Scotiabank raised its BCE price target to C$40 and kept an "Outperform" rating after Q2 2026 results showed revenue growth, stronger adjusted earnings and higher capital spending tied to AI and fibre expansion.
BCE reported Q2 2026 operating revenue of $6,176 million, up 1.5% from a year earlier, while adjusted EBITDA rose 1.0% to $2,702 million and adjusted EPS increased 3.2% to $0.65. Net earnings declined, and free cash flow fell 9.5% to $1,042 million as capital expenditures jumped 41.5% to support Bell AI Fabric data centres in Canada and Ziply Fiber's fibre-to-the-premise network in the U.S. BCE said results were supported by fibre subscriber growth, Bell Media strength and the contribution from Ziply Fiber, and it confirmed its 2026 financial guidance. Following the results, Scotiabank raised its price target on BCE to C$40 and reiterated an "Outperform" rating.