Shares of Telephone and Data Systems, Inc. (NYSE: TDS) climbed over 5% in premarket trading Friday after the company delivered fourth-quarter results that exceeded Wall Street forecasts, closing what executives called a pivotal year for the business.
For the quarter, TDS reported earnings per share of $0.32, comfortably above the consensus estimate of $0.09 — a $0.23 upside surprise. Revenue from continuing operations reached $330.7 million, beating expectations of $320.01 million and increasing from $295.3 million in the same period last year. Net income attributable to common shareholders from continuing operations totaled $39.2 million, compared with a loss in the prior-year quarter.
For full-year 2025, consolidated operating revenue came in at $1.23 billion, down from $1.30 billion in 2024. However, profitability improved markedly, with net income attributable to common shareholders rising to $48.2 million from a loss of $141.4 million a year earlier.
“2025 was a year of significant transformation for TDS,” said Walter Carlson, president and CEO. “We completed the largest transaction in our history with the sale of our wireless business, launched a new tower company now operating as Array, and ended the year with 1.06 million marketable fiber service addresses at TDS Telecom.”
Over the course of the year, TDS finalized a $1.018 billion spectrum transaction with AT&T, distributed a $10.25 per share special dividend in February 2026, and repurchased 1.77 million shares for $67.4 million. TDS Telecom also expanded its fiber footprint by adding 140,000 new service addresses in 2025 and increased its long-term fiber target to 2.1 million addresses.
Looking ahead, the company projected fiscal 2026 revenue in the range of $1.015 billion to $1.055 billion, below the $1.281 billion consensus estimate, as it continues to prioritize fiber buildout and strategic repositioning efforts.