BCE Q4 Earnings Beat Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy BCE?
Source: seekingalpha
- Earnings Beat: BCE reported a Q4 non-GAAP EPS of $0.69, exceeding expectations by $0.23, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Stable Revenue Performance: The company achieved Q4 revenue of $6.4 billion, a slight decline of 0.3% year-over-year, yet it surpassed market expectations of $5.64 billion, indicating BCE's resilience in a competitive market.
- 2025 Guidance: BCE's guidance for 2025 indicates revenue growth of 0% to 2% and adjusted EBITDA growth of 0% to 2%, reflecting a cautious outlook on future growth while providing clear expectations for investors.
- Free Cash Flow Growth: The company anticipates free cash flow growth between 6% and 11%, with an actual growth of 10%, demonstrating effective capital management that supports maintaining an annual common dividend of $1.75 per share.
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Analyst Views on BCE
Wall Street analysts forecast BCE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BCE is 26.09 USD with a low forecast of 21.00 USD and a high forecast of 30.23 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
5 Buy
4 Hold
2 Sell
Moderate Buy
Current: 25.570
Low
21.00
Averages
26.09
High
30.23
Current: 25.570
Low
21.00
Averages
26.09
High
30.23
About BCE
BCE Inc. is a Canada-based communications company. The Company provides advanced Bell broadband Internet, wireless, television (TV), media and business communications services. The Company operates through two segments: Bell Communication and Technology Services (Bell CTS) and Bell Media. The Bell CTS segment includes providing a range of communication products and services to consumers, businesses and government customers across Canada; wireless products and services; wireline products and services, and its wholesale business. Its brands include Bell, Bell MTS, Bell Aliant, Virgin Plus, Fibe, Lucky Mobile and Northwestel. The Bell Media segment is a media and entertainment company with a portfolio of assets in video, audio and OOH advertising, and digital media, monetized through traditional and digital platforms. The Company also serves customers in the United States Pacific Northwest through Ziply Fiber.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Government Contracts: The company was awarded a government contract for its scalable homeland defense services, which is expected to bolster its operations and credibility in the space communications sector.
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BCE Q4 Earnings Beat Expectations
- Earnings Beat: BCE reported a Q4 non-GAAP EPS of $0.69, exceeding expectations by $0.23, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Stable Revenue Performance: The company achieved Q4 revenue of $6.4 billion, a slight decline of 0.3% year-over-year, yet it surpassed market expectations of $5.64 billion, indicating BCE's resilience in a competitive market.
- 2025 Guidance: BCE's guidance for 2025 indicates revenue growth of 0% to 2% and adjusted EBITDA growth of 0% to 2%, reflecting a cautious outlook on future growth while providing clear expectations for investors.
- Free Cash Flow Growth: The company anticipates free cash flow growth between 6% and 11%, with an actual growth of 10%, demonstrating effective capital management that supports maintaining an annual common dividend of $1.75 per share.
See More
BCE Reports 2025 Financial Results and 2026 Outlook
- Strong Financial Performance: BCE achieved a 2.3% growth in adjusted EBITDA for Q4 2025, reaching CAD 2.664 billion, with an EBITDA margin of 41.6%, the highest in over 30 years, indicating successful operational cost optimization and service quality enhancement.
- Free Cash Flow Growth: Free cash flow increased by 10% to CAD 3.178 billion for 2025, although Q4 free cash flow dropped 74.3% to CAD 225 million due to higher capital expenditures and reduced operating cash flow, reflecting the company's cautious capital allocation strategy.
- Strategic Investments and Acquisitions: BCE completed the acquisition of Ziply Fiber in 2025, driving growth in the U.S. market and expected to further enhance the company's competitive position and revenue streams, particularly in fiber services.
- 2026 Financial Guidance: BCE anticipates revenue growth of 1% to 5% for 2026, with adjusted EBITDA growth of 0% to 4%, and plans to maintain a quarterly dividend of CAD 1.75 per share, demonstrating confidence in future growth and commitment to shareholders.
