Shares of TELUS International (Cda) Inc. (TIXT) tumbled 6.37% in pre-market trading on Friday following the release of the company's second-quarter 2025 financial results. Despite beating revenue expectations, the significant decline in earnings per share appears to have spooked investors.
TELUS International reported Q2 adjusted earnings of $0.06 per diluted share, a sharp decrease from $0.16 in the same quarter last year. While this figure met analysts' expectations, the substantial year-over-year decline raised concerns about the company's profitability. On a more positive note, revenue for the quarter ended June 30 came in at $699 million, surpassing both the previous year's $652 million and the FactSet analyst consensus of $661.5 million.
Adding to investor unease, TELUS International reiterated its full-year 2025 earnings per share guidance of $0.32, which falls slightly short of the $0.33 expected by analysts. This conservative outlook, combined with the earnings decline, appears to be driving the pre-market sell-off despite the company's strong revenue performance. As the market digests these mixed results, investors will be closely watching for any additional insights from management regarding the company's profitability challenges and growth strategies for the remainder of the year.