Harmonic (NASDAQ:HLIT) Issues Earnings Results

Harmonic (NASDAQ:HLIT) issued its quarterly earnings results on Monday. The communications equipment provider reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.06, FiscalAI reports. The business had revenue of $148.84 million during the quarter, compared to the consensus estimate of $129.47 million. Harmonic had a positive return on equity of 14.83% and a negative net margin of 6.27%. The company’s quarterly revenue was up 64.5% on a year-over-year basis. During the same quarter last year, the company earned $0.12 earnings per share.

Here are the key takeaways from Harmonic’s conference call:

• Q3 revenue surged 64% year over year to $148.8 million, exceeding the high end of guidance, while Rest-of-Market revenue more than doubled and reached a record 46% of total revenue.
• Harmonic raised its full-year 2026 outlook for the third time, now expecting revenue of $545 million–$555 million and EPS of $0.80–$0.84; backlog and deferred revenue stood at $534 million, up 58% year over year.
• The company added nine customers across seven countries, including three regional tier 1 operators, and reported continued momentum in DOCSIS 4.0, fiber products, cOS Loop, and its SensAI network-intelligence platform.
• Management expects intelligence products to reach roughly 10% of revenue within three years and is developing an edge AI compute opportunity using cOS as an orchestration layer, though the edge AI business remains in development.
• Elevated memory and other component costs are pressuring margins, with approximately $3 million of unrecovered memory costs expected in Q4; inventory rose 28.3 million dollars, days inventory increased to 120, and Q3 free cash flow was negative $5.1 million.

Harmonic Price Performance

Harmonic stock opened at $10.19 on Wednesday. The business’s 50-day simple moving average is $11.09 and its two-hundred day simple moving average is $11.57. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.56 and a current ratio of 3.05. The company has a market cap of $1.11 billion, a PE ratio of 20.80 and a beta of 1.37. Harmonic has a fifty-two week low of $8.47 and a fifty-two week high of $17.68.

More Harmonic News

Here are the key news stories impacting Harmonic this week:

• Positive Sentiment: Q3 revenue rose 64.5% year over year to $148.8 million, beating the $129.5 million consensus, while adjusted earnings of $0.23 per share topped the $0.17 estimate. Harmonic Announces Third Quarter 2026 Results
• Positive Sentiment: Management raised full-year 2026 guidance to $545 million-$555 million in revenue and $0.80-$0.84 in EPS, above consensus estimates of $517 million and $0.50. Q4 guidance also came in above expectations for revenue and EPS. Harmonic Announces Third Quarter 2026 Results
• Positive Sentiment: Revenue growth is broadening beyond major customers Comcast and Spectrum: Rest-of-Market revenue more than doubled year over year and reached a record 46% of sales, potentially reducing customer concentration. Harmonic revenues break beyond Comcast and Spectrum
• Negative Sentiment: A Seeking Alpha analysis downgraded the stock, arguing that the strong quarter is offset by a less compelling growth outlook and cash-flow concerns; it also flagged bookings and cash generation as tests for sustaining the momentum. Harmonic: Great Quarter, Not So Great Growth Outlook Or Cash Flow
• Negative Sentiment: Jefferies cut its price target to $13 from $15 and assigned a Hold rating; Barclays lowered its target to $14 from $16 and maintained Equal Weight. The cuts suggest more cautious expectations despite targets remaining above the cited share price. Jefferies analyst ratings Barclays analyst ratings

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Jefferies Financial Group cut their price objective on shares of Harmonic from $15.00 to $13.00 and set a “hold” rating on the stock in a report on Tuesday. Rosenblatt Securities reaffirmed a “buy” rating and issued a $20.00 price objective on shares of Harmonic in a research report on Thursday, October 29th. Weiss Ratings upgraded shares of Harmonic from a “sell (d)” rating to a “sell (d+)” rating in a research note on Thursday, October 8th. Raymond James Financial reissued an “outperform” rating and set a $19.00 target price on shares of Harmonic in a research report on Thursday, August 13th. Finally, Wall Street Zen downgraded shares of Harmonic from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 1st. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $16.83.

About Harmonic

Harmonic Inc (NASDAQ: HLIT) develops broadband access and video-delivery technologies for communications service providers, content providers and broadcasters. Its solutions help operators deliver high-speed internet, television and streaming services across cable, fiber and other network infrastructures.

The company’s broadband portfolio includes its CableOS platform, a software-based solution designed to support virtualized broadband access networks, along with technologies for DOCSIS, fiber and hybrid fiber-coaxial networks.