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

Key Points

• Strong earnings beat: Telephone and Data Systems reported quarterly EPS of $2.24, exceeding the $0.09 analyst consensus by $2.15. Revenue rose 3.6% year over year to $309.28 million but fell short of estimates.
• Fiber expansion gained momentum: TDS Telecom delivered a record 66,000 fiber service addresses and added 15,100 residential fiber customers, prompting higher 2026 fiber deployment and capital-expenditure targets.
• Shares sold off despite the earnings beat: TDS stock fell 8.5% to $32.95 as the company reduced 2026 revenue guidance amid copper, cable, divestiture and legacy-revenue pressures; analysts maintain a consensus “Hold” rating.

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

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 Stock Down 8.5%

Shares of Telephone and Data Systems stock traded down $3.05 during trading 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 debt-to-equity ratio of 0.16, a quick ratio of 3.42 and a current ratio of 3.43. The company has a fifty day simple moving average of $36.53 and a two-hundred day simple moving average of $41.42. The company has a market capitalization of $3.75 billion, a PE ratio of 62.18 and a beta of 0.32. Telephone and Data Systems has a 52 week low of $31.51 and a 52 week high of $49.12.

Telephone and Data Systems Dividend Announcement

The firm also recently announced 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 of this dividend was Tuesday, June 16th. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.5%. Telephone and Data Systems's dividend payout ratio is currently 30.19%.

Institutional Investors Weigh In On Telephone and Data Systems

Hedge funds and other institutional investors have recently bought and sold shares of the business. Invesco Ltd. lifted its holdings in shares of Telephone and Data Systems by 5.3% during the fourth quarter. Invesco Ltd. now owns 1,249,344 shares of the Wireless communications provider's stock valued at $51,223,000 after purchasing an additional 62,688 shares during the last quarter. Beartown Capital Management LLC bought a new position in shares of Telephone and Data Systems in the fourth quarter worth approximately $3,075,000. NewEdge Advisors LLC grew its holdings in shares of Telephone and Data Systems by 1.5% during the fourth quarter. NewEdge Advisors LLC now owns 74,338 shares of the Wireless communications provider's stock valued at $3,048,000 after buying an additional 1,134 shares during the last quarter. Sunstone Asset Management L.P. bought a new stake in shares of Telephone and Data Systems during the fourth quarter valued at approximately $2,895,000. Finally, XTX Topco Ltd raised its holdings in Telephone and Data Systems by 142.3% in the 4th quarter. XTX Topco Ltd now owns 22,690 shares of the Wireless communications provider's stock worth $930,000 after acquiring an additional 13,327 shares during the last quarter. Hedge funds and other institutional investors own 80.00% of the company's stock.

Analyst Upgrades and Downgrades

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

Telephone and Data Systems Company Profile

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.

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