions; net debt levels were already elevated in the current and comparative periods due to our spectrum acquisitions and business acquisitions. As at March 31, 2026, the acquisition of spectrum licences increased the ratio by approximately 0.6 and business acquisitions increased the ratio by approximately 0.1, while the junior subordinated notes equity credit decreased the ratio by 0.5 and equity issued by our Terrion 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 increased by $95 million in the first quarter of 2026, largely driven by a decrease in net income taxes paid which included incremental income taxes in connection with issuing subsidiary equity, partially offset by higher capital expenditures. There is no industry-aligned definition for free cash flow.

2. Core business and strategy

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

3. Corporate priorities for 2026

Our annual corporate priorities are used to advance our long-term strategic imperatives and address near-term opportunities and challenges. The following table provides a discussion of activities and initiatives that relate to our 2026 corporate priorities.

Strengthening our Customers First culture to increase client satisfaction and loyalty

·       Our TELUS Community Boards entrust local leaders to make recommendations on the allocation of grants in their communities. These grants support registered charities that offer health, education or technology programs to help youth. Since 2005, our 21 TELUS Community Boards and the TELUS Friendly Future Foundation^® (the Foundation) have supported 27.1 million youth in need across Canada and around the world, by granting more than $126 million in cash donations to over 11,000 charitable initiatives.

·       Working in close partnership with our TELUS Community Boards in Canada, the Foundation distributes grants to charities that promote education, health and well-being for youth across the country. In addition, through the TELUS Student Bursary program, the Foundation provides bursaries for post-secondary students who face financial barriers and are committed to making a difference in their communities. During the first quarter of 2026, the Foundation provided support for 148,000 youth by granting nearly $2.6 million: over $2.4 million in cash donations to 180 Canadian registered charities, community partners and projects, and more than $120,000 in student bursaries. Since its inception in 2018, the Foundation has directed $70.3 million in cash donations and bursary grants, helping 18.1 million youth reach their full potential. For more information about the TELUS Student Bursary program, please visit friendlyfuture.com/bursary.

·       Throughout the first quarter of 2026, we continued to leverage our TELUS Connecting for Good^® programs to support marginalized individuals by enhancing their access to both technology and healthcare, as well as our TELUS Wise^® program to improve digital literacy and online safety knowledge. Since the launch of these programs, they have provided support for 1.7 million Canadians.

·       During the quarter, we welcomed over 1,900 new households to our Internet for Good^® program. Since we launched the program in 2016, we have connected 74,000 households, making low-cost high-speed internet available to 231,600 low-income seniors and members of low-income families, persons with disabilities, government-assisted refugees and youth leaving foster care.

·       Our Mobility for Good^® program offers free or low-cost smartphones and mobility plans to youth aging out of foster care, low-income seniors and families, as well as government-assisted refugees and Indigenous women at risk of, or experiencing violence. During the first three months of 2026, we added more than 2,100 marginalized individuals to the program. Since we launched Mobility for Good in 2017, the program has provided support for 74,800 people.

·       Through TELUS Health for Good^®, we are removing healthcare barriers for low-income and marginalized Canadians. During the first quarter of 2026, we supported over 25,000 patient visits. Since the program launched in 2014, we have delivered 378,800 primary care and outreach visits across 27 Canadian communities. In the quarter, we also connected 180 low-income seniors with discounted access to TELUS Health Medical Alert personal security devices. To date, TELUS Health for Good has helped 1,800 low-income seniors maintain their independence.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

·       During the quarter, our Tech for Good program provided access to personalized assessments, recommendations and training on mobile devices, computers, laptops and related assistive technology and/or access to discounted mobile plans for 1,900 Canadians living with disabilities, enabling them to make improvements in their quality of life and independence. Since its inception in 2017, we have provided support for 19,900 individuals in Canada who are living with disabilities, through the program and/or the TELUS Wireless Accessibility Discount.

·       During the first three months of 2026, over 40,800 individuals in Canada and around the world participated in TELUS Wise workshops and events to improve their digital literacy and online safety knowledge, bringing the total cumulative number of participants to 961,600 since the program launched in 2013.

·       Throughout 2026, we continued to grow our global leadership in environmental sustainability. Key milestones included:

·       In January, we were named in the Corporate Knights 2026 Global 100 Most Sustainable Corporations in the World for the 14th time since its introduction in 2005.

·       In January, we received an A- leadership rating for our sustainability efforts from the Carbon Disclosure Project (CDP) for Climate Change.

·       In February, we announced that we were the first Canadian telecom to achieve a target of sourcing effectively 100% of electricity for our global operations from renewable or low-emitting sources as of December 31, 2025.

·       In February, we set a new corporate climate target, advancing our ambition to reach Net Zero by 2040.

·       In February, we were named in the 2026 Carbon Clean200, a global list of the top companies leading the sustainable economy, released by Corporate Knights and As You Sow.

·       In April, we published our 2025 Sustainability and ESG report. Please visit telus.com/sustainability.

Accelerating product development and intensity to yield differentiated growth

·       In February 2026, TELUS Health announced a strategic agreement with Abu Dhabi Health Data Services (ADHDS), part of the M42 group, to introduce new personalized employee well-being solutions in the United Arab Emirates (UAE) that combine wellness, precision medicine and AI-driven healthcare innovations. ADHDS will work with TELUS Health on an employee and family assistance program (EFAP) that currently includes more than 40 modules addressing emotional, lifestyle and well-being support. Working together, the organizations will combine digital infrastructure, AI innovation, and clinical expertise to strengthen healthcare across the UAE and the broader region.

·       In February 2026, we announced a new level of partnership with Photonic, building on our 2024 collaboration announcement. Together, TELUS and Photonic achieved a significant technical milestone, a world-first quantum teleportation of its kind, proving that our existing fibre optic infrastructure can reliably carry quantum information. This successful quantum teleportation marks a critical milestone in quantum secure internet globally.

·       In February 2026, we officially welcomed the Dairy Health & Management Services team to TELUS Agriculture & Consumer Goods. This strategic integration will enable us to strengthen our presence as a key global provider of animal health and production solutions, while expanding our footprint in the dairy market.

·       In February 2026, TELUS Agriculture advanced a multi-year commercial partnership with leading science and technology company Merck, employing industry-leading technology in rebate and program management. This partnership is a critical foundation in our enterprise solutions.

·       In independent global analytics company Opensignal’s 2026 Canada Mobile Network Experience Report released in February 2026, we were recognized as winning outright for 5G Gaming Experience and Time on 5G, and tying for first place in eight other categories. These results make us Canada’s most awarded network ever by Opensignal.

·       In March 2026, we signed a commercial agreement with AST SpaceMobile, Inc. to bring space-based direct-to-cellular service to places it has never reached before across Canada. Planned for late 2026, our customers will be able to send text messages, make voice calls and use data in Canada’s most remote locations using standard mobile devices. Subsequent to March 31, 2026, we made an equity investment in AST SpaceMobile.

·       In March 2026, we announced plans to collaborate with Xanadu Quantum Technologies Inc. on advancing sovereign quantum computing infrastructure in Canada, and to explore the development of a quantum data centre integrated with our secure, Canadian-controlled, sovereign infrastructure. This initiative will provide Canadian enterprises, researchers, and government organizations with secure access to next-generation quantum computing capabilities.

Leveraging our AI capabilities and sovereign AI compute leadership to drive elevated profitability

·       In January 2026, we announced an expanded partnership with RingCentral, Inc. to integrate sophisticated AI capabilities into TELUS Business Connect^®. By embedding these intelligent tools across customer-facing workflows and internal operations, the upgraded platform empowers organizations to automate routine tasks, sharpen their decision-making, and elevate client interactions.

·       In January, TELUS Digital’s GenAI solution Fuel iX™ Fortify was named an Innovative Product Winner in the 2026 BIG Innovation Awards. The global awards program, run by the Business Intelligence Group, recognizes companies, products and leaders that are transforming industries through applied innovation, intelligent platforms and measurable real-world impact.

·       In February 2026, we announced a collaboration with L-SPARK to provide Canadian startups and innovators with access to our Sovereign AI Factory. This strategic partnership will democratize access to sovereign AI compute, enabling Canadian startups to scale domestically while competing globally.

·       In February 2026, we launched our new AI Chatbot for Trade Promotion Management (TPM) Global for TELUS Consumer Goods. This tool allows our customers to pull customer trends, inventory and sales data to deliver real-time, actionable insights, such as performance drivers, trends and growth opportunities for promotions.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

·       In March 2026, in partnership with Fortanix, we announced a new Confidential AI solution, built on NVIDIA, that enables organizations to train and deploy AI on their most sensitive data with cryptographic proof that it remains securely within Canadian jurisdiction. This solution empowers Canadian organizations to unlock secure AI at scale with cryptographic proof of protection on sovereign infrastructure.

·       In March 2026, TELUS Digital showcased production-ready AI-driven customer experience (CX) and network optimization solutions for telecommunications providers at Mobile World Congress 2026 in Barcelona, Spain. We demonstrated how telecommunications operators can transform AI pilots into enterprise-scale deployments that deliver measurable business value through innovative use cases.

·       In March, TELUS Digital won an Artificial Intelligence Excellence Award for Agent Quality Insights, our AI-powered quality assurance solution for contact centre environments. Awarded by the Business Intelligence Group in the Natural Language Processing category, this recognition spotlights the companies and leaders moving AI beyond experimentation and into practical, accountable deployment.

·       In the first quarter of 2026, our AI-enabling capabilities, anchored by TELUS Digital and with early contribution from TELUS AI Factories, delivered growth of 22%.

Simplifying our business operations and enabling digital transformation to optimize efficiencies and effectiveness

·       During the first quarter of 2026, we realized, and continued to progress towards, our synergy objectives within our reportable segments, TELUS technology solutions, TELUS health and TELUS digital experience.

4. Capabilities

The forward-looking statements in this section, including statements regarding our operational and investment plans in Section 4.2 and our dividend growth program and our financial objectives in Section 4.3, 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 March 31, 2026, we invested approximately $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 March 31, 2026, our 4G LTE technology covered 99% of Canada’s population, consistent with March 31, 2025. We have continued to invest in the roll-out of our LTE advanced technology, which covered 96% of Canada’s population at March 31, 2026, up from approximately 96% at March 31, 2025. Furthermore, our 5G network covered over 90% of Canada’s population at March 31, 2026, up from over 87% at March 31, 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 March 31, 2026, over 3.7 million households and businesses in B.C., Alberta and Eastern Quebec were connected to fibre-optic cable. This is up from approximately 3.5 million households and businesses in the first 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.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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 under our multi-year dividend growth program

·       In December 2025, we announced that we would pause our dividend growth while continuing to pay a quarterly dividend at the most recent level of $0.4184 per share. 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 guideline is 60 to 75% of free cash flow on a prospective basis. (See Section 7.5 Liquidity and capital resource measures.) There can be no assurance that we will resume dividend growth increases. (See 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 first quarter of 2026 totalled $0.4184 per share, compared to dividends declared in the first quarter of 2025 totalling $0.4023 per share. On May 7, 2026, the Board elected to declare a second quarter dividend of $0.4184 per share, payable on July 2, 2026, to shareholders of record at the close of business on June 10, 2026. This compares to the quarterly dividend of $0.4163 per share declared one year earlier.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

·       Our dividend reinvestment and share purchase (DRISP) plan trustee acquired shares from Treasury 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. This applied to the dividends payable on April 1, 2026 to shareholders of record on March 11, 2026. During the first quarter of 2026, for the dividends paid on January 2, 2026, our DRISP plan trustee acquired from Treasury approximately 12 million dividend reinvestment Common Shares for $219 million. The DRISP participation rate for these dividends, calculated as the DRISP investment of $219 million (including the employee share purchase plan) as a percentage of gross dividends, was approximately 34%. For the dividends paid on April 1, 2026, the DRISP participation rate, calculated as the DRISP investment of $219 million (including the employee share purchase plan) as a percentage of gross dividends, was approximately 34%, unchanged from the January 2, 2026 participation rate even with the step down.

Purchase Common Shares

·       During the three-month period ended March 31, 2026, we did not repurchase or cancel any shares pursuant to our NCIB.

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 $1.6 billion at March 31, 2026, all of which was denominated in U.S. dollars (US$1.2 billion), compared to $1.0 billion (US$0.7 billion) at December 31, 2025, and $2.1 billion (US$1.5 billion) at March 31, 2025.

·       Proceeds from securitized trade receivables and unbilled customer finance receivables were $0.9 billion at March 31, 2026, compared to $0.9 billion at December 31, 2025, and $1.3 billion at March 31, 2025 (see Section 7.7). Funding under the agreement 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 May 8, 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 2.2 to 2.7 times – As measured at March 31, 2026, this ratio was 3.5 times, outside of the objective range, primarily due to the acquisition of spectrum licences (as spectrum is our largest indefinite-life asset) and business acquisitions. Given the cash demands of the 600 MHz auction held in 2019, the 3500 MHz auction held in 2021, the 3800 MHz auction held in 2023 (payments made in fiscal 2024) and the upcoming auction for millimetre wave spectrum, the assessment of the objective and timing of return to the objective range remains to be determined; however, it is our intent to return to a ratio of circa 2.7 times in the medium term (following the spectrum auctions in 2021 and 2023, and the upcoming auction for millimetre wave spectrum), consistent with our long-term strategy. We have an objective of achieving a ratio of circa 3.0 times in 2027. (See Section 7.5 Liquidity and capital resource measures.)

·       Common Share dividend payout ratio of 60 to 75% of free cash flow on a prospective basis – Our objective range is on a prospective 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, and is presented on a retrospective basis for illustrative purposes in evaluating our objective range. As at March 31, 2026, the ratio was 73%, which is within the objective range. (See Section 7.5 Liquidity and capital resource measures.)

·       Generally maintain a minimum of $1 billion in available liquidity – As at March 31, 2026, our available liquidity¹ was approximately $3.1 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 and limitations on scope of design

Changes in internal control over financial reporting

For the three-month period ended March 31, 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.

Limitations on scope of design

In our assessment of the scope of the disclosure controls and procedures and internal control over financial reporting, we have excluded the controls, policies and procedures of Workplace Options, which was acquired on May 1, 2025. This scope limitation is in accordance with National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, which allows an issuer to limit its design of internal controls over financial reporting and disclosure controls and procedures to exclude the controls, policies and procedures of a company acquired not more than 365 days before the end of the financial period to which the certificate relates.

For the three-month period ended March 31, 2026, Workplace Options contributed revenues of $48 million and generated a net loss of $19 million, based on information in source systems for the consolidated legal entity. As at March 31, 2026, the current assets and current liabilities of Workplace Options represented approximately less than 1% of TELUS’ consolidated current assets and current liabilities, respectively, while the non-current assets and non-current liabilities of Workplace Options represented approximately 2% and 1% of TELUS’ consolidated non-current assets and non-current liabilities, respectively.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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).

The TELUS technology solutions segment (TTech) 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; for 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.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

5.2 Summary of consolidated quarterly results and trends

Summary of quarterly results

($ millions, except per share amounts)		2026 Q1				2025 Q4				2025 Q3				2025 Q2				2025 Q1				2024 Q4				2024 Q3				2024 Q2
Operating revenues
Service revenues			4,484				4,571				4,507				4,491				4,443				4,507				4,410				4,342
Equipment revenues			505				659				560				540				575				824				632				558
Other income			24				31				39				51				39				50				57				74
Operating revenues and other income			5,013				5,261				5,106				5,082				5,057				5,381				5,099				4,974
Operating expenses
Goods and services purchased1			1,856				2,059				1,942				1,858				1,847				2,136				1,868				1,825
Employee benefits expense1			1,635				1,456				1,411				1,545				1,466				1,475				1,475				1,473
Depreciation and amortization			988				1,052				1,011				1,004				992				1,011				968				994
Impairment of goodwill			—				—				—				500				—				—				—				—
Total operating expenses			4,479				4,567				4,364				4,907				4,305				4,622				4,311				4,292
Operating income			534				694				742				175				752				759				788				682
Financing costs before gain on purchase of long-term debt and long-term debt prepayment premium			335				371				328				373				344				321				479				382
Gain on purchase of long-term debt			—				(81	)			(222	)			—				—				—				—				—
Long-term debt prepayment premium			—				—				48				—				—				—				—				—
Income (loss) before income taxes			199				404				588				(198	)			408				438				309				300
Income taxes			55				114				157				47				107				118				52				79
Net income (loss)			144				290				431				(245	)			301				320				257				221
Net income attributable to Common Shares			136				292				493				7				321				358				280				228
Net income per Common Share:
Basic EPS			0.09				0.19				0.32				—				0.21				0.24				0.19				0.15
Adjusted basic EPS2			0.23				0.20				0.24				0.22				0.26				0.25				0.28				0.25
Diluted EPS			0.09				0.19				0.32				—				0.21				0.24				0.19				0.15
Dividends declared per Common Share			0.4184				0.4184				0.4163				0.4163				0.4023				0.4023				0.3891				0.3891
Additional information:
EBITDA			1,522				1,746				1,753				1,679				1,744				1,770				1,756				1,676
Restructuring and other costs			315				93				109				133				97				68				86				121
Adjusted EBITDA			1,837				1,839				1,862				1,812				1,841				1,838				1,842				1,797
Cash provided by operating activities			1,050				1,130				1,493				1,166				1,077				1,077				1,432				1,388
Free cash flow			583				574				611				535				488				534				568				481

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, higher real estate rationalization activity 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 internet, TV, and security and automation 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.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

The trend of general year-over-year increases in Financing costs reflects greater long-term debt outstanding and increases in effective interest rates attributable to both floating-rate debt and recent fixed-rate issuances, primarily associated with our investments in spectrum licences and business acquisitions, as well as PureFibre technology. 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 March 31 ($ in millions)		2026				2025				Change
Operating revenues
Service			4,484				4,443				1	%
Equipment			505				575				(12	)%
Operating revenues (arising from contracts with customers)			4,989				5,018				(1	)%
Other income			24				39				(38	)%
Operating revenues and other income			5,013				5,057				(1	)%

Consolidated Operating revenues and other income decreased by $44 million in the first quarter of 2026.

· Service revenues increased by $41 million in the first quarter of 2026, largely as a result of: (i) growth in TELUS Health service revenues, reflecting business acquisitions and growth in payor and provider solutions; (ii) subscriber base growth across mobile, residential internet, security and automation and TV; and (iii) higher residential internet revenue per customer. These factors were partially offset by: (i) mobile phone ARPU declining at a decelerating rate; (ii) lower external revenues in TELUS Digital attributable to the strengthening of the Canadian dollar against the U.S. dollar; (iii) lower business-to-business (B2B) data services revenue; (iv) lower agriculture and consumer goods services revenues as a result of the planned divestiture of non-core assets; and (v) declines in fixed legacy voice revenue as a result of technological substitution.

· Equipment revenues decreased by $70 million in the first quarter of 2026. This decrease was driven by lower mobile equipment revenues due to a reduction in contracted volumes and lower fixed premises equipment sales, partially offset by the impact of higher-value smartphones in the sales mix.

· Other income decreased by $15 million in the first quarter of 2026, largely due to the non-recurrence of net gains from the planned divestiture of non-core assets in the comparative period and lower gains on real estate projects, partially offset by higher net reversals of provisions related to business combinations.

Operating expenses

Three-month periods ended March 31 ($ in millions)		2026				2025				Change
Goods and services purchased			1,856				1,847				—	%
Employee benefits expense			1,635				1,466				12	%
Depreciation			583				592				(2	)%
Amortization of intangible assets			405				400				1	%
Operating expenses			4,479				4,305				4	%

Consolidated operating expenses increased by $174 million in the first quarter of 2026. See Adjusted EBITDA below for further details on Goods and services purchased and Employee benefits expense.

