Telstra Group (ASX: TLS) – Telstra Connected Future 30 Delivers Strong Results

Telstra Group Limited delivered a strong financial performance in FY26, with underlying earnings per share growing 14 percent to 25.5 cents and underlying EBITDA climbing 4 percent to $8.3 billion, demonstrating the company’s ability to drive growth through disciplined capital management and network investment.

The reported results were equally solid, with net profit after tax rising 2.7 percent to $2.4 billion and earnings per share increasing 5.3 percent to 19.9 cents. These figures underscore Telstra’s execution across its operations, particularly in customer revenue retention and cost control. The underlying metrics paint an even more compelling picture for investors, as they strip out one-off items and provide clearer visibility of operational momentum. The 14 percent cash EPS growth significantly outpaced the reported EPS growth, suggesting strong free cash flow generation that supports dividends and shareholder returns.

Operationally, mobile service revenue expanded across all customer segments, with postpaid, prepaid, and wholesale services all posting gains. Mobile user additions exceeded 270,000 during the year, representing 1.9 percent growth and indicating market share gains in a competitive telecommunications landscape. Equally noteworthy was the improvement in customer satisfaction metrics, with strategic NPS climbing to plus 20 and episode NPS reaching plus 49, the highest year-end levels since Telstra began measuring these indicators. This combination of subscriber growth and satisfaction improvement suggests pricing power and customer stickiness are strengthening.

The Connected Future 30 strategy is gathering momentum in its execution. On the network side, Telstra upgraded nearly 1,200 mobile sites with 5G Advanced capability and constructed over 150 new mobile sites. The company also rolled out backup power across more than 1,800 network sites, enhancing reliability. These investments position Telstra as Australia’s leading 5G operator and support higher data consumption patterns.

The standout development is the Aura Network digital infrastructure initiative, which is emerging as a significant long-term value driver. The company has already secured long-term contracts with major hyperscalers including Google, AWS, Microsoft, and Firmus. With over 8,500 kilometers of fibre deployed and six routes ready for service, the network is more than halfway through its build phase. This captured demand from major global technology companies addressing AI infrastructure needs represents a structural revenue stream that could diversify Telstra beyond traditional telecom services and offset headwinds in legacy connectivity offerings.

For investors, Telstra’s results demonstrate that the company can execute operationally while investing heavily in future capabilities. The Digital Infrastructure pipeline suggests upside potential to consensus earnings expectations as these assets move into production and long-term contracts begin recognizing revenue. The key question for shareholders is whether Aura Network growth can offset continued pressure in Fixed Enterprise, which requires ongoing portfolio management. This announcement is price sensitive and has been flagged as material by the ASX.

View the full ASX announcement (PDF)

About Telstra Group Limited (ASX: TLS)

Telstra Group is Australia’s largest telecommunications company, providing mobile, fixed-line, data, and digital services to consumer and enterprise customers across Australia and internationally.

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