Telephone and Data Systems, Inc (TDS) AI Stock Analysis

Telephone and Data Systems, Inc. (TDS) is a telecommunications provider based in Chicago, Illinois, operating through two main segments: UScellular and TDS Telecom. The UScellular segment provides wireless solutions, including smartphones, tablets, wearables, IoT devices, private cellular networks, and critical connectivity services. TDS Telecom delivers broadband Internet, IP-based services, hosted voice, and video collaboration solutions, as well as its cloud-based TDS TV+ platform. TDS serves consumers, businesses, and government entities across the United States through retail stores, direct channels, third-party retailers, and online platforms.

Revenue contracted sharply in FY2025, falling 75.3% to $1.23B compared to $4.96B in FY2024, contributing to a 5-year revenue CAGR of -25.1%. FY2025 operating margin stood at -5.0% alongside a net income of -$6.2M. For the trailing twelve months, revenue reached $1.26B with a profit margin of 33.2% and an operating margin of -6.6%. In the latest quarter ended June 30, 2026, quarterly revenue grew 3.6% year-over-year, while quarterly earnings declined 11.8%.

As of June 30, 2026, TDS held $2.19B in cash and short-term investments against total debt of $1.25B, resulting in net cash of $945.0M. The current ratio stood at 3.82 and debt-to-equity was 0.24, with shareholders' equity at $5.17B. In FY2025, operating cash flow was $589.9M and free cash flow reached $195.2M. Capital expenditures totaled $394.7M, while cash returned to shareholders included $129.5M in share buybacks and $87.7M in dividends paid.

TDS trades at a trailing P/E of 8.5x, below the 16.2x median of its US-listed Communication Services peers, but its forward P/E of 39.1x exceeds the peer median of 14.1x. Its EV/EBITDA of 3.6x is lower than the peer group median of 10.0x, while its price-to-sales of 3.1x is higher than the peer median of 0.8x. Over the past year, TDS returned -11.7%, underperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of 101.9% surpassed the index return of 83.0%.

TDS pays a quarterly dividend with an annualized forward payout of $0.16 per share, representing a dividend yield of 0.47% and a payout ratio of 5.7%. The company has paid consecutive dividends for 42 years. However, its 5-year annualized dividend growth stands at -25.1%. The last ex-dividend date was September 15, 2026.

Wall Street coverage includes 1 Strong Buy, 1 Buy, and 1 Hold rating. The mean price target is $47.50, representing a 40.1% premium to the last close of $33.90. For the fiscal year ending December 31, 2026, analysts estimate revenue of $1.24B and EPS of $3.70. For the following fiscal year, 3 analysts project revenue of $1.25B and EPS of $0.22. TDS beat EPS estimates in 3 of the last 4 quarters, with the next earnings date scheduled for November 6, 2026.

This page is an AI-written research summary of Telephone and Data Systems, Inc (TDS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: TDS income statement, TDS balance sheet, TDS key metrics, TDS analyst forecast, TDS chart. See the TDS stock overview for the latest quote and news.