· Depreciation decreased by $9 million in the first quarter of 2026, largely due to lower asset retirement activity.

· Amortization of intangible assets increased by $5 million in the first quarter of 2026, arising from business acquisitions and higher software impairments.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Operating income

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
TTech EBITDA1 (see Section 5.4)			1,423				1,611				(12	)%
TELUS Health EBITDA1 (see Section 5.5)			68				75				(10	)%
TELUS Digital EBITDA1 (see Section 5.6)			50				71				(29	)%
Eliminations			(19	)			(13	)			46	%
EBITDA			1,522				1,744				(13	)%
Depreciation and amortization (discussed above)			(988	)			(992	)			—	%
Operating income (consolidated earnings (loss) before interest and income taxes (EBIT))			534				752				(29	)%

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

Operating income decreased by $218 million in the first quarter of 2026, while EBITDA decreased by $222 million. In addition to the drivers discussed within Adjusted EBITDA below, EBITDA reflected net changes in restructuring and other costs during the three-month period. Restructuring and other costs were $218 million higher in the first quarter of 2026, as a result of cost efficiency and effectiveness programs, in addition to costs associated with the privatization of TELUS Digital.

Adjusted EBITDA

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
TTech Adjusted EBITDA1 (see Section 5.4)			1,682				1,690				—	%
TELUS Health Adjusted EBITDA1 (see Section 5.5)			93				84				11	%
TELUS Digital Adjusted EBITDA1 (see Section 5.6)			81				80				2	%
Eliminations			(19	)			(13	)			46	%
Adjusted EBITDA			1,837				1,841				—	%

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

Consolidated Adjusted EBITDA decreased by $4 million in the first quarter of 2026. This reflects varied results across our reportable segments.

TTech Adjusted EBITDA was relatively unchanged in the first quarter of 2026. This was driven by: (i) lower Other income; (ii) mobile phone ARPU declining at a decelerating rate; (iii) legacy decline attributable to technological substitution; (iv) lower mobile equipment margins; (v) lower agriculture and consumer goods margins as a result of the planned divestiture of non-core assets; (vi) lower B2B data services revenue; and (vii) increased costs of subscription-based licences and cloud usage. These factors were partially offset by: (i) subscriber base growth across mobile, residential internet, security and automation and TV; (ii) cost reduction efforts, including workforce reductions, synergies achieved from the privatization of TELUS Digital, and reductions in marketing and administrative costs; (iii) lower bad debt expense; and (iv) higher residential internet revenue per customer. See Section 5.4 for further details.

TELUS Health recorded an 11% increase in Adjusted EBITDA in the first quarter of 2026, reflecting revenue growth and the ongoing realization of acquisition integration synergies. See Section 5.5 for further details.

TELUS Digital Adjusted EBITDA increased by 2% in the first quarter of 2026, and Adjusted EBITDA margin increased by 0.2 percentage points in the first quarter of 2026. See Section 5.6 for further details.

Financing costs

Three-month periods ended March 31 ($ in millions)		2026				2025				Change
From transactions that only involve the raising of finance
Interest on long-term debt, excluding lease liabilities and other (secured) – gross			328				284				15	%
Interest on long-term debt, excluding lease liabilities and other (secured) – capitalized			(3	)			(9	)			(67	)%
Interest on short-term borrowings and other			13				17				(24	)%
			338				292				16	%
From transactions that do not only involve the raising of finance
Interest on long-term debt – lease liabilities			43				41				5	%
Interest on long-term debt – other (secured)			5				6				(17	)%
Employee defined benefit plans net interest			3				3				—	%
Interest accretion on provisions			8				7				14	%
			59				57				4	%
Interest expense			397				349				14	%
Foreign exchange gains			(37	)			—				n/m
Interest income			(25	)			(5	)			n/m
Financing costs			335				344				(3	)%

Financing costs decreased by $9 million in the first quarter of 2026, mainly due to the following factors:

· Interest expense increased by $48 million in the first quarter of 2026, largely as a result of:

· An increase of $44 million in gross interest expense on long-term debt, excluding lease liabilities and other (secured) in the first quarter of 2026. This was largely a reflection of an increase in average long-term debt in addition to an increase in the effective interest rate. Our weighted average interest rate on long-term debt (excluding commercial paper, TELUS bank credit facilities, the revolving components of the repaid TELUS International (Cda) Inc. credit facility, lease liabilities and other long-term debt) was 4.77% at March 31, 2026, compared to 4.40% one year earlier. (See Long-term debt issued and Redemptions and repayment of long-term debt in Section 7.4.)

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

· Foreign exchange gains were $37 million higher in the first quarter 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 increased by $20 million in the first quarter of 2026, primarily as a result of higher interest on income tax refunds.

Income taxes

Three-month periods ended March 31 ($ in millions, except tax rates)		2026				2025				Change
Income taxes computed at applicable statutory rates (%)			26.8				24.8				2.0	pts.
Adjustments recognized in the current period for income taxes of prior periods (%)			—				(1.2	)			1.2	pts.
Pillar Two global minimum tax (%)			—				0.2				(0.2	) pts.
(Non-taxable) non-deductible amounts, net (%)			(3.6	)			(0.2	)			(3.4	) pts.
Withholding and other taxes (%)			3.9				2.2				1.7	pts.
Losses not recognized (%)			0.5				0.2				0.3	pts.
Foreign tax differential (%)			—				(0.2	)			0.2	pts.
Other (%)			—				0.4				(0.4	) pts.
Effective tax rate (%)			27.6				26.2				1.4	pts.
Income taxes computed at applicable statutory rates			53				101				(48	)%
Adjustments recognized in the current period for income taxes of prior periods			—				(5	)			(100	)%
Pillar Two global minimum tax			—				1				(100	)%
(Non-taxable) non-deductible amounts, net			(7	)			(1	)			n/m
Withholding and other taxes			8				9				(11	)%
Losses not recognized			1				1				—	%
Foreign tax differential			—				(1	)			(100	)%
Other			—				2				(100	)%
Income taxes			55				107				(49	)%

Total income tax expense decreased by $52 million in the first quarter of 2026. The effective tax rate increased from 26.2% to 27.6% in the first quarter of 2026, primarily attributable to a change in income mix.

Comprehensive income

Three-month periods ended March 31 ($ in millions)		2026				2025				Change
Net income			144				301				(52	)%
Other comprehensive income (net of income taxes):
Items that may subsequently be reclassified to income			41				49				(16	)%
Items never subsequently reclassified to income			8				3				n/m
Comprehensive income			193				353				(45	)%

Comprehensive income decreased by $160 million in the first quarter of 2026, largely reflecting a decrease in Net income. 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

The historical trend over the past eight quarters in mobile network revenue primarily reflects the deceleration of growth in immigration, which has limited subscriber growth, along with domestic ARPU declines attributable to larger data allotments at given price points, and persistent retail competition. Over this period, ARPU 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. As a partial offset, we continue to see growth in our mobile phone subscriber base, reflecting strong customer retention that has helped mitigate the impact of decelerating immigration growth, as well as an increase in Internet of Things (IoT) connections.

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 and drive increased adoption of bring-your-own-device (BYOD) plans that is 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.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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.

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. Nonetheless, 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, which hampered subscription growth; however, our agriculture and consumer goods business demonstrated organic improvement throughout 2025. The decline since the second quarter of 2025 was a result of the planned divestiture of non-core assets. With our global team and cloud-based solutions, we are able to serve a diverse client base, including growers, producers, agronomists, advisors, processors and retailers, by enabling more effective and agile decision-making that can address changing consumer demands, improve profitability and generate a better flow of information across the value chain. This improves the safety and sustainability of our outputs and drives efficiencies in the way we produce, distribute and consume food and consumer goods.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

TTech operating indicators¹

At March 31		2026				2025				Change
Subscriber connections (thousands):
Mobile phone2			10,318				10,137				2	%
Connected device3			4,596				3,877				19	%
Internet4			2,808				2,715				3	%
Total telecom subscriber connections			17,722				16,729				6	%
LTE population coverage5 (millions)			36.7				36.7				—	%
5G population coverage5 (millions)			33.4				32.4				3	%
Fibre optic cable population coverage (millions)			3.7				3.5				6	%

Three-month periods ended March 31		2026				2025				Change
Mobile phone gross additions (thousands)			428				339				26	%
Subscriber connection net additions (losses) (thousands):
Mobile phone			12				20				(40	)%
Connected device			229				148				55	%
Internet			21				21				—	%
Total telecom subscriber connection net additions			262				189				39	%
Mobile phone ARPU, per month2,6 ($)			56.56				57.13				(1.0	)%
Mobile phone churn, per month2,7 (%)			1.35				1.06				0.29	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 428,000 in the first quarter of 2026, reflecting an increase of 89,000. This increase was attributable to heightened promotional activity leading to elevated customer switching.

● Our mobile phone churn rate was 1.35% in the first quarter of 2026, compared to 1.06% in the first quarter of 2025. The increase was largely as a result of customer switching decisions in response to continuing marketing and promotional price competition.

● Mobile phone net additions were 12,000 in the first quarter of 2026, a decrease of 8,000, reflecting an increase in mobile phone churn rate, partly offset by an increase in gross additions.

● Mobile phone ARPU was $56.56 in the first quarter of 2026, a decrease of $0.57 or 1.0%, 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 229,000 in the first quarter of 2026, an increase of 81,000, reflecting growth in gross additions from customers in the transportation and connectivity industries, partially offset by an increase in deactivations.

● Internet net additions were 21,000 in the first quarter of 2026, unchanged compared to the first quarter of 2025.

