TDS slightly misses Q3 revenue estimates, lowers FY guidance

Overview

• US telecom and tower operator's Q3 revenue slightly missed analyst expectations

• Diluted EPS fell to $0.26 from $0.33 a year ago

• Company authorized incremental $250 mln share repurchase plan

Outlook

• TDS Telecom lowers 2026 revenue outlook to $990 mln-$1.01 bln from $1 bln-$1.025 bln

• TDS Telecom cuts 2026 adj OIBDA forecast to $280 mln-$300 mln from $300 mln-$320 mln

• Company raises 2026 capital expenditures outlook for TDS Telecom to approx $750 mln from $625 mln-$675 mln

Result Drivers

• LEGACY DECLINES AND DIVESTITURES - Residential fiber revenue grew 14% but was more than offset by impacts of divestitures and continued declines in legacy services

• TOWER OPERATIONS - Array increased colocations sequentially and site rental revenues grew 14% yr/yr, highlighting asset value and improved profitability

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)