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Telephone and Data Systems (NYSE:TDS) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Telephone and Data Systems had a gross margin of 58.19% for the quarter that ended in Jun. 2026 => Durable competitive advantage
Telephone and Data Systems Gross Profit Related Terms
Telephone and Data Systems Gross Profit Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TDS vs LBRDA, LBTYA, KYIV: Gross Profit Comparison
For the Telecom Services subindustry, Telephone and Data Systems's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telephone and Data Systems Gross Profit vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telephone and Data Systems's Gross Profit distribution charts can be found below:
* The bar in red indicates where Telephone and Data Systems's Gross Profit falls into.
Gross Profit for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $747 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Telephone and Data Systems (TDS) has a Gross Profit of $747 Mil as of Jun. 2026. Gross Profit equals net sales less total cost of goods sold. View historical data on Telephone and Data Systems and its competitors.
Is Telephone and Data Systems' Gross Profit too high?
Telephone and Data Systems' current Gross Profit is $747 Mil. Overall, Telephone and Data Systems has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' Gross Profit compare to LBRDA and LBTYA?
Telephone and Data Systems' Gross Profit of $747 Mil can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Profit for a Telecommunication Services company?
A good Gross Profit depends on the Telecommunication Services industry context. However, Gross Profit should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Profit mean?
A high Gross Profit can signal that a stock is expensive relative to its fundamentals. Gross Profit equals net sales less total cost of goods sold. View historical data on Telephone and Data Systems and its competitors. Telephone and Data Systems's current Gross Profit is $747 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telephone and Data Systems stock overvalued right now?
Based on GuruFocus' analysis, Telephone and Data Systems (TDS) is currently considered Fairly Valued. The stock's GF Value™ is $32.19, compared to a current price of $34.52 — trading 7.2% above its estimated fair value. The current Gross Profit is $747 Mil. Telephone and Data Systems' overall GF Score™ is 64/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Profit calculated?
Gross Profit is calculated from a company's financial statements. For Telephone and Data Systems (TDS), the current Gross Profit is $747 Mil as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telephone and Data Systems (TDS) Overvalued in 2026?
Based on GuruFocus' analysis, Telephone and Data Systems stock appears to be overvalued.
The current stock price of $34.52 is trading 7.2% above its estimated GF Value™ of $32.19.
GuruFocus considers Telephone and Data Systems to be Fairly Valued.
Key valuation signals for TDS:
Gross Profit: $747 Mil
GF Value™: $32.19 vs. price of $34.52 (7.2% above fair value)
No single metric tells the full story. See the TDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telephone and Data Systems Inc is a diversified telecommunications operator that provides communications services to customers through broadband, video, voice, and wireless connections. The company has two reportable segments: TDS Telecom and Array. The majority of its revenue is generated from the TDS Telecom segment, which generates revenue by providing broadband, video, voice, and wireless services. The Array segment generates its revenue mainly by leasing tower space on Array-owned towers to customers.
64GF Score
Get the complete analysis for TDS
Gross Profit is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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