BCE Inc (BCE) (Q3 2026) Earnings Call Highlights: AI Fabric, Bell Media Growth and TowerCo Deal ...

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Release Date: November 05, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Postpaid churn improved 7 basis points to 1.06%, the lowest third-quarter level in four years, reflecting successful Customer First initiatives.

• AI-powered solutions revenue grew 41%, driven by Ateko and Bell Cyber, and Bell AI Fabric is on track to exceed $500 million EBITDA with strong demand.

• Bell Media delivered its second consecutive quarter of strong growth, with total revenue up 9.7% and adjusted EBITDA up 8%, driven by Crave's 21% subscriber growth.

• The TowerCo transaction with Lakes, valuing the business at approximately $4.91 billion, surfaces significant value and provides financial flexibility to fund growth.

• BCE Inc ( NYSE:BCE ) reconfirmed all 2026 financial guidance targets, with revenue growth of 2.2% and adjusted EBITDA growth of 9% in Q3.

Negative Points

• Wireless service revenue declined 13% year-over-year, or about 5% excluding CRTC-mandated fee changes, with ARPU down 1.7%.

• Adjusted EPS decreased by $0.05 due to higher D&A expense and lower tax adjustments, impacting profitability.

• Net debt leverage remains elevated at approximately 3.7 times, with a target of 3.5 times by end of 2027, requiring continued deleveraging.

• Ziply Fiber build pace is slower than desired, with the $3 million footprint target by 2028 facing delays and requiring acceleration.

• Regulatory environment remains challenging, with no positive changes seen in the core telecom and broadcasting frameworks, impacting investment.

Q & A Highlights

Q: With the TowerCo transaction complete, how does BCE plan to use the proceeds, and could they be redeployed into AI data centers? A: CFO Curtis Millen said the $2.45 billion in proceeds provides financial flexibility, but priorities remain unchanged: reaching 3.5x net debt leverage by the end of 2027 and funding growth initiatives, including Bell AI Fabric. He noted there is strong demand for AI Fabric but nothing specific to announce yet.

Q: How is BCE thinking about capital allocation priorities, particularly AI Fabric versus Ziply and other growth areas? A: CFO Curtis Millen said AI Fabric offers very strong returns and sits near the top of the capital allocation list, alongside fiber, media digital transformation and internal cost efficiency. CEO Mirko Bibic added that digital transformation investment in the core Canadian wireless and fiber businesses is also a priority because it lowers churn and drives more profitable customer transactions.

Q: What is the status of the Saskatchewan AI data center build, and how much capital remains to be spent? A: CFO Curtis Millen said BCE still targets about $5 billion of total capex in 2026, with Q4 expected to be a much heavier capex quarter. Some equipment spending was pushed later because BCE no longer needs to warehouse equipment as long as originally budgeted. Delivery timelines are unchanged: the first data hall is expected online in the first half of 2027, with all halls running by the end of 2027.

Q: How confident is BCE in reaching the $3 million Ziply fiber footprint target by the end of 2028? A: CFO Curtis Millen said the $3 million footprint remains the plan, with permitting up about 60% from Q2 and much of the build now outside the Pacific Northwest. CEO Mirko Bibic said BCE is focused on its three-year plan and noted Ziply fiber revenue grew 10% year-over-year in Q3, with blended ARPU improving from the start of 2026.

Q: How is BCE responding to competitive pressure in wireless, and when could service revenue and ARPU return to growth? A: CEO Mirko Bibic said BCE is choosing quality over volume amid slower population growth, prioritizing the Bell brand and customer lifetime value over promotional gross adds. CFO Curtis Millen said wireless service revenue would have been down about 5% excluding the CRTC connection-fee impact, and both executives expect service revenue and ARPU growth by mid-2027 if pricing momentum continues.

Q: What is the status of the Northwestel divestiture, and will it still deliver the expected deleveraging? A: CEO Mirko Bibic said a transaction remains likely but may take a different form than the originally announced full sale. He said it should have the same deleveraging impact as the original deal and that BCE remains on track with its plan to generate $7 billion in proceeds from non-core divestitures.

Q: What are the signposts for the nonbinding Saskatchewan MOU for up to 900 megawatts of additional AI capacity? A: CFO Curtis Millen said BCE needs access to power, land and customers before announcing financial impacts. The MOU provides important line of sight into incremental power, and BCE is working through contracts before disclosing a transaction.

Q: How is BCE managing customer credit risk and tenant quality in Bell AI Fabric given long-term contracts? A: CEO Mirko Bibic said BCE is being highly disciplined, targeting a diversified customer base across hyperscalers, the public sector and Canadian enterprises. Contracts include credit protections such as letters of credit and prepayments, BCE does not invest directly in GPUs, and it does not build on speccapacity is built only after a contract is secured.

Q: Is BCE considering joint-venture or partnership structures for future AI Fabric expansion? A: CEO Mirko Bibic placed partnerships in the "never say never" category, saying there is nothing to announce now. He emphasized the significant value created in AI Fabric in only 18 months and said BCE is focused on delivering in 2027.

Q: How is BCE addressing community and Indigenous consultation concerns around the Saskatchewan data center? A: CEO Mirko Bibic said BCE endorses federal and Saskatchewan principles for responsible AI data center development and engages directly with communities. He highlighted support from the George Gordon First Nation, a partnership focused on local employment and co-development, and strong backing from Regina and the Regional Municipality of Sherwood, while acknowledging some segments remain concerned.

Q: What is BCE's view on the regulatory environment and government relations? A: CEO Mirko Bibic said he is encouraged by the federal government's focus on infrastructure investment and its AI strategy, where BCE can be a key partner. However, he said it is too early to judge any change in the core telecom and broadcasting regulatory framework and gave no positive signal on that front.

Q: How did Bell Media perform in Q3, and what is driving growth? A: CEO Mirko Bibic said Bell Media delivered its second consecutive quarter of strong revenue and adjusted EBITDA growth, with Crave subscribers up 21% year-over-year to more than 5.1 million and direct-to-consumer streaming subscribers up 41%. Digital now represents about 50% of Bell Media revenue, up from 19% in 2020.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .