Telephone & Data Systems Lowers Telecom Guidance as Array Revenue Climbs
The company issued a special dividend of $11 per common share on June 25, 2026, following spectrum sales.
Telephone & Data Systems (TDS) reported a divergence in performance between its telecommunications and tower segments for the second quarter of 2026. While the company expanded its fiber footprint, it lowered full-year financial expectations for its telecom operations.
TDS Telecom service revenue decreased 6% year-over-year in the second quarter, a steeper decline than the 3% decrease recorded in the first quarter. Despite the revenue drop, the company saw growth in its fiber expansion, with residential fiber net additions rising to 15,100, up from 10,900 in the prior quarter.
In contrast, the Array segment saw significant growth. Array site rental revenues grew 95% year-over-year in the second quarter, accelerating slightly from the 92% growth seen in the first quarter.
Array monetized spectrum through three separate sales during the second quarter totaling $1.16 billion. These transactions occurred on May 5 for $74.8 million, May 12 for $86.4 million, and June 1 for $1 billion. Following these sales, Array issued a special dividend of $11 per common share on June 25, 2026.
Full-year guidance for TDS Telecom was revised downward. The company lowered 2026 revenue guidance to between $1,000 million and $1,025 million, down from a previous range of $1,015 million to $1,055 million. Adjusted EBITDA guidance was lowered to $310 million - $330 million from $310 million - $350 million, and Adjusted OIBDA guidance was reduced to $300 million - $320 million from $300 million - $340 million.
To support infrastructure growth, TDS Telecom increased its 2026 capital expenditure guidance to between $625 million and $675 million, up from the $550 million to $600 million range provided in the first quarter. The company also raised its 2026 marketable fiber service address guidance to between 250,000 and 300,000.
Array raised its own outlook for the year. The company increased 2026 Adjusted EBITDA guidance to $220 million - $235 million from $200 million - $215 million, and increased Adjusted OIBDA guidance to $60 million - $75 million from $50 million - $65 million. Array narrowed its 2026 revenue guidance to $205 million - $215 million.
Strategic activity continued as TDS delivered a non-binding proposal on May 7, 2026, to acquire all outstanding Array common shares not already owned by TDS.