BCE CEO to Face Investors Amid AI Push and Profit Headwinds

MONTRÉAL, QC – February 27, 2026 – All eyes in the Canadian telecom and investment community will be turning to San Francisco next week as Mirko Bibic, President and CEO of BCE Inc., prepares to take the stage. Bibic is scheduled for a high-profile fireside chat at the Morgan Stanley Technology, Media & Telecom Conference on March 3rd, an event that provides a critical platform for Canada's largest communications company to outline its strategic path forward.

The appearance comes at a pivotal moment for the Montreal-based giant. Fresh off the release of its full-year 2025 results and 2026 outlook, BCE is navigating a complex narrative of ambitious technological investment and looming financial pressures. For investors and analysts tuning into the live webcast, the key will be to decipher how the company plans to balance its aggressive growth strategy in areas like AI and fibre optics with a projected dip in near-term earnings.

Navigating Financial Headwinds

At the heart of the discussion will be BCE's recent financial performance and, more importantly, its guidance for the year ahead. The company posted a solid 2025, with a 10% growth in free cash flow to $3.18 billion and an adjusted EBITDA margin of 43.6%, its highest in over three decades. However, the forecast for 2026 has introduced a note of caution that Bibic will undoubtedly be asked to address.

While BCE projects continued revenue growth between 1% and 5%, its guidance for adjusted earnings per share (EPS) anticipates a decline of 5% to 11%, to a range of $2.50–$2.65. Company officials attribute this expected downturn primarily to increased depreciation, amortization, and interest expenses stemming from its significant 2025 acquisition of U.S. fibre provider Ziply Fiber. This single transaction, while central to BCE's cross-border expansion plans, is expected to add approximately $250 million in depreciation and amortization and $100 million in higher interest costs in 2026.

This creates a central tension for investors: the long-term strategic value of expansion versus the short-term impact on profitability. Bibic's challenge will be to convincingly frame these costs as necessary investments for future growth rather than a sign of underlying weakness. Analysts, who hold a consensus "Moderate Buy" rating on the stock, will be listening intently for details on the integration of Ziply and the timeline for it to become a positive contributor to the bottom line.

Amidst these pressures, the company has sought to reassure its large base of income-focused investors by maintaining its dividend policy. The stability of its dividend, a hallmark of Canadian telecom stocks, remains a key pillar of its investor value proposition. How Bibic articulates the company's commitment to this policy while funding its capital-intensive growth projects will be a crucial element of his presentation.

The AI and Fibre Growth Engine

While the financial metrics present a mixed picture, BCE's narrative on technological innovation is one of unambiguous ambition. The company is positioning itself not just as a provider of connectivity, but as a leader in next-generation digital infrastructure and services. Bibic is expected to heavily emphasize the company's four strategic priorities, with a particular focus on its burgeoning AI-powered enterprise solutions and its relentless network expansion.

BCE's AI-related businesses have emerged as a significant bright spot, growing approximately 60% year-over-year in 2025 to generate roughly $700 million in revenue. The company has set a bold target to more than double this, aiming for $1.5 billion in AI-related revenue by 2028. This isn't just a talking point; it's backed by strategic partnerships, such as a recent collaboration with Hypertec to deliver sovereign AI capabilities for Canadian clients, ensuring data remains within national borders. This focus on AI is transforming its enterprise services, moving beyond traditional telecom offerings into high-growth areas.

Simultaneously, BCE continues its massive investment in its core network infrastructure. The company is aggressively expanding its fibre footprint, with plans to ramp up its U.S. fibre build through Ziply in the second half of 2026, targeting approximately 3 million new fibre passings by the end of 2028. This, combined with its ongoing 5G rollout in Canada, forms the foundation of its entire digital ecosystem. Further bolstering its digital strategy, the company's media arm saw its Crave streaming service grow subscriptions by 26% to 4.6 million, signaling strong momentum in the highly competitive content space.

Defending the Crown in a Competitive Arena

Presenting at a global conference like Morgan Stanley's allows BCE to reinforce its status as Canada's market leader on an international stage. However, this leadership is being constantly tested in a dynamic and competitive domestic market. With rivals like Rogers Communications and TELUS also investing billions in their networks and actively engaging the investment community, and with Quebecor's Freedom Mobile now established as a fourth national wireless player, the pressure to perform has never been greater.

Bibic's presentation will be viewed within this broader industry context. The Canadian telecom sector is in a period of intense capital investment, with operators collectively pouring over $64 billion into fibre and 5G networks in the last five years. This infrastructure is seen as critical to Canada's digital economy, with 5G alone projected to add $40 billion to the GDP by 2026. BCE's strategy is a direct reflection of these national trends, as it seeks to leverage its network superiority to capture growth in both consumer and enterprise markets.

The upcoming fireside chat, therefore, is more than a routine corporate update. It is a strategic communication designed to shape market perception. Mirko Bibic's task is to articulate a compelling vision where short-term earnings pressure is a small price to pay for long-term dominance in the AI-driven, fibre-connected future. For investors, it will be a critical opportunity to gauge the confidence of the leader at the helm as he steers the telecom giant through a period of significant transformation and opportunity.