Telstra Group (ASX: TLS) Share Price, Dividend and 2026 Outlook: What Investors Need to Know on 2 December 2025

Telstra Group Limited (ASX: TLS) is back in the spotlight in late 2025: profits are up sharply, the dividend has been nudged higher, a fresh A$1 billion buyback is underway, and the company is rolling from its completed “T25” strategy into a new long‑term plan centered on AI, fibre and 5G. At the same time, regulators are leaning in harder than ever, hitting Telstra with an A$18 million penalty and testing how far its dominance should go. ^[1]

Here’s a deep dive into the latest share price action, FY25 results, analyst forecasts, dividends and the key risks around Telstra stock as of 2 December 2025.

Telstra share price today: steady near record territory

By early afternoon on 2 December 2025, Telstra shares were trading around A$4.89, up about 0.6% on the day, with a one‑year gain of roughly 24% and a 52‑week range between A$3.84 and A$5.14. ^[2]

That leaves Telstra with a market capitalisation of about A$55 billion, a trailing P/E ratio near 26, and a forward P/E just under 24, putting it firmly in “defensive growth” territory rather than deep value. Its beta of around 0.16 underlines why many local investors treat TLS as a low‑volatility, income‑oriented core holding. ^[3]

Multiple data providers estimate Telstra’s 2025 year‑to‑date share price performance in the low‑20% range, meaning it has significantly outpaced the broader ASX 200 over the past 12 months. ^[4]

FY25 results: modest revenue growth, big profit jump

Telstra’s financial year ended 30 June 2025 was all about turning modest top‑line growth into outsized profit expansion.

Across FY25, Telstra generated around A$23.1 billion in revenue, up less than 1% from the previous year’s roughly A$22.9 billion. However, net profit climbed by roughly one‑third to about A$2.2–2.3 billion, depending on the specific statutory measure used. ^[5]

Key drivers highlighted by Telstra and external coverage include:

Strong mobile and fixed connectivity growth, supported by rising subscriber numbers and price increases on postpaid mobile and internet plans. ^[6]
Retail price hikes of around A$3–5 per month on many plans, pushing average revenue per user higher (and inviting criticism that these increases outpaced inflation). ^[7]
Aggressive cost‑cutting, including the removal of approximately 3,200 roles, a ~9.5% workforce reduction to around 30,553 employees. ^[8]
A sharp drop in one‑off restructuring and other charges compared to the previous year, which inflated the year‑on‑year profit growth rate. ^[9]

On an operational basis, Telstra’s underlying EBITDA after leases (EBITDAaL) for FY25 came in around A$8.0 billion, derived from underlying EBITDA of A$8.62 billion minus about A$600 million of lease amortisation. ^[10]

For FY26, management has guided to EBITDAaL of A$8.15–8.45 billion, a mid‑single‑digit uplift, signalling confidence in continued earnings growth despite persistent cost inflation and regulatory pressure. ^[11]

From T25 to “Connected Future 30”: strategy and big‑ticket capex

Telstra has now completed its multi‑year T25 strategy, which focused on network leadership, better customer experience, cost‑out and more predictable financial growth. Management says it exceeded most of its scorecard metrics, including targets on underlying EBITDA, EPS, return on invested capital and cost reduction. ^[12]

The next chapter is a longer‑term plan dubbed “Connected Future 30”, which leans heavily into three themes:

Network and infrastructure investment
- Over the past seven years, Telstra has invested about A$12.4 billion in its mobile network, including A$4.7 billion in regional areas, lifting 5G coverage to around 95% of the Australian population. ^[13]
- In February 2025, Telstra announced an additional A$800 million over four years to further upgrade its mobile network, citing surging data demand and the need for more resilient coverage. ^[14]
- It is also mid‑way through a A$1.6 billion intercity fibre program running from FY23–FY27, designed to link key data‑centre hubs and support AI and cloud workloads with very high‑capacity links. ^[15]
AI, cloud and data‑centre ecosystem plays
Telstra has positioned that intercity fibre build‑out explicitly as a “bid for AI riches”, hiring a former Microsoft ANZ boss to lead its infrastructure division and betting that hyperscalers, enterprise AI and data‑centre operators will pay for premium connectivity. ^[16]
Portfolio reshaping and partnerships
- Telstra agreed to sell wholesale voice, mobile and messaging contracts from Telstra International to iBASIS, narrowing its focus to higher‑margin connectivity and digital services. ^[17]
- It also entered a joint venture with Infosys, selling a 75% stake in its cloud‑focused Versent business and using proceeds to help fund a A$1 billion buyback, while keeping exposure to AI‑enabled cloud growth. ^[18]

Strategically, Telstra is clearly trying to sit at the crossroads of high‑capacity fibre, 5G, AI and cloud, while keeping its balance sheet strong enough to keep paying dividends and buying back stock.