Operating revenues and other income – TTech segment

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
Mobile network revenue			1,750				1,732				1	%
Mobile equipment and other service revenues			474				524				(10	)%
Fixed data services1			1,175				1,168				1	%
Fixed voice services			161				170				(5	)%
Fixed equipment and other service revenues			124				143				(13	)%
Agriculture and consumer goods services			88				98				(10	)%
Operating revenues (arising from contracts with customers)			3,772				3,835				(2	)%
Other income			12				39				(69	)%
External Operating revenues and other income			3,784				3,874				(2	)%
Intersegment revenues			6				6				—	%
TTech Operating revenues and other income			3,790				3,880				(2	)%

1 Excludes agriculture and consumer goods services.

TTech Operating revenues and other income decreased by $90 million in the first quarter of 2026.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Mobile network revenue increased by $18 million or 1% in the first quarter of 2026, largely due to growth in our mobile phone subscriber base, supported by ARPU declining at a decelerating rate.

Mobile equipment and other service revenues decreased by $50 million in the first quarter of 2026, due to a reduction in contracted volumes, partially offset by the impact of higher-value smartphones in the sales mix.

Fixed data services revenues increased by $7 million in the first quarter of 2026, driven by residential internet subscriber base and revenue per customer growth, and growth in our security and automation and TV subscriber bases. These factors were partially offset by lower B2B data services revenue.

Fixed voice services revenues decreased by $9 million in the first quarter of 2026, reflecting the ongoing decline in legacy voice revenues as a result of technological substitution and shifts in consumer purchasing decisions. This was partially mitigated by the effects of our successful customer retention efforts.

Fixed equipment and other service revenues decreased by $19 million in the first quarter of 2026, driven primarily by lower premises equipment sales.

Agriculture and consumer goods services revenues decreased by $10 million in the first quarter of 2026, largely as a result of the planned divestiture of non-core assets, representing the final period of impact from the prior year, alongside unfavourable foreign exchange rate effects attributable to the strengthening of the Canadian dollar against the U.S. dollar compared to the same period in the prior year. This was partially offset by organic growth in animal agriculture.

Other income decreased by $27 million in the first quarter of 2026, largely due to 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, as well as lower gains on real estate projects.

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 March 31 ($ in millions)		2026				2025				Change				2026				2025  (restated)				Change				2026				2025 (restated)				Change
Revenues
Service			1,778				1,757				1	%			1,490				1,504				(1	)%			3,268				3,261				—	%
Equipment			446				499				(11	)%			58				75				(23	)%			504				574				(12	)%
Operating revenues (arising from contracts with customers)			2,224				2,256				(1	)%			1,548				1,579				(2	)%			3,772				3,835				(2	)%
Expenses
Direct expenses			691				737				(6	)%			475				474				—	%			1,166				1,211				(4	)%
Direct contribution			1,533				1,519				1	%			1,073				1,105				(3	)%			2,606				2,624				(1	)%

1 Includes agriculture and consumer goods services.

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. TTech direct contribution decreased by $18 million or 1% in the first quarter of 2026.

The direct contribution from TTech mobile products and services increased by $14 million in the first quarter of 2026, reflecting stronger mobile network revenue and subscriber base growth. These factors were partially offset by a decline in mobile equipment margin from lower contracted volumes, in addition to mobile phone ARPU declining at a decelerating rate.

The direct contribution from TTech fixed products and services decreased by $32 million in the first quarter of 2026, primarily driven by legacy decline attributable to technological substitution, lower agriculture and consumer goods margins driven by the planned divestiture of non-core assets, and lower B2B data services revenue. These factors were partially offset by continued internet subscriber growth and greater revenue per customer, security and automation subscriber growth, and TV programming savings. 

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Operating expenses – TTech segment

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
Goods and services purchased1			1,609				1,616				—	%
Employee benefits expense1			758				653				16	%
TTech operating expenses			2,367				2,269				4	%

1 Includes restructuring and other costs.

TTech operating expenses increased by $98 million in the first quarter of 2026. See TTech Adjusted EBITDA below for further details. 

EBITDA – TTech segment

Three-month periods ended March 31 ($ in millions, except margins)		2026				2025 (restated)				Change
EBITDA			1,423				1,611				(12	)%
Add restructuring and other costs included in EBITDA			259				79				n/m
Adjusted EBITDA			1,682				1,690				—	%
EBITDA margin1 (%)			37.6				41.5				(3.9)	pts.
Adjusted EBITDA margin1 (%)			44.4				43.6				0.8	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 $188 million or 12% in the first quarter of 2026. In addition to the drivers discussed within TTech Adjusted EBITDA below, EBITDA also reflected an increase in restructuring and other costs of $180 million in the first quarter of 2026, as a result of cost efficiency and effectiveness programs, in addition to costs associated with the privatization of TELUS Digital.

TTech Adjusted EBITDA decreased by $8 million in the first quarter of 2026, reflecting: (i) lower Other income; (ii) mobile phone ARPU declining at a decelerating rate; (iii) legacy decline attributable to technological substitution; (iv) lower mobile equipment margins; (v) lower agriculture and consumer goods margins as a result of the planned divestiture of non-core assets; (vi) lower B2B data services revenue; and (vii) increased costs of subscription-based licences and cloud usage. These factors were partially offset by: (i) subscriber base growth across mobile, residential internet, security and automation and TV; (ii) cost reduction efforts, including workforce reductions, synergies achieved from the privatization of TELUS Digital, and reductions in marketing and administrative costs; and (iii) lower bad debt expense.

TTech Adjusted EBITDA margin increased by 0.8 percentage points in the first quarter of 2026. This improvement was largely the result of our cost efficiency and effectiveness programs, as described above. 

Adjusted EBITDA less capital expenditures – TTech segment

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
Adjusted EBITDA			1,682				1,690				—	%
Capital expenditures			(580	)			(515	)			13	%
Adjusted EBITDA less capital expenditures1			1,102				1,175				(6	)%

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

TTech Adjusted EBITDA less capital expenditures decreased by $73 million in the first quarter of 2026. See Section 7.3 for further discussion of capital expenditures. 

EBIT – TTech segment

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
EBITDA			1,423				1,611				(12	)%
Depreciation			(517	)			(529	)			(2	)%
Amortization of intangible assets			(241	)			(240	)			—	%
EBIT1			665				842				(21	)%

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

TTech EBIT decreased by $177 million in the first quarter of 2026, in line with the decrease in EBITDA. TTech depreciation decreased by $12 million in the first quarter of 2026, largely attributable to lower asset retirement activity. TTech amortization was relatively unchanged in the first quarter of 2026.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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 continued organic growth, driven by increased adoption and expansion of our digital health solutions and the growing member base across our health services, which 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. Growth in 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. 

TELUS Health operating indicator

At March 31		2026				2025				Change
Healthcare lives covered1 (millions)			169.6				76.5				n/m

1 During the second quarter of 2025, we added 79.3 million healthcare lives covered as a result of the Workplace Options acquisition and a prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly.

● Healthcare lives covered were 169.6 million as of the end of the first quarter of 2026, an increase of 93.1 million over the past 12 months, primarily reflecting the addition of 79.3 million lives covered from our May 2025 acquisition of Workplace Options and a prospective change to the definition of healthcare lives covered to include clients who utilize TELUS Health services indirectly. Organically, healthcare lives covered increased mainly reflecting robust growth in our EFAP across all of our operating regions, in addition to the ongoing demand for virtual solutions.

Operating revenues and other income – TELUS health segment

Three-month periods ended March 31 ($ in millions)		2026				2025				Change
Health services			522				470				11	%
Health equipment			1				1				—	%
Operating revenues (arising from contracts with customers)			523				471				11	%
Other income			1				—				n/m
External Operating revenues and other income			524				471				11	%
Intersegment revenues			2				2				—	%
TELUS Health Operating revenues and other income			526				473				11	%

TELUS Health Operating revenues and other income increased by $53 million in the first quarter of 2026.

Across TELUS Health, the reported rate of revenue growth was negatively impacted by the strengthening of the Canadian dollar against the U.S. dollar compared to the same period in the prior year.

Our health services revenues increased by $52 million in the first quarter of 2026, driven by: (i) global business acquisitions in employer solutions and retirement and benefits solutions, including the acquisition of Workplace Options in May 2025; 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. This was offset by an organic decline in retirement and benefits solutions and in EFAP.

Health equipment revenues were unchanged in the first quarter of 2026.

Other income increased by $1 million in the first quarter of 2026.

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 March 31 ($ in millions)		2026				2025 (restated)				Change
Revenues
Service			522				470				11	%
Equipment			1				1				—	%
Operating revenues (arising from contracts with customers)			523				471				11	%
Expenses
Direct expenses			237				214				11	%
Direct contribution			286				257				11	%

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.

The direct contribution from TELUS Health increased by $29 million in the first quarter of 2026, reflecting revenue growth, as discussed in the health services revenues section.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Operating expenses – TELUS health segment

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
Goods and services purchased1			169				165				2	%
Employee benefits expense1			289				233				24	%
TELUS Health operating expenses			458				398				15	%

1 Includes restructuring and other costs.

TELUS Health operating expenses increased by $60 million in the first quarter of 2026, in line with revenue growth. See TELUS Health direct contribution above and TELUS Health Adjusted EBITDA below for further details.

EBITDA – TELUS health segment

Three-month periods ended March 31 ($ in millions, except margins)		2026				2025 (restated)				Change
EBITDA			68				75				(10	)%
Add restructuring and other costs included in EBITDA			25				9				n/m
Adjusted EBITDA			93				84				11	%
EBITDA margin1 (%)			12.9				15.8				(2.9)	pts.
Adjusted EBITDA margin1 (%)			17.7				17.8				(0.1)	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 $7 million or 10% in the first quarter of 2026. TELUS Health Adjusted EBITDA increased by $9 million or 11% in the first quarter of 2026, reflecting revenue growth, as well as the ongoing realization of acquisition integration synergies. These factors were partially offset by higher indirect costs related to: (i) global business acquisitions; (ii) the scaling of our digital and security capabilities, inclusive of digital transformation; and (iii) higher regional marketing costs. The difference between the growth rates of EBITDA and Adjusted EBITDA is attributable to higher restructuring and other costs in the first quarter of 2026 related to cost efficiency and effectiveness programs.

