TDS Q2 revenue misses estimates on legacy declines

Telephone and Data Systems

07/08/2026 12:46

Overview
US telecom and tower operator's Q2 revenue rose yr/yr but missed analyst expectations
Q2 diluted EPS from continuing operations was $2.24
Telephone and Data Systems completed major spectrum sales and issued $11/share special dividend at Array

Outlook
TDS Telecom lowers 2026 revenue guidance to $1,000 mln-$1,025 mln from $1,015 mln-$1,055 mln
Company increases TDS Telecom 2026 capital expenditure guidance to $625 mln-$675 mln
Array raises 2026 revenue guidance to $205 mln-$215 mln and adjusted EBITDA to $220 mln-$235 mln

Result Drivers
LEGACY DECLINES AND DIVESTITURES - Co said 6% drop in TDS Telecom service revenue was due to continued legacy service declines and impacts from divestitures
FIBER EXPANSION - TDS Telecom expanded its marketable fiber service footprint by 66,000 addresses and reported 15,100 net residential fiber additions
TOWER TENANCY AND SPECTRUM SALES - Array saw 95% yr/yr growth in site rental revenue from tower tenancy gains and completed major spectrum sales

Company press release: ID:nPn9TRssna

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Total operating  Revenue
Miss
$309.28 mln
$317.79 mln (3 Analysts)
Q2 EPS attributable to
TDS common shareholders
 
$2.42
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the wireless telecommunications services peer group is "buy"
Wall Street's median 12-month price target for Telephone and Data Systems, Inc. is $50.00, about 38.9% above its August 6 closing price of $36.00

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)