Shares of BCE Inc (BCE) surged 5.06% in Thursday's trading session following the release of the company's first-quarter 2025 earnings report, which exceeded analyst expectations. The telecommunications giant reported adjusted earnings per share of CA$0.69, significantly beating the consensus estimate of CA$0.62.

BCE's strong performance was driven by better-than-expected revenue and adjusted EBITDA. The company reported quarterly revenue of CA$5.93 billion, in line with analyst projections, while adjusted EBITDA remained relatively stable year-over-year at CA$2,558 million. Notably, BCE's Media segment saw substantial growth, with revenue increasing by 6.9% and adjusted EBITDA surging by 35.9%.

However, the positive earnings news was tempered by BCE's announcement of a significant dividend cut. The company revealed plans to reduce its annualized common share dividend from CA$3.99 to CA$1.75 per share, effective with the Q2 2025 dividend. BCE cited the need for greater financial flexibility and a more prudent approach to capital management in light of current economic, regulatory, and competitive pressures. Despite this reduction, investors appeared to focus on the strong quarterly results and the company's efforts to strengthen its balance sheet, driving the stock higher.