Harmonic (HLIT) Investor Day 2026 summary

Strategic vision and market opportunity

• Transitioned to a pure-play broadband company, positioning broadband as the real-time edge for AI by integrating connectivity, intelligence, and compute on a unified cOS platform for cable, fiber, and telco markets.

• Identified a $7 billion total addressable market by 2030, with $5.4 billion in connectivity, $1-2 billion in intelligence, and significant upside in edge AI compute, expanding the addressable market to $6.4B–$7.4B.

• Emphasized expansion into telco fiber, PON beyond FTTH, and targeting data center, enterprise, and edge AI compute segments with differentiated, open, and interoperable solutions.

• Highlighted strategic customer partnerships, a track record of pioneering industry transformations, and a focus on enabling broadband operators to prepare for the AI era.

• Maintains leadership in DOCSIS with 90%+ market share and is expanding into fiber and intelligence markets.

Product and technology innovation

• Maintains over 90% market share in vCMTS and 60% in DAA, with 160+ global operators and unified DOCSIS 4.0 shipping in volume, deploying 350K remote devices (+80%).

• Introduced cOS SensAI, a vendor-agnostic, multi-network intelligence platform delivering actionable insights, automation, and enhanced customer experience.

• Expanded fiber/PON portfolio with modular, open ONT solutions supporting every PON generation, including 50G in 2027, and enabling seamless migration from cable to fiber.

• Developed edge AI compute capabilities leveraging freed space and power in network facilities for low-latency AI inference and future AI-driven applications.

• Achieved significant power and space savings, with up to 85% less power per gigabit and 95% less space compared to legacy systems.

Financial performance and outlook

• Delivered a 19% CAGR in revenue through FY2026, with FY26 revenue guidance raised to $505M–$525M (up 43% YoY at midpoint) and a projected 20%+ operating margin.

• Set a three-year growth floor of 10%-13% CAGR, targeting 10–13% organic revenue CAGR (2026–2029), with upside from 50G PON, tier one telco wins, PON beyond FTTH, and edge AI compute.

• Cable access fiber and telco FTTH segments are expected to grow at 40% CAGR, while the intelligence platform is targeted for 100%+ CAGR, reaching 10% of revenue.

• Recurring revenue expected to grow 30%+ annually, aiming for 22%-25% of total revenue, with managed service and outcome-based models expanding software revenue.

• Over $300M in liquidity, $122M returned under share repurchase program, and strong free cash flow support ongoing investments and selective M&A.