Harmonic (NASDAQ:HLIT) Releases Earnings Results, Misses Estimates By $0.04 EPS

Harmonic (NASDAQ:HLIT) issued its quarterly earnings results on Thursday. The communications equipment provider reported $0.06 EPS for the quarter, missing the consensus estimate of $0.10 by ($0.04), Zacks reports. The business had revenue of ($53.02) million for the quarter, compared to the consensus estimate of $140.98 million. Harmonic had a positive return on equity of 4.45% and a negative net margin of 8.46%.The company’s quarterly revenue was down 42.6% compared to the same quarter last year. During the same period last year, the firm earned $0.45 earnings per share. Harmonic updated its FY 2026 guidance to 0.460-0.630 EPS and its Q1 2026 guidance to 0.110-0.120 EPS.

Here are the key takeaways from Harmonic’s conference call:

• Record Q4 bookings — Broadband bookings were $346.9M (3.5 book-to-bill), driving backlog and deferred revenue to $573.8M (up 73% YoY) with a $307M current portion, giving strong revenue visibility into 2026.
• Revenue and guidance beat — Q4 broadband revenue was $98.2M (9% sequential, above guidance) and management guided continuing-operations revenue of $440M–$480M for FY2026 (22%–33% growth) with Q1 revenue of $100M–$105M.
• Video business sale — The planned sale of the video segment to MediaKind for about $145M in cash (expected to close in Q2 2026) will make Harmonic a pure‑play broadband company and is expected to strengthen the balance sheet and funding flexibility.
• Margin and cost pressures — Management built in a roughly $6M net memory-price impact and expects about $10M of stranded costs in 2026, contributing to full‑year broadband gross-margin guidance of 51%–53% (down from Q1 levels) and potential timing risks if deliveries shift.
• Product traction and diversification — Rest‑of‑world revenue grew 33% to represent 41% of broadband revenue, fiber deployments and DOCSIS 4.0 are moving to commercial scale (146 cOS deployments serving >41M devices), and new intelligence-driven services (Beacon/Pathfinder) aim to grow recurring revenue.

Harmonic Price Performance

HLIT stock traded up $0.15 during midday trading on Tuesday, reaching $10.44. 1,700,350 shares of the stock were exchanged, compared to its average volume of 1,042,701. Harmonic has a 52 week low of $7.80 and a 52 week high of $12.18. The company has a fifty day moving average price of $10.12 and a 200 day moving average price of $9.97. The company has a debt-to-equity ratio of 0.28, a current ratio of 2.50 and a quick ratio of 2.26. The stock has a market capitalization of $1.17 billion, a PE ratio of -26.77 and a beta of 1.05.

Insider Activity

In related news, SVP Neven Haltmayer sold 23,835 shares of the firm’s stock in a transaction on Monday, December 15th. The stock was sold at an average price of $10.41, for a total transaction of $248,122.35. Following the completion of the transaction, the senior vice president directly owned 149,570 shares of the company’s stock, valued at $1,557,023.70. This trade represents a 13.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director David Krall bought 47,528 shares of the business’s stock in a transaction on Thursday, December 11th. The shares were bought at an average cost of $10.50 per share, for a total transaction of $499,044.00. Following the completion of the acquisition, the director directly owned 223,125 shares in the company, valued at approximately $2,342,812.50. This trade represents a 27.07% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 1.21% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in HLIT. Invesco Ltd. lifted its holdings in shares of Harmonic by 4.3% in the 4th quarter. Invesco Ltd. now owns 537,329 shares of the communications equipment provider’s stock worth $5,314,000 after purchasing an additional 22,253 shares in the last quarter. Mercer Global Advisors Inc. ADV acquired a new position in Harmonic during the fourth quarter worth $117,000. Summit Global Investments lifted its stake in shares of Harmonic by 67.6% in the fourth quarter. Summit Global Investments now owns 86,740 shares of the communications equipment provider’s stock valued at $858,000 after buying an additional 34,980 shares in the last quarter. State of Tennessee Department of Treasury grew its holdings in shares of Harmonic by 43.9% during the fourth quarter. State of Tennessee Department of Treasury now owns 97,909 shares of the communications equipment provider’s stock valued at $952,000 after buying an additional 29,853 shares during the last quarter. Finally, EP Wealth Advisors LLC acquired a new position in shares of Harmonic during the fourth quarter valued at about $224,000. 99.38% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

HLIT has been the subject of several research reports. Needham & Company LLC lifted their price target on Harmonic from $15.00 to $17.00 and gave the stock a “buy” rating in a report on Friday. Northland Securities set a $14.00 target price on shares of Harmonic in a research report on Friday. Weiss Ratings restated a “hold (c-)” rating on shares of Harmonic in a research note on Thursday, January 22nd. Barclays lifted their price objective on shares of Harmonic from $8.00 to $11.00 and gave the stock an “equal weight” rating in a research note on Wednesday, November 5th. Finally, Rosenblatt Securities increased their target price on shares of Harmonic from $14.00 to $16.00 and gave the stock a “buy” rating in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Harmonic presently has an average rating of “Hold” and an average target price of $14.50.

About Harmonic

Harmonic Inc (NASDAQ:HLIT) is a leading provider of video delivery infrastructure that enables service providers, broadcasters and content owners to capture, process and distribute high‐quality video across broadcast, cable, satellite and IP networks. The company’s portfolio spans real‐time video compression solutions, including encoders and transcoders, as well as storage and server products designed for live production, playout and streaming on any device.

Harmonic’s product lines include cable edge QAM modules and set‐top video processing platforms for traditional pay‐TV operators, alongside cloud‐native software for over‐the‐top (OTT) delivery, origin servers and content delivery network (CDN) services.