See More
BCE Reports 2025 Results and 2026 Financial Guidance
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- Revenue and Net Income Growth: For the full year 2025, net income rose to $6.514 billion, an increase of $6.139 billion year-over-year, primarily driven by higher investment gains and reduced asset impairments, reflecting effective capital allocation.
- Improved Free Cash Flow: BCE's free cash flow increased by 10% to $3.178 billion in 2025, although Q4 free cash flow dropped 74.3% to $225 million, the overall performance indicates robust cash flow management strategies.
- Positive Future Outlook: BCE expects revenue growth in 2026 to range from 1% to 5%, with adjusted EBITDA growth targets set at 0% to 4%, and plans to further expand its fiber business in the U.S., demonstrating confidence in future growth.
See More
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- Wireless Business Momentum: The company activated 56,124 postpaid mobile subscribers in Q4, with postpaid churn improving to 1.49%, marking the third consecutive quarter of year-over-year improvement, showcasing effective customer retention strategies and competitive positioning.
- Significant Internet Revenue Growth: Retail fiber internet net activations totaled 49,168 in Q4, contributing to a 16.6% increase in internet revenue, bolstered by the acquisition of Ziply Fiber, further solidifying BCE's position in the rapidly growing internet market.
- Strategic Investments and Future Outlook: BCE anticipates revenue growth of 1% to 5% in 2026, with adjusted EBITDA growth projected at 0% to 4%, while continuing to focus on its fiber growth strategy, demonstrating strong confidence in sustainable future development.
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- Revenue Expectations Decline: The anticipated revenue for Q4 is $4.84 billion, down 24.6% year-over-year, indicating pressure on the company amidst competitive market conditions and potentially affecting future investment decisions.
- Historical Performance Review: BCE has beaten EPS estimates 100% of the time over the past two years and has surpassed revenue estimates 88% of the time, showcasing stability in financial performance, although current expectations may disrupt this trend.
- Expectation Revision Trends: Over the last three months, EPS estimates have seen 2 upward revisions and 10 downward revisions, while revenue estimates have experienced 2 upward and 7 downward revisions, indicating a weakening market confidence in BCE's future performance, which may lead to stock price volatility.
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Company Performance: AST Space Mobile has seen a significant increase in its stock, climbing over 240% since 2025, with shares up 24% year-to-date despite some volatility and setbacks in its launch schedule.
Government Contracts: The company was awarded a government contract for its scalable homeland defense services, which is expected to bolster its operations and credibility in the space communications sector.
Upcoming Launches: AST Space Mobile is preparing for the launch of its Bluebird 7 satellite, which is set to transport its next-generation technology into low Earth orbit, aiming to meet ambitious launch targets by the end of 2026.
Market Position and Challenges: Despite its growth, analysts express skepticism about AST's ability to meet its launch goals, with concerns about its current pace and the potential for missing targets, which could impact its long-term market position against competitors like SpaceX.
See More
BCE Q4 Earnings Beat Expectations
- Earnings Beat: BCE reported a Q4 non-GAAP EPS of $0.69, exceeding expectations by $0.23, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Stable Revenue Performance: The company achieved Q4 revenue of $6.4 billion, a slight decline of 0.3% year-over-year, yet it surpassed market expectations of $5.64 billion, indicating BCE's resilience in a competitive market.
- 2025 Guidance: BCE's guidance for 2025 indicates revenue growth of 0% to 2% and adjusted EBITDA growth of 0% to 2%, reflecting a cautious outlook on future growth while providing clear expectations for investors.
- Free Cash Flow Growth: The company anticipates free cash flow growth between 6% and 11%, with an actual growth of 10%, demonstrating effective capital management that supports maintaining an annual common dividend of $1.75 per share.
