Telstra (ASX: TLS) FY26 Results: Growth, Dividends & Outlook

Telstra delivered strong FY26 results, supported by earnings growth, stronger mobile performance, network investment, shareholder returns and continued progress on its Connected Future 30 strategy.

Telstra Group Ltd (ASX: TLS)

On 13 August 2026 announced a strong FY26 performance with continued progress under its Connected Future 30 strategy. The Reported EBITDAaL rose 3% to $8.2 billion, Net Profit after Tax increased 2.7% to $2.4 billion and Earnings Per Share climbed 5.3% to 19.9 cents.

Underlying EBITDAaL grew 4%, Cash EPS increased 14% to 25.5 cents and Underlying Return on Invested Capital rose 0.5 percentage points to 9%. Mobile service revenue grew across Postpaid, Prepaid, Wholesale handheld, mobile broadband and IoT. Mobile users increased by more than 270,000, or 1.9%, while average revenue per user improved across categories, brands and segments.

Fixed Consumer and Small Business EBITDA also increased through cost management, while Fixed Enterprise continued its reset toward core connectivity. International Wholesale and Enterprise progressed toward digital infrastructure and the Infrastructure business benefited from rising demand in the AI era.

Strategy Progress

Telstra also outlined progress on Connected Future 30. Customer Engagement improved, with Strategic NPS reaching +20 and Episode NPS +49, the highest year-end results since measurement began. Under Network as a Product, nearly 1,200 mobile sites received 5G Advanced upgrades, more than 150 new mobile sites were built and over 1,800 network sites received backup power during FY26.

The company invested in Satellite Messaging and Select Satellite Applications while expanding enterprise offerings. Digital Infrastructure demand remained strong, with long-term contracts signed across Aura Network, subsea cable and long-haul fibre assets involving Google, AWS, Firmus and Microsoft.

More than 8,500km of Aura fibre was in the ground, with six routes ready for service. The sales pipeline increased significantly, supporting expectations for a mid-teens IRR and around nine-year cash payback. Total strategic investment including Viasat, is now expected at around $1.8 billion from FY23 to FY28 versus the earlier $1.6 billion estimate.

Shareholder Returns

TLS announced a final dividend of 10.5 cents per share, taking FY26 total dividends to 21 cents, improved 10.5% year-on year. The final dividend is 90.5% franked. Telstra completed its $1.25 billion buy-back in June 2026 and announced another buy-back of up to $1 billion on 13 August. Cash EBIT rose 8.0% to $4.7 billion, with positive operating leverage of 2.0 percentage points.

Outlook

Telstra provided FY27 guidance of $8.5-$8.8 billion for Underlying EBITDAaL, $3.35-$3.65 billion for BAU capex, $4.75-$4.95 billion for Cash EBIT and $0.2-$0.3 billion for strategic investment. The company plans further spending on mobile, fibre, satellite and international connectivity, with greater attention to resilience, security and reliability following the July 2026 mobile network outage.

Aura Network development will continue, alongside subsea cable expansion. TLS will use AI, including agentic AI capabilities, to improve operations, detect issues earlier and enhance customer experiences. It will also focus on digital inclusion, affordability, cyber security, backup power and sustainability. Under Connected Future 30, its FY30 goals include mid-single digit compound annual growth in cash earnings and underlying ROIC of 10% supported by disciplined portfolio, capital and cost management.

(Source: Company Report)