The networking company missed its own guidance as a delayed customer project and component shortages pressured shipments, while optical networking and hyperscaler demand remained strong.
ADTRAN Holdings reported second-quarter 2026 revenue of $281.1 million, up 6.1% from a year earlier, but said results came in below its own guidance because a delayed customer project, component shortages and an unfavorable product mix constrained shipments. The company posted a GAAP gross margin of 37.0% and a non-GAAP gross margin of 40.7%, along with a GAAP operating margin of -3.6% and a non-GAAP operating margin of 3.8%. GAAP diluted loss per share was $0.13, while non-GAAP diluted earnings per share were $0.04. Chairman and CEO Tom Stanton said demand across end markets remained strong, led by Optical Networking Solutions, and said the customer delay reflected timing rather than lost demand. Optical Networking Solutions revenue rose 22% year over year and 13% sequentially to $109.7 million, or 39% of total quarterly revenue, while revenue from enterprise, government and cloud customers climbed 47% from a year earlier and 19% sequentially, with hyperscaler revenue up 97%. ADTRAN generated $25.9 million in operating cash flow and ended the quarter with $79.2 million in cash and cash equivalents. For the third quarter of 2026, the company expects revenue of $275 million to $295 million and non-GAAP operating margin of 1.5% to 5.5%.