TELUS Health Adjusted EBITDA margin decreased by 0.1 percentage points in the first quarter of 2026, relatively unchanged compared to the first quarter of 2025. 

Adjusted EBITDA less capital expenditures – TELUS health segment

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
Adjusted EBITDA			93				84				11	%
Capital expenditures			(53	)			(44	)			20	%
Adjusted EBITDA less capital expenditures1			40				40				—	%

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

TELUS Health Adjusted EBITDA less capital expenditures were unchanged in the first quarter of 2026. See Section 7.3 for further discussion of capital expenditures. 

EBIT – TELUS health segment

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
EBITDA			68				75				(10	)%
Depreciation			(16	)			(13	)			23	%
Amortization of intangible assets			(99	)			(94	)			5	%
EBIT1			(47	)			(32	)			47	%

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

TELUS Health EBIT decreased by $15 million in the first quarter of 2026. TELUS Health depreciation increased by $3 million in the first quarter of 2026, driven by depreciation of real estate from our 2025 business acquisitions. TELUS Health amortization increased by $5 million in the first quarter of 2026, largely as a result of amortization related to business acquisitions, which are foundational to TELUS Health’s global expansion.

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 have continued to increase year-over-year, comprising approximately 13% of total TELUS Digital revenues.

Goods and services purchased and Employee benefits expense increased, reflecting: (i) the expansion of our TELUS Digital team member base, which led to an increase in training costs to meet ongoing customer requirements, as well as the growing complexity of requirements from both existing and new customers; (ii) restructuring and other costs related to cost efficiency programs due to client ramp-downs in certain regions; (iii) changes in external labour requirements to support the growth in our digital services business; (iv) changes in our crowdsource-enabled workforce to support our AI and data solutions service line; and (v) rising software licensing costs associated with our growing team member base.

Depreciation and amortization remained 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.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Operating revenues and other income – TELUS digital experience segment

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
Operating revenues (arising from contracts with customers)			694				712				(3	)%
Other income			11				—				n/m
External Operating revenues and other income			705				712				(1	)%
Intersegment revenues			108				102				6	%
TELUS Digital Operating revenues and other income			813				814				—	%

TELUS Digital Operating revenues and other income decreased by $1 million in the first quarter of 2026.

Our Operating revenues (arising from contracts with customers) decreased by $18 million in the first quarter of 2026, primarily attributable to: (i) the strengthening of the Canadian dollar against the U.S. dollar, partially offset by the weakening of the Canadian dollar against the European euro compared to the same period in the prior year, which resulted in an overall unfavourable foreign currency impact on our TELUS Digital operating results; and (ii) decreases in services provided to existing clients in our trust and safety service line, particularly from a certain technology client, and our AI and data solutions service line, particularly from a certain technology client. These decreases were partially offset by: (i) revenue growth from business acquisitions; and (ii) an increase in service volume within our digital solutions service line.

Other income increased by $11 million in the first quarter of 2026, 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.

The increase in intersegment revenues in the first quarter of 2026 reflects the competitive benefits TELUS derives from the lower cost structure in the TELUS digital experience segment, while maintaining control over the quality of the associated services delivered and, on a consolidated basis, retaining the margin that a third-party vendor would otherwise earn.

Operating expenses – TELUS digital experience segment

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
Goods and services purchased1			175				163				7	%
Employee benefits expense1			588				580				1	%
TELUS Digital operating expenses			763				743				3	%

1 Includes restructuring and other costs.

TELUS Digital operating expenses increased by $20 million in the first quarter of 2026. See TELUS Digital Adjusted EBITDA below for further details. 

EBITDA – TELUS digital experience segment

Three-month periods ended March 31 ($ in millions, except margins)		2026				2025 (restated)				Change
EBITDA			50				71				(29	)%
Add restructuring and other costs included in EBITDA			31				9				n/m
Adjusted EBITDA			81				80				2	%
EBITDA margin1 (%)			6.2				8.7				(2.5	) pts.
Adjusted EBITDA margin1 (%)			10.0				9.8				0.2	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 $21 million or 29% in the first quarter of 2026. TELUS Digital Adjusted EBITDA increased by $1 million or 2% in the first quarter of 2026, as Adjusted EBITDA margin increased by 0.2 percentage points, reflecting a stabilization of operating expenses. The decrease in EBITDA was primarily due to: (i) restructuring and other costs related to cost efficiency programs associated with the privatization of TELUS Digital and costs related to client ramp-down from a service delivery centre out of Europe; and (ii) lower operating revenues. These factors were partially offset by higher other income resulting from a reversal of a provision related to a business combination. 

Adjusted EBITDA less capital expenditures – TELUS digital experience segment

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
Adjusted EBITDA			81				80				2	%
Capital expenditures			(37	)			(41	)			(10	)%
Adjusted EBITDA less capital expenditures1			44				39				13	%

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

TELUS Digital Adjusted EBITDA less capital expenditures increased by $5 million in the first quarter of 2026, primarily due to lower real estate expenditures in Europe and Asia-Pacific. See Section 7.3 for further discussion of capital expenditures.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

EBIT – TELUS digital experience segment

Three-month periods ended March 31 ($ in millions)		2026				2025 (restated)				Change
EBITDA			50				71				(29	)%
Depreciation			(50	)			(50	)			—	%
Amortization of intangible assets			(65	)			(66	)			(2	)%
EBIT1			(65	)			(45	)			44	%

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

TELUS Digital EBIT decreased by $20 million in the first quarter of 2026, in line with the decrease in EBITDA. 

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

6. Changes in financial position

Financial position at:		Mar. 31		Dec. 31
($ millions)		2026		2025		Change			Change includes:
Current assets
Cash and temporary investments, net		1,302		2,621		(1,319	)		See Section 7 Liquidity and capital resources
Accounts receivable		3,754		3,797		(43	)		A decrease primarily driven by lower accounts receivable in our dealer and retailer channels due to reduced handset sales volumes
Income and other taxes receivable		235		173		62			Instalments to date are more than the expense
Inventories		458		482		(24	)		A decrease primarily driven by a reduction in inventories at our dealer and retail channels, partially offset by timing of inventory in transit
Contract assets		450		457		(7	)		Refer to description in non-current contract assets
Costs incurred to obtain or fulfill contracts with customers		328		413		(85	)		A decrease driven by lower commissions
Prepaid maintenance and other		565		421		144			An increase primarily driven by the prepayment of maintenance contracts, statutory employee benefits and licensing fees
Current derivative assets		75		8		67			An increase in the notional amount of hedging items.
Current liabilities
Short-term borrowings		920		920		—			See Note 22 of the interim consolidated financial statements
Accounts payable and accrued liabilities		3,403		3,494		(91	)		A decrease primarily reflecting a reduction in payroll and other employee-related liabilities, as well as interest payable, partially offset by an increase in indirect taxes payable. See Note 23 of the interim consolidated financial statements
Income and other taxes payable		164		141		23			Instalments to date are less than the expense
Dividends payable		653		649		4			Effect of an increase in the number of shares outstanding
Advance billings and customer deposits		1,037		1,053		(16	)		A decrease primarily due to lower inventories across our dealer and retail channels. See Note 24 of the interim consolidated financial statements
Provisions		416		300		116			An increase primarily resulting from the reclassification of long-term written put options
Current maturities of long-term debt		4,092		3,102		990			An increase driven by the reclassification of US$600 million 2.80% US Dollar Notes, an increase in commercial paper outstanding, and the reclassification of a US$200 million promissory note; partially offset by the redemption of $600 million Notes, Series CV, and a decrease in lease liabilities
Current derivative liabilities		27		30		(3	)		A decrease primarily due to a smaller spread between hedged foreign exchange rates and actual foreign exchange rates at the end of the period.
Working capital (Current assets subtracting Current liabilities)		(3,545	)	(1,317	)	(2,228	)		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.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Financial position at:		Mar. 31		Dec. 31
($ millions)		2026		2025		Change			Change includes:
Non-current assets
Property, plant and equipment, net		17,602		17,503		99			See Capital expenditures in Section 7.3 Cash used by investing activities and Depreciation in Section 5.3 Consolidated operations
Intangible assets, net		20,541		20,328		213			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		10,491		10,460		31			An increase due to fluctuations in foreign exchange rates. See Note 18 of the interim consolidated financial statements
Contract assets		273		274		(1	)		A decrease reflecting a lower volume of subsidized devices
Other long-term assets		2,780		2,676		104			An increase primarily driven by portfolio investments and derivative assets.
Non-current liabilities
Provisions		549		661		(112	)		A decrease primarily resulting from the reclassification of long-term written put options
Long-term debt		26,039		27,437		(1,398	)		See Section 7.4 Cash used by financing activities
Other long-term liabilities		915		955		(40	)		A decrease primarily due to a reduction in derivative liabilities arising from a weakening of the Canadian Dollar relative to the U.S. Dollar at spot rates. See Note 27 of the interim consolidated financial statements
Deferred income taxes		4,272		4,292		(20	)		An overall decrease in temporary differences between the accounting and tax basis of assets and liabilities.
Owners’ equity
Common equity		15,560		15,775		(215	)		See Consolidated statements of changes in owners’ equity in the interim consolidated financial statements
Non-controlling interests		807		804		3			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 March 31 ($ millions)		2026				2025				Change
Cash provided by operating activities			1,050				1,077				(27	)
Cash used by investing activities			(1,144	)			(602	)			(542	)
Cash used by financing activities			(1,225	)			(330	)			(895	)
Increase (decrease) in Cash and temporary investments, net			(1,319	)			145				(1,464	)
Cash and temporary investments, net, beginning of period			2,621				869				1,752
Cash and temporary investments, net, end of period			1,302				1,014				288

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

7.2 Cash provided by operating activities

Analysis of changes in cash provided by operating activities

Three-month periods ended March 31 ($ millions)		2026				2025				Change
Operating revenues and other income (see Section 5.3)			5,013				5,057				(44	)
Goods and services purchased (see Section 5.3)			(1,856	)			(1,847	)			(9	)
Employee benefits expense (see Section 5.3)			(1,635	)			(1,466	)			(169	)
Restructuring and other costs, net of disbursements			165				(36	)			201
Share-based compensation expense, net of payments			31				42				(11	)
Net employee defined benefit plans expense			13				15				(2	)
Employer contributions to employee defined benefit plans			(5	)			(5	)			—
Gain on contributions of real estate to joint ventures			(5	)			(8	)			3
(Income) loss from equity accounted investments			(1	)			—				(1	)
Interest paid			(430	)			(371	)			(59	)
Interest received			25				5				20
Income taxes paid, net of recoveries received			(116	)			(154	)			38
Other operating working capital changes			(149	)			(155	)			6
Cash provided by operating activities			1,050				1,077				(27	)

Cash provided by operating activities decreased by $27 million in the first quarter of 2026.

