As the chart below shows, the Telstra Group Ltd (ASX: TLS) share price has been on the march in the last few months. It has risen by 22% from the end of January 2025.

Investors may be wondering what could happen next for the ASX telco share.

I don't have a working crystal right now, so I don't know for sure what will happen.

But, Telstra recently announced a new plan to improve its business, and analysts have made predictions on what the company could achieve in the next three years.

Let's examine what Telstra hopes to achieve in the next three years.

Telstra's Connected Future 30 strategy

Last week, Telstra announced its latest multi-year strategy, Connected Future 30. In it, Telstra aims to continue being the number one telco in Australia, treating its network "as a product with its own commercial value".

It wants to be a great place for employees to work, have a high customer satisfaction score, invest heavily in its network, and deliver good financial returns.

While the company won't necessarily have completed its FY30 goals in three years, it should be well on the way to achieving them.

Its focus will be on delivering positive operating leverage, with underlying income expected to grow faster than costs and business-as-usual capital expenditure each year to FY30.

It's aiming to achieve a compound annual growth rate (CAGR) in the mid-single digits for cash earnings and a sustainable and growing dividend (although it may not always be fully franked). It's also targeting an underlying return on invested capital (ROIC) of 10% by FY30, up from around 8% currently.

If the company makes significant progress towards each of the above goals, then that could significantly help Telstra shares and the size of the cash dividend payment.

Analyst forecasts for Telstra shares

In three years, we'll be nearly at the end of Telstra's FY28. So, let's look at some projections for that financial year by UBS.

For FY28, the broker expects Telstra to generate $25.5 billion of revenue, $5.1 billion of operating profit (EBIT), and $3 billion of net profit after tax (NPAT). This could translate into earnings per share (EPS) of 26 cents and a dividend of 25 cents per share, which could come with significant subscriber growth.

As a comparison, in FY25, UBS is predicting Telstra could make $23.9 billion of revenue, $4 billion of EBIT, $2.28 billion of net profit, 20 cents of EPS, and pay a dividend per share of 19 cents. So, UBS is forecasting significant growth in the next three years.

That means the Telstra share price is valued at 18x FY28's estimated earnings, and it could pay a grossed-up dividend yield of 7.4%, including franking credits.

It looks like a strong outlook for Telstra shares over the next three years.