TDS · Telephone and Data Systems, Inc.

Telephone and Data Systems, Inc. reported strong Q1 2026 results, with total operating revenues from continuing operations rising to $309.5 million from $290.4 million in the prior year period, primarily boosted by Array's performance. Net income swung to a profit of $129.3 million or $1.11 per diluted share from a $23.2 million loss, driven by a $150.9 million book gain on the January 13 sale of 3.45 GHz and 700 MHz spectrum licenses for $1,018.0 million, netting $114.7 million after tax. TDS Telecom executed on its fiber strategy, adding 40,000 marketable fiber service addresses to reach 1.1 million total and achieving 10,900 residential fiber net additions, though revenues declined 3% or $6 million due to divestitures of non-strategic assets. Residential fiber connections grew to 298,700 from prior periods, with total broadband connections stable at 561,900. Array optimized tower operations, with site rental revenues up 92% year-over-year, though tenancy rate dipped to 0.96; it also closed a $74.8 million 700 MHz spectrum sale on May 5. Management reaffirmed full-year 2026 guidance unchanged, with TDS Telecom expecting $1,015-$1,055 million in revenues and $300-$340 million Adjusted OIBDA, and Array $200-$215 million revenues and $50-$65 million Adjusted OIBDA. Strategic moves include an agreement to acquire Granite State Communications, adding 11,000 fiber addresses adjacent to existing operations, expected to close in Q3 2026. Additionally, on May 7, TDS proposed acquiring all outstanding Array shares it does not own, with a special committee formed to evaluate. These developments signal momentum in fiber expansion and asset monetization, supporting reaffirmed outlook amid ongoing spectrum sales.