Telephone and Data Systems (TDS) Stock: Rallies on Big Spectrum Deal, Tower Expansion and Strong Profit Jump

TLDR

• TDS rallies on profit surge, $1.018B spectrum sale, and 2026 fiber push
• TDS stock pops as wireless exit fuels cash, towers grow, and profits jump
• TDS boosts balance sheet, pays special dividend, and targets 2026 growth
• TDS posts strong Q4, expands towers via Array, and ramps fiber buildout
• TDS climbs premarket after big profit rebound and a sharper 2026 plan

Telephone and Data Systems (TDS) shares advanced after the company posted stronger quarterly profit and outlined a focused 2026 plan. The stock closed at $45.54, up 0.80%, and then climbed to $47.75 in pre-market trading, marking a 4.78% gain. The move followed major spectrum transactions, tower expansion, and a sharp improvement in net income.

Telephone and Data Systems, Inc., TDS

TDS Strengthens Balance Sheet After Wireless Exit and Spectrum Sale

Telephone and Data Systems completed the sale of its wireless business during 2025 and reshaped its corporate structure. The company also launched a new tower subsidiary operating as Array to manage infrastructure assets. These actions improved liquidity and repositioned operations around fiber and towers.

During the fourth quarter, TDS repurchased 1,765,863 common shares for $67.4 million. In addition, the company repaid $150 million of Export Development Canada debt in January 2026. These steps reduced leverage and enhanced financial flexibility.

Array recorded 51% growth in site rental revenue year over year. Moreover, the unit closed a wireless spectrum sale with AT&T on January 13, 2026, for $1.018 billion. The company also paid a $10.25 per share special dividend on February 2, 2026.

Profit Jumps as Quarterly Revenue Expands

TDS reported fourth-quarter operating revenue from continuing operations of $330.7 million. This figure increased from $295.3 million in the same quarter one year earlier. Higher contributions from core segments supported the gain.

Net income attributable to common shareholders reached $37.2 million for the quarter. This result compared with $1.0 million in the prior-year period. Diluted earnings per share rose to $0.32 from $0.01.

For the full year 2025, operating revenue totaled $1,228.2 million. This result declined from $1,297.0 million in 2024 due to divestitures. However, the company posted net income of $48.2 million compared with a loss of $141.4 million in 2024.

Fiber Expansion and Tower Growth Drive 2026 Outlook

TDS Telecom expanded its fiber footprint during 2025 and increased long-term targets. The unit deployed 140,000 new marketable fiber service addresses during the year. It also grew fiber net additions by 44,900.

Management raised the long-term marketable fiber service address goal to 2.1 million. This revision added 300,000 addresses to the previous target. The strategy centers on broadband demand and recurring revenue growth.

For 2026, TDS Telecom expects operating revenue between $1,015 million and $1,055 million. Adjusted EBITDA should range from $310 million to $350 million, while capital spending may reach $600 million. Array projects operating revenue of $200 million to $215 million and adjusted EBITDA of $200 million to $215 million as tower operations scale.

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