We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TDS Q3 Earnings Beat Estimates on Solid Fiber Connection Growth
Read MoreHide Full Article
Key Takeaways
TDS posted higher Q3 earnings despite a year-over-year revenue decline from divested operations.
Fiber expansion drove broadband growth, with 42,000 new marketable fiber addresses deployed.
Array Digital revenues surged 83% on strong tower rental growth, narrowing the segment's operating loss.
Telephone and Data Systems, Inc. (TDS - Free Report) posted mixed third-quarter 2025 results, with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. TDS reported a revenue decline year over year, primarily due to the divestiture of the U.S. Cellular wireless operation. However, growth in residential broadband connections and tower business partially cushioned the top line.
Net Income of TDS
The company reported a net income of $57.5 million or 33 cents per share from continuing operations against a net loss of $83.1 million or 88 cents in the year-earlier quarter. The narrower loss was due to declining operating expenses year over year. Adjusted earnings came at 7 cents per share, beating the Zacks Consensus Estimate by 13 cents.
Telephone and Data Systems, Inc. Price, Consensus and EPS Surprise
Net sales were $308.5 million, down from $327.5 million reported in the year-ago quarter. Declining revenues in several segments affected the top line. The figure missed the Zacks Consensus Estimate by $94 million.
U.S. Cellular changed its name to Array Digital Infrastructure in July 2025.
Revenues from Array were $47.1 million, up 83% year over year, backed by solid growth in tower rental revenues. Total operating expenses were $100.4 million, down from $185.9 million in the prior-year quarter. The segment reported an operating loss of $53.3 million compared with $160.2 million registered in the year-ago quarter.
TDS Telecom contributed $255.1 million to revenues compared with $262.7 million reported in the prior-year quarter. Total residential connections were 921,100, down from 946,100 in the year-earlier quarter. Residential revenues per connection were $65.66, up from $65.41 in the prior-year quarter.
Total operating expenses were $182 million, matching the year-ago quarter’s figure. TDS Telecom deployed 42,000 new markable fiber addresses, crossing 1 million fiber addresses during the quarter. It recorded 11,200 net broadband adds. Its broadband expansion rose to 150,700 from 115,300 a year ago. Total connections were 1,101,300 compared with 1,143,300 in the year-ago quarter.
Other Details of TDS
Total operating expenses were $376.5 million, down 21% from the prior-year quarter’s levels. The company reported an operating loss of $67.9 million compared with $149.7 million.
Adjusted EBITDA in TDS Telecom was $80.5 million, down from $82.8 million. Adjusted EBITDA for Array Digital rose to $85.1 million compared with the prior-year quarter’s figure of $34.2 million.
TDS’ Cash Flow & Liquidity
In the first nine months of 2025, Telephone and Data Systems generated $224.8 million of net cash from operating activities compared with $145.9 million in the prior-year quarter. As of Sept. 30, 2025, the company had $932.9 million in cash and cash equivalents, with $825.3 million of long-term debt.
TDS’ Outlook
For 2025, management expects total operating revenues at TDS Telecom in the range of $1.03-$1.07 billion. Adjusted EBITDA is estimated in the band of $320-$360 million. Adjusted OIBDA (non-GAAP) is expected to be $310-$350 million. Capital expenditures are expected in the range of $375-$425 million. Array Digital has not provided an outlook for 2025.
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release fourth-quarter fiscal 2025 earnings on Nov. 24. The Zacks Consensus Estimate for earnings is pegged at $1.83 per share, suggesting growth of 10.9% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 11.5%. Keysight delivered an average earnings surprise of 4.7% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.
Applied Materials (AMAT - Free Report) is set to release fourth-quarter 2025 earnings on Nov. 13. The Zacks Consensus Estimate for earnings is pegged at $2.11 per share, implying a decline of 9.05% from the year-ago reported figure.
