TDS Cuts Telecom Outlook and Lifts 2026 Capex

The Tip Desk · November 6, 2026 · 3 min read

The company lowered TDS Telecom's 2026 revenue range to $990 million–$1,010 million and raised capital-expenditure guidance to about $750 million.

Telephone and Data Systems (TDS) cut its 2026 outlook for TDS Telecom and lifted the unit's capital-expenditure plan to about $750 million after a third quarter in which fiber buildout accelerated even as the broadband operator's service revenue continued to decline.

The company now expects TDS Telecom full-year revenues of $990 million to $1,010 million, down from the $1,000 million to $1,025 million range set in August, Adjusted OIBDA of $280 million to $300 million versus $300 million to $320 million, and Adjusted EBITDA of $290 million to $310 million versus $310 million to $330 million. Array's 2026 guidance was left unchanged.

TDS Telecom delivered about 76,000 marketable fiber service addresses in the third quarter, up from about 66,000 in the second quarter, and added 16,700 residential fiber connections, after 15,100 in the prior quarter and 10,900 two quarters earlier. Total residential broadband net adds were 7,200. Total connections stood at 1,060,800, including a September acquisition that added 7,800 connections, of which 4,700 were residential broadband. Residential revenue per connection was $66.88. Capital expenditures were $251.5 million.

Service revenue at TDS Telecom fell 3% year over year, a slower sequential drop than the 6% decline reported in the second quarter. The company said the impacts of divestitures and continued legacy declines more than offset residential fiber revenue growth of 14%. TDS Telecom operating revenue was $247.3 million.

TDS reported total operating revenues from continuing operations of $306.7 million for the third quarter of 2026, versus $308.5 million a year earlier. Net income attributable to TDS common shareholders and diluted earnings per share from continuing operations were $29.6 million and $0.26, compared with $40.2 million and $0.33 a year earlier.

Array, which leases tower space and holds spectrum licenses, posted operating revenues of $53.9 million, up 14% from a year earlier. Site rental revenues were $52.5 million. Colocations were 4,372, and the tower tenancy rate held at 0.98. Array received regulatory approval in October for remaining pending spectrum transactions; closings remain subject to FCC finality and other customary closing conditions.

On September 1, TDS said it was no longer pursuing a May proposal to acquire the minority interest in Array. The board authorized an incremental $250 million share-repurchase plan. TDS repurchased about 6 million shares in the quarter at an average $36.65 and had repurchased nearly 15 million shares in 2026, returning more than $520 million. The company said it continued to be in the market after quarter-end, virtually exhausting the existing authorization.

President and CEO Walter Carlson said TDS Telecom expanded its marketable fiber footprint by about 76,000 addresses and grew fiber net adds by about 17,000, and that Array increased colocations sequentially and continues to improve profitability.

Array's 2026 estimates remain revenues of $205 million to $215 million, Adjusted OIBDA of $60 million to $75 million, Adjusted EBITDA of $220 million to $235 million, and capital expenditures of $25 million to $35 million. TDS said the updated TDS Telecom estimates represent management's view as of November 6, 2026.