Analysts from major Canadian banks see the telecommunications sector stabilizing in 2026 after a couple of tough years, but they expect only modest gains rather than a full rebound. Forecasts from groups such as RBC and National Bank of Canada suggest slow improvement in cash flow and slight valuation expansion, rather than dramatic growth, as pricing discipline and deleveraging take hold.

Across coverage, Rogers Communications emerges as the consensus top pick for 2026. Analysts point to potential debt reduction and long-term benefits from its consolidated sports and media assets, which could boost earnings and investor confidence if monetized effectively. Rogers has a moderate buy consensus and elevated targets from several research firms, though it still carries heavy leverage that investors should monitor.

Beyond Rogers, banks diverge on their second choice: BCE Inc. and Telus Corp. RBC analysts lean toward BCE, highlighting that its valuation appears attractive after strategic resets and restructuring. BCE is also implementing cost-savings and infrastructure expansion plans that could support steady cash flow in the years ahead. Other research houses have recently upgraded BCE to strong buy territory, reinforcing this more optimistic view.

Also Read: Long term investing in Canada

Meanwhile, National Bank analysts favor Telus, especially for income-oriented investors. Telus has a robust dividend yield and is actively working on deleveraging and free-cash-flow growth through asset sales and operational efficiency efforts. However, some firms have trimmed ratings on Telus to hold amid valuation and dividend growth concerns, signaling mixed sentiment around its near-term upside.

All three carriers face common challenges in 2026, including competitive pricing pressures that could temper subscriber gains and margins. RBC suggests that an emerging “competitive equilibrium,” with less aggressive discounting, may help support better industry economics moving forward.

Also Read: Dividend paying stocks Canada

Overall, while Rogers is often named the top telecom pick for 2026, BCE and Telus remain credible alternatives depending on investor priorities — whether you value valuation, income, or stability in a slow-growth telecom sector.