Dividend snapshot: 2025 payout and 2026 expectations

For FY25, Telstra declared a fully franked total dividend of 19 cents per share, made up of a 9.5c interim and 9.5c final dividend. That represented about a 5–6% increase on the prior year’s 18c total payout. ^[19]

At today’s share price around A$4.89, that 19c payout equates to a trailing cash dividend yield of roughly 3.8–3.9%, or materially higher for many Australian investors once franking credits are factored in. ^[20]

Dividend trackers and company disclosures indicate:

The most recent final dividend (9.5c) went ex‑dividend on 27 August 2025 and was paid on 25 September 2025. ^[21]
The next interim dividend is expected to go ex‑dividend around late February 2026, with payment anticipated in late March, keeping the twice‑yearly pattern intact. ^[22]

Over a longer window, Telstra’s dividends have been grinding higher from A$0.16 in 2022 to A$0.17 in 2023, A$0.18 in 2024 and A$0.19 in 2025, giving income‑focused investors a slow but steady growth trend. ^[23]

Some brokers are more bullish. UBS, for example, has been cited as forecasting an FY26 dividend of about 21 cents per share, which would represent further mid‑single‑digit growth from current levels. ^[24]

Buybacks and capital returns: A$1 billion on‑market program

Alongside its FY25 results, Telstra announced a A$1 billion on‑market share buyback, on top of a A$750 million repurchase program completed earlier in 2025. ^[25]

Daily ASX notices and third‑party reporting show Telstra has been actively buying back shares through late November and into December, with updated buyback notifications lodged as recently as 1 December 2025. ^[26]

From a capital‑management perspective, this means:

A portion of Telstra’s strong cash flow is being returned to shareholders via both dividends and buybacks.
The buyback should provide incremental support to earnings per share (EPS) over time by reducing the share count.

Given Telstra’s relatively modest organic revenue growth, this dual track of cost‑out plus capital returns is central to the equity story.

Analyst ratings and price targets: cautiously positive

Across major data aggregators, the analyst community is generally constructive on Telstra, but not euphoric.

MarketScreener reports a consensus rating of “Outperform” from 14 analysts, with an average 12‑month target price around A$4.91, a high target of A$5.40 and a low near A$4.20. That implies low‑single‑digit upside from recent prices, with about 10–11% upside in the most optimistic scenarios. ^[27]
Fintel shows a slightly higher average one‑year target of about A$5.01, with forecasts ranging from roughly A$4.24 to A$5.67. ^[28]
TradingView and other platforms display a similar cluster of targets, with several brokers grouped in the A$4.80–A$5.20 band. ^[29]

Short‑term quantitative services, like StockInvest, have been projecting relatively small day‑to‑day moves (for example, a “fair” opening price around A$4.88 for 2 December), reinforcing the view of Telstra as a relatively low‑volatility income stock rather than a high‑beta trading vehicle. ^[30]

Recent datapoints from analyst and newsletter commentary include:

Simply Wall St notes Telstra has grown earnings per share by about 10% per year over the past three years, while revenue and EBIT margins have been broadly flat – a sign that cost control and buybacks are doing a lot of the heavy lifting. ^[31]
Kalkine Media, in a fresh 2 December 2025 piece, highlights Telstra as a steady, profitable large‑cap with consistent EPS and revenue trends, plus meaningful insider investment, positioning it as a potential candidate for investors who prioritise stability and dividends over speculative growth. ^[32]
Some brokers, such as in the TipRanks feed, have individual “Hold” ratings with price targets around A$4.80, reflecting the view that after a strong run in 2025, much of the near‑term good news may already be priced in. ^[33]

Overall, the sell‑side view is gently positive: Telstra is seen as a high‑quality, low‑volatility telco offering a sustainable dividend, modest growth, and limited—but non‑zero—upside at current levels.

Dividend and income coverage: Telstra on “best income stocks” lists

Because of that combination of stability and franked income, Telstra continues to appear on Australian dividend‑stock shortlists, including recent commentary naming TLS among the “best” income shares for December. ^[34]

Dividend databases show:

A forward cash yield around 3.8–3.9%, with a forward payout of about A$0.19 per share and “biannual” payment pattern. ^[35]
An average yield over the past 5–10 years north of 5–6%, reflecting periods when the share price was lower and the cash payout was higher relative to earnings. ^[36]
Dividend cover around 2x on some metrics today, but other smoothed figures show a high payout ratio, reminding investors that Telstra is not reinvesting the bulk of its earnings – that’s by design for a mature telco. ^[37]

For income‑focused portfolios, the key question is whether modest dividend growth, franking credits and low volatility compensate for relatively limited capital‑growth prospects from here.

