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

Key Points

• Telephone and Data Systems reported quarterly EPS of $0.26, beating the $0.11 consensus estimate by $0.15. Revenue of $306.69 million was slightly below expectations and down 0.6% year over year; EPS was also below $0.33 a year earlier.
• TDS Telecom added about 76,000 marketable fiber addresses and 17,000 fiber connections, with fiber churn improving year over year. However, it lowered its 2026 revenue and EBITDA outlook and raised capital-spending guidance.
• TDS approved an additional $250 million share-repurchase authorization after nearly exhausting its previous $520 million authorization.

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

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 Trading Up 1.8%

Shares of NYSE:TDS traded up $0.57 during midday trading on Friday, reaching $32.93. The company's stock had a trading volume of 3,180,421 shares, compared to its average volume of 1,914,751. The firm has a market cap of $3.79 billion, a price-to-earnings ratio of 9.65 and a beta of 0.36. The company has a quick ratio of 3.81, a current ratio of 3.82 and a debt-to-equity ratio of 0.15. Telephone and Data Systems has a 1 year low of $30.71 and a 1 year high of $49.12. The business has a 50 day moving average price of $35.32 and a 200 day moving average price of $39.35.

Telephone and Data Systems Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were paid a dividend of $0.04 per share. The ex-dividend date of this dividend 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 is presently 5.33%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on TDS. Zacks Research cut Telephone and Data Systems from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 9th. Weiss Ratings cut shares of Telephone and Data Systems from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, October 8th. Citigroup decreased their target price on shares of Telephone and Data Systems from $50.00 to $47.00 and set a "buy" rating for the company in a research note on Thursday, August 13th. Finally, JPMorgan Chase & Co. lowered their price target on Telephone and Data Systems from $51.00 to $48.00 and set an "overweight" rating on the stock in a report on Wednesday, August 19th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $47.50.

Key Headlines Impacting Telephone and Data Systems

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

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.

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