● Restructuring and other costs, net of disbursements, represented a net change of $201 million in the first quarter of 2026. We recorded $130 million of non-cash restructuring and other costs related to the privatization of TELUS Digital. The remaining restructuring and other costs were related to cost efficiency and effectiveness programs.

● Interest paid increased by $59 million in the first quarter 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 in connection with the acquisition of Workplace Options (see Note 26(e) of the interim consolidated financial statements); partially offset by: (i) interest paid in the comparative period from notes that were repurchased during the 2025 tender offer processes; interest paid on the TELUS International (Cda) Inc. credit facility in the comparative period, which was repaid in the third quarter of 2025.

● Income taxes paid, net of recoveries received, decreased by $38 million in the first quarter of 2026, primarily due to greater refunds from the completion of prior years’ tax audits in addition to lower required income tax instalments attributable to lower income before income taxes.

● 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.

7.3 Cash used by investing activities

Analysis of changes in cash used by investing activities

Three-month periods ended March 31 ($ millions)		2026				2025				Change
Cash payments for capital assets, excluding spectrum licences			(757	)			(654	)			(103	)
Cash payments for spectrum licences			(318	)			—				(318	)
Cash payments for acquisitions, net			—				(11	)			11
Real estate joint venture receipts			6				1				5
Proceeds on disposition			9				66				(57	)
Investment in portfolio investments and other			(84	)			(4	)			(80	)
Cash used by investing activities			(1,144	)			(602	)			(542	)

Cash used by investing activities increased by $542 million in the first quarter of 2026.

● The increase in Cash payments for capital assets, excluding spectrum licences, in the first quarter of 2026 primarily reflected:

● An increase of $64 million in capital expenditures in the first quarter of 2026 (see Capital expenditure measures table and discussion below).

● Higher capital expenditure payments of $39 million in the first quarter of 2026 with respect to payment timing differences.

● Cash payments for spectrum licences increased by $318 million in the first quarter of 2026, related to 3800 MHz licences acquired 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, were $11 million lower in the first quarter of 2026. In the first quarter of 2025, we made cash payments for individually immaterial business acquisitions that were complementary to our existing lines of business.

● Proceeds on disposition were $57 million lower in the first quarter of 2026, reflecting a greater amount of divestiture of non-core assets in the first quarter of 2025.

● Investment in portfolio investments and other increased by $80 million in the first three months of 2026, primarily as a result of investments in a larger number of portfolio investments.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Capital expenditure measures

Three-month periods ended March 31 ($ millions, except capital expenditure intensity)		2026				2025				Change
Capital expenditures1
TELUS technology solutions segment (TTech)
TTech operations			564				507				11	%
TTech real estate development			16				8				100	%
			580				515				13	%
TELUS health segment (TELUS Health)			53				44				20	%
TELUS digital experience segment (TELUS Digital)			37				41				(10	)%
Eliminations			(19	)			(13	)			46	%
Consolidated			651				587				11	%
TTech capital expenditure intensity2 (%)			15				13				2	pts.
TELUS Health capital expenditure intensity2 (%)			10				9				1	pt.
TELUS Digital capital expenditure intensity2 (%)			5				5				—	pts.
Consolidated capital expenditure intensity2 (%)			13				11				2	pts.

	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.

Consolidated capital expenditures increased by $64 million in the first quarter of 2026.

Capital expenditures in support of TTech operations were $57 million higher in the first quarter of 2026. This increase primarily resulted from greater capital investments in developing new facilities to meet growing industry demand. Our capital investments in TTech operations have enabled: (i) ongoing growth in our internet, TV and security and automation subscriber bases, 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 March 31, 2026, our 5G network covered 33.4 million Canadians, representing over 90% of the population.

Capital expenditures in support of TTech real estate development increased by $8 million in the first quarter of 2026. The increase was driven by greater capital investments to support the construction of multi-year development projects, including TELUS Ocean^TM and TELUS Living projects in B.C.

TELUS Health capital expenditures increased by $9 million in the first quarter of 2026, largely driven by greater investments to support clinic expansions and 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, embedded care pathways and differentiated capabilities such as GenAI self-serve and advanced diagnostics. The investments in our product offerings and foundational platforms position TELUS Health for scalable growth and operational resilience.

TELUS Digital capital expenditures decreased by $4 million in the first quarter of 2026, mainly from lower real estate expenditures in Europe and Asia-Pacific.

7.4 Cash used by financing activities

Analysis of changes in cash used by financing activities

Three-month periods ended March 31 ($ millions)		2026				2025				Change
Dividends paid to holders of Common Shares			(430	)			(402	)			(28	)
Issue (repayment) of short-term borrowings, net			3				399				(396	)
Long-term debt issued			1,360				1,663				(303	)
Redemptions and repayment of long-term debt			(2,153	)			(1,990	)			(163	)
Partnership distributions to non-controlling interest			(5	)			—				(5	)
Cash used by financing activities			(1,225	)			(330	)			(895	)

Cash used by financing activities increased by $895 million in the first quarter of 2026.

Dividends paid to holders of Common Shares

Our dividend reinvestment and share purchase (DRISP) plan trustee acquired Common Shares from Treasury for the DRISP plan, rather than acquiring shares in the stock market. For the dividends paid on January 2, 2026, the DRISP participation rate for these dividends, calculated as the DRISP investment of $219 million (including the employee share purchase plan) as a percentage of gross dividends, was approximately 34%. By comparison, for the dividends paid on January 2, 2025, the DRISP participation rate was approximately 34%. Cash payments for dividends increased by $28 million in the first quarter of 2026, which reflected higher dividend rates (see Section 4.3) and an increase in the number of shares outstanding.

In April 2026, we paid dividends of $434 million to the holders of Common Shares and the trustee acquired dividend reinvestment Common Shares from Treasury for $219 million, totalling $653 million. For these dividends, the DRISP participation rate was approximately 34%.

Issue (repayment) of short-term borrowings, net

During the first quarter of 2025, we drew $0.4 billion under an arm’s-length securitization trust.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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

In the first quarter of 2026, long-term debt issued decreased by $0.3 billion, while redemptions and repayment of long-term debt increased by $0.2 billion. These changes were primarily composed of:

● A net increase of $0.7 billion in commercial paper outstanding, including foreign exchange effects, to a balance of $1.6 billion (US$1.2 billion) at March 31, 2026, from a balance of $1.0 billion (US$0.7 billion) at December 31, 2025. 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 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 average term to maturity of our long-term debt (excluding commercial paper, TELUS bank credit facilities, the revolving components of the repaid TELUS International (Cda) Inc. credit facility, lease liabilities and other long-term debt) was 14.8 years at March 31, 2026, an increase from 14.7 years at December 31, 2025 and an increase from 10.5 years at March 31, 2025. In addition, the weighted average cost of our long-term debt (excluding commercial paper, TELUS bank credit facilities, the revolving components of the repaid TELUS International (Cda) Inc. credit facility, lease liabilities and other long-term debt) was 4.77% at March 31, 2026, an increase from 4.75% at December 31, 2025, and an increase from 4.40% at March 31, 2025.

Partnership distributions to non-controlling interest

In the first quarter of 2026, our Terrion subsidiary paid distributions.

7.5 Liquidity and capital resource measures

Net debt was $25.9 billion at March 31, 2026, a decrease of $2.8 billion compared to one year earlier, largely as a result of: (i) the junior subordinated notes equity credit for fixed-to-fixed junior subordinated notes issued in 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) equity issued by our Terrion subsidiary to a non-controlling interest in the third quarter of 2025; (iii) the notes purchased during the 2025 tender offer processes; (iv) greater Cash and temporary investments; (v) the repayment of the TELUS International (Cda) Inc. credit facility in the third quarter of 2025; (vi) the repayment upon maturity of the TELUS Communications Inc. debentures in the third quarter of 2025; and (vii) the full redemption of 3.75% Notes, Series CV, in the first quarter of 2026. These factors were partially offset by the note issuances in the second and fourth quarters of 2025, as described in our 2025 annual MD&A.

Fixed-rate debt as a proportion of total indebtedness, which excludes lease liabilities and other long-term debt, was 91% as at March 31, 2026, up from 84% one year earlier. The increase was primarily a result of: (i) the note issuances in the second and fourth quarters of 2025, as described in our 2025 annual MD&A; (ii) the repayment of the TELUS International (Cda) Inc. credit facility in the third quarter of 2025; and (iii) a decrease in commercial paper outstanding, which is classified as floating-rate debt in this calculation. These factors were partially offset by: (i) the notes purchased during the 2025 tender offer processes; (ii) the repayment upon maturity of the TELUS Communications Inc. debentures in the third quarter of 2025; and (iii) the full redemption of 3.75% Notes, Series CV, in the first quarter of 2026.

