Ribbon Communications (NASDAQ:RBBN) Announces Quarterly Earnings Results

Ribbon Communications (NASDAQ:RBBN) posted its earnings results on Tuesday. The communications equipment provider reported $0.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.04 by $0.03, Briefing.com reports. The firm had revenue of $218.71 million for the quarter, compared to analysts’ expectations of $221.75 million. The business’s revenue for the quarter was up 1.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.04 earnings per share.

Here are the key takeaways from Ribbon Communications’ conference call:

• Third-quarter results improved substantially: Revenue rose 14% sequentially to $219 million, adjusted EBITDA more than doubled to $27 million, and non-GAAP EPS increased to $0.07. Management expects further sequential and year-over-year growth in the fourth quarter, forecasting revenue of $233 million–$247 million and adjusted EBITDA of $40 million–$47 million.
• IP Optical Networks posted record momentum, with revenue up 17% sequentially and 5% year over year, a nine-month book-to-revenue ratio of 1.24, and new U.S. Tier 2 service-provider and utility customers. Management cited continued demand for fiber capacity, data-center connectivity, network modernization, and combined IP-routing and optical solutions.
• Cloud and Edge growth is broadening: Verizon activity increased approximately 50% versus the first-half quarterly run rate, with further improvement expected in 2027, while government, defense, enterprise AI, Salesforce Agentforce, AWS, and the TNS partnership provide additional growth avenues.
• Supply constraints and financial leverage remain risks. Management expects to be somewhat supply limited in the fourth quarter, potentially pushing $5 million–$10 million of customer demand into the following quarter; higher component and logistics costs are expected to add about $2 million per quarter, while net debt leverage stood at 4.4 times and third-quarter operating cash flow was negative $14 million.

Ribbon Communications Price Performance

NASDAQ:RBBN traded up $0.06 during mid-day trading on Wednesday, hitting $1.46. The company’s stock had a trading volume of 316,192 shares, compared to its average volume of 936,825. The business’s fifty day moving average is $1.77 and its two-hundred day moving average is $2.26. The stock has a market cap of $261.26 million, a price-to-earnings ratio of 18.44 and a beta of 1.37. Ribbon Communications has a 1 year low of $1.28 and a 1 year high of $3.55.

More Ribbon Communications News

Here are the key news stories impacting Ribbon Communications this week:

• Positive Sentiment: Ribbon reported third-quarter adjusted earnings of $0.07 per share, exceeding the $0.04 analyst consensus and improving from $0.04 a year earlier. Revenue rose 1.7% year over year to approximately $219 million. Ribbon Communications Q3 Earnings Top Estimates
• Positive Sentiment: Management highlighted 14% sequential revenue growth, an 18 million-dollar improvement in net income, and additional significant gains expected in the fourth quarter. IP Optical Networks revenue increased 17% sequentially, while Cloud and Edge revenue rose 11%, supported by North American cloud, Tier 1 network modernization, data-center and artificial-intelligence opportunities. Ribbon Communications Reports Third Quarter 2026 Results
• Neutral Sentiment: Rosenblatt Securities lowered its price target from $2.20 to $1.80 and maintained a Neutral rating. The revised target still implies upside from the current trading level, but the reduction signals more cautious expectations following the results. Rosenblatt Securities Ribbon Communications Rating
• Negative Sentiment: Although revenue increased sequentially, it was slightly below consensus estimates. GAAP gross margin declined to 48.2% from 50.1% a year earlier, and adjusted gross margin fell to 50.3% from 52.6%; adjusted EBITDA also decreased to $27 million from $29 million. These trends may temper the positive earnings reaction. Ribbon Q3 Revenue Rises Sequentially

Wall Street Analysts Forecast Growth

Several research firms have issued reports on RBBN. CL King set a $3.30 price target on shares of Ribbon Communications in a report on Wednesday, July 29th. B. Riley Financial reaffirmed a “buy” rating and set a $3.10 price objective (down from $3.30) on shares of Ribbon Communications in a report on Wednesday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Ribbon Communications in a research note on Friday, August 7th. Finally, Rosenblatt Securities lowered their price objective on shares of Ribbon Communications from $2.20 to $1.80 and set a “neutral” rating for the company in a research report on Wednesday. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Ribbon Communications presently has an average rating of “Moderate Buy” and an average target price of $3.20.

About Ribbon Communications

Ribbon Communications Inc (NASDAQ: RBBN) provides communications software, networking solutions and related services for service providers, enterprises and government organizations. The company helps customers build, operate and secure voice, data and unified communications networks across cloud, IP and optical environments.

Ribbon’s offerings include session border controllers, voice and unified communications platforms, signaling and routing solutions, policy and analytics tools, and software designed to support cloud communications and 5G networks.