Telephone & Data Systems Inc. (TDS)
NYSE:TDS
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Telephone & Data Systems
(NYSE:TDS)
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Rating:61Neutral
Price Target:
$43.00
▼(-6.15% Downside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving financial positioning (notably deleveraging and a return to positive TTM profitability) but held back by weak/volatile revenue and inconsistent free cash flow. Technicals add support via an upward trend across major moving averages. Earnings-call takeaways are modestly constructive due to fiber momentum and reiterated guidance, tempered by legacy declines and high capex needs. Valuation is helped by the high dividend yield, though P/E data is not usable as provided.
Positive Factors
Material deleveraging and stronger balance sheet
Substantial debt reduction materially improves financial flexibility and lowers solvency risk. A low TTM debt-to-equity (~0.11) supports funding fiber expansion, opportunistic buybacks and spectrum monetizations without forcing distressed asset sales, improving durability of capital plans.
Negative Factors
Volatile, sharply down revenue trend
A pronounced decline and variability in top-line revenue undermines confidence in sustained profitability. Persistent legacy declines (cable, copper, video) reduce operating leverage, complicate predictability of cash flows, and increase execution risk for reinvestment-driven growth strategies.
Read all positive and negative factors
Positive Factors
Negative Factors
Material deleveraging and stronger balance sheet
Substantial debt reduction materially improves financial flexibility and lowers solvency risk. A low TTM debt-to-equity (~0.11) supports funding fiber expansion, opportunistic buybacks and spectrum monetizations without forcing distressed asset sales, improving durability of capital plans.
Read all positive factors
Telephone & Data Systems (TDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.31B
Dividend Yield0.39%
Average Volume (3M)824.68K
Price to Earnings (P/E)8.3
Beta (1Y)0.83
Revenue Growth-56.04%
EPS GrowthN/A
CountryUS
Employees7,900
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.76
Shares Outstanding106,300,000
10 Day Avg. Volume1,128,058
30 Day Avg. Volume824,683
Financial Highlights & Ratios
PEG Ratio33.88
Price to Book (P/B)0.90
Price to Sales (P/S)3.84
P/FCF Ratio24.19
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue2.01
Enterprise Value/Gross Profit4.90
Enterprise Value/Ebitda6.26
Forecast
1Y Price Target
$56.00Price Target Upside22.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.58
Revenue Forecast (FY)$1.25B
Telephone & Data Systems Business Overview & Revenue Model
Company Description
Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers and business an...
How the Company Makes Money
TDS makes money primarily by selling recurring connectivity services and related products through its operating segments. (1) Wireless services (UScellular): The largest revenue driver is generally service revenue from wireless subscribers who pay...
Telephone & Data Systems Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational momentum in strategic growth areas—particularly fiber rollouts (record address deliveries, 32% fiber net adds, 13% fiber revenue growth) and tower/site‑rental upside—alongside decisive corporate actions (proposal to acquire remaining Array shares and continued spectrum monetization). These positives are tempered by legacy revenue declines (cable down ~10%), the DISH nonpayment reserve at Array, ongoing wind‑down costs, and sizable near‑term capital requirements. On balance the company demonstrated progressing transformation and multiple constructive catalysts while acknowledging manageable legacy headwinds and execution risks.Positive Updates
Strategic Proposal to Acquire Remaining Array Shares
Telephone and Data Systems, Inc. announced an all‑stock proposal to acquire all outstanding Array common shares not already owned at an exchange ratio of 0.86 TDS shares per Array share (assumes $10.40 per Array share dividend and prior spectrum sales), expected to qualify as a tax‑free reorganization and intended to simplify corporate structure and strengthen capital allocation.
Negative Updates
DISH Nonpayment and Revenue Recognition Impact
DISH has failed to make required payments under its master lease with Array and is in breach; Array ceased recognizing DISH revenue in Q1 and fully reserved unpaid 2025 amounts, forcing normalization adjustments and excluding DISH colocations from tenancy metrics.
