--- title: "BCE Inc. Bets Big on Fiber, AI and Media" type: "News" locale: "en" url: "https://longbridge.com/en/news/295309775.md" description: "BCE Inc. reported Q2 2026 results with consolidated revenue up 1.5% and adjusted EPS of $0.65. The company highlighted strong growth in fiber, AI data centers, and Bell Media, offsetting legacy declines. Free cash flow exceeded $1 billion despite higher capital expenditures for infrastructure. Management emphasized steady execution, improved balance sheet leverage, and robust demand for enterprise AI and cybersecurity services." datetime: "2026-08-09T00:21:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295309775.md) - [en](https://longbridge.com/en/news/295309775.md) - [zh-HK](https://longbridge.com/zh-HK/news/295309775.md) generator: "portal-rs" --- # BCE Inc. Bets Big on Fiber, AI and Media Bce Inc ((TSE:BCE)) has held its Q2 earnings call. Read on for the main highlights of the call. ### Claim 55% Off TipRanks - Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions - Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks BCE Inc.’s latest earnings call struck a cautiously optimistic tone as management highlighted steady execution across its core businesses and emerging growth platforms. Executives pointed to expanding fiber, AI data centers and media streaming as key engines, arguing these positives outweigh near-term pressure from heavier capital spending and softer wireless product revenue. ## Consolidated Revenue Growth BCE reported consolidated revenue up 1.5% year over year in the second quarter of 2026, supported by contributions from Ziply Fiber and a strong showing at Bell Media. The modest top-line expansion underscores how new growth engines are offsetting legacy declines in traditional services. ## Adjusted EBITDA and Margin Stability Adjusted EBITDA increased 1% versus a year ago, while the adjusted EBITDA margin held essentially steady at 43.8%. This stability signals that BCE is managing costs effectively and preserving profitability even as it ramps investment in new infrastructure and digital platforms. ## Strong Free Cash Flow The company generated more than $1 billion of free cash flow in the quarter, providing ample funding for operations and targeted growth projects. Management emphasized that this cash generation gives BCE flexibility to invest in fiber, AI facilities and media while maintaining shareholder returns. ## Balance Sheet Progress BCE’s net debt leverage ratio improved to about 3.7 times, roughly 0.1 turn better than late last year, and available liquidity stood at $4.6 billion. The company is using public debt offerings and tender transactions to move toward its stated target of 3.5 times leverage by the end of 2027. ## Wireless Customer Metrics and Churn Improvement Postpaid mobile phone net additions reached 41,594 and postpaid churn improved by 4 basis points year over year to 1.02%, the lowest in three years. The monthly recurring charge portion of ARPU rose 0.7%, suggesting BCE is extracting more value from its existing subscriber base despite a slow overall market. ## Fiber Subscriber Adds and Internet Revenue Growth Residential FTTH net additions in Canada topped 45,000 and climbed to nearly 55,000 when including Ziply Fiber. These gains helped drive Internet revenue up 14.2% year over year, underscoring how high-speed broadband continues to be a key growth driver for the group. ## Ziply Build and Subscriber Progress Ziply delivered its strongest quarter of residential net additions since being acquired, adding 9,600 customers. Management noted that permits increased more than fourfold between April and June and that contractor capacity is secured to support a meaningful ramp in construction during the second half. ## Bell AI Fabric Contracting and Construction Milestones BCE has roughly 335 megawatts of AI data center capacity already contracted, reflecting solid demand for its Bell AI Fabric. Construction milestones include completed piling and ongoing steel work at the 300 megawatt Saskatchewan site, with phases in Winnipeg and Merritt also scheduled over the next two years. ## Enterprise AI and Cyber Momentum Revenue from Ateko and Bell Cyber grew 29% year over year, highlighting strong momentum in enterprise AI and security services. Management framed this as evidence that corporate clients are increasingly turning to BCE for advanced analytics, automation and cyber protection solutions. ## Bell Media Digital and Subscriber Growth Bell Media revenue rose 8.9% and adjusted EBITDA climbed 3.8%, buoyed by robust digital growth. Crave subscribers hit 5.1 million, up 23%, while direct-to-consumer streaming subscribers surged 49% and digital video ad revenue jumped 