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Telephone & Data Systems
(NYSE:TDS)
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Rating:54Neutral
Price Target:
$37.00
▲(9.40% Upside)
Action:Reiterated
Date:08/07/26
Overall score reflects (1) mixed financial performance—improved profitability and leverage but a sharp revenue decline and negative free cash flow in TTM, (2) neutral-to-soft technicals with the stock below key longer-term moving averages and negative MACD, partially offset by (3) supportive valuation indicators (P/E ~19 and high dividend yield) and (4) an earnings call that showed meaningful strategic progress in fiber build and spectrum monetization but continued near-term revenue and CapEx headwinds plus transaction uncertainty.
Positive Factors
Fiber Expansion and Adoption
Accelerating fiber deployment and strong customer additions support a durable shift toward higher-quality broadband revenue. Nearly 1.2 million fiber addresses and rising gig-capable coverage can improve retention, pricing power, and long-term growth.
Negative Factors
Structural Revenue Decline
Persistent contraction in legacy cable, copper, and other revenue streams places pressure on scale and EBITDA. Fiber growth may eventually offset these declines, but the transition creates execution risk and could constrain consolidated growth for several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Fiber Expansion and Adoption
Accelerating fiber deployment and strong customer additions support a durable shift toward higher-quality broadband revenue. Nearly 1.2 million fiber addresses and rising gig-capable coverage can improve retention, pricing power, and long-term growth.
Read all positive factors
Telephone & Data Systems (TDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.64B
Dividend Yield31.28%
Average Volume (3M)1.19M
Price to Earnings (P/E)7.8
Beta (1Y)0.78
Revenue Growth-73.81%
EPS GrowthN/A
CountryUS
Employees4,000
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)4.25
Shares Outstanding107,600,000
10 Day Avg. Volume1,056,580
30 Day Avg. Volume1,188,802
Financial Highlights & Ratios
PEG Ratio2.78
Price to Book (P/B)0.98
Price to Sales (P/S)3.84
P/FCF Ratio24.19
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$47.50Price Target Upside40.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.95
Revenue Forecast (FY)$1.24B
Telephone & Data Systems Business Overview & Revenue Model
Company Description
Telephone and Data Systems, Inc., a telecommunications company, provides communications services to residential, commercial, and wholesale customers in the United States. It operates through two segments: TDS Telecom and Array. The company offers ...
How the Company Makes Money
TDS makes money primarily by selling recurring connectivity services and related products. The largest revenue drivers are (1) service revenue from wireless plans and related network services and (2) service revenue from wireline broadband (intern...
Telephone & Data Systems Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call reflects strong strategic progress and cash-generating transactions (notably robust fiber build and meaningful spectrum monetizations) that materially strengthen the company’s long-term positioning and balance sheet. However, near-term financials show pressure from legacy copper and cable declines, higher near-term CapEx to accelerate fiber, DISH-related impacts on Array comparables, and transactional uncertainty tied to the pending TDS offer. On balance, operational momentum in fiber and significant spectrum monetization proceeds outweigh the near-term revenue headwinds and costs.Positive Updates
Record Fiber Build Pace
TDS Telecom delivered ~66,000 marketable fiber service addresses in Q2 and ~106,000 in the first half — the strongest first-half delivery in company history; new 2026 fiber service address guidance increased by 50,000 to a range of 250,000–300,000.
Negative Updates
Overall Revenue Decline
Total operating revenues declined 6% in the quarter (4% decline excluding divestitures), driven by legacy revenue pressures and discrete wholesale adjustments that favored 2025.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Fiber Build Pace
TDS Telecom delivered ~66,000 marketable fiber service addresses in Q2 and ~106,000 in the first half — the strongest first-half delivery in company history; new 2026 fiber service address guidance increased by 50,000 to a range of 250,000–300,000.
