ADTN

It has been about a month since the last earnings report for ADTRAN Holdings (ADTN). Shares have lost about 14.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is ADTRAN Holdings due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. ADTRAN Q1 Earnings Beat Estimates on Strong Revenue Growth ADTRAN reported strong first-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Non-GAAP earnings came in at 14 cents per share, beating the consensus estimate of 9 cents.Revenues of $286.1 million edged past the consensus estimate of $285 million by 0.4% and increased 15.5% year over year, driven by solid demand across core markets and improved operating leverage. ADTN Delivers Solid Top-Line Growth ADTRAN generated total revenues of $286.1 million in the first quarter, reflecting a 15.5% year-over-year increase from $247.7 million. Growth was broad-based, supported by strength across its Network Solutions and Services & Support segments.Network Solutions revenues rose to $237.9 million from $202.2 million in the prior-year quarter, while Services & Support contributed $48.1 million compared with $45.5 million a year ago. The expansion highlights improving demand trends across fiber, cloud and edge networking infrastructure. ADTRAN Expands Margins on Operating Leverage Profitability improved meaningfully during the quarter. GAAP gross margin expanded to 39.5% from 38.4% in the year-ago period, while non-GAAP gross margin rose to 43.0%, reflecting operational efficiencies and better cost control.Operating performance also strengthened. GAAP operating margin turned positive at 2.2% compared with a negative 1.6% last year. Non-GAAP operating margin improved to 6.9% from 3.9%, indicating enhanced scalability of the company’s business model. ADTN Earnings Performance Reflects Cost Discipline On a GAAP basis, ADTRAN reported a net loss attributable to shareholders of $1.3 million or 1 cent per share, narrower than a loss of $11.3 million or 14 cents per share in the prior-year quarter.Adjusted earnings were significantly stronger at 14 cents per share, reflecting the exclusion of acquisition-related costs, stock-based compensation and other one-time items. The earnings beat was driven by higher revenues and improved cost structure, which helped offset ongoing expenses related to growth initiatives. ADTRAN Cash Flow and Balance Sheet Position ADTRAN generated $12.7 million in cash from operating activities during the quarter, though lower than the prior-year period due to working capital changes. Free cash flow was negative $3.3 million, reflecting continued investments in property, equipment and technology development.The company ended the quarter with cash and cash equivalents of $88.3 million, compared with $95.7 million at the end of 2025. Total assets stood at $1.19 billion, indicating a stable balance sheet despite ongoing investment activity. ADTN Sees Strong Demand Drivers Ahead Management highlighted continued momentum in key markets. In the United States, broadband expansion remains a key growth driver, supported by government funding initiatives such as BEAD. In Europe, vendor replacement trends and regulatory developments are creating additional opportunities.The company also introduced its LiteWave800 solution, targeting AI-driven data center infrastructure. This product innovation underscores ADTRAN’s focus on next-generation networking technologies and positions it to benefit from rising AI-related demand. ADTRAN Outlook Signals Continued Momentum For the second quarter of 2026, ADTRAN expects revenues in the range of $283 million to $303 million. Non-GAAP operating margin is projected between 5.0% and 9.0%, indicating sustained profitability improvement.The outlook reflects confidence in underlying demand trends and continued execution of operational strategies. Management expects ongoing benefits from operating leverage as revenue growth aligns with disciplined cost management. In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -95.83% due to these changes. At this time, ADTRAN Holdings has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise ADTRAN Holdings has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ADTRAN Holdings, Inc. (ADTN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in ADTRAN Holdings, Inc.? Here are five stocks we like better. Q2 revenue rose 6.1% year over year to $281.1 million, but results fell below guidance because of a delayed customer project and supply constraints that restricted shipments and hurt product mix. Optical Networking was the main growth driver, with revenue up 22% year over year to $109.7 million; enterprise, government and cloud revenue rose 47%, while hyperscaler revenue nearly doubled. Margins weakened as non-GAAP gross margin fell to 40.7%, and ADTRAN forecast Q3 revenue of $275 million to $295 million with a 1.5%–5.5% non-GAAP operating margin amid ongoing supply and customer-timing pressures. ADTRAN Stock is a Compelling Broadband Infrastructure Play ADTRAN (NASDAQ:ADTN) reported second-quarter 2026 revenue of $281.1 million, up 6.1% from a year earlier, as growth in optical networking and cloud-related demand was partly offset by a project delay at a single customer and supply constraints that limited shipments of some higher-margin products. Chairman and CEO Tom Stanton said the company was disappointed with the quarter’s reported results, which fell below its prior guidance, but described the customer issue as a timing adjustment rather than a reduction in underlying demand. The customer has reaffirmed its deployment plans, he said, while reprioritizing among several initiatives including footprint expansion, vendor replacement, network upgrades and faster-speed deployments. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “Absent these incremental supply constraints, we would have met our original revenue guidance,” Stanton said. He added that demand remained strong, but shortages across several components limited the company’s ability to respond to incremental orders and created an unfavorable product mix. Optical Networking Solutions revenue rose 22% year over year and 13% sequentially to $109.7 million, representing 39% of total quarterly revenue. Stanton said demand reflected continued investment in higher-capacity optical infrastructure, AI-driven networking and secure connectivity. