Sydney, Feb 20, 2026, 17:27 AEDT — Market closed
- Telstra slipped 0.6% on Friday, giving back some ground after its results-driven surge the previous day.
- The telco narrowed its FY26 operating earnings outlook and bumped up its on-market buyback, now targeting A$1.25 billion.
- Next week, the stock trades ex-dividend just before the interim payout lands.
Telstra Group Limited pulled back 0.6% to finish at A$5.11 on Friday, slipping from a recent multi-month peak. Earlier in the session, investors had pushed the stock higher after its half-year earnings report.
The pullback is notable, with Telstra doubling down on cash returns at a time when local investors are chasing yield and more predictable earnings. On Thursday, the company increased its ongoing on-market buyback to as much as A$1.25 billion, narrowed its FY26 underlying EBITDAaL outlook to between A$8.2 billion and A$8.4 billion, and pointed to mobile growth on the back of higher ARPU, or average revenue per user.
Telstra reported a 9.4% jump in profit attributable to equity holders, reaching A$1.124 billion for the six months through Dec. 31, 2025. The company set its interim dividend at 10.5 Australian cents per share, with shareholders on record as of Feb. 26 due for payment on March 27.
Telstra surged more than 3% out of the gate on Thursday after its results topped estimates, driven by A$5.77 billion in mobile income. The company flagged a larger buyback, citing its potential to lift both earnings and dividends per share. “Outside of AI and tech upgrades, Telstra remains one of the most defensive names on the ASX,” said Zavier Wong, market analyst at eToro. Reuters
Telstra has bumped up its buyback program, first announced in August, now planning to spend as much as A$1.25 billion through FY26, according to a separate filing.
Traders head into the next session eyeing whether Friday’s profit-taking signals the start of a bigger pullback, or if it’s simply a breather after those results-driven gains. One thing keeping the stock steady for now: the dividend schedule, as shares go ex-dividend on Feb. 25.
Telstra’s narrative still turns on mobile. Price hikes and a bump in customer numbers have provided some lift, yet competition is fierce—just three major players: Telstra, Singtel-owned Optus, and TPG Telecom. Discounting erupts quickly when any of them starts eyeing more share.
Tighter guidance can backfire. Telstra narrowed its EBITDAaL range—a metric that strips out leases and one-offs—but didn’t actually increase it. Investors are set to gauge if mobile strength can make up for weaker patches elsewhere as the year unfolds.
