Bandwidth (NASDAQ:BAND) Releases Q3 2026 Earnings Guidance

Bandwidth (NASDAQ:BAND) issued an update on its third quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.450-0.490 for the period, compared to the consensus estimate of 0.400. The company issued revenue guidance of $231.0 million-$235.0 million, compared to the consensus revenue estimate of $223.6 million. Bandwidth also updated its FY 2026 guidance to 1.710-1.790 EPS.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Citizens Jmp upped their target price on Bandwidth from $70.00 to $86.00 and gave the company a “market outperform” rating in a report on Monday, July 20th. Citigroup reiterated a “market outperform” rating on shares of Bandwidth in a report on Monday, July 20th. B. Riley Financial upped their price objective on shares of Bandwidth from $55.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Wall Street Zen lowered Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Sunday, June 28th. Finally, Needham & Company LLC raised their price objective on Bandwidth from $45.00 to $60.00 and gave the stock a “buy” rating in a research report on Thursday, May 14th. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $61.75.

Bandwidth Trading Down 29.2%

NASDAQ BAND traded down $15.23 during trading hours on Wednesday, reaching $37.02. The company’s stock had a trading volume of 2,683,902 shares, compared to its average volume of 856,348. The firm has a fifty day simple moving average of $62.60 and a 200-day simple moving average of $35.34. The stock has a market cap of $1.19 billion, a P/E ratio of -97.45 and a beta of 2.92. Bandwidth has a 52 week low of $12.50 and a 52 week high of $79.08. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.94 and a quick ratio of 0.94.

Bandwidth (NASDAQ:BAND) last posted its earnings results on Wednesday, July 29th. The company reported $0.37 earnings per share for the quarter, topping analysts’ consensus estimates of $0.36 by $0.01. The company had revenue of $219.90 million for the quarter, compared to analyst estimates of $217.04 million. Bandwidth had a negative net margin of 0.64% and a positive return on equity of 1.47%. The company’s quarterly revenue was up 22.2% compared to the same quarter last year. Bandwidth has set its Q3 2026 guidance at 0.450-0.490 EPS and its FY 2026 guidance at 1.710-1.790 EPS. Equities analysts forecast that Bandwidth will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling at Bandwidth

In related news, CEO David A. Morken sold 4,632 shares of the business’s stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $58.85, for a total transaction of $272,593.20. Following the completion of the transaction, the chief executive officer directly owned 7,198 shares in the company, valued at $423,602.30. The trade was a 39.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Kade Ross sold 20,000 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $51.56, for a total value of $1,031,200.00. Following the completion of the transaction, the insider directly owned 43,894 shares in the company, valued at approximately $2,263,174.64. This represents a 31.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 127,269 shares of company stock worth $7,192,523. 5.26% of the stock is owned by corporate insiders.

Trending Headlines about Bandwidth

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Second-quarter revenue reached approximately $220 million, up 22% year over year, while adjusted EBITDA increased 27% to $28 million. The company also reported a record 18% adjusted EBITDA margin. Bandwidth Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Bandwidth earned $0.37 per share, exceeding the $0.36 consensus estimate, and revenue of $219.9 million surpassed expectations of $217.0 million. Bandwidth Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised third-quarter guidance to $231 million-$235 million in revenue and $0.45-$0.49 in EPS, above analyst estimates of $223.6 million and $0.40, respectively. Full-year 2026 guidance also increased to $900 million-$910 million in revenue and $1.71-$1.79 in EPS, above consensus. Bandwidth Q2 Earnings Top Estimates on Strong AI-Driven Demand
• Positive Sentiment: Demand for voice-AI communications, enterprise modernization, and strategic customer wins of more than $1 million are supporting the company’s growth outlook.
• Neutral Sentiment: The quarterly EPS result declined slightly from $0.38 a year earlier, despite the company’s strong revenue growth and higher guidance.
• Negative Sentiment: Shares decreased sharply on unusually heavy trading volume, suggesting that investors may have been selling into the earnings strength or viewing the results as insufficient relative to elevated expectations. Bandwidth also remains marginally unprofitable, with a negative net margin, and its high beta indicates substantial volatility.

Institutional Trading of Bandwidth

Institutional investors and hedge funds have recently modified their holdings of the business. Tower Research Capital LLC TRC lifted its holdings in shares of Bandwidth by 183.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock valued at $60,000 after buying an additional 2,445 shares during the period. Raymond James Financial Inc. purchased a new stake in shares of Bandwidth during the 2nd quarter valued at about $85,000. Quantbot Technologies LP bought a new position in shares of Bandwidth in the 2nd quarter worth approximately $128,000. State of Wyoming boosted its holdings in shares of Bandwidth by 104.6% in the fourth quarter. State of Wyoming now owns 8,756 shares of the company’s stock worth $135,000 after buying an additional 4,476 shares during the last quarter. Finally, Squarepoint Ops LLC bought a new stake in Bandwidth during the fourth quarter valued at approximately $174,000. Institutional investors own 68.53% of the company’s stock.

Bandwidth Company Profile

Bandwidth Inc operates a cloud-based communications platform that provides voice, messaging and emergency services APIs for enterprises and developers. Through its proprietary network and software-as-a-service model, the company enables customers to integrate programmable voice calls, text messaging and 9-1-1 routing into their applications. Bandwidth’s solutions aim to reduce complexity and improve reliability in mission-critical communications, serving industries such as healthcare, financial services, on-demand mobility and customer engagement.

Founded in 1999 in Raleigh, North Carolina by co-founders David Morken and Henry Kaestner, Bandwidth initially focused on voice-over-IP infrastructure before evolving into a full communications API provider.