ADTRAN Q3 revenue misses on supply constraints

Adtran Holdings

03/11/2026 02:39

Overview
US networking solutions provider's Q3 revenue up 0.6% yr/yr but missed analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company cites supply challenges but notes growth in optical networking and hyperscale customers

Outlook
ADTRAN expects Q4 2026 revenue between $272 mln and $292 mln
Company sees Q4 2026 non-GAAP operating margin between 1.0% and 5.0%
Company says supply and cost pressures remain a focus for future quarters

Result Drivers
SUPPLY CHALLENGES - Co said ongoing supply constraints weighed on Q3 revenue performance
OPTICAL NETWORKING & HYPERSCALE - Co said growth in optical networking and with hyperscale customers supported results
AI INFRASTRUCTURE DEMAND - Co said expansion of AI infrastructure is driving new opportunities in cloud and service provider markets

Company press release: ID:nBw10CZqga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$281.17 mln
$285.72 mln (7 Analysts)
Q3 Adjusted EPS
Beat
$0.09
$0.03 (6 Analysts)
Q3 Loss Per Share
 
$0.10
 
Q3 Net Loss
 
$7.14 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $14.45, about 130.2% above its November 2 closing price of $6.28
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

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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.)