ADTRAN revenue jumps 15% as fiber and AI infrastructure demand scales

ADTRAN Holdings (NASDAQ:ADTN) reported robust financial results for the first quarter ended March 31, 2026, as the company capitalizes on accelerating investment in fiber-to-the-home (FTTH) and high-speed optical networking.

Revenue for the quarter rose 15.5% year-over-year to $286.1 million, landing in the upper half of the company’s previous guidance range.

The company achieved significant margin expansion during the period, reflecting a favorable shift toward higher-margin software and optical platforms.

Non-GAAP gross margin climbed to 43%, a 55-basis-point improvement over the prior year, while non-GAAP operating margin reached 6.9%.

On a GAAP basis, the company reported a narrow diluted loss per share of $0.01, while non-GAAP diluted earnings per share stood at $0.14.

A key highlight of the quarter was ADTRAN’s strategic expansion into the artificial intelligence infrastructure market.

The company recently introduced LiteWave800™, a solution specifically engineered for intra-data center AI environments, designed to set new benchmarks for power efficiency at 800G speeds.

ADTRAN concluded the quarter with a solid liquidity profile, reporting $88.3 million in cash and cash equivalents.

The company also generated $12.7 million in net cash from operating activities, supporting ongoing research and development in its Mosaic One AI-driven network management platform.

Looking ahead to the second quarter of 2026, ADTRAN issued a positive outlook, expecting revenue between $283 million and $303 million.