ADTRAN Q1 revenue rises 15.5%, beats estimates on core market demand

Adtran Holdings

05/05/2026 05:14

Overview

The networking solutions provider's Q1 revenue rose 15.5% yr/yr, slightly beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company cites core market strength and operating leverage for improved results

Outlook

ADTRAN expects Q2 2026 revenue between $283.0 mln and $303.0 mln

Company sees Q2 2026 non-GAAP operating margin between 5.0% and 9.0%

Company says US broadband momentum continues as BEAD funds reach more operators

Result Drivers

CORE MARKET DEMAND - Co said revenue and margin gains reflected continued strength in core markets and improved operating leverage

US BROADBAND FUNDING - Co said US broadband momentum continued as BEAD deployment funds began reaching operators in more states

EUROPEAN VENDOR DISPLACEMENT - Co said high-risk vendor displacement in Europe continued, supported by advancing legislation such as Cybersecurity Act 2.0

Company press release: ID:nBw6SF13Wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$286.09 mln
$285.54 mln (7 Analysts)
Q1 Adjusted EPS
Beat
$0.14
$0.09 (6 Analysts)
Q1 EPS
-$0.01
Q1 Net Income
$930,000


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "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 ADTRAN Holdings Inc is $16.00, about 12.8% below its May 4 closing price of $18.34

The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 19 three months ago

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.)