Harmonic Q3 revenue beats estimates; raises outlook
Overview
Broadband solutions provider's Q3 revenue rose 64% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company raised full-year 2026 revenue outlook
Outlook
Harmonic raises full-year 2026 revenue outlook to $545 mln-$555 mln
Company expects Q4 2026 revenue between $141 mln and $151 mln
Harmonic forecasts Q4 2026 GAAP EPS of $0.13-$0.16 and non-GAAP EPS of $0.19-$0.23
Result Drivers
REST-OF-MARKET GROWTH - Co said revenue growth was mainly driven by more than doubling of Rest-of-Market revenue yr/yr to a record 46% of total revenue
NEW PRODUCT INTRODUCTIONS - Co cited the launch of new fiber and intelligence products, including Recon, Oyster+, cOS Loop and cOS SensAI, as contributing to results
CUSTOMER DIVERSIFICATION - Co said Rest-of-Market bookings represented over 60% of total Q3 bookings, reflecting progress in diversifying its customer base
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $148.80 mln | $131.09 mln (5 Analysts) |
Q3 Adjusted EPS | Beat | $0.23 | $0.17 (6 Analysts) |
Q3 EPS | $0.16 |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy."
Wall Street's median 12-month price target for Harmonic Inc. is $17.00, about 66.2% above its October 30 closing price of $10.23
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)