Telephone and Data Systems reported strong second-quarter 2026 results on August 7, with revenue of US$309.28 million and net income of US$298.37 million from continuing operations. Despite the stronger earnings profile and spectrum transactions with Verizon and T-Mobile, the stock has softened to US$33.17, and the most followed narrative places fair value at US$52.33, implying a 36.6% undervaluation. However, a Simply Wall St discounted cash flow model points to a value of just US$1.63 per share, well below the current price, highlighting a wide gap between analyst targets and cash-flow-based valuation. The company faces pressure from declining legacy copper and cable revenue and heavy fiber capital spending that could strain margins and cash generation.
Telephone and Data Systems IncStrong Q2 results and spectrum deals but valuation gap and heavy fiber capex create mixed outlook.
Deutsche Telekom AG
T-Mobile US Inc
Verizon Communications Inc