Telephone & Data Systems (TDS) Q2 FY2026 earnings: revenue $309 million, up 3.6% on the year

Telephone & Data Systems Inc. (TDS) reported revenue of $309 million for Q2 FY2026, the quarter ended 30 June 2026, up 3.6% on the same quarter a year earlier. Net income was $298 million, up 2478.6% on the year, and diluted earnings per share $2.42. The figures are the company's own, from the 10-Q it filed with the SEC on 7 August 2026.

Revenue$309 millionup 3.6%

Net income$298 millionup 2478.6%

Diluted EPS$2.42

QuarterQ2 FY2026ended 30 June 2026

What management said

Guidance figures: 2 raised, 3 lowered, 1 new, 2 kept.

Fiber footprint expanded 66,000 addresses in Q2: TDS Telecom delivered 66,000 marketable fiber service addresses in Q2 with 15,100 residential fiber net additions. Company maintained strong execution on fiber broadband strategy.
Fiber address guidance of 250,000-300,000 for 2026: Increased fiber address guidance for 2026 to 250,000-300,000 based on current delivery momentum. Q2 delivered 66,000 addresses, implying 88,000 in second half.
Array site rental revenue surged 95% year-over-year: Array site rental revenues grew 95% year-over-year to $53.2 million in Q2 2026, demonstrating strong underlying demand for tower space and asset value.

Read the earnings call summary

The quarter, against the one before and a year earlier

Line	Q2 FY2026	Q1 FY2026	Q2 FY2025	Change on the year
Revenue	309	309	299	+3.6%
Cost of revenue	129	124	122	+6.1%
Gross profit	180	185	177	+1.9%
Gross margin	58.2%	59.8%	59.2%
Selling, general and administrative	111	103	109	+2.6%
Operating income	373	144	-12.3	n/a
Operating margin	120.7%	46.5%	-4.1%
Interest expense	11.4	5.3	29.2	-61.0%
Pre-tax income	448	234	10.0	+4384.1%
Income tax	106	54.4	-4.2	n/a
Effective tax rate	23.8%	23.3%	-42.3%
Net income	298	145	11.6	+2478.6%
Net margin	96.5%	46.7%	3.9%
Diluted EPS	$2.42	$1.09	-$0.05	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed.

Cash flow and capital returned

Line	Q2 FY2026	Q1 FY2026	Q2 FY2025	Change on the year
Operating cash flow	55.6	67.5	421	-86.8%
Capital expenditure	169	149	157	+7.6%
Free cash flow	-113	-81.6	264	n/a
Free cash flow margin	-36.6%	-26.4%	88.4%
Cash from investing	1,004	868	-141	n/a
Cash from financing	-233	-335	-92.0	n/a
Depreciation and amortisation	88.8	85.9	86.0	+3.2%
Share-based compensation	4.3	4.2	16.0	-73.3%
Dividend per share	$0.04	$0.04	$0.04	+0.0%
Diluted shares, weighted	116m	117m	115m	+1.1%
Shares outstanding at period end	115m	114m	115m	+0.1%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2026	Q1 FY2026	Q2 FY2025	Change on the year
Shareholders' equity	5,171	4,924	5,004	+3.3%
Non-controlling interest	232	339	811	-71.4%
Debt	671	673	4,030	-83.4%
Operating lease liabilities	541	548	867	-37.6%
Other liabilities	1,769	1,727	2,814	-37.1%
Total liabilities and equity	8,383	8,211	13,526	-38.0%
Fixed assets	3,123	3,025	4,808	-35.0%
Intangible assets	117	124	146	-19.8%
Cash and equivalents	2,194	1,367	540	+306.3%
Receivables	63.3	63.4	920	-93.1%
Inventory	3.8	3.7	130	-97.1%
Other assets	2,882	3,628	6,982	-58.7%
Total assets	8,383	8,211	13,526	-38.0%

Questions

What was Telephone & Data Systems' revenue in Q2 FY2026?

Telephone & Data Systems (TDS) reported revenue of $309 million for Q2 FY2026, the quarter ended 30 June 2026, up 3.6% on the same quarter a year earlier.

How much did Telephone & Data Systems earn in Q2 FY2026?

Net income for Q2 FY2026 was $298 million, up 2478.6% on the year, and diluted earnings per share $2.42.

When did Telephone & Data Systems report Q2 FY2026 results?

Telephone & Data Systems filed its 10-Q for the quarter ended 30 June 2026 with the SEC on 7 August 2026.

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024 †	Q4 FY2024 *	Q1 FY2025 †	Q2 FY2025 †	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,278	1,312	1,262	1,238	327	1,240	290	299	309	n/a	309	309
Cost of revenue	567	607	531	523	155	565	124	122	129	n/a	124	129
Gross profit	711	705	731	715	173	675	167	177	180	n/a	185	180
Gross margin	56%	54%	58%	58%	53%	54%	57%	59%	58%	n/a	60%	58%
SG&A	432	446	424	426	117	449	116	109	106	n/a	103	111
Operating income	48.0	-524	67.0	39.0	-150	37.0	-33.9	-12.3	-68.0	n/a	144	373
Operating margin	4%	-40%	5%	3%	-46%	3%	-12%	-4%	-22%	n/a	46%	121%
Interest expense	62.0	67.0	57.0	73.0	32.7	73.0	23.9	29.2	47.3	n/a	5.3	11.4
Pre-tax income	31.0	-548	58.0	13.0	-130	13.0	-12.3	10.0	6.0	n/a	234	448
Tax rate	87%	n/a	34%	46%	n/a	38%	n/a	-42%	-1211%	n/a	23%	24%
Net income	0.0	-506	29.0	3.0	-65.7	6.0	7.5	11.6	-81.8	n/a	145	298
Net margin	0%	-39%	2%	0%	-20%	0%	3%	4%	-26%	n/a	47%	96%
Diluted EPS	-$0.16	-$4.64	$0.10	-$0.13	-$0.73	-$0.10	-$0.09	-$0.05	-$0.84	n/a	$1.09	$2.42
Operating cash flow	409	219	224	402	307	212	186	421	-36.7	n/a	67.5	55.6
Capital expenditure	277	305	235	216	204	229	64.4	157	n/a	n/a	149	169
Free cash flow	132	-86.0	-11.0	186	103	-17.0	121	264	n/a	n/a	-81.6	-113
Buybacks	0.0	0.0	0.0	0.0	0.0	0.0	n/a	n/a	n/a	n/a	n/a	n/a
Shares outstanding	113m	113m	113m	113m	113m	114m	114m	115m	116m	114m	114m	115m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. A fourth quarter left blank is one the arithmetic cannot give yet: the annual report changed the basis of the year (a business sold or spun off, a line regrouped), so the year less the three quarters as first filed would not be a quarter of anything. It fills in once the three quarters have been refiled on the new basis. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 June 2026, filed 7 August 2026, accession 0001051512-26-000063: the filing on EDGAR. All of Telephone & Data Systems Inc.'s filings: EDGAR company page.

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