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 3.5 times, as measured at March 31, 2026, down from 3.9 times one year earlier. The decrease was largely due to the effect of the decrease in net debt levels, primarily due to the junior subordinated notes equity credit for fixed-to-fixed junior subordinated notes issued in 2025 and the equity issued by our Terrion subsidiary to a non-controlling interest in the third quarter of 2025, partially offset by business acquisitions; net debt levels were already elevated in the current and comparative periods due to our spectrum acquisitions and business acquisitions. As at March 31, 2026, the acquisition of spectrum licences increased the ratio by approximately 0.6, and business acquisitions increased the ratio by approximately 0.1, while the junior subordinated notes equity credit decreased the ratio by 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. Given the cash demands of the 600 MHz auction held in 2019, the 3500 MHz auction held in 2021, the 3800 MHz auction held in 2023 (payments made in fiscal 2024) and the upcoming auction for millimetre wave spectrum, the assessment of the objective and timing of return to the objective range remains to be determined; however, it is our intent to return to a ratio of circa 2.7 in the medium term (following the spectrum auctions in 2021 and 2023, and the upcoming millimetre wave spectrum auction), consistent with our long-term strategy. We have an objective of achieving a ratio of circa 3.0 in 2027. While this ratio exceeds our long-term objective range, we are well in 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 March 31, 2026 (see Section 7.6 Credit facilities).

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Liquidity and capital resource measures

As at, or for the 12-month periods ended, March 31		2026				2025				Change
Components of debt and coverage ratios ($ millions)
Long-term debt			30,131				28,724				1,407
Net debt1			25,889				28,682				(2,793	)
Net income			620				1,099				(479	)
EBITDA – excluding restructuring and other costs1			7,350				7,318				32
Financing costs			1,152				1,526				(374	)
Net interest cost1			1,448				1,381				67
Debt ratios
Fixed-rate debt as a proportion of total indebtedness (excluding lease liabilities and other long-term debt) (%)			91				84				7	pts.
Average term to maturity of long-term debt (excluding commercial paper, TELUS bank credit facilities, the revolving components of the repaid TELUS International (Cda) Inc. credit facility, lease liabilities and other long-term debt) (years)			14.8				10.5				4.3
Weighted average interest rate on long-term debt (excluding commercial paper, TELUS bank credit facilities, the revolving components of the repaid TELUS International (Cda) Inc. credit facility, lease liabilities and other long-term debt) (%)			4.77				4.40				0.37	pts.
Net debt to EBITDA – excluding restructuring and other costs1 (times)			3.5				3.9				(0.4	)
Coverage ratios1 (times)
Earnings coverage			1.9				2.1				(0.2	)
EBITDA – excluding restructuring and other costs interest coverage			5.1				5.3				(0.2	)
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			117				96				21	pts.
Determined using management measures
Common Share dividend payout ratio – net of dividend reinvestment plan effects			73				76				(3)	pts.

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

Earnings coverage ratio for the 12-month period ended March 31, 2026 was 1.9 times, down from 2.1 times one year earlier. An increase in borrowing costs lowered the ratio by 0.2. Excluding restructuring and other costs, the earnings coverage ratio would be 2.2 times.

EBITDA – excluding restructuring and other costs interest coverage ratio for the 12-month period ended March 31, 2026 was 5.1 times, down from 5.3 times one year earlier. An increase of $67 million in net interest costs lowered the ratio by 0.2.

Common Share dividend payout ratio: 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 60 to 75% of prospective free cash flow. 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. The historical measure for the 12-month period ended March 31, 2026 is presented for illustrative purposes in evaluating our objective range. As at March 31, 2026, the ratio was within the objective range.

7.6 Credit facilities

At March 31, 2026, we had $1.1 billion of liquidity available from the TELUS revolving credit facility. We are well within our objective of generally maintaining at least $1 billion of available liquidity.

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 March 31, 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				—				—				(1,643	)			1,107

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 March 31, 2026, our consolidated leverage ratio was 3.5 to 1.00 and our consolidated coverage ratio was 5.1 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.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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 March 31, 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

As at March 31, 2026, other (unsecured) included a US$200 million promissory note issued by a wholly owned subsidiary to a private equity investor, which was senior in right of payment to all of our existing and future subordinated indebtedness, and was effectively subordinated to all existing and future obligations of, or guaranteed by, our subsidiaries.

The promissory note was redeemable, in whole but not in part, at our option and, after May 13, 2030, also at the holder’s option. Subsequent to March 31, 2026, 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 March 31, 2026, we had $67 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 $118 million at March 31, 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 5.4% as at March 31, 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 March 31, 2026. (See Note 22 of the interim consolidated financial statements.)

7.8 Credit ratings

We continued to have investment-grade ratings in the first quarter of 2026 and as at May 8, 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 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.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

As at March 31, 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 March 31, 2026, we had $1.1 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 approximately $3.1 billion of liquidity available at March 31, 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)		March 31, 2026				April 30, 2026
Common Shares			1,561				1,574
Common Share options			4				4
Restricted share units and deferred share units – equity-settled			17				16

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 $18 million in the first quarter of 2026, relatively unchanged compared to the first quarter of 2025. 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.

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.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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.

● Our restructuring and other costs assumption has been revised to approximately $600 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 $550 million, from approximately $450 million.

● Our cash income tax payments assumption has been revised downward to a range of approximately $360 million to $460 million from a range of approximately $540 million to $620 million. This decrease was primarily due to higher refunds received and Canadian Bill C-15, the Budget Implementation Act, 2025, No. 1, receiving royal assent on March 26, 2026.

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

Mobile spectrum licence fee framework

On March 7, 2025, ISED released Decision on a Fee Framework and Amendments to Conditions of Licence for Certain Spectrum Licences Used to Provide Commercial Mobile Services Below 10 GHz. This is a new licence fee framework that will apply to spectrum licences issued outside of an auction process or auctioned licences renewed beyond their initial term. This new framework is largely in line with the framework as proposed by ISED in December 2024 in the consultation that led to this decision. It makes some spectrum bands now applicable for fees, but we had expected that these bands would be subject to fees. The new ISED framework went into effect in March 2026. The impact upon TELUS of the new fee structure is not expected to be material.

2026 auction of residual spectrum licences

On August 28, 2025, ISED released a Notice of 2026 Auction of Residual Spectrum Licences. This notice established the procedures for a residual spectrum auction of unsold or returned licences that concluded in late January 2026. Sealed bids for the allocation and assignment stages were submitted on January 27, 2026 and January 30, 2026, respectively. On March 20, 2026, ISED issued the auction results and we acquired 40 MHz of spectrum on average in markets where we successfully bid, for a total purchase price of $318 million.

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 further 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 will not be 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.

* 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.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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 late 2026 or early 2027.

In November 2024, multiple parties brought applications to the CRTC to review and vary TRP 2024-180. Among other things, the applications ask 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 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 is now proceeding before the Federal Court of Appeal. 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 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. A decision in this proceeding is not expected to be material.

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.

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 will begin enforcing the amendments starting on June 12, 2026 and will monitor industry compliance through existing CCTS complaint reporting. We are assessing the decision to determine which fees are impacted by the legislative prohibition and the resulting impact to 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. We are assessing the decision to determine its impact on us.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

On April 24, 2026, the Commission issued Telecom Regulatory Policy CRTC 2024-78, 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. We are assessing the decision to determine its impact on us.

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. A decision is expected in 2026. Until the CRTC issues determinations in the remaining proceedings, it is too early to determine their impact on us.

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 18, 2025, the federal government introduced Bill C-8, An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts. The legislation is similar to the previous Bill C-26, which did not pass. The legislation would amend the Telecommunications Act to allow the Governor in Council to prohibit telecommunications service providers from using equipment from designated companies in their networks. This will allow 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, if passed, 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 would also create a new statute, the Critical Cyber Systems Protection Act (CCSPA). The CCSPA would require designated federally regulated corporations to maintain cybersecurity plans, impose reporting requirements and impose penalties for non-compliance. Many of the proposed measures in the CCSPA reflect our existing processes. The effect of CCSPA is unknown at this time as the bill is still in Parliament and many of the material provisions are left to regulation-making. Bill C-8 passed Second Reading in Parliament on October 3, 2025 and is currently at Third Reading in the House of Commons. In addition, the government tabled Bill C-2 on June 3, 2025. Among other provisions, Bill C-2 would expand the Governor in Council’s ability to mandate standards and capabilities for lawful access, if passed. The government subsequently decided not to proceed with the lawful access sections of Bill C-2, but would instead address lawful access through stand-alone legislation. On March 12, 2026, the government tabled Bill C-22, An Act respecting lawful access, which similarly 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 House of Commons.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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. The proceeding continued into 2026, with a decision 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 will participate fully in this proceeding from both a telecom and broadcast distribution undertaking perspective. Subject to any further procedural steps to be announced by the CRTC, the record of this proceeding closed in December 2025 with a decision likely in late 2026.

Federal and provincial privacy regulators increasing their focus on AI companies

In May 2023, the privacy authorities for Canada, British Columbia, Alberta and Quebec announced a joint investigation of OpenAI, the company behind AI-powered chatbot ChatGPT. The ongoing investigation focuses on valid and meaningful consent, obligations with respect to openness and transparency, and appropriate use of personal data. A parallel investigation into X and xAI (Grok), launched in February 2025 and expanded in January 2026, which examines the lawful collection and use of Canadians’ data for AI model training. These investigations reflect a broader regulatory trend of heightened scrutiny of AI safety, consent mechanisms, and law enforcement coordination. 

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. 