39%, lifting total digital revenues by 6%. ## Network Awards and Recognition BCE highlighted third-party awards from Opensignal, Rohde & Schwarz and Ookla that recognized its Internet and 5G+ performance. The company believes these independent accolades, including multiple speedtest titles, reinforce its marketing claims around network quality and reliability. ## Adjusted EPS Improvement Adjusted earnings per share increased by $0.02 to $0.65, supported by higher adjusted EBITDA. Management also pointed out that the absence of noncash mark-to-market losses recorded a year earlier helped the bottom line, though overall earnings growth remains modest. ## Higher CapEx and Free Cash Flow Pressure Capital expenditures rose by $317 million year over year, driven by the Ziply Fiber rollout and AI Fabric investments. While free cash flow remained above $1 billion, it declined versus last year, with management flagging that most of the roughly $1.3 billion Saskatchewan AI data center spend will fall in the second half of 2026. ## Ziply Top-Line Momentum Still Limited Ziply’s revenue was broadly flat sequentially and has been essentially stable for three quarters, as growth in broadband offsets declines in copper and voice. Margins came under pressure from heavier subscriber acquisition efforts, even as management pointed to healthy net additions as a sign of future upside. ## Wireless Product Revenue Decline Wireless product revenue fell 6.6% year over year amid fewer contracted handset sales and a shift toward bring-your-own-device activations. BCE said it is prioritizing healthier margins over unit volume, which, along with fewer device upgrades, weighed on product revenue in the quarter. ## Modest Adjusted EBITDA and EPS Gains Despite revenue growth, adjusted EBITDA rose only 1% and adjusted EPS ticked up by just $0.02. These modest gains underscore that BCE’s earnings expansion is currently constrained by higher investment levels and a soft consumer spending backdrop. ## One-Time and Timing Impacts on Comparability Management noted that prior-year nonrecurring items make year-over-year comparisons more challenging for some units. These included a Mission Flats finance lease of about $100 million and G7-related revenue in the mid-$30 million range, which inflated last year’s results. ## Leverage Still Above Long-Term Target Even with recent progress, net debt leverage at roughly 3.7 times remains above the long-term goal of 3.5 times. Management reiterated that continued deleveraging will depend on both asset dispositions and ongoing EBITDA growth over the next several years. ## Bell Media Cost Headwinds Higher content and event-related costs, including major sports and premium programming, weighed on Bell Media profitability. While revenue growth was strong, these investments tempered adjusted EBITDA flow-through, reflecting the cost of securing marquee content in a competitive media landscape. ## Market Activity and ARPU Pressure Management described market volumes as softer, with a less active environment and slightly lower postpaid net adds in some comparisons. ARPU was roughly flat, down about 0.2% year over year excluding prior G7-related revenue, highlighting ongoing pricing and competitive pressures. ## Forward-Looking Guidance and Outlook BCE reaffirmed all of its 2026 financial guidance, saying results are tracking to full-year targets on revenue, EBITDA, EPS and free cash flow. Management pointed to contracted AI capacity with line of sight to 800 megawatts, ramping Ziply builds toward roughly 3 million homes by 2028, and ongoing balance-sheet actions as key pillars of its multiyear growth and deleveraging plan. BCE’s earnings call painted a picture of a company balancing heavy investment with disciplined execution across its core and emerging franchises. Investors will be watching how quickly fiber, AI infrastructure and digital media translate into stronger earnings and cash flow, but for now management argues that the strategic groundwork is firmly in place. ### Related Stocks - [BCE.US](https://longbridge.com/en/quote/BCE.US.md) ## Related News & Research - [Apple Was The Anti-AI Trade. Then AI Found Apple](https://longbridge.com/en/news/297533091.md) - [MoneyMasters Podcast: Rosenberg on Why the AI Boom Is RISKIER Than You Think](https://longbridge.com/en/news/297239245.md) - [AI Winners, Victims, and the One Stock to Sell Now](https://longbridge.com/en/news/297431483.md) - [Apple's "Number One Task" After the New King's Accession: AI](https://longbridge.com/en/news/297473890.md) - [09:38 ETHUMAIN and MinIO Announce Strategic Partnership to Build AI Data Fabric](https://longbridge.com/en/news/297527040.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**