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Adtran Inc (ADTN)
NASDAQ:ADTN
Earnings Data
Report Date
May 05, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.09Last Year’s EPS
0.03Same Quarter Last Year
Strong Buy
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented strong execution and clear financial improvement across revenue growth, margin expansion, cash flow generation, and product momentum—particularly in Optical Networking, software adoption and U.S. demand. Key operational improvements included substantial inventory reduction, improved gross margins and return to positive operating profitability. Offsetting items include near-term variability from supply-chain pressures (memory and optics), some sequential softness in non-U.S. revenue driven by European ordering patterns, a wide quarterly margin guidance range, and uncertainty/timing around noncore asset monetization and the multi-year Huawei replacement process. On balance, the positives around scalable revenue growth, margin expansion, and strong cash generation outweigh the near-term uncertainties.Company Guidance
Quarterly Revenue Growth
Q4 revenue of $291.6 million, up 20% year-over-year and over 4% sequentially; marked the sixth consecutive quarter of sequential growth and fifth consecutive quarter of year-over-year improvement.
U.S. Revenue Acceleration
U.S. revenue led growth in Q4, increasing 31% year-over-year and 14% sequentially.
Optical Networking Strength
Optical Networking Solutions revenue increased 33% year-over-year (an increase of $26.9 million YoY), driven by cloud providers and enterprise customers; enterprise and cloud providers accounted for 25% of Q4 revenue and 21% for full year 2025.
Access & Aggregation and Subscriber Solutions Growth
Access & Aggregation revenue grew 9% year-over-year and 6% sequentially; Subscriber Solutions grew 17% year-over-year and 3% sequentially, supported by demand for residential fiber CPE and diverse service offerings.
Margin Expansion
Non-GAAP gross margin increased to 42.5% in Q4 (up 44 basis points sequentially and 122 basis points YoY). Full year non-GAAP gross margin expanded ~90 basis points to 42.1%.
Operating Profit and EPS Improvement
Non-GAAP operating profit in Q4 rose to $18.8 million (6.4% of revenue), up 103 basis points sequentially and 406 basis points YoY. Non-GAAP EPS was $0.16 in Q4 (versus $0.05 in Q3 and -$0.02 a year ago); full year non-GAAP diluted EPS returned to $0.23 per share.
Strong Cash Flow and Working Capital Progress
Q4 operating cash flow was $42.2 million and free cash flow $22.5 million. Full year operating cash flow was $129.8 million (+25% YoY) and free cash flow $60.5 million (+58% YoY). Inventory declined almost $50 million YoY, improving days inventory outstanding by 47 days YoY to 114.
Balance Sheet and Capital Actions
Issued approximately $200 million of convertible notes at an interest rate meaningfully lower than the revolving credit facility; purchased $27.2 million of ADTRAN Networks shares in Q4 ($46.6 million in calendar 2025 total), reducing minority interest to less than 30% and increasing ownership to just over 70%.
Software and AI Momentum
Software footprint expanded: over 1,000 carrier customers across products, nearly 500 service providers on Mosaic One, 100+ service providers deploying Intellifi cloud-managed Wi‑Fi, and multiple Mosaic One Clarity/Agentic AI customer trials underway ahead of a planned launch later in the year.
Full Year Revenue and Margin Turnaround
Full year 2025 revenue of $1.084 billion, up 17.5% YoY; non-GAAP operating margin improved to 4.8% in 2025 from -0.3% in 2024, demonstrating return to positive operating profitability.
ADTN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ADTN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 25, 2026 | $10.58 | $10.69 | +1.04% |
Nov 03, 2025 | $10.42 | $10.43 | +0.10% |
Aug 04, 2025 | $8.76 | $9.47 | +8.11% |
May 08, 2025 | $7.95 | $7.71 | -3.02% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Adtran Inc (ADTN) report earnings?
Adtran Inc (ADTN) is schdueled to report earning on May 05, 2026, Before Open (Confirmed).
What is Adtran Inc (ADTN) earnings time?
Adtran Inc (ADTN) earnings time is at May 05, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ADTN EPS forecast?
ADTN EPS forecast for the fiscal quarter 2026 (Q1) is 0.09.