Telephone and Data Systems, Inc. (NYSE: TDS) reported fourth-quarter and full-year 2025 results on February 20, 2026. For the fourth quarter ended December 31, 2025, total operating revenues from continuing operations reached $330.7 million, up 12% year over year from $295.3 million. Net income attributable to TDS common shareholders from continuing operations totaled $37.2 million, or $0.32 per diluted share. For the full year 2025, operating revenues from continuing operations were $1,228.2 million, down from $1,297.0 million in 2024, while net income attributable to TDS common shareholders from continuing operations improved to $48.2 million, or $0.39 per diluted share, from a loss of $141.4 million, or $1.24 per share.
Telephone and Data Systems, Inc. provides broadband, video, and voice services primarily through its TDS Telecom segment, focusing on fiber expansion to residential and business customers in rural and suburban markets across the United States. Following the divestiture of its wireless operations, the company also operates Array Digital Infrastructure, Inc., which manages tower assets and spectrum leasing. The business targets connectivity solutions in underserved areas, emphasizing fiber-to-the-premises growth and infrastructure monetization.
TDS shares rose following the earnings release. The stock closed at $45.18 on February 18, 2026, prior to the announcement. Post-results trading showed gains, with shares advancing over 5% in pre-market and early trading on February 20, reflecting the EPS beat, revenue increase in the quarter, and positive fiber outlook amid the profitability improvement.
Total operating revenues from continuing operations increased 12% year over year to $330.7 million from $295.3 million, driven by fiber subscriber growth and contributions from the repositioned business post-wireless divestiture. Telecom operating revenues decreased 1% year over year, though adjusted metrics showed resilience excluding divestitures. Adjusted EBITDA improved 6% in the quarter due to lower expenses. Net income from continuing operations reflected the strong turnaround.
Total operating revenues from continuing operations declined to $1,228.2 million from $1,297.0 million in 2024, impacted by legacy declines, divestitures, and copper/cable market pressures. Adjusted EBITDA declined 6% for the year, influenced by divestiture effects and a first-quarter non-cash stock-based compensation adjustment. The company achieved a significant profit swing, with net income from continuing operations at $48.2 million compared with a prior-year loss, supported by strategic restructuring including spectrum sales and share repurchases.
Chief executives emphasized the transformative year, including the wireless divestiture, creation of Array as a standalone tower and spectrum platform, and acceleration of fiber expansion. Key themes included fiber program advancement despite missing the 2025 address goal by 10,000, benefits from transformation initiatives mitigating pressures, and strong fourth-quarter adjusted EBITDA gains from cost controls. Management highlighted share repurchases totaling 2.8 million shares in 2025 and the $10.25 per share special dividend paid in early 2026 from spectrum proceeds. Discussions focused on fiber as the core growth driver and positioning for sustainable broadband in targeted markets.
For 2026, TDS Telecom guides total operating revenues of $1,015 million to $1,055 million and adjusted OIBDA of $300 million to $340 million, with adjusted EBITDA in the $310 million to $350 million range in some references. The company targets 200,000 to 250,000 new marketable fiber addresses, representing a significant increase from 2025 additions. Array projects revenues of $200 million to $215 million and adjusted EBITDA of $50 million to $65 million.
TDS maintains limited direct exposure to geopolitical risks or tariff impacts. Operations are primarily domestic, focused on U.S. broadband and infrastructure. No material effects from trade tensions, tariffs, or international supply-chain disruptions were noted in the results, guidance, or call commentary, though broader macroeconomic factors could influence capital spending or customer demand.
The post Telephone and Data Systems, Inc. (NYSE: TDS) Profit Rebound on Fiber Momentum first appeared on AlphaStreet News.
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