Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 6, 2026 · Beat 5 of last 7 quarters
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BCE's continued investment in Bell AI Fabric and Ziply Fiber underscores the broader AI infrastructure buildout, with data center capacity and fiber expansion as key growth drivers. The company's progress on sovereign AI data centers and U.S. fiber build supports the thesis that telecom operators are increasingly pivoting capital toward AI-adjacent infrastructure.
BCE delivered consolidated revenue growth of 1.5% and adjusted EBITDA growth of 1% in Q2, with adjusted EBITDA margin stable at 43.8%. Wireless postpaid net adds were 41,594, with churn improving to 1.02%, the lowest in three years, while ARPU was stable ex-G7. Fiber continued to drive growth with 45,271 Canadian FTTH net adds and nearly 55,000 including Ziply, contributing to 14.2% Internet revenue growth. Bell Media revenue grew 8.9% and adjusted EBITDA grew 3.8%, driven by FIFA World Cup and Crave's 23% subscriber growth to 5.1 million. Free cash flow exceeded $1 billion, and net debt leverage improved to approximately 3.7x.
Management reaffirmed all 2026 financial guidance targets, including revenue and EBITDA growth, meaningful free cash flow, and progress toward a 3.5x net debt leverage ratio by end of 2027. They emphasized continued disciplined execution in the core business while investing in growth platforms: Ziply Fiber's build is expected to ramp significantly in the second half of 2026, with permit submissions up more than fourfold from April to June and contractor capacity and fiber supply secured. Bell AI Fabric remains on track, with Saskatchewan's first phase expected in H1 2027, Winnipeg in H2 2026, and Merritt Phase 2 in early 2027; management expressed confidence in monetizing well beyond the 335 MW already contracted. Wireless pricing trends improved in Q2 and into July, and management expects continued stability and profitability focus rather than volume chasing. The tone was confident, with management reiterating their path to 3.5x leverage and the ability to fund growth while maintaining balance sheet strength.
“In Q2, the customer experience and retention initiatives we've executed over the past year and even before that continue to pay off. Postpaid churn improved 4 basis points year-over-year to 1.02%, which is the lowest quarterly level in 3 years.”
on Wireless churn improvement
“We now have approximately 335 megawatts of contracted capacity, real facilities, real construction milestones, real customer commitments, all supporting the long-term AI-powered solutions growth platform we're building.”
on Bell AI Fabric progress
“The key point is that the fiber thesis remains intact, where Ziply has fiber, it is winning customers and the work needed to support the second half build ramp has advanced.”
on Ziply Fiber build momentum
Why has CapEx for Saskatchewan been pushed out to Q3/Q4?
Curtis Millen explained there is no change to construction timeline; CapEx is recorded when cash is spent, and the majority of equipment has been ordered with delivery schedules on time and in line with budget.
Can you provide an update on the bundling strategy and wireless ARPU outlook? Also any update on the data center roadmap to 800 MW?
Mirko Bibic noted strong industry momentum and improved pricing trends continuing into July, with focus on profitability and product margins. On AI Fabric, the funnel is strong and they remain confident in monetizing beyond the 335 MW contracted.
Do you think wireless ARPU is trending towards flattish? And can you clarify the impact of a large government contract on postpaid adds?
Mirko Bibic said they expect continued stability rather than predicting timing, with competitive environment normalized. He confirmed the government enterprise contract contributed to net adds, but even excluding it, adds were in line with peers. Curtis Millen noted about a quarter of the $400M tenant prepayments (~$100M) was received in Q2, flowing through working capital.