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Revenue from enterprise, government and cloud customers increased 47% from a year earlier and 19% sequentially, reaching 25% of company revenue. Within that group, hyperscaler revenue climbed 97% year over year, driven primarily by the company’s data-center interconnect business. Stanton said ADTRAN is expanding engagements with hyperscalers and large content providers around its forthcoming MicroMux Quattro and LiteWave800 pluggable optics offerings. MicroMux Quattro, a 4x100 multiplexer designed to connect directly to routers, is expected to have trial units available near the end of 2026 or early 2027. LiteWave800, which targets intra-data-center applications, is expected to begin customer trials around the second quarter of 2027, with production anticipated toward the end of 2027 or early the following year. → Why Rare Earth Processing Could Be the Real 2027 Opportunity The company also highlighted demand for secure connectivity. Stanton cited ADTRAN’s collaboration with euNetworks as evidence of rising customer interest in quantum-safe networking, multilayer encryption and cryptographic management capabilities. Access & Aggregation Solutions revenue totaled $86.9 million, down 5% from a year earlier and 4% from the preceding quarter. Management said the segment was directly affected by the delayed customer project, though U.S. access and aggregation revenue increased 13% year over year and partly offset weaker non-U.S. results. Subscriber Solutions revenue was $84.5 million, up 1% year over year but down 14% sequentially following what management characterized as a strong first quarter. Stanton said subscriber demand can be more variable because customers often purchase inventory in larger increments. Stanton said service-provider opportunities continue to be supported by vendor replacement programs, network modernization, broadband expansion and security requirements. He pointed to programs including the U.S. Broadband Equity, Access and Deployment program, the U.K.’s Project Gigabit, Germany’s Gigabit Strategy 2030 and Italia 1 Giga. Non-GAAP gross margin was 40.7%, compared with 41.4% in the second quarter of 2025 and 43.0% in the first quarter of 2026. The decline reflected product and customer mix, along with higher product costs, according to CFO Tim Santo. Non-GAAP operating expenses were $103.9 million, compared with $103.3 million in the first quarter and $101.7 million a year earlier. Non-GAAP operating income was $10.6 million, producing a 3.8% operating margin. That compared with operating income of $8.0 million and a 3.0% margin a year earlier, but was below $19.9 million and a 6.9% margin in the first quarter. Non-GAAP net income attributable to ADTRAN was $3.4 million, or $0.04 per diluted share, compared with breakeven results in the year-earlier period and $11.0 million, or $0.14 per diluted share, in the first quarter. Stanton said the company remains focused on its long-term gross-margin objective of 42% to 43% and its 10% non-GAAP operating-margin target. He said ADTRAN has implemented price increases, is pursuing product redesigns to broaden supplier flexibility and is reducing certain cost-of-goods-sold-related operating expenses. Management said supply constraints extend beyond memory components to include optical amplifiers, certain silicon products and, in some cases, circuit boards. Stanton said ADTRAN has begun building inventory of key components to mitigate shortages, although it has also been drawing down older inventory accumulated during the prior supply-chain disruption. ADTRAN generated $25.9 million in operating cash flow and $8.7 million in free cash flow during the quarter. It ended the period with $79.2 million in cash and cash equivalents, down from $88.3 million at March 31. Inventory stood at $208.8 million, while days inventory outstanding declined three days sequentially to 107 days. The company recently refinanced its credit facility through a new senior secured arrangement led by JPMorgan. Santo said the facility maintains total revolver capacity, lowers borrowing costs by 200 basis points and extends the debt maturity to 2031. For the third quarter, ADTRAN forecast revenue of $275 million to $295 million and non-GAAP operating margin of 1.5% to 5.5%. The outlook assumes continued strength in Optical Networking Solutions and demand from cloud, enterprise and government customers, while reflecting current customer deployment timing and a supply environment that management expects could remain tight. ADTRAN, Inc is a global provider of networking and communications equipment, specializing in broadband access solutions for service providers, enterprises and government organizations. Founded in 1985 and headquartered in Huntsville, Alabama, the company develops and delivers hardware and software platforms that enable high-speed Internet access over fiber, copper and wireless networks. Its core offerings include fiber access and aggregation equipment, Ethernet switches, customer premises equipment (CPE) and network management systems designed to support both legacy and next-generation broadband deployments. The company's product portfolio encompasses a broad range of optical line terminals (OLTs), optical network terminals (ONTs), multiservice access gateways and virtualized access solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ADTRAN Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: $281.1 million, up 6.1% year-over-year. Non-GAAP Gross Margin: 40.7%, down from 41.4% in Q2 2025 and 43% in Q1 2026. Non-GAAP Operating Income: $10.6 million, resulting in a non-GAAP operating margin of 3.8%. Non-GAAP Net Income: $3.4 million, or $0.04 per diluted share. Optical Networking Revenue: $109.7 million, up 22% year-over-year and 13% sequentially. Access and Aggregation Solutions Revenue: $86.9 million, down 5% year-over-year and 4% sequentially. Subscriber Solutions Revenue: $84.5 million, up 1% year-over-year and down 14% sequentially. Enterprise, Government, and Cloud Revenue: Grew 47% year-over-year and 19% sequentially, accounting for 25% of total revenue. Hyperscaler Revenue: Increased 97% year-over-year. Operating Cash Flow: $25.9 million during the quarter. Free Cash Flow: $8.7 million. Cash and Cash Equivalents: $79.2 million at quarter end. Q3 2026 Outlook: Revenue expected between $275 million and $295 million; non-GAAP operating margin between 1.5% and 5.5%. Warning! GuruFocus has detected 6 Warning Signs with ADTN. Is ADTN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Optical networking revenue grew 22% year-over-year and 13% sequentially, driven by strong demand across service provider, enterprise, government, and cloud customers. Revenue from enterprise, government, and cloud customers increased 47% year-over-year and 19% sequentially, now representing 25% of total revenue, with hyperscaler revenue up 97% year-over-year. The company completed a refinancing of its credit facility, reducing borrowing costs by 200 basis points and extending maturity to 2031, enhancing financial flexibility. Gross margin has improved over the last three years, and the company remains committed to its long-term target of 42%-43% gross margin and 10% non-GAAP operating margin. The company is seeing strong demand for upcoming products like the Micromux Quattro and Lightwave 800 pluggable optics, with