Read all positive updates
Company Guidance
The companies updated 2026 guidance and provided several key metrics: TDS Telecom raised its fiber service address target to 250,000–300,000 (up 50,000), delivered ~66,000 addresses in Q2 (~106,000 YTD), reported ~15,000 Q2 residential fiber net adds (+47% YoY), and now serves nearly 1.2 million fiber addresses (60% of footprint, 80% gig-capable) toward a long‑term 2.1 million goal; TDS projects total telecom revenues of $1.0–1.025 billion, adjusted EBITDA of $310–330 million, and 2026 CapEx of $625–675 million (Q2 CapEx was $179 million); TDS had $520 million remaining on its share repurchase authorization and paid a modest quarterly dividend (Array paid a special $11/share dividend). Array raised its total operating revenue low end to $205 million, now expects adjusted OIBDA of $60–75 million and adjusted EBITDA of $220–235 million, increased equity income guidance to $145 million and interest/dividend income to $15 million (six‑month equity income was $75 million), reported cash site rental revenue up ~65% YoY, closed spectrum sales of $168 million (to T‑Mobile) and $1 billion (to Verizon), and now forecasts 1,000–1,700 tenantless towers post‑T‑Mobile integration.Telephone & Data Systems Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
60
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.26B | 1.23B | 4.96B | 5.16B | 5.41B | 5.33B |
| Gross Profit | 360.84M | -62.00M | 2.83B | 2.83B | 2.85B | 2.86B |
| EBITDA | 1.20B | 553.51M | 1.20B | 682.00M | 1.08B | 1.18B |
| Net Income | 418.57M | -6.24M | -28.00M | -500.00M | 62.00M | 156.00M |
Balance Sheet | ||||||
| Total Assets | 8.38B | 8.40B | 13.68B | 13.92B | 14.55B | 13.49B |
| Cash, Cash Equivalents and Short-Term Investments | 2.19B | 765.95M | 364.00M | 236.00M | 360.00M | 367.00M |
| Total Debt | 1.25B | 1.95B | 5.10B | 5.14B | 4.80B | 4.04B |
| Total Liabilities | 2.98B | 3.13B | 7.80B | 7.91B | 7.93B | 6.75B |
| Stockholders Equity | 5.17B | 4.80B | 5.09B | 5.20B | 5.85B | 5.93B |
Cash Flow | ||||||
| Free Cash Flow | -452.35M | 195.19M | 241.00M | -199.00M | -620.00M | -48.00M |
| Operating Cash Flow | 105.65M | 589.89M | 1.15B | 1.14B | 1.16B | 1.10B |
| Investing Cash Flow | 4.28B | 2.14B | -754.00M | -1.33B | -1.78B | -2.46B |
| Financing Cash Flow | -2.75B | -2.35B | -277.00M | 56.00M | 613.00M | 321.00M |
Telephone & Data Systems Technical Analysis
Negative
33.82
Price Trends
35.28
Negative
39.07
Negative
40.53
Negative
Market Momentum
-0.36
Negative
45.97
Neutral
25.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDS, the sentiment is Negative. The current price of 33.82 is below the 20-day moving average (MA) of 34.23, below the 50-day MA of 35.28, and below the 200-day MA of 40.53, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 45.97 is Neutral, neither overbought nor oversold. The STOCH value of 25.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TDS.
Telephone & Data Systems Risk Analysis
Telephone & Data Systems disclosed 29 risk factors in its most recent earnings report. Telephone & Data Systems reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Telephone & Data Systems Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $1.05B | -2.38 | -20.72% | ― | ― | ― | |
54 Neutral | $3.64B | 7.83 | 8.65% | 30.29% | -73.81% | ― | |
50 Neutral | $6.08B | -5.96 | -52.11% | ― | -7.74% | 13.54% | |
49 Neutral | $679.88M | -15.27 | -4.77% | 0.96% | 5.01% | -23.53% | |
41 Neutral | $149.45M | -0.14 | -89.91% | ― | -6.54% | -108.97% | |
41 Neutral | $381.43M | -0.10 | 127.36% | ― | -4.36% | -1695.11% |
* Communication Services Sector Average
TDS
Telephone & Data Systems
33.28
-6.64
-16.63%
LUMN
Lumen Technologies
6.09
0.82
15.56%
SHEN
Shenandoah Telecommunications Co
12.37
-0.92
-6.91%
CABO
Cable ONE
25.83
-137.11
-84.15%
OPTU
Optimum Communications Inc Class A
1.08
-1.34
-55.37%
GLIBA
GCI Liberty, Inc. Class A
26.85
-11.45
-29.90%
Telephone & Data Systems Corporate Events
Business Operations and StrategyDividendsM&A Transactions
TDS Unit Completes Spectrum Sale, Declares Special Dividend
Positive
Jun 1, 2026
On June 1, 2026, Array Digital Infrastructure, Inc., a subsidiary of Telephone and Data Systems, completed the previously announced $1.0 billion cash sale of select spectrum assets to Verizon Communications Inc., marking a substantial monetization...
Executive/Board ChangesShareholder Meetings
TDS Shareholders Approve Board Slate and Governance Changes
Positive
May 26, 2026
At its May 21, 2026 Annual Meeting of Shareholders, Telephone and Data Systems, Inc. shareholders elected eight directors by holders of Series A Common Shares and four directors by holders of Common Shares, confirming the company’s board sla...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.