ADTRAN posts modest Q3 revenue growth to $281M
Key points
- ADTRAN reported third-quarter revenue of $281.2 million, up 0.6% year over year, although sales were below the midpoint of company guidance.
- GAAP gross margin reached 38.5%, while non-GAAP gross margin was 42.1%, including an approximately 200-basis-point benefit from tariff refunds.
- ADTRAN expects fourth-quarter revenue of $272 million–$292 million and a non-GAAP operating margin of 1%–5%, while addressing supply constraints.
ADTRAN Holdings (NASDAQ:ADTN) reported third-quarter 2026 revenue of $281.2 million, up 0.6% year over year, while recording a GAAP diluted loss of $0.10 per share.
Revenue increased from $279.4 million a year earlier but remained slightly below the midpoint of company guidance, while non-GAAP diluted earnings reached $0.09 per share.
GAAP gross margin reached 38.5%, while non-GAAP gross margin was 42.1%, including approximately 200 basis points from International Emergency Economic Powers Act tariff refunds, as GAAP operating margin stood at negative 0.3% against a 5% non-GAAP margin.
ADTRAN expects fourth-quarter revenue of $272 million–$292 million and a non-GAAP operating margin of 1%–5%, reflecting supply availability and project timing.
The company used $24.5 million in operating cash during the quarter and ended September with $71.7 million in cash, cash equivalents and restricted cash, while continuing to manage costs and working capital.
ADTRAN provides broadband access, optical networking and cloud connectivity technology, with management reporting continued optical networking growth and increasing demand from large cloud infrastructure customers.
