Is BCE Inc a Buy?

BCE Inc. (TSX:BCE), Canada’s leading internet, wireless, TV, media, and enterprise solutions provider,  is beginning to show signs of a rebound after a difficult stretch. The stock, which had been weighed down by inflation, regulatory hurdles, and stiff competition, has climbed more than 20% over the past three months, suggesting renewed investor confidence.

The turnaround comes after a rocky first quarter in 2025, when BCE reported a year-over-year decline in operating revenue and announced a dividend cut to $1.75 per share from $3.99. For a company long regarded as a reliable dividend payer, the move was disappointing and added to the cautious sentiment around the stock.

However, BCE’s second-quarter results show improving fundamentals, setting the stage for a solid recovery for this Canadian stock.

BCE’s Q2 sets the stage for a solid recovery

BCE managed to return to revenue growth in the second quarter (Q2). Its operating revenue increased 1.3%, driven by its fibre rollout, premium wireless subscriber gains, and expansion in digital media and enterprise solutions. The telecom giant’s push into artificial intelligence (AI)-powered technology offerings has also started to pay off, accelerating growth in its enterprise segment.

Fibre continues to be a core growth driver. In Q2, BCE added 27,000 new fibre-to-the-home (FTTH) customers, boosting internet revenue by 3%. Fiber subscribers are proving to be stickier and more valuable, with an 8% increase in households opting for bundled mobility and internet services where fibre is available. The superior service quality is helping BCE deepen customer relationships and expand cross-selling opportunities.

Wireless performance has also improved. The company added 94,479 net new mobile phone subscribers in the quarter, with churn improving to 1.06%, its first year-over-year improvement in nearly three years. Postpaid growth was particularly strong, with 44,547 new subscribers, all on the flagship Bell brand, highlighting BCE’s focus on high-quality, profitable customers. On the prepaid side, Lucky Mobile continues to perform steadily, adding close to 50,000 subscribers as it captures value-conscious and newcomer segments.

Despite ongoing pricing competition and lower roaming revenues from reduced U.S. travel, BCE has managed to improve its revenue per user, an encouraging sign for its future trajectory.

With momentum in both fiber and wireless, focus on premium services, and AI-driven opportunities, BCE is regaining its footing.

BCE’s growth to accelerate

BCE is positioning itself for accelerated growth by reinventing its core services, expanding its fiber network, and deepening its presence in AI-powered solutions.

The recent acquisition of Ziply Fiber strengthens its positioning as the third-largest fibre internet provider in North America, expanding Bell’s footprint into new markets while creating long-term scale and diversification opportunities. Early performance at Ziply has exceeded expectations, with strong customer adoption that is expected to improve further as synergies are realized.

Beyond fibre, BCE is broadening into adjacent, high-growth areas. Cybersecurity remains a key pillar, enhanced by the acquisition of Stratejm, whose AI-driven security operations center is now integrated with Bell’s network. Another growth engine is Ateko, launched in May, targeting financial institutions, utilities, government, and TMT sectors with tailored digital solutions.

The company will likely get a significant boost from the launch of Bell AI Fabric, designed to be the backbone of Canada’s AI ecosystem. With dedicated AI data centres, expanding partnerships, and strong demand, BCE is creating new revenue streams while positioning itself as a leader in enterprise AI. Backed by national fiber assets and cost-efficient infrastructure, BCE is well placed to capture a significant share of the AI opportunity.

The bottom line: Is BCE stock a buy?

BCE is showing signs of recovery, with momentum in fiber and wireless, AI-driven expansion, and strategic acquisitions driving growth. While the dividend cut shook investor confidence earlier this year, stronger Q2 results and renewed focus on premium services suggest a positive trajectory. With its expanding fiber footprint, enterprise solutions, and AI leadership, BCE appears well-positioned for long-term growth, making it a buy.

The post Is BCE Inc a Buy? appeared first on The Motley Fool Canada.

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Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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