Ribbon Communications' Q4 revenue misses expectations

Ribbon Communications

05/02/2026 21:11

Overview

Communications tech firm's Q4 revenue fell yr/yr, missing analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Outlook

Ribbon projects 2026 revenue between $840 mln and $875 mln

Company expects 2026 non-GAAP gross margin of 52.5% to 53.5%

Ribbon anticipates 2026 adjusted EBITDA between $105 mln and $120 mln

Result Drivers

PROJECT DELAYS - Delays in customer projects and budget timing negatively impacted Q4 results, according to CEO Bruce McClelland

VOICE MODERNIZATION - Record product and services bookings in Q4 were driven by new voice modernization programs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$227 mln
$241.35 mln (6 Analysts)
Q4 Adjusted EPS
Beat
$0.59
$0.11 (6 Analysts)
Q4 EPS
$0.50
Q4 Adjusted Net Income
Beat
$106 mln
$20.88 mln (6 Analysts)
Q4 Net Income
$89 mln
Q4 Adjusted EBITDA
Miss
$40 mln
$45.17 mln (5 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "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 Ribbon Communications Inc is $6.00, about 123% above its February 4 closing price of $2.69

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPn87j8Fja

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(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.)