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Array Digital Infrastructure (AD)
NYSE:AD

Array Digital Infrastructure (AD) AI Stock Analysis

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AD

Array Digital Infrastructure

(NYSE:AD)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
$55.00
▲(10.02% Upside)
The stock's overall score is driven by strong valuation metrics, particularly the high dividend yield, which offsets some of the financial performance challenges. Technical indicators also support a positive outlook, although caution is advised due to potential overbought conditions. Financial performance remains a concern with declining revenues and profitability.

Array Digital Infrastructure (AD) vs. SPDR S&P 500 ETF (SPY)

Array Digital Infrastructure Business Overview & Revenue Model

Company DescriptionArray Digital Infrastructure (AD) is a leading provider of innovative digital infrastructure solutions, specializing in data centers, cloud computing, and network services. The company serves a diverse range of industries, including technology, finance, healthcare, and telecommunications, offering core products such as colocation services, managed cloud solutions, and high-performance networking. With a focus on scalability, security, and efficiency, AD is committed to empowering businesses with the digital backbone necessary for success in a rapidly evolving technological landscape.
How the Company Makes MoneyArray Digital Infrastructure generates revenue primarily through its core offerings in colocation services, where clients rent space for their servers and equipment within AD's data centers. This constitutes a significant portion of their income, as it provides a steady, recurring revenue stream. Additionally, the company earns money from managed cloud services, offering clients scalable cloud solutions tailored to their specific needs, which typically involves subscription-based pricing models. Networking services, including high-speed internet access and private network solutions, also contribute to revenue, providing both one-time and ongoing fees. Partnerships with technology providers and telecom companies enhance AD's service offerings, enabling bundled solutions that attract more customers and create additional revenue opportunities. Overall, the combination of these revenue streams, along with strategic partnerships, underpins AD's financial growth.

Array Digital Infrastructure Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant achievements, including the successful completion of the T-Mobile transaction, reduction in debt, and progress in fiber and tower businesses. However, there are some challenges with revenue decline in legacy markets and transition costs for the tower business.
Q2-2025 Updates
Positive Updates
Successful Sale to T-Mobile
TDS completed the $4.3 billion sale of UScellular wireless business and certain spectrum assets to T-Mobile, unlocking significant value for shareholders and strengthening the balance sheet.
Special Dividend and Debt Reduction
Array Board declared a special dividend of $23 per share, with TDS receiving approximately $1.63 billion. $1.1 billion in debt will be redeemed, resulting in $80 million in annual interest savings.
Ratings Upgrade
S&P raised TDS' credit rating to BBB- from BB, reflecting a strong balance sheet and growth outlook.
Fiber Expansion Progress
Delivered 27,000 new fiber service addresses in Q2, with plans to achieve 150,000 fiber addresses in 2025. Fiber connections grew 19% year-over-year.
Tower Business Growth
Third-party tower revenues increased by 12%, and the number of third-party colocations increased by 6% year-over-year.
Negative Updates
Revenue Decline in Telecom
Total operating revenues for TDS Telecom were down 1% in Q2 compared to the prior year, impacted by divestitures and declines in legacy cable and copper markets.
Challenges in Transition to Independent Tower Company
Array will incur additional wind-down costs in 2025 and 2026 as it transforms from a wireless service provider to an independent tower company, negatively impacting profitability and adjusted EBITDA.
Company Guidance
During the second quarter 2025 conference call, TDS and Array announced significant progress in their strategic priorities, notably the closure of a $4.3 billion transaction selling UScellular's wireless business and certain spectrum assets to T-Mobile. This move was instrumental in strengthening the balance sheets of both TDS and Array, allowing them to focus on their tower and fiber businesses. Array Digital Infrastructure, now operating under a new name, boasts approximately 4,400 towers and a new master license agreement with T-Mobile, which is expected to drive colocations and margin growth. TDS Telecom, under new leadership, delivered 27,000 new fiber service addresses, aiming for 150,000 by year-end. Financially, TDS plans to redeem approximately $1.1 billion in debt, resulting in $80 million in annual interest savings. Additionally, TDS anticipates receiving $2 billion from spectrum sales to AT&T and Verizon, further enhancing their financial flexibility for strategic investments and shareholder returns.

Array Digital Infrastructure Financial Statement Overview

Summary
Income Statement
55
Neutral
Balance Sheet
60
Neutral
Cash Flow
50
Neutral
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Array Digital Infrastructure Technical Analysis

Technical Analysis Sentiment
Positive
Last Price49.99
Price Trends
50DMA
48.71
Positive
100DMA
50.01
Positive
200DMA
47.75
Positive
Market Momentum
MACD
1.05
Negative
RSI
74.56
Negative
STOCH
95.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AD, the sentiment is Positive. The current price of 49.99 is above the 20-day moving average (MA) of 49.69, above the 50-day MA of 48.71, and above the 200-day MA of 47.75, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 74.56 is Negative, neither overbought nor oversold. The STOCH value of 95.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AD.

Array Digital Infrastructure Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$4.63B9.0425.22%7.80%0.59%8.86%
74
Outperform
$5.07B12.347.60%5.54%19.02%9.26%
70
Outperform
$4.64B18.324.11%42.84%-25.64%
57
Neutral
$3.78B-1.01
56
Neutral
$4.38B-37.591.73%0.39%-22.79%79.90%
55
Neutral
$7.97B-4.69-4.56%23.46%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AD
Array Digital Infrastructure
53.60
9.88
22.60%
LUMN
Lumen Technologies
7.79
1.97
33.85%
LBTYA
Liberty Global A
11.20
-1.26
-10.11%
PHI
PLDT
21.39
0.55
2.64%
TKC
Turkcell Iletisim
5.81
-0.55
-8.65%
TDS
Telephone & Data Systems
40.59
6.37
18.61%

Array Digital Infrastructure Corporate Events

Executive/Board Changes
Array Digital Infrastructure Appoints New CEO Anthony Carlson
Neutral
Nov 7, 2025

On November 6, 2025, Array Digital Infrastructure, Inc. announced the appointment of Anthony Carlson as President and CEO, effective November 16, 2025. Mr. Carlson, who previously held various roles at Array and TDS Telecommunications LLC, will succeed Douglas W. Chambers, who will remain as a Senior Advisor until December 9, 2025. This leadership change is expected to influence Array’s strategic direction, given Mr. Carlson’s extensive experience and family ties within the company.

Executive/Board ChangesShareholder Meetings
Array Digital Infrastructure Finalizes Key Decisions at Annual Meeting
Neutral
Oct 10, 2025

At the Annual Meeting of Shareholders on October 9, 2025, Array Digital Infrastructure, Inc. finalized several key decisions. The election of directors saw Harry J. Harczak, Jr., Esteban C. Iriarte, and Xavier D. Williams elected by common shareholders, while six directors were elected by Series A common shareholders. Additionally, shareholders approved PricewaterhouseCoopers LLP as the independent registered public accountants for 2025, amendments to the company’s Restated Certificate of Incorporation following a transaction with T-Mobile, and the executive compensation plan.

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.Date of analysis: Dec 07, 2025