Telstra Group (TLS) H1 2026 earnings summary

Executive summary

• Delivered strong first-half FY26 performance with earnings growth, cost control, and disciplined capital management, supporting the Connected Future 30 strategy and digital transformation.

• Interim dividend increased by 10.5% to 10.5cps (90.5% franked), and share buy-back raised to up to $1.25b for FY26.

• Strategic NPS improved by 5 points, with 86% of consumer service interactions now digital and AI-powered customer assistant adoption rising.

• Ongoing investments in network resilience, digitization, and AI, with significant progress in customer migration to digital platforms.

• Continued portfolio optimization, including divestments and disciplined capital management.

Financial highlights

• Total income grew 0.2% to $11.8b; EBITDAAL up 4.9% to $4.2b; underlying EBITDAAL up 5.5%; EBIT up 9.2% to $2.0b; NPAT up 8.1% to $1.2b; EPS up 11% to 9.9c; Cash EPS up 20% to 14.0c.

• Operating expenses reduced by 2.1%; BAU capex down 5% to $1.5b.

• Interim dividend increased to 10.5cps (90.5% franked); buy-back lifted to up to $1.25b, with $637m completed in 1H26.

• Cash EBIT up 14% to $2.5b; operating cash flows less investing activities up 47.7% to $1.9b.

• Amplitel EBITDA up 6.6% to $162m; InfraCo Fixed EBITDA up 3.4% to $905m.

Outlook and guidance

• FY26 underlying EBITDAAL guidance tightened to $8.2b–$8.4b; BAU capex guidance at $3.2b–$3.5b; Cash EBIT guidance at $4.55b–$4.75b; strategic investment capex at $0.3b–$0.5b.

• Committed to mid-single-digit cash earnings growth and sustainable, growing dividends.

• Expect higher BAU CapEx in second half, with productivity and asset sales offsetting divestment impacts.

• Dividend payout ratios: 106% of EPS and 75% of Cash EPS.