ADTRAN Q4 revenue beats on fiber investment

Overview

• Networking solutions provider's Q4 revenue rose 20.1% yr/yr, beating analyst expectations

• Non-GAAP diluted EPS for Q4 was $0.16, indicating profitability

• Company sees growth opportunities in cloud, enterprise, and broadband markets

Outlook

• ADTRAN expects Q1 2026 revenue between $275 mln and $295 mln

• Company forecasts Q1 2026 non-GAAP operating margin between 4.0% and 8.0%

• ADTRAN sees strong broadband activity in the US and vendor replacement in Europe

Result Drivers

• REVENUE GROWTH - ADTRAN reported a 20.1% increase in Q4 revenue, driven by growth across all three revenue categories, exceeding expectations

• FIBER INVESTMENT - Sustained fiber investment in core markets contributed to Q4 performance, according to CEO Tom Stanton

• MARKET MOMENTUM - CEO Stanton noted solid momentum with cloud and enterprise customers, strong US broadband activity, and high-risk vendor replacement initiatives in Europe

Company press release: ID:nBwbFgZMQa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "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 $12.07, about 12.9% above its February 25 closing price of $10.69

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 24 three months ago

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