TDS Q4 Earnings Beat Estimates on Strong Revenue Growth

Telephone and Data Systems, Inc. TDS posted strong fourth-quarter 2025 results, with both the bottom and top line beating the Zacks Consensus Estimate. TDS reported revenue growth year over year, primarily due to healthy traction in the Array segment. Growth in residential broadband connections and tower business supported the top line.

Net Income of TDS

The company reported a net income of $54.5 million or 32 cents per share from continuing operations compared to a net income of $18.3 million or a penny in the year-earlier quarter. The improvement was due to top-line expansion year over year. The bottom line beat the Zacks Consensus Estimate by 23 cents.

In 2025, the company reported a net income of $117.4 million from continuing operations or 39 cents per share against a net loss of $72.2 million or a loss of $1.24 per share in 2024.

Revenues of TDS

Net sales were $330.7 million, up from $295.4 million reported in the year-ago quarter. Strength in the Array digital vertical boosted the top line. The figure beat the Zacks Consensus Estimate by $11 million.

U.S. Cellular changed its name to Array Digital Infrastructure in July 2025.

Revenues from Array were $60.3 million, up from 26.1 million a year ago, backed by solid growth in tower rental revenues. Total operating expenses were $51.7 million, down from $55.2 million in the prior-year quarter. The segment reported an operating income of $8.6 million against a loss of 29.1 million registered in the year-ago quarter.

TDS Telecom contributed $260.9 million to revenues compared with $264.3 million reported in the prior-year quarter. Total residential connections were 905,600, down from 935,700 in the year-earlier quarter. Residential revenues per connection were $65.95, up from $64.72 in the prior-year quarter.

Total operating expenses were $246.83 million, up from the year-ago quarter’s figure of $214.84. TDS Telecom deployed 140,000 new markable fiber addresses in 2025. It recorded 44,900 net broadband adds in 2025. Its broadband expansion rose to 160,600 from 126,100 a year ago. Total connections were 1,079,500 compared with 1,126,300 in the year-ago quarter.

Other Details of TDS

Total operating expenses were $313.9 million, up 13% from the prior-year quarter’s levels. The company reported an operating income of $16.83 million compared with $16.87 million.

Adjusted EBITDA in TDS Telecom was $85 million, up from $80 million. Adjusted EBITDA for Array Digital rose to $52.08 million compared with the prior-year quarter’s figure of $24.5 million.

TDS’ Cash Flow & Liquidity

In 2025, Telephone and Data Systems generated $338.3 million of net cash from operating activities compared with $295.78 million in the prior-year quarter. As of Dec. 31, 2025, the company had $765.9 million in cash and cash equivalents, with $823.4 million of long-term debt compared to respective tallies of $823.4 million and $2.41 billion in 2024.

TDS’ Outlook

For 2026, management expects total operating revenues at TDS Telecom in the range of $1.015-$1.055 billion. Adjusted EBITDA is estimated in the band of $310-$350 million. Adjusted OIBDA (non-GAAP) is expected to be $300-$340 million. Capital expenditures are expected in the range of $550-$600 million. Array Digital has not provided an outlook for 2025.

Management expects total operating revenues at Array in the range of $200-$215 billion. Adjusted EBITDA is estimated in the band of $200-$215 million. Adjusted OIBDA (non-GAAP) is expected to be $50-$65 million. Capital expenditures are expected in the range of $25-$35 million.

Zacks Rank

TDS carries a Zacks Rank #3 (Hold) at present.

Stocks to Consider

Celestica Inc. CLS carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, it delivered an earnings surprise of 8.62%. With rising demand for AI and cloud infrastructure, Celestica is well-positioned to benefit. Its focus on higher-margin markets, diversified portfolio, and strong engineering capabilities support scalable production of complex electronic and data-center solutions. Its strong research and development capabilities enable it to produce high-volume electronics manufacturing across multiple industries.

Ericsson ERIC carries a Zacks Rank #2 (Buy) at present. It delivered an earnings surprise of 17.39% in the last reported quarter.

Ericsson is likely to gain from steady global 5G investments. Its competitive 5G portfolio and disciplined cost focus support network leadership, while expanding enterprise and private-network offerings create new growth opportunities. The company continues to execute its plan to become a leading mobile infrastructure provider. Ongoing innovation and partnerships should further strengthen its position in the wireless infrastructure market.

Ubiquiti Inc. UI currently carries a Zacks Rank #2. It delivered an earnings surprise of 38.08% in the last reported quarter.

It offers a broad portfolio of networking solutions for enterprises and service providers. Its efficient and flexible business model supports healthy margins and scalable expansion. The company continues to invest in research and development to launch innovative networking products and advanced technologies. Strong channel management and a wide global distributor network improve demand visibility and inventory control.

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