Insider buying and big‑fund support

Two sets of signals stand out on the ownership side:

Insider buying
- Simply Wall St reports that insiders bought about A$580,000 worth of Telstra shares over the last 12 months, with no reported sales. The biggest single purchase was about A$419,000 by non‑executive director David Lamont at A$4.19 per share. ^[38]
- Insiders collectively hold around A$55 million of Telstra stock, a small percentage of the company but still a sign of alignment with ordinary shareholders. ^[39]
Institutional appetite
- Coverage from the Australian Financial Review indicates AustralianSuper, the country’s largest super fund, has accumulated roughly A$1 billion of stakes across Telstra and Medibank, while trimming some of its CSL exposure – a notable vote of confidence in Telstra’s income and defensive characteristics. ^[40]
- ETF databases show dozens of Australia‑focused and Asia‑Pacific ETFs hold Telstra, often with weights above 1%, embedding TLS into many passive portfolios by default. ^[41]

None of this guarantees performance, but it reinforces Telstra’s role as a core institutional holding in the Australian market.

Regulatory, legal and reputational headwinds

The bullish fundamental story sits alongside a chunky pile of regulatory and reputational risk – something investors ignore at their peril.

A$18 million fine over Belong speed downgrades

In October 2025, the Federal Court ordered Telstra to pay A$18 million after the ACCC found it had misled nearly 9,000 customers on its low‑cost Belong brand by downgrading their NBN upload speeds from 40 Mbps to 20 Mbps without proper disclosure. Telstra is compensating affected users with A$15 per month and has accepted the ruling. ^[42]

This penalty adds to what one report tallied as around A$75 million in fines over the past seven years for various forms of misleading conduct, prompting calls from investors and politicians for tighter oversight. ^[43]

Coverage claims and 3G/5G complaints

Telstra is also facing scrutiny over claims it overstated its mobile coverage by up to one million square kilometres, with rival TPG arguing that this may have misled both consumers and investors. Complaints have intensified as the company shuts down 3G and migrates customers to newer networks, sometimes requiring expensive new antennas or devices in regional areas. ^[44]

Satellite obligations and emergency‑call reliability

On the policy front, the federal government has proposed a Universal Outdoor Mobile Obligation (UOMO), pushing Telstra and rivals to use low‑Earth‑orbit satellites to deliver voice and SMS in remote areas. Telstra has warned against mandating SMS via satellite before voice services are fully mature, citing spectrum constraints, handset compatibility issues and the risk of unintended consequences in urban networks. ^[45]

Separately, telco bosses – including Telstra’s CEO – are being pressed over triple‑zero (000) emergency call reliability, especially ahead of the bushfire season, following heavily publicised outages at competitor Optus. ^[46]

Fines and scrutiny are now “a cost of doing business”

Pulling this together:

Regulators (ACCC, ACMA and others) are clearly more willing to pursue large penalties and detailed undertakings. ^[47]
Telstra’s scale and market power make it a permanent target for regulatory and political scrutiny.

For shareholders, that means regulatory risk is not an occasional event but something that must be baked into long‑term expectations about margins, capital expenditure and reputational goodwill.

How the numbers look today: quality with a price

Bringing the financial and strategic threads together, as of 2 December 2025 Telstra looks like this:

Core metrics: ~A$23.1 billion in annual revenue, ~A$2.2 billion in net profit, ~A$8.0 billion EBITDAaL, and EPS around 19 cents, all trending upward. ^[48]
Valuation: P/E in the mid‑20s, forward P/E in the low 20s, and an earnings yield that’s not dramatically higher than term‑deposit rates, especially before franking. ^[49]
Income: A fully franked dividend yield just under 4%, a multi‑year record of small annual increases, and a large on‑market buyback enhancing per‑share metrics. ^[50]
Growth: Modest revenue expansion but strong EPS growth driven by price rises, cost‑out, portfolio optimisation and capital returns, with FY26 guidance pointing to further EBITDAaL gains. ^[51]
Risk profile: Heavy regulatory scrutiny (including large recent fines), questions over network coverage and customer treatment, and ongoing policy uncertainty around spectrum, emergency services and satellite obligations. ^[52]

In other words, Telstra is behaving like what it is: a mature, system‑critical utility‑style telecom. The numbers are solid, the cash returns are attractive by global telco standards, and the share price has already enjoyed a strong rerating in 2025.

Whether that still leaves enough upside from here depends on your risk tolerance, income needs and views on regulation – but whatever your stance, the latest data show Telstra as one of the key defensive pillars of the Australian equity market, with 2026 shaping up as another test of how much profit an incumbent can squeeze from a hyper‑connected nation.