multiple hyperscalers interested, and is expanding into new markets like intra-data center connectivity. Q2 revenue of $281.1 million fell short of guidance due to a project delay from a single customer and unfavorable product/customer mix. Non-GAAP gross margin declined to 40.7% from 41.4% year-over-year and 43% sequentially, impacted by product mix, customer mix, and higher product costs. Supply chain constraints limited the company's ability to fulfill demand, particularly for higher-margin products, and are expected to persist in the near term. Access and aggregation solutions revenue declined 5% year-over-year and 4% sequentially, directly impacted by the customer timing delay. The company's Q3 outlook is cautious, with revenue expected between $275 million and $295 million and non-GAAP operating margin between 1.5% and 5.5%, reflecting ongoing supply and timing challenges. Q: Can you help us understand the nature of the project delay at the single large customer? Is this more of a financial or strategic decision on their end? And what gives you assurance that this is demand, not demand destroyed? A: Thomas Stanton (Chairman and CEO): The biggest assurance is that the customer has recommitted to their deployment plan, including the timing. They have multiple plans in flight, including footprint expansion, Huawei replacement, and speed upgrades. We see this as a repositioning of priorities within those buckets, not a change in demand. We expect one of the other plans to kick in sooner than originally planned. Q: It's good to see your commitment to your 10% operating margin target, but you're currently at low to mid-single-digits due to product mix headwinds and component/freight cost increases. Can you discuss margin mitigation strategies and the path to double-digit margins? A: Thomas Stanton (Chairman and CEO): The bigger driver is revenue. We envisioned hitting double-digit margins at around $310-$320 million in revenue, assuming a 42%-43% gross margin. We've had almost three years of rising gross margins. The environment is tougher, and supply constraints impacted our flexibility this quarter. We are executing price increases, starting redesigns for supplier flexibility, and continuing to reduce OpEx in COGS-related areas. Q: You mentioned supply impacts on higher gross margin products. We've assumed memory was the big concern, mostly impacting CPE. Can you unpack the customer premise margin trend and your comment about higher gross margin products being impacted by supply? A: Thomas Stanton (Chairman and CEO): It is more than memory. Optical amplifiers, certain silicon pieces, and even PC boards are getting tight. Our ability to flex up for incremental demand has diminished. Memory is no longer the biggest issue; it's expensive but supply is less problematic than three to six months ago. Other components have eclipsed it as the primary constraint. Q: Regarding the revenue miss, it sounds like if you had enough components, you would have made up that revenue. Is that the message? A: Thomas Stanton (Chairman and CEO): Yes, without a doubt. If we had plenty of material, we would not be talking about the downtick. The demand is there, but we couldn't fulfill it due to supply constraints. Q: Can you talk about the project delay and how the supply situation will play out in the third quarter? A: Thomas Stanton (Chairman and CEO): We don't see an uptick in the delayed customer right now, and we don't see a change in the procurement environment. We expect things to stay at status quo, possibly getting tighter in certain areas. We are fighting for more supply daily, and our forecasting process has become about seeing through the mix of what will be available. Q: You mentioned a growth metric around the cloud portion, with 25% of revenue from government/enterprise. Can you confirm the cloud growth number and how large the cloud piece is within that 25%? A: Thomas Stanton (Chairman and CEO): Hyperscaler revenue grew 97% year-over-year. Within the 25% of revenue from enterprise, government, and cloud customers, the cloud piece is between 30% and 50%it's becoming a big part of that pie. Q: Can you talk about the pluggables mix shift? Was this for DCI, long-haul, and metro? And can you discuss the difference between the Micromux Quattro and the Lightwave 800 products? A: Thomas Stanton (Chairman and CEO): We had our strongest 100ZR quarter ever, which indicates the pluggables demand. The Micromux Quattro is a 4x100 multiplexer that plugs into a router at very low cost. The Lightwave 800 is for intra-data center, a new market for us. The Micromux will trial at the end of this year or early next year, while the Lightwave is scheduled for trials in Q2 of next year with production toward the end of the year. Q: With transceivers for inside the data center, this is a very large market with large deal sizes. Are you confident ADTRAN can execute in that market from a sales perspective? A: Thomas Stanton (Chairman and CEO): We already sell to most of these customers. Hyperscalers were our fastest-growing area in the enterprise segment. They know who we are and trust our quality. We've increased our sales force into that area. The deal sizes are typically bigger than what we're used to, but we need to ensure we can deliver what we promise. Q: Can you provide an update on the real estate transactions and the balance sheet? A: Timothy Santo (CFO): Huntsville is very hot, with the first 600 individuals for Space Command having seats in housing by the end of this year. Interest in our property has driven up significantly. We're continuing to hold out for the best deal. Thomas Stanton added that showings on the property have gone up substantially over the last couple of months. Q: You put out a press release this morning relative to Tokenet and beginning the trial. Can you talk about that and ADTRAN's presence in Japan? A: Thomas Stanton (Chairman and CEO): We do sell into Japan in the optical space. Japan was one of the first to build out their fiber network and is leading the charge in moving to 50-gig technology. They are at the forefront of making that transition more wholesale, which presents opportunities for us. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

