BCE reports first quarter 2026 results

• Q1 2026 Financial Performance: BCE reported consolidated operating revenues of $6,168 million (up 4.0% YoY) and adjusted EBITDA of $2,631 million (up 2.9% YoY). Net earnings attributable to common shareholders were $616 million, with adjusted EPS at $0.63 (down 8.7% YoY).
• Growth Drivers: AI-powered solutions revenue surged 113%, and Crave streaming subscriptions grew 25% to 4.74 million. Residential FTTH Internet net activations were 49,525 (+3.2%), and postpaid mobile phone net activations improved significantly to 16,947 (turning a loss from Q1 2025).
• Capital Expenditures: Capex increased 15.4% YoY to $841 million, driven by Ziply Fiber expansion and AI data centre investments. Capital intensity is projected at ~20% for 2026 due to the Saskatchewan AI data centre project.
• M&A Activity: Confirmed agreement to sell Bell Mobility land mobile radio networks services business to Motorola Solutions Canada Networks, Inc. for $675 million; transaction expected to close in Q4 2026.
• Strategic Initiatives: Partnership with Government of Saskatchewan for a new 300 MW purpose-built AI data centre near Regina. Launch of 5G+ Advanced wireless network in Greater Toronto and Hamilton Area.

• Guidance Alignment: Revenue growth (4.0%) and EBITDA growth (2.9%) fall within the previously announced 2026 guidance ranges (Revenue +1-5%, EBITDA +0-4%). The results are in line with expectations set during the February 2026 earnings release and March 2026 strategic update.
• FCF Trajectory: While Q1 Free Cash Flow was positive ($804M, up 0.8%), this contrasts with the full-year 2026 guidance updated in March which projected FCF growth of -34% to -28%. This discrepancy confirms that significant capital deployment (Saskatchewan AI centre) is expected to weigh heavily on cash flow in H2 2026, consistent with prior warnings.
• Strategic Validation: The 113% growth in AI solutions validates the strategic pivot announced in October 2025 and March 2026 ($2B revenue target by 2028). However, this is a follow-up to existing plans rather than new market-moving information.
• Divestiture Impact: The $675M sale of LMR business was announced in March 2026; the May news reiterates the timeline and price. This provides future cash for deleveraging but does not alter current operational outlook materially beyond what was already priced in.
• Conclusion on Materiality: The release confirms execution of a known strategy with heavy capital intensity. It lacks unexpected upside or downside surprises that would fundamentally alter the investment thesis established in Q4 2025 and March 2026 updates.

• Company: BCE Inc. operates as a leading telecommunications provider in Canada with significant US operations via Ziply Fiber (acquired August 2025).
• Flagship Project: The "Bell AI Fabric" sovereign AI infrastructure stack, including the new 300 MW data centre in Saskatchewan and partnerships with BUZZ HPC, Cerebras, and CoreWeave. This is central to the $2B revenue target by 2028.
• Network Assets: Extensive fibre footprint (Canada + Ziply) targeting 16+ million locations in North America via Network FiberCo partnership.
• Media Operations: Crave streaming service and Bell Media, with a focus on digital transformation to offset traditional media decline.