Telstra Group (TLS) H2 2026 earnings summary

Executive summary

• FY26 marked the first year of Connected Future 30, with earnings and customer outcomes improving alongside higher network and digital infrastructure investment.

• Priorities include mobile modernization, AI-enabled services, and converting digital infrastructure demand into contracted value.

• A major July network outage prompted customer credits, an external investigation, and commitments to strengthen resilience and operational controls.

Financial highlights

• Reported EBITDAaL rose 3% to AUD 8.2bn, NPAT rose 2.7% to AUD 2.4bn, and EPS rose 5.3% to AUD 0.199.

• Underlying EBITDAaL increased 4% to AUD 8.3bn, excluding AUD 55m of net non-cash impairments and M&A impacts.

• Cash EBIT grew 8% to AUD 4.7bn, cash earnings rose 12% to AUD 2.9bn, and cash EPS increased 14% to AUD 0.255.

• Operating expenses fell 2.6% to AUD 14.6bn; cash EBIT costs declined ~AUD 530m, supporting 2.0pp positive operating leverage.

• Total income declined 0.9% to AUD 23.4bn, mainly due to divestments, product rationalisation, and FX; net debt increased AUD 0.9bn to AUD 17.3bn.

Outlook and guidance

• FY27 guidance: underlying EBITDAaL AUD 8.5bn–AUD 8.8bn; cash EBIT AUD 4.75bn–AUD 4.95bn.

• FY27 BAU CapEx guidance is AUD 3.35bn–AUD 3.65bn, with strategic investment of AUD 0.2bn–AUD 0.3bn.

• Priorities include accelerating mobile transformation, evolving Network as a Product, applying AI, growing digital infrastructure revenue, and maintaining cost and capital discipline.

• Mobile ARPU is expected to benefit from May 2026 price changes flowing through FY27; Network as a Product aims to support a higher-value plan mix.

• Aura investment through FY28 is forecast at ~AUD 1.8bn, targeting mid-teens IRR and ~nine-year cash payback; July outage costs and potential penalties are excluded from FY27 guidance.