Harmonic Q2 revenue beats estimates on broadband growth

Overview

• Broadband solutions provider's Q2 revenue rose 54% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company completed Video business sale, boosting cash and focus on broadband

Outlook

• Harmonic raises 2026 broadband revenue outlook to $505 mln-$525 mln

• Company expects Q3 revenue between $125 mln and $135 mln

• Harmonic sees 2026 non-GAAP net income per share of $0.67-$0.75

Result Drivers

• REST-OF-MARKET GROWTH - Co said Rest-of-Market broadband revenue grew 44% yr/yr and accounted for about 60% of Q2 bookings, aiding overall revenue acceleration

• NEW PRODUCT DEPLOYMENTS - Co cited first SeaStar MDU deployment and multi-million dollar orders for Pearl-1XL and Oyster+ fiber products as contributing to Q2 results

Company press release: ID:nPn2703RVa

Key Details

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 $15.00, about 31% above its August 11 closing price of $11.45

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• Aug 12 - WhiteFiber Q2 revenue rises 54%, loss widens on higher costs, charge

• Aug 11 - LICT Q2 revenue rises 18%, net income nearly doubles on middle-mile fiber project

• Aug 10 - Satellite broadband firm AST SpaceMobile's Q2 revenue misses estimates

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.)