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Telephone and Data Systems, Inc.
$4.1B
Market Cap
19.8
P/E
9.16
PEG
-0.9%
ROCE
2.7%
ROE
0.27
D/E
-5.1%
OPM
-24.0%
% from 52W High
33
α RS
🔍 TDS is showing a sector-leadership setup because Sector RRG has Communication Services in the Leading quadrant with the trail still rolling over, it's hugging the 21 EMA, and graham_defensive preset's Backtest win rate is 50.8% over 90 days. Net: Broad signal stack, not a recommendation. ? RRG Technicals Backtest
Sources
Communication Services in Leading quadrant · hugging 21 EMA · Backtest win rate 50.8%
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🌏 Global Investor Returns
Currency-adjusted total returns for TDS including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

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 internet connections and all-home Wi-Fi services, fiber internet, security, and support services; advanced home TV entertainment combined with a digital video recording (DVR) services; TDS TV+, an integrated cloud TV platform that combines linear and on-demand programming, mobile device interfaces, personalized recommendations, and network-based DVR; digital television; local and long-distance telephone service, voice over internet protocol, and enhanced services; wireless services to customers; broadband, IP-based services, and hosted voice and video collaboration services to small- and medium-sized businesses; carrying data and voice traffic services; wholesale services; and communication services in underserved areas. The company is also leases tower spaces to tenants; provides ancillary services. The company sells and distributes its products through third-party direct sales, retail stores, sales agents, and an online platform to sell services and products. Telephone and Data Systems, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding TDS
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Manager Shares Value % of Fund Period
Daniel Loeb Third Point LLC 6.60M $277.9B 13.34% Mar 2026
Steve Cohen Point72 Asset Management 586.5K $24.7M 0.03% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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📊 MIXED TDS proposes all-stock Array merger; adds 40k fiber addresses in Q1
Revenue & Profitability
TDS Telecom total operating revenues were $1.015B-$1.055B (guidance range), with residential fiber revenue up 13% year-over-year ($11 million uplift). Adjusted EBITDA for Telecom was $310M-$350M (guidance). Array's cash site rental revenue grew 55% year-over-year (64% normalized for DISH). Telecom cash expenses decreased 3%, aided by transformation initiatives. Specific net income or operating income figures were not provided for the consolidated entity.
Outlook
Management sees strong demand for fiber broadband and tower colocation. TDS Telecom expects continued fiber expansion to offset legacy copper and cable declines. Array views C-band spectrum as 'beachfront property' for 5G with no near-term buildout requirements. The enterprise is monitoring satellite as a potential threat but remains confident in fiber and terrestrial towers. Industry tailwinds include federal E-ACAM support for fiber and ongoing T-Mobile integration driving tower tenancy.
Growth Drivers
Key growth drivers for TDS Telecom include fiber address expansion (targeting 200,000-250,000 new fiber addresses in 2026), fiber net adds (11,000 in Q1, up 32% year-over-year), and the Fiber Deeper program upgrading existing markets. For Array, growth is driven by tower colocation applications (robust pipeline), T-Mobile site commitments (800-1,800 tenantless towers post integration), and opportunistic spectrum monetization (70% already sold). TDS Telecom also sees growth from the Granite State Communications acquisition (11,000 fiber addresses).
Balance Sheet & CapEx
TDS Telecom capital expenditures were $126 million in Q1 2026, with full-year guidance of $550-$600 million to support 200,000-250,000 new fiber service addresses. Investments include internal construction crews, equipment, and IT systems (billing conversion completed in cable markets, new field force platform). Array's capital expenditure guidance is unchanged. TDS is also investing in spectrum monetization and tower ground lease optimization (multi-year effort).
Margins
Adjusted EBITDA for TDS Telecom decreased 3% in Q1 due to divestiture revenue losses. The company is targeting $100 million in run-rate cost savings by year-end 2028 through transformation initiatives, with benefits starting to drop to the bottom line in 2026. Array expects margin improvement from legacy cost wind-down, increasing land ownership, and higher colocation density. Cable margins face pressure from competition, but multi-gig upgrades are expected to help stabilize.
Key Risks
Key risks discussed: (1) DISH Wireless non-payment for tower leases—Array has ceased revenue recognition and reserved unpaid amounts; (2) execution risk in fiber build schedule; (3) ongoing legacy copper and cable revenue declines; (4) uncertainty in timing of T-Mobile interim site terminations and tower integration; (5) spectrum sale delays pending regulatory approvals; (6) competitive pressure from satellite technology (mentioned by Walter Carlson as a threat).
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-07
Record fiber address delivery and strong fiber revenue growth offset legacy declines, while Array saw robust tower tenancy and completed major spectrum monetization deals. Guidance was raised for fiber build and Array's financials, with capital flexibility enhanced by recent transactions.
Q1 2026 Q1 2026 2026-05-08
TDS reported record fiber address delivery and strong fiber net adds, while Array saw robust tower revenue growth and continued spectrum monetization. The proposed acquisition of Array shares aims to simplify structure and unlock growth, with guidance unchanged for both segments.
Q4 2025 Q4 2025 2026-02-20
2025 marked a transformative year with major spectrum sales, debt reduction, and a sharpened focus on fiber and tower growth. Guidance for 2026 targets increased fiber build, higher CapEx, and stable to growing Adjusted EBITDA, while risks include DISH lease uncertainty and industry revenue pressures.
Q3 2025 Q3 2025 2025-11-07
Closed the T-Mobile transaction, enabling major capital returns and fiber expansion. Fiber passings surpassed 1 million, with strong growth in residential connections and a focus on rural markets. Array's tower business saw robust revenue growth, and a $500M share repurchase was authorized.
Q2 2025 Q2 2025 2025-08-11
Closed the $4.3B UScellular sale to T-Mobile, enabling debt reduction, a special dividend, and a strategic focus on towers and fiber. TDS Telecom targets 150,000 new fiber addresses in 2025, while Array expects $2B from pending spectrum sales and robust tower revenue growth.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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