ADTRAN Holdings, Inc. ADTN reported strong second-quarter 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate.The company delivered 6.1% year-over-year revenue growth, supported by continued strength in its optical networking business. Expanding customer opportunities and a growing innovation pipeline are expected to support long-term growth. On a GAAP basis, net loss in the June quarter was $10.32 million or a loss of 13 cents per share compared with a net loss of $19.04 million or a loss of 24 cents per share in the prior-year quarter. The narrower loss was attributable to top-line growth.Excluding non-recurring items, non-GAAP earnings for the reported quarter were $3.41 million or 4 cents per share against a net loss of $0.26 million or near breakeven per share a year ago. The bottom line surpassed the Zacks Consensus Estimate of 3 cents. ADTRAN Holdings, Inc. price-consensus-eps-surprise-chart | ADTRAN Holdings, Inc. Quote Quarterly total revenues increased to $281.15 million from $265.07 million in the prior-year quarter, driven by solid growth in both the Network Solutions and Services and Support Segment. The top line beat the Zacks Consensus Estimate of $281.1 million. Network Solutions revenues were $232.9 million compared with $219.5 million in the prior-year quarter, reflecting broad-based growth across the company's networking portfolio. Services and Support revenues were $48.25 million, up from $45.57 million in the year-earlier quarter.In the second quarter, Subscriber Solutions revenues were $84.53 million compared with $83.76 million in the year-ago quarter. Revenues from Access & Aggregation Solutions were $86.93 million, down 4.7% year over year. Optical Networking Solutions revenues rose to $109.68 million from $90.1 million in the year-ago quarter. Region-wise, net sales from the United States were $134.4 million, up 11.7% year over year. International revenues totaled $146.73 million, up from $144.73 million in the year-earlier quarter. Non-GAAP gross profit increased to $114.52 million from $109.75 million in the year-ago quarter for respective margins of 40.7% and 41.4%. Non-GAAP operating expenses increased to $103.92 million from $101.71 million in the year-ago quarter. Non-GAAP operating income improved to $10.6 million from $8.03 million in the year-ago quarter for respective margins of 3.8% and 3%. In the second quarter, ADTRAN generated $25.92 million of cash from operating activities compared with $32.16 million in the year-earlier quarter. During the first six months of 2026, the company generated $38.59 million in cash compared with $75.34 million in the year-ago period. As of June 30, 2026, the company had $79.24 million in cash and cash equivalents and $23.84 million of non-current lease obligations. For the third quarter of 2026, ADTRAN expects revenues in the range of $275-$295 million. Non-GAAP operating margin is expected to be in the band of 1.5% to 5.5%. ADTRAN currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Keysight Technologies, Inc. KEYS is scheduled to release third-quarter fiscal 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.Analog Devices, Inc. ADI is set to release third-quarter fiscal 2026 earnings Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, implying growth of 62.44% from the year-ago reported figure.Analog Devices has a long-term earnings growth expectation of 31.04%. The company delivered an average earnings surprise of 5.48% in the last four reported quarters.Applied Materials, Inc. AMAT is scheduled to release third-quarter fiscal 2026 earnings on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, suggesting growth of 35.48% from the year-ago reported figure.Applied Materials has a long-term earnings growth expectation of 32.44%. The company delivered an average earnings surprise of 6.06% in the last four reported quarters. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ADTRAN Holdings, Inc. (ADTN) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was primarily impacted by a specific project timing adjustment from a single large customer, which management views as deferred rather than destroyed demand. A tightening supply environment for optical amplifiers and specific silicon components limited the ability to fulfill high-margin demand, resulting in an unfavorable product and customer mix. The company is successfully diversifying its revenue base, with enterprise, government, and cloud segments now accounting for 25% of total revenue. Hyperscaler revenue grew 97% year-over-year, driven by strong momentum in the data center interconnect (DCI) business and bandwidth upgrade cycles. Optical networking remains the primary growth engine, increasing 22% year-over-year as service providers modernize infrastructure and address quantum-secure vulnerabilities. Management is executing a 'vendor replacement' strategy, capturing opportunities as providers transition away from legacy or restricted vendors like Huawei. Q3 guidance assumes a continuation of the current tight supply environment and no immediate rebound from the large customer that delayed its project. Management remains committed to a 10% non-GAAP operating margin target, predicated on achieving quarterly revenue in the $310 million to $320 million range. The company is initiating product redesigns to increase supplier flexibility and mitigate future supply chain volatility in the higher nanometer process categories. Strategic focus is shifting toward intra-data center opportunities with the upcoming LiteWave 800 and MicroMux Quattro solutions, targeting trials in late 2026 and 2027. Inventory strategy will involve building strategic buffers of key components to improve shipment flexibility, even as legacy inventory is drawn down. Completed a senior secured credit facility refinancing that reduces borrowing costs by 200 basis points and extends maturity to 2031. Gross margins were pressured to 40.7% due to the inability to ship higher-margin products amidst component shortages, despite a long-term target of 42% to 43%. The company is actively marketing real estate in Huntsville, Alabama, noting increased interest due to regional military and defense contract growth. Operating expenses are being strictly managed to offset inflationary pressures and maintain a path toward double-digit operating margins. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the customer has recommitted to their deployment plans and timing, viewing the shift as a repositioning of priorities across multiple active projects. The customer currently holds enough inventory to maintain their committed deployment rate during this planning adjustment. The primary driver for margin expansion is revenue scale; management expects to hit double digits when revenue reaches the low-$300 million range. Current mitigation includes price increases and redesigning products to reduce dependency on specific tight-supply components. ADTRAN is targeting a new Total Addressable Market (TAM) with the LiteWave 800, moving from 'between' data centers to 'inside' them. Management expressed confidence in their sales force's existing relationships with hyperscalers, noting that these customers already trust ADTRAN's quality and scalability. While memory supply has stabilized despite high costs, constraints have shifted to optical amplifiers, specific silicon, and even PC boards. Management noted that the ability to 'flex up' for incremental demand within a quarter has significantly diminished due to these shortages.

