Highlights

  • Telstra reported 5.3% growth in underlying EBITDA for the first half of FY26.
  • Mobile remained the main Earnings contributor, with EBITDA increasing by $93 million in 1H26.
  • Mobile services Revenue increased by 5.6%, supported by higher average revenue per user and customer growth.
  • Fixed Enterprise EBITDA declined by $9 million as Telstra continued to reshape the Business and reduce costs.
  • The company tightened FY26 underlying EBITDAaL guidance to between $8.2 billion and $8.4 billion in February 2026.

Telstra Group Limited (ASX:TLS) is an Australian telecommunications and technology company providing mobile, broadband, enterprise and digital infrastructure services. Its 2026 reporting has centred on continued earnings growth in mobile and infrastructure, disciplined cost management and the ongoing reset of Fixed Enterprise. The first-half result also marked the transition from the T25 program to the Connected Future 30 strategy, which sets the company’s operating and financial priorities through FY30.

Mobile Business Remains the Main Earnings Driver

For the six months ended 31 December 2025, reported in February 2026, Telstra recorded a 5.3% increase in underlying EBITDA. The Mobile segment contributed $93 million of EBITDA growth, while mobile services revenue rose 5.6%. Telstra attributed the improvement to higher average revenue per user and additional customers choosing its network.

The result reinforces the importance of mobile to Telstra’s earnings mix. The company continues to focus on network capability, customer retention and monetisation of connectivity rather than relying on short-term market movements. Fixed Consumer and Small Business also contributed to the half-year improvement, with EBITDA increasing by $37 million.

Fixed Enterprise Reset Continues

Fixed Enterprise remained the main area of operational pressure in 1H26. Segment EBITDA declined by $9 million as Telstra continued Portfolio Management and cost reduction initiatives. The company has been simplifying the Enterprise offering and concentrating resources on areas where it considers its capabilities more differentiated.

This restructuring is important because weaker enterprise performance can dilute gains achieved elsewhere in the group. Telstra’s 2026 commentary indicates that the business is being managed with a greater emphasis on portfolio quality, cost control and clearer commercial focus rather than broad product expansion.

Cost Discipline and FY26 Guidance

Telstra reported a 2.9% reduction in Cash EBIT cost during 1H26, including a 2.4% reduction in underlying operating expenses. Business-as-usual Capital Expenditure declined by 5.2% to $1.5 billion. At the same time, underlying EBITDAaL reached $4.2 billion for the half.

In February 2026, Telstra tightened its FY26 underlying EBITDAaL guidance to $8.2 billion-$8.4 billion. Guidance for business-as-usual capital expenditure remained $3.2 billion-$3.5 billion, while Cash EBIT guidance was $4.55 billion-$4.75 billion. These ranges provide a clearer framework for assessing how earnings growth and cost control are progressing through the year.

Key Insights

Telstra’s 2026 disclosures show a business where mobile and infrastructure continue to provide the main earnings momentum, while Fixed Enterprise remains under active restructuring. Cost reduction and capital discipline are central to the current operating model, and the Connected Future 30 strategy places additional emphasis on customer engagement, network monetisation and digital infrastructure. The balance between these growth areas and the pace of improvement in Enterprise remains an important feature of Telstra’s financial profile.