Harmonic (HLIT) Q2 2026 earnings summary

Executive summary

• Q2 2026 marked the strongest second quarter ever, with broadband revenue up 54% year-over-year, driven by Rest-of-Market growth, new product wins, and the completed sale of the Video business, transforming the company into a pure-play broadband innovator.

• Raised full-year 2026 guidance for both revenue and EPS, reflecting robust business momentum and confidence in continued broadband growth.

• Significant customer diversification and technology advancements, including expanding intelligence platform adoption and new fiber product launches.

Financial highlights

• Q2 2026 revenue reached $133.5M, up 54% year-over-year and 10% sequentially, surpassing guidance.

• Gross margin was 53% (non-GAAP), up 680 bps year-over-year; GAAP gross margin was 52.4%.

• Operating profit was $31.3M (non-GAAP), up from $7.0M in Q2 2025, and EPS was $0.21 (non-GAAP), up from $0.03.

• Backlog and deferred revenue reached $588M, up 71% year-over-year.

• Cash and equivalents at quarter end were $231.9M, up from $124.1M at year-end 2025.

Outlook and guidance

• Full-year 2026 broadband revenue guidance raised to $505M–$525M.

• FY 2026 EPS guidance increased to $0.67–$0.75 (non-GAAP); GAAP EPS guidance: $0.44–$0.53.

• Q3 2026 revenue expected between $125M–$135M, with gross margins of 51–52%.

• FY 2026 operating profit guidance: $99M–$111M (non-GAAP); GAAP: $74M–$86M.

• Guidance reflects prudent approach due to external risks and supply chain dynamics.