HUNTSVILLE, Ala., August 04, 2026--(BUSINESS WIRE)--ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) ("ADTRAN Holdings" "ADTRAN" or the "Company") today announced its unaudited financial results for the second quarter ended June 30, 2026. Revenue: $281.1 million, up 6.1 % year-over-year. GAAP gross margin of 37.0%; non-GAAP gross margin of 40.7%. GAAP operating margin of -3.6 %; non-GAAP operating margin of 3.8%. Net cash provided by operating activities of $25.9 million. GAAP diluted loss per share of $0.13; non-GAAP diluted earnings per share of $0.04. Cash and cash equivalents of $79.2 million. ADTRAN Holdings Chairman and Chief Executive Officer Tom Stanton stated, "Demand across our end markets remained strong during the quarter led by the results of our Optical Networking Solutions business. While our second quarter results were affected by a specific set of near-term factors, it does not change the underlying strength or trajectory of our business." Mr. Stanton added, "Our strategic priorities remain on track. We continue to gain momentum in optical networking while increasing diversity across cloud providers/hyperscalers, enterprise, and government customers, with revenue from these customers growing 47% year-over-year. We remain committed to our long-term operating model and remain confident that our strategy will deliver long-term shareholder value." Business outlook1 For the third quarter of 2026, the Company expects revenue to be within a range of $275.0 million to $295.0 million. Non-GAAP operating margin is expected to be within a range of 1.5% to 5.5%. 1 Non-GAAP operating margin (which is calculated as non-GAAP operating income (loss) divided by revenue) is a non-GAAP financial measure. The Company has provided guidance for its third quarter 2026 non-GAAP operating margin. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below. The Company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify without unreasonable effort all of the adjustments that may occur during the period due to the difficulty of predicting the timing and amounts of various items within a reasonable range. In particular, non-GAAP operating margin excludes certain items, such as acquisition related expenses, amortization and adjustments, stock-based compensation expense, deferred compensation adjustments, professional fees and other expenses, amortization of pension actuarial losses, the tax effect of these adjustments to net loss and purchases of property, plant and equipment, and developed technologies, that the Company is unable to quantitatively predict. Depending on the materiality of these items, they could have a significant impact on the Company's GAAP financial results. Conference call The Company will hold a conference call to discuss its second quarter 2026 results on Tuesday, August 4, 2026, at 7:30 a.m. Central Time (2:30 p.m. Central European Time). The Company will webcast this conference call at the events and presentations section of ADTRAN Holdings, Inc. Investor Relations website at https://events.q4inc.com/attendee/977314034 approximately 10 minutes before the start of the call, or you may dial 1-888-330-2391 (Toll-Free US) or 1-240-789-2702, and use Conference ID 8936454. An online replay of the Company’s conference call, as well as the transcript of the call, will be available on the Investor Relations site https://investors.adtran.com/shortly following the call and will remain available for at least 12 months. For more information, visit investors.adtran.com or email [email protected]. Upcoming conference schedule August 17, 2026: Rosenblatt Virtual Technology Summit - VirtualSeptember 10, 2026: B. Riley TMT Conference – New York About Adtran ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) is the parent company of Adtran, Inc., a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video and internet communications across any network infrastructure. From the cloud edge to the subscriber edge, Adtran empowers communications service providers around the world to manage and scale services that connect people, places and things. Adtran solutions are used by service providers, private enterprises, government organizations and millions of individual users worldwide. ADTRAN Holdings, Inc. is also the majority shareholder of Adtran Networks SE, formerly ADVA Optical Networking SE ("Adtran Networks"). Find more at Adtran.com, LinkedIn and X. Cautionary note regarding forward-looking statements Statements and graphics contained in this press release and the accompanying earnings call which are not historical facts, such as those relating to market trends, future demand across end markets, future demand driver growth (including with respect to expected hyperscale demand for data center interconnect and next-generation connectivity) and ADTRAN Holdings’ strategy, outlook and financial guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can also generally be identified by the use of words such as "believe," "expect," "intend," "estimate," "anticipate," "will," "may," "could," "look forward," and similar expressions. In addition, ADTRAN Holdings, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such projections and other forward-looking information speak only as of the date hereof, and ADTRAN Holdings undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise, except to the extent as may be required by law. All such forward-looking statements are estimates and reflect management’s best judgment based upon current information. