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

Telephone and Data Systems (NYSE:TDS) announced its quarterly earnings results on Friday. The Wireless communications provider reported $2.24 EPS for the quarter, beating analysts’ consensus estimates 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 firm had revenue of $309.28 million for the quarter, compared to analyst estimates of $315.78 million. During the same period last year, the firm posted ($0.05) earnings per share. The business’s revenue for the quarter was up 3.6% on a year-over-year basis.

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 Trading Down 8.5%

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

Telephone and Data Systems Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th were given a dividend of $0.04 per share. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Tuesday, June 16th. Telephone and Data Systems’s dividend payout ratio (DPR) is 30.19%.

Institutional Trading of Telephone and Data Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TDS. JPL Wealth Management LLC bought a new stake in shares of Telephone and Data Systems in the 3rd quarter valued at $33,000. EverSource Wealth Advisors LLC raised its stake in Telephone and Data Systems by 191.3% during the second quarter. EverSource Wealth Advisors LLC now owns 1,311 shares of the Wireless communications provider’s stock worth $47,000 after buying an additional 861 shares during the last quarter. CIBC Private Wealth Group LLC bought a new position in Telephone and Data Systems during the fourth quarter worth $91,000. Osaic Holdings Inc. lifted its holdings in Telephone and Data Systems by 36.8% in the second quarter. Osaic Holdings Inc. now owns 2,965 shares of the Wireless communications provider’s stock valued at $106,000 after buying an additional 797 shares during the period. Finally, Quadrant Capital Group LLC acquired a new position in Telephone and Data Systems in the third quarter valued at $136,000. Institutional investors and hedge funds own 80.00% of the company’s stock.

Key Stories Impacting Telephone and Data Systems

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

• Positive Sentiment: TDS reported second-quarter 2026 GAAP EPS of $2.24, far above the $0.09 analyst consensus, while revenue increased 3.6% year over year to $309.3 million. Net income attributable to common shareholders rose to $281.1 million from a $5.7 million loss a year earlier. TDS GAAP EPS and revenue report
• Positive Sentiment: TDS Telecom added approximately 15,100 residential fiber customers and 66,000 marketable fiber service addresses during the quarter. The company also raised its 2026 fiber service-address guidance, supporting its long-term broadband growth outlook. TDS second-quarter revenue and operating update
• Positive Sentiment: Brokerages’ consensus price target is reported at $53.33, substantially above the recent trading level, indicating analysts see potential upside if TDS executes on its telecom and asset-monetization plans. TDS consensus price target report
• Neutral Sentiment: Array reported a 95% year-over-year increase in site-rental revenue and consecutive quarterly tower-tenancy growth. It also completed spectrum sales and issued an $11-per-share special dividend, events that strengthen liquidity but may not represent recurring operating growth. TDS Array operating update
• Negative Sentiment: Quarterly revenue of $309.28 million fell short of the $315.78 million consensus estimate. Investors may also view the large EPS beat cautiously because spectrum transactions and other nonrecurring items appear to have significantly influenced reported profitability. TDS second-quarter metrics versus estimates

Wall Street Analyst Weigh In

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