Harmonic (HLIT) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong results with 43% broadband revenue growth and significant profit increases, validating the strategic focus on broadband and diversification.

• Full-year 2026 broadband revenue outlook was raised to $475–$495 million due to robust demand and improved visibility.

• The company is transitioning to a pure-play broadband provider following the sale of the Video business, expected to close in Q2 2026.

• Continued investment in technology innovation, especially in fiber and AI-powered solutions, and customer diversification.

Financial highlights

• Q1 2026 broadband revenue was $121.7 million, up 43% year-over-year and 24% sequentially, exceeding guidance.

• Operating profit reached $26 million (non-GAAP), up 115% year-over-year; GAAP operating profit was $20.4 million.

• EPS was $0.17 (non-GAAP), above guidance; GAAP EPS was $0.10.

• Backlog and deferred revenue reached a record $582.1 million, up 87% year-over-year.

• Free cash flow was $30.3 million; $43 million in share repurchases completed in Q1.

Outlook and guidance

• Full-year 2026 broadband revenue guidance raised to $475–$495 million; EPS guidance increased to $0.57–$0.67.

• Q2 2026 revenue expected between $115–$125 million; EPS $0.15–$0.19.

• Full-year gross margin expected at 49.9%–51.5%; operating profit guidance $87–$101 million.

• Guidance reflects prudent approach due to supply chain, macroeconomic, and tariff uncertainties.