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which have caused and may in the future cause actual events or results to differ materially from those estimated by ADTRAN Holdings include, but are not limited to: (i) risks and uncertainties relating to our ability to remain in compliance with the covenants set forth in and satisfy the payment obligations under our credit agreement and convertible notes, to satisfy our payment obligations to Adtran Networks’ minority shareholders under the Domination and Profit and Loss Transfer Agreement between us and Adtran Networks (the "DPLTA"), and to make payments to Adtran Networks in order to absorb its annual net loss pursuant to the DPLTA; (ii) the risk of fluctuations in revenue due to lengthy sales and approval processes required by major and other service providers for new products, as well as shifting customer spending patterns; (iii) risks and uncertainties related to our inventory practices and ability to match customer demand; (iv) risks and uncertainties relating to our level of indebtedness and our ability to generate cash; (v) risks and uncertainties relating to ongoing material weaknesses in our internal control over financial reporting; (vi) risks posed by changes in general economic conditions and monetary, fiscal and trade policies, including tariffs; (vii) risks and uncertainties relating to our international operations, including potential exposure to ongoing military conflicts (including the conflicts in Iran, Ukraine, and Israel and the surrounding areas); (viii) risks posed by potential breaches of information systems and cyber-attacks (ix) the risk that we may not be able to effectively compete, including through product improvements and development; and (x) the other risks set forth in our public filings made with the Securities and Exchange Commission (the "SEC"), including our most recent Annual Report on Form 10-K for the year ended December 31, 2025, our Form 10-Q for the quarterly period ended March 31, 2026, and our Form 10-Q for the quarterly period ended June 30, 2026 to be filed with the SEC. Explanation of use of non-GAAP financial measures Set forth in the tables below under the heading "Supplemental Information" are reconciliations of cost of revenue, gross profit, gross margin, operating expenses, operating (loss) income, operating margin, other income (expense), net (loss) income inclusive of the non-controlling interest, net loss attributable to the Company, and loss per share - basic and diluted, attributable to the Company, and net cash provided by operating activities, in each case as reported based on generally accepted accounting principles in the United States ("GAAP"), to non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP other expense, non-GAAP net income inclusive of the non-controlling interest, non-GAAP net income (loss) attributable to the Company, non-GAAP net earnings (loss) per share - basic and diluted, attributable to the Company, and free cash flow, respectively. Such non-GAAP measures exclude acquisition-related expenses, amortizations and adjustments (consisting of intangible amortization of backlog, developed technology, customer relationships, and trade names acquired in connection with business combinations), stock-based compensation expense, professional fees and other expenses, restructuring expenses, deferred compensation adjustments, amortization of pension actuarial losses, the tax effect of these adjustments to net loss and purchases of property, plant and equipment, and developed technologies. These measures are used by management in our ongoing planning and annual budgeting processes. Additionally, we believe the presentation of these non-GAAP measures, when combined with the presentation of the most directly comparable GAAP financial measure, is beneficial to the overall understanding of ongoing operating performance of the Company. These non-GAAP financial measures are not prepared in accordance with, or an alternative for, GAAP and therefore should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP. Furthermore, our calculation of non-GAAP measures may not be comparable to similar measures calculated by other companies. View source version on businesswire.com: https://www.businesswire.com/news/home/20260803535684/en/ Contacts Published by ADTRAN Holdings, Inc.www.adtran.com Media contact Gareth Spence+44 1904 699 [email protected] Investor contact Rob [email protected]

HUNTSVILLE, Ala., July 22, 2026--(BUSINESS WIRE)--ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) ("ADTRAN Holdings" or the "Company") today announced preliminary unaudited revenue, preliminary GAAP and non-GAAP operating margin, and preliminary GAAP and non-GAAP basic and diluted earnings per share for the fiscal quarter ended June 30, 2026. This press release announcement is being provided due to German ad hoc disclosure requirements following, among others, the Company's performance relative to its previously issued revenue guidance. All figures in this release are preliminary and subject to completion of the Company's quarter-end financial close procedures. For the second quarter of 2026, preliminary revenue is expected to be in the range of $280.0 million to $282.0 million, which is below the Company’s previously announced guidance range of $283.0 million to $303.0 million. Preliminary GAAP operating margin for the second quarter of 2026 is expected to be between (3.2)% to (4.0)%. Preliminary non-GAAP operating margin for the second quarter is expected to be between 3.5% to 4.0%, which is below our previously announced guidance range of 5.0% to 9.0%. The Company currently expects second quarter 2026 preliminary GAAP basic and diluted loss per common share attributable to ADTRAN Holdings, Inc. to be between $(0.12) and $(0.14). The Company currently expects second quarter 2026 preliminary non-GAAP basic and diluted earnings per common share attributable to ADTRAN Holdings, Inc. to be between $0.03 and $0.05. For the third quarter of 2026, the Company expects revenue to be within a range of $275.0 million to $295.0 million. Non-GAAP operating margin is expected to be within a range of 1.5% to 5.5%. Tom Stanton, Chairman and Chief Executive Officer, said, "Our preliminary second quarter results were directly impacted by a project delay from a single customer. In addition, margins reflected the current elevated component and freight cost environment. While these factors are affecting our near-term financial results, they do not change the underlying business, customer engagement or strategic priorities we are executing against." "Outside of this customer-specific dynamic, we’re encouraged by the continued strength of our optical networking business, the opportunities we’re seeing with customers and end markets, and the innovation pipeline that continues to expand our addressable market," Stanton concluded. "We look forward to discussing our second quarter results and the opportunities ahead in greater detail when we report