Read all updates
Q1-2026 Updates
Positive
Negative
Strategic Proposal to Acquire Remaining Array Shares
Telephone and Data Systems, Inc. announced an all‑stock proposal to acquire all outstanding Array common shares not already owned at an exchange ratio of 0.86 TDS shares per Array share (assumes $10.40 per Array share dividend and prior spectrum sales), expected to qualify as a tax‑free reorganization and intended to simplify corporate structure and strengthen capital allocation.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance for the Telecom business: total revenues of $1.015–$1.055 billion, adjusted EBITDA of $310–$350 million, and capital expenditures of $550–$600 million to support delivery of 200,000–250,000 new fiber service addresses (Q1 delivered 40,000 addresses and Q1 CapEx was $126 million). TDS now serves ~1.1 million fiber addresses (58% of its footprint; 79% gig‑capable), had ~11,000 residential fiber net adds in Q1 (+32% YoY), and retains a long‑term target of 2.1 million marketable addresses; the company also finished the quarter with a $520 million share‑buyback authorization. Array said its guidance for total operating revenue, adjusted EBITDA/OIBDA and capital expenditures is unchanged (ranges remain wide due to uncertainty around the T‑Mobile MLA), expects 800–1,800 tenantless towers post‑integration, and continues spectrum monetizations (Array paid a $10.25/share dividend in Q1 and a $10.40/share dividend and roughly $900 million in net proceeds were referenced in the proposed transaction assumptions).Telephone & Data Systems Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
63
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.13B | 1.23B | 4.96B | 5.16B | 5.41B | 5.33B |
| Gross Profit | 874.89M | -62.00M | 2.83B | 2.83B | 2.85B | 2.86B |
| EBITDA | 685.31M | 553.51M | 1.20B | 682.00M | 1.08B | 1.18B |
| Net Income | 132.21M | -6.24M | -28.00M | -500.00M | 62.00M | 156.00M |
Balance Sheet | ||||||
| Total Assets | 8.21B | 8.40B | 13.68B | 13.92B | 14.55B | 13.49B |
| Cash, Cash Equivalents and Short-Term Investments | 1.37B | 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 | 2.95B | 3.13B | 7.80B | 7.91B | 7.93B | 6.75B |
| Stockholders Equity | 4.92B | 5.27B | 5.09B | 5.20B | 5.85B | 5.93B |
Cash Flow | ||||||
| Free Cash Flow | 56.60M | 195.19M | 241.00M | -199.00M | -620.00M | -48.00M |
| Operating Cash Flow | 473.35M | 589.89M | 1.15B | 1.14B | 1.16B | 1.10B |
| Investing Cash Flow | 3.13B | 2.14B | -754.00M | -1.33B | -1.78B | -2.46B |
| Financing Cash Flow | -2.61B | -2.35B | -277.00M | 56.00M | 613.00M | 321.00M |
Telephone & Data Systems Technical Analysis
Negative
45.82
Price Trends
44.01
Negative
43.96
Negative
41.30
Positive
Market Momentum
-0.76
Positive
36.68
Neutral
7.06
Positive
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 45.82 is above the 20-day moving average (MA) of 44.18, above the 50-day MA of 44.01, and above the 200-day MA of 41.30, indicating a neutral trend. The MACD of -0.76 indicates Positive momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 7.06 is Positive, 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $5.40B | -42.68 | -2.67% | 0.40% | 61.86% | -115.00% | |
63 Neutral | $3.73B | -22.18 | 40.63% | ― | 12.63% | 19.58% | |
61 Neutral | $4.31B | 8.30 | 2.69% | 0.39% | -56.04% | ― | |
61 Neutral | $4.32B | 5.59 | 15.59% | 42.91% | -71.02% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $5.24B | 549.75 | 7.27% | 5.57% | 18.57% | 5.36% | |
58 Neutral | $10.35B | -8.68 | -79.42% | ― | -6.78% | -452.12% |
* Communication Services Sector Average
TDS
Telephone & Data Systems
41.42
6.93
20.08%
LUMN
Lumen Technologies
9.67
5.69
142.96%
TEO
Telecom Argentina
11.92
0.82
7.38%
TKC
Turkcell Iletisim
5.96
-0.25
-4.07%
AD
Array Digital Infrastructure
50.59
15.18
42.87%
VEON
VEON
54.57
-1.83
-3.24%
Telephone & Data Systems Corporate Events
Business Operations and StrategyDividendsM&A Transactions
TDS Proposes All-Stock Merger to Acquire Array
Positive
May 8, 2026
On May 8, 2026, Telephone and Data Systems, Inc. announced it has submitted a non-binding proposal to acquire, via an all-stock merger, all outstanding common shares of Array Digital Infrastructure, Inc. that it does not already own. TDS, which cu...
Business Operations and StrategyExecutive/Board Changes
TDS Announces Senior Strategy Executive’s Planned Retirement
Neutral
Mar 13, 2026
On March 10, 2026, Telephone and Data Systems, Inc. announced that Joseph R. Hanley, its Senior Vice President of Strategy and Corporate Development, notified the company of his intention to retire from his role. His retirement is expected to beco...
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.