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

Telephone and Data Systems (NYSE:TDS) issued its quarterly earnings data on Friday. The Wireless communications provider reported $2.24 EPS for the quarter, topping the consensus estimate of $0.09 by $2.15, Briefing.com reports. Telephone and Data Systems had a return on equity of 5.54% and a net margin of 6.15%.The company had revenue of $309.28 million during the quarter, compared to analyst estimates of $315.78 million. During the same quarter in the previous year, the company posted ($0.05) earnings per share. Telephone and Data Systems’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

NYSE:TDS traded down $3.05 during trading hours on Friday, hitting $32.95. 3,332,612 shares of the stock traded hands, compared to its average volume of 1,078,170. The company 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 has a 1 year low of $31.51 and a 1 year high of $49.12. The stock has a 50 day moving average price of $36.53 and a 200 day moving average price of $41.42. The company has a quick ratio of 3.42, a current ratio of 3.43 and a debt-to-equity ratio of 0.16.

Telephone and Data Systems Dividend Announcement

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

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. JPL Wealth Management LLC bought a new stake in Telephone and Data Systems during the third quarter valued at about $33,000. EverSource Wealth Advisors LLC boosted its stake in shares of Telephone and Data Systems by 191.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,311 shares of the Wireless communications provider’s stock worth $47,000 after acquiring an additional 861 shares during the period. CIBC Private Wealth Group LLC purchased a new stake in shares of Telephone and Data Systems during the fourth quarter worth about $91,000. Osaic Holdings Inc. grew its position in shares of Telephone and Data Systems by 36.8% during the second 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 in the last quarter. Finally, Quadrant Capital Group LLC bought a new stake in Telephone and Data Systems during the 3rd quarter valued at approximately $136,000. Institutional investors own 80.00% of the company’s stock.

Wall Street Analysts Forecast Growth

TDS has been the subject of a number of recent research reports. Weiss Ratings downgraded Telephone and Data Systems from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, June 18th. Raymond James Financial cut shares of Telephone and Data Systems from an “outperform” rating to a “market perform” rating in a research note on Monday, May 11th. Finally, 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. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Telephone and Data Systems has a consensus rating of “Hold” and an average target price of $53.33.

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.