Telephone and Data Systems Inc reaches a 20-day high amid market strength
Telephone and Data Systems Inc (TDS) experienced a price increase of 3.08% during regular trading, reaching a 20-day high. This upward movement aligns with the broader market context, as the Nasdaq-100 rose by 0.66% and the S&P 500 gained 0.24%.
The stock's rise is attributed to broad market strength, which has positively influenced investor sentiment across various sectors. The overall market performance has provided a favorable backdrop for TDS, allowing it to capitalize on the upward trend.
This increase in TDS's stock price may indicate growing investor confidence in the company's future prospects, especially in light of the positive market conditions. As the company continues to navigate the evolving landscape, maintaining this momentum could be crucial for its ongoing success.
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Company Overview: The article discusses the performance of a telecommunications and data systems company, highlighting its financial results for the fourth quarter.
Financial Performance: The company reported earnings per share (EPS) of $0.33, indicating a stable financial position despite market challenges.
- Earnings Announcement: Telephone and Data Systems (TDS) is scheduled to announce its Q4 earnings on February 20 before market open, with a consensus EPS estimate of $0.09, reflecting a significant year-over-year increase of 200%.
- Revenue Decline: Despite the strong EPS outlook, the consensus revenue estimate stands at $319.28 million, indicating a substantial year-over-year decline of 74.3%, highlighting significant challenges in revenue generation for the company.
- Historical Performance Review: Over the past year, TDS has only beaten EPS estimates 25% of the time and revenue estimates 50% of the time, indicating uncertainty in the company's profitability and revenue growth trajectory.
- Market Reaction Analysis: While the upcoming earnings report suggests a strong EPS growth expectation, the drastic revenue decline may negatively impact investor confidence, necessitating close attention to market reactions following the earnings release.
- Fiber Service Goal Increase: TDS Telecom has raised its long-term marketable fiber service address goal to 2.1 million, an increase of 300,000 addresses, demonstrating the company's commitment to expanding its fiber market presence, which is expected to drive revenue growth further.
- Significant Financial Improvement: In Q4 2025, TDS Telecom reported total operating revenues of $330.7 million, a 12% increase year-over-year, with net income reaching $37.2 million, indicating a marked improvement in profitability post-transformation.
- Enhanced Shareholder Returns: TDS repurchased 1,765,863 common shares for $67.4 million in Q4 2025 and paid a special dividend of $10.25 per share on February 2, 2026, boosting shareholder confidence and enhancing shareholder value.
- Ongoing Strategic Investments: TDS plans to continue investing in the expansion of its fiber business and support co-location and profitability initiatives at Array in 2026, which is expected to further solidify its market position and achieve sustainable growth.
- Quarterly Dividend Announcement: Telephone and Data Systems (TDS) declares a quarterly dividend of $0.04 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flows.
- Dividend Yield: The forward yield of 0.35% reflects the company's attractiveness in the current market environment, potentially appealing to investors seeking stable income.
- Payment Schedule: The dividend is payable on March 31, with a record date of March 16 and an ex-dividend date also on March 16, ensuring shareholders receive their earnings promptly.
- Investor Focus: TDS's dividend policy, combined with its pending spectrum sales, may further drive the company's deleveraging efforts, enhancing its financial health and positioning for future growth.
- Strong Earnings: Telephone and Data Systems reported a Q4 GAAP EPS of $0.32, beating expectations by $0.23, indicating a significant improvement in profitability.
- Revenue Growth: The company achieved Q4 revenue of $330.7 million, reflecting a 12% year-over-year increase and exceeding market expectations by $11.42 million, showcasing robust business momentum.
- 2025 Performance Impact: Estimated total revenues for 2025 are projected between $1.015 billion and $1.055 billion, with actual results at $1.038 billion, although market consensus was $1.28 billion, indicating cautious market sentiment regarding future growth.
- Capital Expenditure Overview: Projected capital expenditures for 2025 are between $550 million and $600 million, with actual spending at $406 million, suggesting a conservative investment strategy that may impact future growth potential.