See More
BCE Reports 2025 Financial Results and 2026 Outlook
- Strong Financial Performance: BCE achieved a 2.3% growth in adjusted EBITDA for Q4 2025, reaching CAD 2.664 billion, with an EBITDA margin of 41.6%, the highest in over 30 years, indicating successful operational cost optimization and service quality enhancement.
- Free Cash Flow Growth: Free cash flow increased by 10% to CAD 3.178 billion for 2025, although Q4 free cash flow dropped 74.3% to CAD 225 million due to higher capital expenditures and reduced operating cash flow, reflecting the company's cautious capital allocation strategy.
- Strategic Investments and Acquisitions: BCE completed the acquisition of Ziply Fiber in 2025, driving growth in the U.S. market and expected to further enhance the company's competitive position and revenue streams, particularly in fiber services.
- 2026 Financial Guidance: BCE anticipates revenue growth of 1% to 5% for 2026, with adjusted EBITDA growth of 0% to 4%, and plans to maintain a quarterly dividend of CAD 1.75 per share, demonstrating confidence in future growth and commitment to shareholders.
See More
BCE Reports 2025 Results and 2026 Financial Guidance
- Strong Financial Performance: BCE achieved a 2.3% adjusted EBITDA growth in Q4 2025, reaching $2.664 billion, with an EBITDA margin of 41.6%, the highest in over 30 years, indicating successful strategic focus on customer service and network development.
- Revenue and Net Income Growth: For the full year 2025, net income rose to $6.514 billion, an increase of $6.139 billion year-over-year, primarily driven by higher investment gains and reduced asset impairments, reflecting effective capital allocation.
- Improved Free Cash Flow: BCE's free cash flow increased by 10% to $3.178 billion in 2025, although Q4 free cash flow dropped 74.3% to $225 million, the overall performance indicates robust cash flow management strategies.
- Positive Future Outlook: BCE expects revenue growth in 2026 to range from 1% to 5%, with adjusted EBITDA growth targets set at 0% to 4%, and plans to further expand its fiber business in the U.S., demonstrating confidence in future growth.
See More
BCE Reports 25.1% Increase in Net Earnings for 2025
- Strong Financial Performance: BCE achieved net earnings of $632 million in Q4 2025, reflecting a 25.1% year-over-year increase, primarily driven by higher other income and adjusted EBITDA growth, indicating robust market performance and enhanced profitability.
- Wireless Business Momentum: The company activated 56,124 postpaid mobile subscribers in Q4, with postpaid churn improving to 1.49%, marking the third consecutive quarter of year-over-year improvement, showcasing effective customer retention strategies and competitive positioning.
- Significant Internet Revenue Growth: Retail fiber internet net activations totaled 49,168 in Q4, contributing to a 16.6% increase in internet revenue, bolstered by the acquisition of Ziply Fiber, further solidifying BCE's position in the rapidly growing internet market.
- Strategic Investments and Future Outlook: BCE anticipates revenue growth of 1% to 5% in 2026, with adjusted EBITDA growth projected at 0% to 4%, while continuing to focus on its fiber growth strategy, demonstrating strong confidence in sustainable future development.
See More
BCE Set to Announce Q4 Earnings on February 5
- Earnings Announcement Date: BCE is scheduled to release its Q4 earnings on February 5 before market open, with a consensus EPS estimate of $0.46, reflecting a significant year-over-year decline of 41.8%, which could negatively impact investor sentiment.
- Revenue Expectations Decline: The anticipated revenue for Q4 is $4.84 billion, down 24.6% year-over-year, indicating pressure on the company amidst competitive market conditions and potentially affecting future investment decisions.
- Historical Performance Review: BCE has beaten EPS estimates 100% of the time over the past two years and has surpassed revenue estimates 88% of the time, showcasing stability in financial performance, although current expectations may disrupt this trend.
- Expectation Revision Trends: Over the last three months, EPS estimates have seen 2 upward revisions and 10 downward revisions, while revenue estimates have experienced 2 upward and 7 downward revisions, indicating a weakening market confidence in BCE's future performance, which may lead to stock price volatility.
See More