full results in two weeks." Quarterly Release and Earnings Call The information contained in this press release is preliminary. The Company will release its final financial results for the second quarter 2026 after the market close on Monday, August 3, 2026, at https://investors.adtran.com/. The Company will conduct a conference call on Tuesday, August 4, 2026 at 7:30 a.m. Central Time (2:30 p.m. Central European Time). The Company will webcast this conference call, or you may dial in to participate. To listen, visit the events and presentations section of ADTRAN Holdings, Inc. Investor Relations site at https://events.q4inc.com/attendee/977314034 approximately 10 minutes before the start of the call, or you may dial 1-888-330-2391 (Toll-Free US) or 1-240-789-2702, and use Conference ID 8936454. An online replay of the conference call and a transcript of the call will be available on the Investor Relations site shortly following the call and will remain available for at least 12 months. The information contained in this press release is solely based on preliminary unaudited results. Non-GAAP operating margin (which is calculated as non-GAAP operating income divided by revenue) is a non-GAAP financial measure. Reconciliations between GAAP operating loss and GAAP operating margin for the second quarter 2026 and non-GAAP operating income and non-GAAP operating margin, respectively, are set forth in the table provided below. Cautionary Note Regarding Forward-Looking Statements Statements contained in this press release which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can also generally be identified by the use of words such as "believe," "expect," "intend," "estimate," "anticipate," "will," "may," "could" and similar expressions. Examples of forward-looking statements include, among others, statements regarding management’s expectations with respect to the Company’s final revenue, final GAAP and non-GAAP operating margin, and final non-GAAP earnings per share for the second quarter 2026, as well as future underlying customer activity and demand trends. In addition, ADTRAN Holdings, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such forward-looking information speaks only as of the date hereof, and ADTRAN Holdings undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise, except to the extent as may be required by law. All such forward-looking statements are necessarily estimates and reflect management’s best judgment based upon current information. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which have caused and may in the future cause actual events or results to differ materially from those estimated by ADTRAN Holdings include, but are not limited to: (i) risks and uncertainties relating to our ability to remain in compliance with the covenants set forth in and satisfy the payment obligations under our credit agreement and convertible notes, to satisfy our payment obligations to Adtran Networks’ minority shareholders under the Domination and Profit and Loss Transfer Agreement between us and Adtran Networks (the "DPLTA"), and to make payments to Adtran Networks in order to absorb its annual net loss pursuant to the DPLTA; (ii) the risk of fluctuations in revenue due to lengthy sales and approval processes required by major and other service providers for new products, as well as shifting customer spending patterns; (iii) risks and uncertainties related to our inventory practices and ability to match customer demand; (iv) risks and uncertainties relating to our level of indebtedness and our ability to generate cash; (v) risks and uncertainties relating to ongoing material weaknesses in our internal control over financial reporting; (vi) risks posed by changes in general economic conditions and monetary, fiscal and trade policies, including tariffs; (vii) risks and uncertainties relating to our international operations, including potential exposure to ongoing military conflicts (including the conflicts in Iran, Ukraine, and Israel and the surrounding areas); (viii) risks posed by potential breaches of information systems and cyber-attacks (ix) the risk that we may not be able to effectively compete, including through product improvements and development; and (x) the other risks set forth in our public filings made with the Securities and Exchange Commission (the "SEC"), including our most recent Annual Report on Form 10-K for the year ended December 31, 2025, our Form 10-Q for the quarterly period ended March 31, 2026, and our Form 10-Q for the quarterly period ended June 30, 2026 to be filed with the SEC. Additionally, the financial measures presented herein are a preliminary estimate, remain subject to our internal controls and procedures, and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end adjustments. Any variation between the Company’s actual financial results and the preliminary ranges set forth herein may be material. Explanation of Use of Non-GAAP Financial Measures Set forth in the tables below are a reconciliation of preliminary operating loss, operating margin, net loss inclusive of the non-controlling interest, net loss attributable to the Company, and loss per share - basic and diluted, attributable to the Company, in each case as reported based on generally accepted accounting principles in the United States ("GAAP") to preliminary non-GAAP operating income, non-GAAP operating margin, non-GAAP net income inclusive of the non-controlling interest, non-GAAP net income attributable to the Company and non-GAAP net earnings per share - basic and diluted, attributable to the Company respectively. Such non-GAAP measures excludes acquisition-related expenses, amortization and adjustments (consisting of intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations), stock-based compensation expense, restructuring expenses, deferred compensation adjustments, and certain one-time professional fees and other expenses. These measures are used by management in our ongoing planning and annual budgeting processes. Additionally, we believe the presentation of these non-GAAP measures, when combined with the presentation of the most directly comparable GAAP financial measures, are beneficial to the overall understanding of ongoing operating performance of