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

Reconciliation of adjusted Net income

		Three-month periods ended March 31
($ millions)		2026				2025
Net income attributable to Common Shares			136				321
Add (deduct) amounts net of amount attributable to non-controlling interests:
Restructuring and other costs			315				93
Tax effect of restructuring and other costs			(87	)			(24	)
Real estate rationalization-related restructuring impairments			4				3
Tax effect of real estate rationalization-related restructuring impairments			(1	)			(1	)
Income tax-related adjustments			(11	)			(4	)
Adjusted Net income			356				388

Reconciliation of adjusted basic EPS

		Three-month periods ended March 31
($)		2026				2025
Basic EPS			0.09				0.21
Add (deduct) amounts net of amount attributable to non-controlling interests:
Restructuring and other costs, per share			0.20				0.06
Tax effect of restructuring and other costs, per share			(0.05	)			(0.01	)
Income tax-related adjustments, per share			(0.01	)			—
Adjusted basic EPS			0.23				0.26

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 March 31 ($ millions)		2026				2025
Cash and temporary investments, net			1,302				1,014
Net amounts available from the TELUS Corporation revolving credit facility			1,107				634
Amounts available under trade receivables and unbilled customer finance receivables securitization program			680				279
Available liquidity			3,089				1,927

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 March 31 ($ millions, except ratio)		2026			2025 (restated)			2026				2025			2026			2025 (restated)			2026			2025 (restated)			2026			2025
Numerator – Capital expenditures excluding real estate development			564			507			53				44			37			41			(19	)		(13	)		635			579
Denominator – Operating revenues and other income			3,790			3,880			526				473			813			814			(116	)		(110	)		5,013			5,057
Capital expenditure intensity (%)			15			13			10				9			5			5			n/m			n/m			13			11

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 prospective basis, rather than on a trailing basis. (See Section 4.3 Liquidity and capital resources and Section 7.5 Liquidity and capital resource measures.)

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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 March 31 ($ millions, except ratio)		2026				2025
Numerator – Sum of the most recent four quarterly dividends declared			2,575				2,370
Cash provided by operating activities			4,839				4,974
Less:
Capital expenditures			(2,630	)			(2,497	)
Denominator – Cash provided by operating activities less capital expenditures			2,209				2,477
Ratio (%)			117				96

Calculation of Common Share dividend payout ratio, net of dividend reinvestment plan effects

Determined using management measures

For the 12-month periods ended March 31 ($ millions, except ratio)		2026				2025
Sum of the most recent four quarterly dividends declared			2,575				2,370
Sum of the amounts of the most recent four quarterly dividends declared reinvested in Common Shares			(890	)			(791	)
Numerator – Sum of the most recent four quarterly dividends declared, net of dividend reinvestment plan effects			1,685				1,579
Denominator – Free cash flow			2,303				2,071
Ratio (%)			73				76

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 March 31 ($ millions, except ratio)		2026				2025
Net income attributable to Common Shares			928				1,187
Income taxes (attributable to Common Shares)			397				338
Borrowing costs (attributable to Common Shares)1			1,511				1,333
Numerator			2,836				2,858
Denominator – Borrowing costs			1,511				1,333
Ratio (times)			1.9				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. 

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1 

EBITDA and Adjusted EBITDA reconciliations

		TTech						TELUS Health						TELUS Digital						Eliminations						Total
Three-month periods ended March 31 ($ millions)		2026			2025  (restated)			2026			2025  (restated)			2026			2025  (restated)			2026			2025			2026			2025
Net income																											144			301
Financing costs																											335			344
Income taxes																											55			107
EBIT			665			842			(47	)		(32	)		(65	)		(45	)		(19	)		(13	)		534			752
Depreciation			517			529			16			13			50			50			—			—			583			592
Amortization of intangible assets			241			240			99			94			65			66			—			—			405			400
EBITDA			1,423			1,611			68			75			50			71			(19	)		(13	)		1,522			1,744
Add restructuring and other costs included in EBITDA			259			79			25			9			31			9			—			—			315			97
EBITDA – excluding restructuring and other costs and Adjusted EBITDA			1,682			1,690			93			84			81			80			(19	)		(13	)		1,837			1,841

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 March 31 ($ millions)		2026			2025 (restated)			2026			2025 (restated)			2026			2025 (restated)			2026			2025			2026			2025
Adjusted EBITDA			1,682			1,690			93			84			81			80			(19	)		(13	)		1,837			1,841
Capital expenditures			(580	)		(515	)		(53	)		(44	)		(37	)		(41	)		19			13			(651	)		(587	)
Adjusted EBITDA less capital expenditures			1,102			1,175			40			40			44			39			—			—			1,186			1,254

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. 

Calculation of EBITDA margin

		TTech						TELUS Health						TELUS Digital						Eliminations						Total
Three-month periods ended March 31 ($ millions, except margin)		2026			2025 (restated)			2026			2025 (restated)			2026			2025 (restated)			2026			2025 (restated)			2026			2025
Numerator – EBITDA			1,423			1,611			68			75			50			71			(19	)		(13	)		1,522			1,744
Denominator – Operating revenues and other income			3,790			3,880			526			473			813			814			(116	)		(110	)		5,013			5,057
EBITDA margin (%)			37.6			41.5			12.9			15.8			6.2			8.7			n/m			n/m			30.4			34.5

Calculation of Adjusted EBITDA margin

		TTech						TELUS Health						TELUS Digital						Eliminations						Total
Three-month periods ended March 31 ($ millions, except margin)		2026			2025 (restated)			2026			2025 (restated)			2026			2025 (restated)			2026			2025 (restated)			2026			2025
Numerator – Adjusted EBITDA			1,682			1,690			93			84			81			80			(19	)		(13	)		1,837			1,841
Denominator – Operating revenues and other income			3,790			3,880			526			473			813			814			(116	)		(110	)		5,013			5,057
Adjusted EBITDA margin (%)			44.4			43.6			17.7			17.8			10.0			9.8			n/m			n/m			36.6			36.4

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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 March 31 ($ millions, except ratio)		2026				2025
Numerator – EBITDA – excluding restructuring and other costs			7,350				7,318
Denominator – Net interest cost			1,448				1,381
Ratio (times)			5.1				5.3

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 March 31, 2026												Three-month period ended March 31, 2025
($ millions)		Cash provided by operating activities				Difference				Free cash flow				Cash provided by operating activities				Difference				Free cash flow
EBITDA			1,522				—				1,522				1,744				—				1,744
Restructuring and other costs, net of disbursements			165				—				165				(36	)			—				(36	)
Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment® mobile device financing			27				—				27				28				—				28
Effect of non-discretionary lease principal1			—				(113	)			(113	)			—				(193	)			(193	)
Items from the condensed interim consolidated statements of cash flows:
Share-based compensation, net of employee share purchase plan cash outflows			31				—				31				42				—				42
Net employee defined benefit plans expense			13				—				13				15				—				15
Employer contributions to employee defined benefit plans			(5	)			—				(5	)			(5	)			—				(5	)
Gain on contributions of real estate to joint ventures			(5	)			5				—				(8	)			8				—
(Income) loss from equity accounted investments			(1	)			—				(1	)			—				—				—
Interest paid			(430	)			—				(430	)			(371	)			—				(371	)
Interest received			25				—				25				5				—				5
Other			(11	)			11				—				(11	)			11				—
Other working capital items			(165	)			165				—				(172	)			172				—
Capital expenditures			—				(651	)			(651	)			—				(587	)			(587	)
			1,166				(583	)			583				1,231				(589	)			642
Income taxes paid, net of refunds2			(116	)			116				—				(154	)			—				(154	)
			1,050				(467	)			583				1,077				(589	)			488

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.

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TELUS Corporation – Management’s discussion and analysis – 2026 Q1

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 March 31 ($ millions, except ratio)		2026				2025
Numerator – Net debt			25,889				28,682
Denominator – EBITDA – excluding restructuring and other costs			7,350				7,318
Ratio (times)			3.5				3.9

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 March 31 ($ millions)		2026				2025
Financing costs			1,152				1,526
Add (deduct):
Employee defined benefit plans net interest			(12	)			(10	)
Interest on long-term debt, excluding lease liabilities and other – capitalized			5				30
Gain on purchase of long-term debt			303				—
Unrealized changes in virtual power purchase agreements forward element			—				(165	)
Net interest cost			1,448				1,381

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 45 of 45

FAQ

How did TELUS (TU) perform financially in Q1 2026?

TELUS generated operating revenues and other income of C$5.013 billion in Q1 2026, nearly flat versus C$5.057 billion a year earlier. Net income fell to C$144 million from C$301 million, as higher employee benefits and restructuring and other costs reduced operating profit.

What were TELUS (TU) earnings per share for Q1 2026?

TELUS reported basic and diluted earnings per share of C$0.09 for Q1 2026, down from C$0.21 in Q1 2025. The decline reflects lower net income of C$144 million versus C$301 million, despite a modest increase in the weighted average common shares outstanding.

How strong was TELUS (TU) cash flow in Q1 2026?

TELUS delivered cash provided by operating activities of C$1.050 billion in Q1 2026, versus C$1.077 billion a year earlier. Higher capital expenditures and C$318 million of spectrum licence payments drove investing outflows of C$1.144 billion, leading to a C$1.319 billion decline in cash and temporary investments.

What is TELUS (TU) leverage and net debt position as of March 31, 2026?

As of March 31, 2026, TELUS reported net debt of C$25.889 billion and EBITDA excluding restructuring and other costs of C$7.350 billion over the prior 12 months. This produced a net debt to EBITDA ratio of 3.5x, improved from 3.9x a year earlier.

What dividends did TELUS (TU) pay and declare around Q1 2026?

TELUS paid a quarterly dividend of C$0.4184 per common share on April 1, 2026, totaling C$653 million. On May 7, 2026, the board declared another C$0.4184 dividend payable July 2, 2026, and reported a 12‑month dividend payout ratio of 73% of free cash flow.

How did TELUS (TU) adjusted EBITDA and capital expenditures trend in Q1 2026?

Adjusted EBITDA excluding restructuring and other costs was C$1.837 billion in Q1 2026, essentially unchanged from C$1.841 billion in Q1 2025. Capital expenditures totaled C$651 million, up from C$587 million, reflecting higher network, health, and digital experience investment.

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