Telstra Group Limited (ASX:TLS): FY26 Earnings, Network Investment and FY27 Guidance

Aditi Sarkar

21 October 2026 10:29 PM AEDT

Telstra Group Limited (ASX:TLS): FY26 Earnings, Network Investment and FY27 Guidance

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Highlights

Telstra Group Limited (ASX:TLS) closed at AUD 4.85 on 21 October 2026, gaining 1.89%.
FY26 reported net profit after tax rose 2.7% to AUD 2.4 billion.
FY26 underlying EBITDA after leases increased 4% to AUD 8.3 billion.
FY27 guidance places underlying EBITDA after leases between AUD 8.5 billion and AUD 8.8 billion.

Telstra Group Limited (ASX:TLS) supplies mobile, broadband, enterprise connectivity and digital infrastructure services across Australia and international markets. On 21 October 2026, Telstra closed at AUD 4.85 per share, up 1.89% for the session. Its latest full-year disclosures detailed earnings growth, investment in network resilience and changes to its infrastructure portfolio, alongside guidance for the financial year ending June 2027.

Company Business

Telstra Group Limited (ASX:TLS) operates mobile services for consumer and business customers, fixed-line broadband, enterprise network applications, wholesale connectivity and infrastructure assets. Its activities include the InfraCo fixed-network portfolio, the Amplitel towers business and international connectivity assets. The group also operates Digicel Pacific, whose FY26 earnings were affected by foreign-exchange movements.

Infrastructure investment spans mobile sites, long-haul fibre, subsea cable capacity and satellite ground stations. Its Aura intercity fibre network forms part of a programme to support demand for transmission capacity from cloud providers and other commercial customers. Consumer services and enterprise connectivity face different pricing, customer retention and operating-cost conditions.

Recent Development

In August 2026, Telstra Group Limited (ASX:TLS) reported that it had upgraded nearly 1,200 mobile sites with 5G Advanced capabilities and built more than 150 new mobile sites during FY26. It also upgraded more than 1,800 network sites with backup power. Following a July network outage, management outlined further work on resilience, external investigation findings and operational safeguards.

The group reported more than 8,500 kilometres of fibre installed on its Aura Network, with six routes ready for service. It revised expected strategic investment through FY28, including Viasat-related projects, to approximately AUD 1.8 billion from AUD 1.6 billion, referring to inflation and project-specific site and route conditions. The company also announced a new on-market buyback of up to AUD 1 billion after completing an AUD 1.25 billion programme in June.

Financial Performance and Sector Context

Telstra Group Limited (ASX:TLS) reported FY26 EBITDA after leases of AUD 8.2 billion, up 3%, and net profit after tax of AUD 2.4 billion, up 2.7%. Earnings per share advanced 5.3% to 19.9 Australian cents. Underlying EBITDA after leases increased 4% to AUD 8.3 billion, while cash EBIT increased 8% to AUD 4.7 billion. Cash earnings increased 12% to AUD 2.9 billion, with cash earnings per share reaching 25.5 cents, up 14%.

Mobile service revenue rose 4.8%, with handheld users increasing by more than 270,000 and handheld average revenue per user rising nearly 4%. Fixed Consumer and Small Business EBITDA increased 13.5% to AUD 412 million, although broadband service losses and wholesale input costs affected margins. Digicel Pacific EBITDA declined 10% in Australian-dollar terms to AUD 293 million, largely reflecting exchange-rate effects.

The FY26 final dividend was 10.5 cents per share, taking annual dividends to 21 cents per share, with each payment 90.5% franked. Telstra reported underlying net debt at 1.9 times its relevant earnings measure. Telecommunications operators continue to manage network expenditure, consumer competition, wholesale pricing and requirements for service reliability.

Risks to Consider

Telstra Group Limited (ASX:TLS) faces network availability and cyber-security risks, including service disruptions and associated remediation costs. Its capital programme is exposed to construction expenses, inflation and delivery schedules. Fixed broadband losses, enterprise pricing pressure and the costs of servicing customers may affect financial outcomes. International operations also expose reported earnings to currency movements, while greater use of debt and share repurchases requires continuing balance-sheet oversight.

What to Watch Next

For FY27, the company guided underlying EBITDA after leases of AUD 8.5 billion to AUD 8.8 billion, business-as-usual capital expenditure of AUD 3.35 billion to AUD 3.65 billion and cash EBIT of AUD 4.75 billion to AUD 4.95 billion. Strategic investment guidance was AUD 200 million to AUD 300 million. Subsequent disclosures may clarify network resilience work, Aura commissioning, mobile service trends, enterprise portfolio changes and progress against these financial ranges.

Key Insights

Telstra Group Limited (ASX:TLS) enters FY27 following higher FY26 reported earnings, increased mobile service revenue and further expenditure on network and fibre assets. Its disclosures also identify cost pressures, customer-service obligations and international currency exposure. Earnings guidance, capital spending, project milestones and operating performance across mobile and fixed businesses provide measurable reference points for subsequent reporting.

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