Harmonic reported third quarter 2026 results that significantly outperformed analyst expectations, marking its first full quarter as a pure-play broadband business following the divestiture of its Video segment. Growth was driven by the accelerating global scaling of the virtualized cOS platform and a record revenue contribution from international and mid-tier customers.
Key Highlights
- Net revenue surged 64% year-over-year to $148.8 million, exceeding the consensus estimate of $129.5 million and management's own guidance range.
- Non-GAAP EPS reached $0.23, beating the $0.17 estimate, while GAAP EPS from continuing operations was $0.16, inclusive of $1.5 million in stranded costs.
- Backlog and deferred revenue grew 58% year-over-year to $534.0 million, indicating strong forward demand for virtualized cable access solutions.
- Rest-of-Market revenue more than doubled year-over-year, accounting for 46% of total revenue, representing successful customer diversification beyond historical Tier 1 concentration.
- Management raised its full-year 2026 revenue guidance to a range of $545 million to $555 million, reflecting continued deployment momentum.