TDS Q3 Earnings Beat Estimates on Solid Fiber Connection Growth

Telephone and Data Systems, Inc. TDS 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.

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 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 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 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.

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This article originally published on Zacks Investment Research (zacks.com).

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