ADTRAN Misses Q2 Guidance on Revenue, Margins, and EPS; Issues Below-Consensus Q3 Outlook

summarizeSummary

ADTRAN pre-announced Q2 2026 results that missed its own guidance on revenue, operating margin, and EPS, and came in well below analyst consensus. The company also issued Q3 guidance that points to continued pressure.

check_boxKey Events · Earnings and Guidance · ADTN

• Q2 Revenue Miss

  Preliminary Q2 revenue of $280M-$282M fell short of the $283M-$303M guidance range, driven by a single-customer project delay.

• Margin and EPS Shortfall

  Non-GAAP operating margin of 3.5%-4.0% missed the 5.0%-9.0% guidance, and non-GAAP EPS of $0.03-$0.05 was well below the $0.13 consensus.

• GAAP Losses

  GAAP operating margin was (3.2)% to (4.0)%, and GAAP loss per share was $(0.12)-$(0.14), reflecting significant non-cash charges including $10.9M-$12.2M in acquisition-related amortization.

• Q3 Guidance Indicates Continued Pressure

  Q3 revenue guidance of $275M-$295M and non-GAAP operating margin of 1.5%-5.5% suggest sequential revenue decline and margin compression at the midpoint.

auto_awesomeAnalysis · ADTN · Manufacturing

ADTRAN's preliminary Q2 results fell short across the board — revenue of $280M-$282M missed the low end of its $283M-$303M guidance, non-GAAP operating margin of 3.5%-4.0% was well below the 5.0%-9.0% target, and non-GAAP EPS of $0.03-$0.05 came in far below the $0.13 analyst consensus. The company blamed a single-customer project delay and elevated component and freight costs. Q3 guidance of $275M-$295M in revenue and 1.5%-5.5% non-GAAP operating margin suggests the headwinds persist, with the midpoint implying a sequential revenue decline and margin compression. This is a material negative surprise for a company that had just reported a strong Q1 beat two months ago, and it raises questions about demand visibility and cost control.