the Company. These non-GAAP financial measures are not prepared in accordance with, or an alternative for, GAAP and therefore should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP. Additionally, our calculation of these non-GAAP measures may not be comparable to similar measures calculated by other companies. About Adtran ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) is the parent company of Adtran, Inc., a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video and internet communications across any network infrastructure. From the cloud edge to the subscriber edge, Adtran empowers communications service providers around the world to manage and scale services that connect people, places and things. Adtran solutions are used by service providers, private enterprises, government organizations and millions of individual users worldwide. ADTRAN Holdings, Inc. is also the majority shareholder of Adtran Networks SE, formerly ADVA Optical Networking SE ("Adtran Networks"). Find more at Adtran.com, LinkedIn and X. Published by ADTRAN Holdings, Inc. www.adtran.com View source version on businesswire.com: https://www.businesswire.com/news/home/20260721153257/en/ Contacts Media contact Gareth Spence+44 1904 699 [email protected] Investor contact Rob [email protected]

A month has gone by since the last earnings report for ADTRAN Holdings (ADTN). Shares have added about 19.4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is ADTRAN Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. ADTRAN Q1 Earnings Beat Estimates on Strong Revenue Growth ADTRAN reported strong first-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Non-GAAP earnings came in at 14 cents per share, beating the consensus estimate of 9 cents.Revenues of $286.1 million edged past the consensus estimate of $285 million by 0.4% and increased 15.5% year over year, driven by solid demand across core markets and improved operating leverage. ADTN Delivers Solid Top-Line Growth ADTRAN generated total revenues of $286.1 million in the first quarter, reflecting a 15.5% year-over-year increase from $247.7 million. Growth was broad-based, supported by strength across its Network Solutions and Services & Support segments.Network Solutions revenues rose to $237.9 million from $202.2 million in the prior-year quarter, while Services & Support contributed $48.1 million compared with $45.5 million a year ago. The expansion highlights improving demand trends across fiber, cloud and edge networking infrastructure. ADTRAN Expands Margins on Operating Leverage Profitability improved meaningfully during the quarter. GAAP gross margin expanded to 39.5% from 38.4% in the year-ago period, while non-GAAP gross margin rose to 43.0%, reflecting operational efficiencies and better cost control.Operating performance also strengthened. GAAP operating margin turned positive at 2.2% compared with a negative 1.6% last year. Non-GAAP operating margin improved to 6.9% from 3.9%, indicating enhanced scalability of the company’s business model. ADTN Earnings Performance Reflects Cost Discipline On a GAAP basis, ADTRAN reported a net loss attributable to shareholders of $1.3 million or 1 cent per share, narrower than a loss of $11.3 million or 14 cents per share in the prior-year quarter.Adjusted earnings were significantly stronger at 14 cents per share, reflecting the exclusion of acquisition-related costs, stock-based compensation and other one-time items. The earnings beat was driven by higher revenues and improved cost structure, which helped offset ongoing expenses related to growth initiatives. ADTRAN Cash Flow and Balance Sheet Position ADTRAN generated $12.7 million in cash from operating activities during the quarter, though lower than the prior-year period due to working capital changes. Free cash flow was negative $3.3 million, reflecting continued investments in property, equipment and technology development.The company ended the quarter with cash and cash equivalents of $88.3 million, compared with $95.7 million at the end of 2025. Total assets stood at $1.19 billion, indicating a stable balance sheet despite ongoing investment activity. ADTN Sees Strong Demand Drivers Ahead Management highlighted continued momentum in key markets. In the United States, broadband expansion remains a key growth driver, supported by government funding initiatives such as BEAD. In Europe, vendor replacement trends and regulatory developments are creating additional opportunities.The company also introduced its LiteWave800 solution, targeting AI-driven data center infrastructure. This product innovation underscores ADTRAN’s focus on next-generation networking technologies and positions it to benefit from rising AI-related demand. ADTRAN Outlook Signals Continued Momentum For the second quarter of 2026, ADTRAN expects revenues in the range of $283 million to $303 million. Non-GAAP operating margin is projected between 5.0% and 9.0%, indicating sustained profitability improvement.The outlook reflects confidence in underlying demand trends and continued execution of operational strategies. Management expects ongoing benefits from operating leverage as revenue growth aligns with disciplined cost management. In the past month, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 33.33% due to these changes. Currently, ADTRAN Holdings has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, ADTRAN Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. ADTRAN Holdings is part of the Zacks Communication - Components industry. Over the past month, Corning (GLW), a stock from the same industry, has gained 23.6%. The company reported its results for the quarter ended March 2026 more than a month ago. Corning reported revenues of $4.35 billion in the last reported quarter, representing a year-over-year change of +18.1%. EPS of $0.70 for the same period compares with $0.54 a year ago. Corning is expected to post earnings of $0.76 per share for the current quarter, representing a year-over-year change of +26.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Corning. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ADTRAN Holdings, Inc. (ADTN) : Free Stock Analysis Report Corning Incorporated (GLW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research