Watch these Canadian telecom stocks in 2026

Canada’s telecom sector struggled through 2025, pressured by slowing subscriber growth, heavy capital requirements and weak investor appetite for highly leveraged dividend payers. Shares of the large incumbents underperformed as pricing pressure and regulatory uncertainty weighed on results.

Against that backdrop, analyst focus has narrowed to two contrasting stories.

BCE is increasingly being framed as a recovery play following its capital reset, with improving free cash flow visibility now central to the investment thesis. Quebecor, meanwhile, has emerged as the sector’s standout, supported by disciplined capital allocation and continued wireless market share gains.

BCE (BCE Stock Quote, Chart, News, Analysts, Financials TSX:BCE)

Ryan Bushell, president and portfolio manager at Newhaven Asset Management, said BCE is re-emerging as an attractive defensive and value-oriented holding as investor sentiment begins to turn.

Speaking on BNN Bloomberg’s Market Call on Dec. 12, Bushell said a wave of broker upgrades has started to reverse negative fund flows into the stock, with improving sentiment feeding into quantitative models after a prolonged period of underperformance. He added that recent meetings with management left him encouraged by the company’s renewed focus on operating discipline and growth, pointing to Ziply Fiber as a potential upside catalyst.

Bushell highlighted BCE’s roughly 5% dividend yield as increasingly compelling, particularly if markets grow more volatile and investors rotate back toward stable, income-generating names. He also noted that year-end tax-loss selling may have weighed on the shares, potentially setting the stage for renewed buying interest in January.

BCE shares are down 11.5% over the past year and roughly 40% over five years, but Bushell views the stock as a long-term recovery play following its 2025 reset, which included the Ziply acquisition, the sale of its MLSE stake and a sharp dividend cut. Trading at about 6.8× forward EV/EBITDA, analysts see scope for multiple expansion if BCE delivers on its 2026–2028 outlook for modest revenue and adjusted EBITDA growth.

Quebecor (Quebecor Stock Quote, Chart, News, Analysts, Financials TSE:QBR.B)

Quebecor posted a standout 2025, delivering a roughly 65% total return as investors rewarded improving fundamentals and multiple expansion. Forward EV/EBITDA rose to about 7.3× from 6.1×, supported by a return to positive growth in its Telecommunications segment, including a rebound in wireless ARPU and approximately 300,000 net wireless additions.

TD Cowen analyst Vince Valentini reiterated a “Buy” rating and raised his target to a Street-high $58.00 after channel checks suggested Black Friday promotions did not disrupt momentum at Freedom Mobile. He lifted his fourth-quarter expectations for wireless additions and now forecasts a return to positive ARPU growth, with mobile revenue gains continuing to more than offset modest cable declines.

Valentini cautioned that competitive responses, including aggressive fixed-wireless pricing, could temper enthusiasm heading into 2026. Even so, he said Quebecor’s disciplined capex, solid free cash flow generation and continued execution at Freedom support near-term momentum, with longer-term upside tied to brand-led growth, bundling and its digital-only Fizz offering.

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