Telephone and Data Systems (NYSE:TDS) Posts Earnings Results, Beats Estimates By $2.15 EPS

Telephone and Data Systems (NYSE:TDS) announced its quarterly earnings results on Friday. The Wireless communications provider reported $2.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.09 by $2.15, Briefing.com reports. Telephone and Data Systems had a net margin of 6.15% and a return on equity of 5.54%. The business had revenue of $309.28 million during the quarter, compared to the consensus estimate of $315.78 million. During the same quarter last year, the firm posted ($0.05) EPS. The business’s revenue was up 3.6% compared to the same quarter last year.

Here are the key takeaways from Telephone and Data Systems’ conference call:

• Positive Sentiment: TDS Telecom delivered a record 66,000 fiber service addresses in Q2 and raised its 2026 target to 250,000–300,000 addresses, supported by expanded construction capacity and E-ACAM funding.
• Positive Sentiment: Fiber momentum strengthened, with 15,100 residential fiber net adds, up 47% year over year, and fiber revenue increasing 13%; the company also raised 2026 telecom capital expenditure guidance to $625 million–$675 million.
• Negative Sentiment: TDS Telecom lowered its 2026 revenue guidance to $1.0 billion–$1.025 billion and narrowed adjusted EBITDA guidance to $310 million–$330 million as copper and cable declines, divestitures, and legacy revenue pressures weigh on results.
• Positive Sentiment: Array reported strong tower and spectrum monetization progress, including a $1 billion Verizon spectrum transaction and a $168 million T-Mobile sale; it raised 2026 adjusted OIBDA guidance to $60 million–$75 million and adjusted EBITDA guidance to $220 million–$235 million.
• Neutral Sentiment: TDS provided no update on its offer to acquire Array’s minority shares, while Array continues to evaluate the proposal through an independent special committee; TDS also did not repurchase shares during Q2 but retained $520 million under its authorization.

Telephone and Data Systems Price Performance

Shares of TDS stock traded down $3.05 during trading hours on Friday, hitting $32.95. The company’s stock had a trading volume of 3,332,612 shares, compared to its average volume of 1,078,170. The company has a current ratio of 3.43, a quick ratio of 3.42 and a debt-to-equity ratio of 0.16. The business has a fifty day moving average of $36.53 and a 200-day moving average of $41.42. Telephone and Data Systems has a twelve month low of $31.51 and a twelve month high of $49.12. The stock has a market cap of $3.75 billion, a price-to-earnings ratio of 62.18 and a beta of 0.32.

Telephone and Data Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th were given a $0.04 dividend. The ex-dividend date was Tuesday, June 16th. This represents a $0.16 annualized dividend and a dividend yield of 0.5%. Telephone and Data Systems’s dividend payout ratio is currently 30.19%.

Telephone and Data Systems News Roundup

Here are the key news stories impacting Telephone and Data Systems this week:

• Positive Sentiment: Second-quarter GAAP EPS was $2.24, far above the $0.09 analyst consensus and the prior-year loss of $0.05. Net income attributable to common shareholders reached $281.1 million, versus a $5.7 million loss a year earlier. TDS EPS and revenue results
• Positive Sentiment: TDS Telecom delivered approximately 66,000 marketable fiber service addresses and 15,100 residential fiber net additions. The unit raised its 2026 marketable-fiber address guidance, while maintaining revenue guidance of $1.00 billion to $1.025 billion. TDS second-quarter results release
• Positive Sentiment: Brokerages’ consensus price target is reported at $53.33, suggesting analysts remain broadly constructive on TDS’s longer-term value. Array also raised its adjusted EBITDA outlook and reported consecutive quarter-over-quarter tower-tenancy growth. TDS consensus price target
• Neutral Sentiment: Operating revenue increased 3.6% year over year to $309.3 million, but Array’s 2026 revenue outlook was narrowed. Array also completed spectrum sales totaling $1.16 billion during the quarter and paid an $11-per-share special dividend, creating substantial cash proceeds but limiting the comparability of reported earnings. TDS second-quarter operating update
• Negative Sentiment: Revenue of $309.28 million missed Wall Street’s $315.78 million estimate by about $6.5 million, indicating that the headline EPS beat did not translate into an upside surprise on sales. TDS key metrics versus estimates
• Negative Sentiment: The sizable EPS improvement appears heavily influenced by spectrum monetization and other Array-related transactions, raising concerns about the sustainability of earnings and making the recurring operating performance less impressive than the GAAP result.

Analyst Ratings Changes

A number of analysts recently commented on TDS shares. Raymond James Financial downgraded shares of Telephone and Data Systems from an “outperform” rating to a “market perform” rating in a report on Monday, May 11th. Wall Street Zen raised shares of Telephone and Data Systems from a “sell” rating to a “hold” rating in a report on Saturday, May 30th. Finally, Weiss Ratings downgraded shares of Telephone and Data Systems from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, June 18th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Telephone and Data Systems has an average rating of “Hold” and a consensus price target of $53.33.

Institutional Trading of Telephone and Data Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. JPL Wealth Management LLC purchased a new stake in shares of Telephone and Data Systems during the third quarter worth about $33,000. EverSource Wealth Advisors LLC raised its holdings in Telephone and Data Systems by 191.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,311 shares of the Wireless communications provider’s stock valued at $47,000 after acquiring an additional 861 shares during the last quarter. CIBC Private Wealth Group LLC purchased a new position in shares of Telephone and Data Systems during the 4th quarter worth $91,000. Osaic Holdings Inc. lifted its stake in shares of Telephone and Data Systems by 36.8% during the 2nd quarter. Osaic Holdings Inc. now owns 2,965 shares of the Wireless communications provider’s stock worth $106,000 after purchasing an additional 797 shares during the period. Finally, Quadrant Capital Group LLC acquired a new stake in shares of Telephone and Data Systems during the third quarter worth $136,000. Hedge funds and other institutional investors own 80.00% of the company’s stock.

About Telephone and Data Systems

Telephone and Data Systems, Inc (NYSE: TDS) is a diversified telecommunications company headquartered in Chicago, Illinois. Through its subsidiaries, the company provides a broad array of communications services, including wireless voice and data, wireline broadband and voice, cable television, and managed IT and cloud solutions. Its two primary operating units—TDS Telecom and U.S. Cellular—serve residential, business and wholesale customers across the United States.

TDS Telecom focuses on delivering broadband internet, digital voice, video and data communications services in primarily rural and suburban markets.