ADTRAN Q2 Revenue and Margins Below Expectations

By Bobby Samwell • Wednesday, July 22 10:56 • Permanent Link

ADTRAN Holdings said preliminary second-quarter 2026 revenue is now expected to come in between $280 million and $282 million, down from its prior guidance of $283 million to $303 million.

The company also said preliminary non-GAAP operating margin for the quarter is expected to be 3.5% to 4.0%, below the 5.0% to 9.0% range it had previously forecast. Preliminary GAAP operating margin is expected to be negative 3.2% to negative 4.0%.

For earnings per share, ADTRAN now expects preliminary GAAP basic and diluted loss per share of 12 cents to 14 cents, while preliminary non-GAAP basic and diluted earnings per share are expected to be 3 cents to 5 cents.

The company said the quarter was directly affected by a project delay from a single customer. It also said margins were pressured by elevated component and freight costs.

For the third quarter, ADTRAN said it expects revenue of $275 million to $295 million and non-GAAP operating margin of 1.5% to 5.5%.

Chief Executive Tom Stanton said the company remains encouraged by the strength of its optical networking business and the pipeline of new opportunities, even as near-term results were hit by the customer delay. The market has reacted to these announcements by moving the company's shares -16.43% to a price of $10.145. For the full picture, make sure to review ADTRAN's 8-K report.

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