BCE (TSX:BCE) Is Up 5.3% After Earnings Beat and Rising Profitability—Has The Bull Case Changed?

• BCE Inc. recently reported its second quarter 2025 earnings, posting sales of CA$6.09 billion and net income of CA$619 million, both higher than the same quarter last year.
• Notably, basic and diluted earnings per share from continuing operations also increased year-over-year, indicating improved operational efficiency and profitability.
• We’ll consider how BCE’s higher net income and earnings per share influence its investment outlook and future growth prospects.

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BCE Investment Narrative Recap

To be a BCE shareholder, it’s important to believe in the long-term value of its advanced fiber and wireless networks, despite regulatory friction and the need for heavy, ongoing capital investment. The latest earnings report, with modest revenue and net income gains, does not materially change the biggest short-term catalyst (fiber network expansion through the Ziply Fiber acquisition) or mitigate the most pressing risk: tighter regulatory controls potentially hampering future growth.

Of BCE’s recent announcements, the partnership with PSP Investments to create Network FiberCo stands out, as it directly targets the expansion of fiber infrastructure in the U.S., a move closely tied to the company’s growth ambitions and central to near-term investor expectations about new revenue sources and improved margins.

However, investors should be aware that, in contrast to the positive operating trends, regulatory challenges could still force BCE to limit fiber rollout, which would mean…

Read the full narrative on BCE (it's free!)

BCE's narrative projects CA$26.1 billion in revenue and CA$3.1 billion in earnings by 2028. This requires 2.3% yearly revenue growth and an increase in earnings of about CA$2.67 billion from current earnings of CA$433.0 million.

Uncover how BCE's forecasts yield a CA$35.12 fair value, in line with its current price.

Exploring Other Perspectives

Sixteen retail investors in the Simply Wall St Community currently estimate BCE’s fair value anywhere from CA$27.25 up to CA$156.45 per share. Intense competition and regulatory hurdles remain key variables that could influence whether the company meets the optimistic forecasts seen in some of these community views.

Explore 16 other fair value estimates on BCE - why the stock might be worth over 4x more than the current price!

Build Your Own BCE Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your BCE research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free BCE research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate BCE's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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