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

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

TDS stock traded up $0.57 during midday trading on Friday, reaching $32.93. The stock had a trading volume of 3,180,421 shares, compared to its average volume of 1,914,751. The firm has a fifty day simple moving average of $35.32 and a two-hundred 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. The company has a debt-to-equity ratio of 0.15, a quick ratio of 3.81 and a current ratio of 3.82. The stock has a market cap of $3.79 billion, a PE ratio of 10.98 and a beta of 0.36.

Telephone and Data Systems Dividend Announcement

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

Analyst Ratings Changes

TDS has been the subject of a number of research analyst reports. JPMorgan Chase & Co. cut 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 research report on Wednesday, August 19th. Citigroup dropped 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 research note on Thursday, August 13th. Weiss Ratings lowered Telephone and Data Systems from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, October 8th. Finally, Zacks Research lowered 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 stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $47.50.

Key Telephone and Data Systems News

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

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.