Ribbon Communications Q1 revenue slightly misses estimates

Ribbon Communications

28/04/2026 21:18

Overview

US communications tech firm's Q1 revenue slightly missed analyst expectations, declining year-over-year

Adjusted EPS for Q1 beat analyst expectations

Company cites margin pressure from slower US deployments and higher India sales, expects margin expansion later in 2026

Outlook

Company sees Q2 2026 revenue between $185 mln and $195 mln

Ribbon expects Q2 2026 non-GAAP gross margin of 49% to 50%

Company projects Q2 2026 adjusted EBITDA of $9 mln to $14 mln

Result Drivers

SLOWER US DEPLOYMENTS - Margins were pressured by a slower deployment pace with key U.S. Tier 1 Service Providers, per CEO Bruce McClelland

HIGHER INDIA SALES - Higher sales in India contributed to margin pressure, according to the company

NEW MARKET TRACTION - Company reported several new Data Center Interconnect wins, secure private optical network awards, and initial customer engagements for its AIOps platform

Company press release: ID:nPn9cV5mFa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$163 mln
$163.43 mln (6 Analysts)
Q1 Adjusted EPS
Beat
-$0.05
-$0.06 (6 Analysts)
Q1 EPS
-$0.20
Q1 Adjusted Net Income
Beat
-$8 mln
-$10.69 mln (6 Analysts)
Q1 Net Income
-$34 mln
Q1 Adjusted EBITDA
Miss
-$8 mln
$1.46 mln (5 Analysts)

*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 5 "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 Ribbon Communications Inc is $4.00, about 50.4% above its April 27 closing price of $2.66

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 11 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.)