Telephone and Data Systems (NYSE:TDS) Issues Quarterly Earnings Results, Beats Estimates By $0.15 EPS

Telephone and Data Systems (NYSE:TDS) announced its quarterly earnings results on Friday. The Wireless communications provider reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.15, Zacks reports. The business had revenue of $306.69 million for the quarter, compared to analysts’ expectations of $309.14 million. Telephone and Data Systems had a net margin of 33.20% and a return on equity of 11.97%. The firm’s revenue for the quarter was down .6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.33 EPS.

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

• TDS Telecom posted record fiber expansion and customer growth: It added about 76,000 marketable fiber addresses and 17,000 fiber connections in the quarter, while fiber churn improved year over year.
• TDS Telecom lowered its 2026 revenue and EBITDA outlook and raised capital spending guidance. Legacy revenue declines and higher operating and construction costs weighed on results; increased fiber investment is intended to support future growth.
• Array expects a sizable number of towers to become tenantless as T-Mobile integrates its network, refining its estimate to 1,200–1,600 towers. Declining interim-site revenue may be partly offset by leasing activity and ground-lease cost reductions.
• TDS has nearly exhausted its $520 million share repurchase authorization and approved an additional $250 million authorization, citing its view that shares were attractively priced.
• Array reported strong revenue growth and kept its full-year outlook unchanged. Management said growth reflected the T-Mobile agreement and other customers, while a planned spectrum sale remains subject to final regulatory approval and closing conditions.

Telephone and Data Systems Stock Performance

Shares of TDS stock traded up $0.57 during trading hours on Friday, hitting $32.93. 3,180,421 shares of the company were exchanged, compared to its average volume of 1,914,751. The company has a current ratio of 3.82, a quick ratio of 3.81 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $3.79 billion, a price-to-earnings ratio of 10.98 and a beta of 0.36. The firm has a fifty day simple moving average of $35.32 and a 200 day simple moving average of $39.35. Telephone and Data Systems has a 52-week low of $30.71 and a 52-week high of $49.12.

Telephone and Data Systems Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were paid a dividend of $0.04 per share. The ex-dividend date was Tuesday, September 15th. This represents a $0.16 annualized dividend and a dividend yield of 0.5%. Telephone and Data Systems’s dividend payout ratio (DPR) is presently 5.33%.

Telephone and Data Systems News Summary

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

• Positive Sentiment: TDS reported Q3 EPS of $0.26, beating analysts’ $0.11 estimate by $0.15. The board also authorized an additional $250 million for share repurchases, which may support shareholder returns. TDS Q3 2026 results
• Neutral Sentiment: TDS Telecom set its 2026 revenue outlook at $990 million to $1.01 billion. The provided report did not include a comparison with prior guidance. TDS Telecom 2026 revenue outlook
• Negative Sentiment: Revenue was $306.69 million, slightly below the $309.14 million consensus estimate and down 0.6% year over year. Net income from continuing operations declined, and EPS was below the year-ago $0.33. Q3 continuing-operations income report

Wall Street Analyst Weigh In

Several brokerages have recently commented on TDS. JPMorgan Chase & Co. lowered their target price on shares of Telephone and Data Systems from $51.00 to $48.00 and set an “overweight” rating for the company in a report on Wednesday, August 19th. Citigroup cut their price target on shares of Telephone and Data Systems from $50.00 to $47.00 and set a “buy” rating on the stock in a report on Thursday, August 13th. 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, October 8th. Finally, Zacks Research lowered shares of Telephone and Data Systems from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, September 9th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Telephone and Data Systems currently has an average rating of “Hold” and an average price target of $47.50.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc (NYSE:TDS) is a telecommunications holding company that provides broadband and communications services in communities across the United States. Its principal operating business is TDS Telecom, which serves residential, business and wholesale customers with internet access, fiber-optic and other broadband connections, voice services, video entertainment and related communications solutions.

TDS Telecom focuses on expanding high-speed broadband availability in rural and suburban markets.