BCE (NYSE:BCE) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

BCE (NYSE:BCE) (TSE:BCE) announced its quarterly earnings data on Thursday. The utilities provider reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.01, Zacks reports. BCE had a net margin of 25.66% and a return on equity of 13.87%. BCE updated its FY 2026 guidance to 1.798-1.919 EPS.

Here are the key takeaways from BCE’s conference call:

• Q2 execution remained on plan: revenue rose 1.5%, adjusted EBITDA increased 1%, free cash flow exceeded CAD 1 billion, and net-debt leverage improved to approximately 3.7x. Management reconfirmed all 2026 guidance and remains targeted at 3.5x leverage by year-end 2027.
• Wireless and Canadian fiber trends improved, with 41,594 postpaid phone net adds, postpaid churn falling to a three-year low of 1.02%, and 45,271 residential FTTH internet additions. Management emphasized better pricing, reduced hardware discounting, and stronger product margins.
• Bell Media delivered strong growth, with revenue up 8.9% and adjusted EBITDA up 3.8%, supported by FIFA World Cup coverage and Crave. Crave subscribers increased 23% to 5.1 million, direct-to-consumer streaming subscribers grew 49%, and digital video advertising revenue rose 39%.
• Bell AI Fabric continues to advance, with approximately 335 MW of contracted capacity, construction progressing on the 300-MW Saskatchewan facility, and Winnipeg expected to enter service in the second half of 2026. Management said it has line of sight to 800 MW, although additional capacity depends on securing contracts and completing construction.
• Capital spending increased CAD 317 million year over year, primarily due to Ziply Fiber and AI Fabric, causing free cash flow to decline year over year; approximately CAD 1.3 billion of Saskatchewan data-center CapEx is expected in the second half of 2026. Ziply’s revenue remained broadly flat as fiber growth was offset by legacy copper, voice, wholesale declines, and near-term subscriber-acquisition costs.

BCE Stock Up 3.2%

Shares of BCE traded up $0.69 during trading hours on Thursday, reaching $22.75. The company’s stock had a trading volume of 5,450,004 shares, compared to its average volume of 4,166,288. The company has a 50 day moving average of $22.61 and a two-hundred day moving average of $24.15. The company has a quick ratio of 0.71, a current ratio of 0.74 and a debt-to-equity ratio of 1.84. BCE has a 1-year low of $20.87 and a 1-year high of $26.52. The firm has a market cap of $21.22 billion, a price-to-earnings ratio of 4.62 and a beta of 0.51.

BCE Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.4375 per share. This represents a $1.75 annualized dividend and a yield of 7.7%. The ex-dividend date of this dividend is Tuesday, September 15th. BCE’s payout ratio is 25.81%.

Institutional Trading of BCE

A number of institutional investors have recently bought and sold shares of BCE. Caitong International Asset Management Co. Ltd increased its position in BCE by 735.3% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,161 shares of the utilities provider’s stock worth $27,000 after purchasing an additional 1,022 shares during the last quarter. Smartleaf Asset Management LLC increased its holdings in BCE by 1,642.0% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,411 shares of the utilities provider’s stock worth $33,000 after buying an additional 1,330 shares during the last quarter. Colonial Trust Co SC bought a new position in BCE during the fourth quarter valued at approximately $60,000. Geneos Wealth Management Inc. lifted its stake in BCE by 64.8% in the first quarter. Geneos Wealth Management Inc. now owns 3,096 shares of the utilities provider’s stock valued at $71,000 after acquiring an additional 1,217 shares during the last quarter. Finally, Arax Advisory Partners increased its stake in shares of BCE by 61.2% during the 4th quarter. Arax Advisory Partners now owns 3,333 shares of the utilities provider’s stock worth $79,000 after purchasing an additional 1,265 shares during the last quarter. Institutional investors and hedge funds own 41.46% of the company’s stock.

Analysts Set New Price Targets

BCE has been the topic of several recent research reports. TD Securities upgraded shares of BCE from a “hold” rating to a “buy” rating in a research report on Wednesday, July 1st. Barclays cut their price objective on BCE from $26.00 to $25.00 and set an “equal weight” rating for the company in a research report on Thursday, July 16th. Canadian Imperial Bank of Commerce restated an “outperform” rating on shares of BCE in a report on Friday, July 10th. Raymond James Financial initiated coverage on BCE in a report on Wednesday, July 15th. They set a “market perform” rating for the company. Finally, Zacks Research downgraded BCE from a “hold” rating to a “strong sell” rating in a report on Monday, July 13th. Six analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, BCE currently has a consensus rating of “Hold” and an average price target of $30.00.

BCE News Summary

Here are the key news stories impacting BCE this week:

• Positive Sentiment: Q2 earnings beat expectations. BCE reported adjusted earnings of $0.47 per share, up from $0.46 a year earlier and ahead of the $0.46 analyst consensus. BCE Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Revenue also topped Wall Street estimates. Bell Media benefited from increased advertising and broadcast activity associated with the FIFA World Cup, providing support for BCE’s media operations. FIFA World Cup Helps Lift Bell Media Revenues
• Positive Sentiment: The dividend remains a major attraction. BCE declared a quarterly dividend of $0.4375 per share, or $1.75 annualized, representing an indicated yield of approximately 7.7%. Investors of record on September 15 will be paid on October 15.
• Neutral Sentiment: Revenue guidance broadly aligns with expectations. BCE forecast fiscal 2026 revenue of $17.9 billion to $18.6 billion, a range that contains the $18.2 billion analyst consensus. BCE Reports Second Quarter 2026 Results
• Negative Sentiment: Profit declined year over year. Despite the EPS beat, BCE’s overall second-quarter profit fell, highlighting continued pressure on the business and limiting the positive impact of the earnings surprise.
• Negative Sentiment: Full-year EPS guidance is slightly cautious. BCE provided a 2026 EPS range of $1.798 to $1.919, below the $1.900 consensus at the low end and around 2% below consensus at the midpoint. BCE Q2 Earnings Key Metrics

BCE Company Profile

BCE Inc (NYSE: BCE) is a Canadian communications, media and entertainment company that operates through its primary subsidiaries, including Bell Canada and Bell Media. As a large integrated telecommunications provider, BCE delivers a broad range of connectivity services and content to residential, business and wholesale customers across Canada. The company combines network infrastructure with media assets to offer bundled communications and entertainment solutions.

On the services side, BCE provides fixed-line and wireless voice services, mobile data, high-speed internet, fibre and broadband access, and television services through platforms such as Bell Fibe and Bell TV.