TDS (Telephone and Data Systems) Operating Income: $23 Mil (TTM As of Mar. 2026)


TDS Telephone and Data Systems Inc TDS
65 GF Score
Price $34.14
GF Value $31.94
Valuation Fairly Valued
! 5 Warning Signs
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What is Telephone and Data Systems Operating Income?

Telephone and Data Systems TDS -1.64% 65 Operating Income is $23 Mil as of Mar. 2026. GuruFocus rates TDS with a GF Score™ of 65/100 and a GF Value™ of $31.94 (Fairly Valued). The stock has 5 warning signs investors should review.

Telephone and Data Systems's Operating Income for the three months ended in Mar. 2026 was $-4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $23 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Telephone and Data Systems's Operating Income for the three months ended in Mar. 2026 was $-4 Mil. Telephone and Data Systems's Revenue for the three months ended in Mar. 2026 was $309 Mil. Therefore, Telephone and Data Systems's Operating Margin % for the quarter that ended in Mar. 2026 was -1.19%.

Telephone and Data Systems's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Telephone and Data Systems's annualized ROC % for the quarter that ended in Mar. 2026 was -0.15%. Telephone and Data Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 27.26%.


Telephone and Data Systems  (NYSE:TDS) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Telephone and Data Systems's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-14.752 * ( 1 - 23.27% )/( (7749.766 + 6895.952)/ 2 )
=-11.3192096/7322.859
=-0.15 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=8398.303 - 165.379 - ( 765.952 - max(0, 440.311 - 923.469+765.952))
=7749.766

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=8211.327 - 238.971 - ( 1366.604 - max(0, 443.675 - 1520.079+1366.604))
=6895.952

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Telephone and Data Systems's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=956.624/( ( (3480.536 + max(-293.876, 0)) + (3538.559 + max(-295.839, 0)) )/ 2 )
=956.624/( ( 3480.536 + 3538.559 )/ 2 )
=956.624/3509.5475
=27.26 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(68.737 + 4.062 + 42.182) - (165.379 + 125.14 + 118.338)
=-293.876

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(63.433 + 3.746 + 46.845) - (238.971 + 84.165 + 86.727)
=-295.839

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Telephone and Data Systems's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=-3.688/309.45
=-1.19 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Telephone and Data Systems Operating Income Related Terms


Telephone and Data Systems Operating Income Historical Data

* Premium members only.

The historical data trend for Telephone and Data Systems's Operating Income can be seen below:

* 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.

Telephone and Data Systems Operating Income Chart

Telephone and Data Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 285.00 151.00 -132.52 -105.67 -62.00

Telephone and Data Systems Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -34.14 37.00 -18.05 8.17 -3.69
TDS
65GF Score
Telephone and Data Systems Inc TDS
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Telephone and Data Systems Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $23 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $23 Mil mean?
Telephone and Data Systems (TDS) has a Operating Income of $23 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Telephone and Data Systems and its competitors.
Is Telephone and Data Systems' Operating Income too high?
Telephone and Data Systems' current Operating Income is $23 Mil. Overall, Telephone and Data Systems has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' Operating Income compare to LBRDA and IRDM?
Telephone and Data Systems' Operating Income of $23 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 Operating Income for a Telecommunication Services company?
A good Operating Income depends on the Telecommunication Services industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Telephone and Data Systems and its competitors. Telephone and Data Systems's current Operating Income is $23 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 $31.94, compared to a current price of $34.14 — trading 6.9% above its estimated fair value. The current Operating Income is $23 Mil. Telephone and Data Systems' overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Telephone and Data Systems (TDS), the current Operating Income is $23 Mil as of Mar. 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 $34.14 is trading 6.9% above its estimated GF Value™ of $31.94. GuruFocus considers Telephone and Data Systems to be Fairly Valued.

Key valuation signals for TDS:

  • Operating Income: $23 Mil
  • GF Value™: $31.94 vs. price of $34.14 (6.9% above fair value)
  • GF Score™: 65/100 with 5 warning signs

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 Business Description

Other Exchanges TDSpU.PFD:USA
Address 30 North LaSalle Street, Suite 4000, Chicago, IL, USA, 60602
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.
65GF Score

Get the complete analysis for TDS

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$34.14
Price
$31.94
GF Value