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Harmonic Q3 revenue beats estimates; raises outlook

By Reuters News


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


Reuters Recommended Reads

  • Nov 2 - Lumentum Q1 revenue slightly beats estimates on pump laser demand

  • Nov 2 - IDEXX raises forecast, betting diagnostics can offset weak vet visits

  • Nov 2 - Palantir tops third-quarter revenue estimates on strong AI software demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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