Telephone and Data Systems (NYSE:TDS) Announces Earnings Results

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

NYSE TDS opened at $32.93 on Friday. The company has a market capitalization of $3.79 billion, a price-to-earnings ratio of 8.05 and a beta of 0.36. Telephone and Data Systems has a twelve month low of $30.71 and a twelve month high of $49.12. The stock has a fifty day simple moving average of $35.32 and a 200 day simple moving average of $39.35. 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 Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a $0.04 dividend. This represents a $0.16 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Tuesday, September 15th. Telephone and Data Systems’s dividend payout ratio is presently 5.33%.

Trending Headlines about 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

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Citigroup cut their price target on Telephone and Data Systems from $50.00 to $47.00 and set a “buy” rating on the stock in a research note on Thursday, August 13th. JPMorgan Chase & Co. lowered their price objective on Telephone and Data Systems from $51.00 to $48.00 and set an “overweight” rating for the company in a research note on Wednesday, August 19th. Weiss Ratings lowered shares of Telephone and Data Systems from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, October 8th. Finally, Zacks Research downgraded shares of Telephone and Data Systems from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, September 9th. Two investment 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, Telephone and Data Systems currently has an average rating of “Hold” and an average target price of $47.50.

About Telephone and Data Systems

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.