Applied Materials has a long-term earnings growth expectation of 8.54%. The Zacks Consensus Estimate for revenues is pegged at $6.7 billion, implying a decline of 4.84% from the year-ago reported figure. Applied Materials delivered an average earnings surprise of 5.06% in the last four reported quarters.ure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TDS Q3 Earnings Beat Estimates on Solid Fiber Connection Growth
Key Takeaways
Telephone and Data Systems, Inc. (TDS - Free Report) posted mixed third-quarter 2025 results, with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. TDS reported a revenue decline year over year, primarily due to the divestiture of the U.S. Cellular wireless operation. However, growth in residential broadband connections and tower business partially cushioned the top line.
Net Income of TDS
The company reported a net income of $57.5 million or 33 cents per share from continuing operations against a net loss of $83.1 million or 88 cents in the year-earlier quarter. The narrower loss was due to declining operating expenses year over year. Adjusted earnings came at 7 cents per share, beating the Zacks Consensus Estimate by 13 cents.
Telephone and Data Systems, Inc. Price, Consensus and EPS Surprise
Telephone and Data Systems, Inc. price-consensus-eps-surprise-chart | Telephone and Data Systems, Inc. Quote
Revenues of TDS
Net sales were $308.5 million, down from $327.5 million reported in the year-ago quarter. Declining revenues in several segments affected the top line. The figure missed the Zacks Consensus Estimate by $94 million.
U.S. Cellular changed its name to Array Digital Infrastructure in July 2025.
Revenues from Array were $47.1 million, up 83% year over year, backed by solid growth in tower rental revenues. Total operating expenses were $100.4 million, down from $185.9 million in the prior-year quarter. The segment reported an operating loss of $53.3 million compared with $160.2 million registered in the year-ago quarter.
TDS Telecom contributed $255.1 million to revenues compared with $262.7 million reported in the prior-year quarter. Total residential connections were 921,100, down from 946,100 in the year-earlier quarter. Residential revenues per connection were $65.66, up from $65.41 in the prior-year quarter.
Total operating expenses were $182 million, matching the year-ago quarter’s figure. TDS Telecom deployed 42,000 new markable fiber addresses, crossing 1 million fiber addresses during the quarter. It recorded 11,200 net broadband adds. Its broadband expansion rose to 150,700 from 115,300 a year ago. Total connections were 1,101,300 compared with 1,143,300 in the year-ago quarter.
Other Details of TDS
Total operating expenses were $376.5 million, down 21% from the prior-year quarter’s levels. The company reported an operating loss of $67.9 million compared with $149.7 million.
Adjusted EBITDA in TDS Telecom was $80.5 million, down from $82.8 million. Adjusted EBITDA for Array Digital rose to $85.1 million compared with the prior-year quarter’s figure of $34.2 million.
TDS’ Cash Flow & Liquidity
In the first nine months of 2025, Telephone and Data Systems generated $224.8 million of net cash from operating activities compared with $145.9 million in the prior-year quarter. As of Sept. 30, 2025, the company had $932.9 million in cash and cash equivalents, with $825.3 million of long-term debt.
TDS’ Outlook
For 2025, management expects total operating revenues at TDS Telecom in the range of $1.03-$1.07 billion. Adjusted EBITDA is estimated in the band of $320-$360 million. Adjusted OIBDA (non-GAAP) is expected to be $310-$350 million. Capital expenditures are expected in the range of $375-$425 million. Array Digital has not provided an outlook for 2025.
Zacks Rank
TDS sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Upcoming Releases
Keysight Technologies, Inc. (KEYS - Free Report) is scheduled to release fourth-quarter fiscal 2025 earnings on Nov. 24. The Zacks Consensus Estimate for earnings is pegged at $1.83 per share, suggesting growth of 10.9% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 11.5%. Keysight delivered an average earnings surprise of 4.7% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.
Applied Materials (AMAT - Free Report) is set to release fourth-quarter 2025 earnings on Nov. 13. The Zacks Consensus Estimate for earnings is pegged at $2.11 per share, implying a decline of 9.05% from the year-ago reported figure.
Applied Materials has a long-term earnings growth expectation of 8.54%. The Zacks Consensus Estimate for revenues is pegged at $6.7 billion, implying a decline of 4.84% from the year-ago reported figure. Applied Materials delivered an average earnings surprise of 5.06% in the last four reported quarters.ure.