Telephone & Data Systems shares surged 5.18% in pre-market trading Friday after the company reported fourth-quarter earnings that significantly exceeded Wall Street expectations. TDS posted earnings per share of $0.32, beating the analyst estimate of $0.09 by $0.23, while revenue from continuing operations reached $330.7 million, up from $295.3 million a year earlier.

For the full year 2025, TDS completed its largest transaction in history with the $1.018 billion sale of its wireless business and launched Array, a new tower company. The company deployed 140,000 new fiber addresses last year and raised its long-term fiber goal to 2.1 million addresses. During the year, TDS also paid a $10.25 per share special dividend and repurchased 1.77 million shares for $67.4 million.

TDS guided to fiscal 2026 revenue of $1.015 billion to $1.055 billion, below the $1.281 billion consensus estimate, reflecting continued investment in fiber expansion and strategic repositioning. CEO Walter Carlson described 2025 as a transformative year, noting the company ended with 1.06 million marketable fiber service addresses at TDS Telecom.