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ADTRAN Beats Q4 Earnings Estimates on Healthy Revenue Growth
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Key Takeaways
ADTN topped Q4 estimates as revenue rose to $291.56M, driven by cloud, fiber and AI demand.
ADTRAN posted non-GAAP EPS of 16 cents, beating estimates by 8 cents and improving margins.
ADTRAN expects Q1 2026 revenue of $275-$295M with a non-GAAP operating margin of 4%-8%.
ADTRAN Holdings, Inc. (ADTN - Free Report) reported strong fourth-quarter 2025 results, with the top and bottom lines surpassing the respective Zacks Consensus Estimate.
The company recorded solid revenue growth year over year, driven by robust demand trends in both segments. Management’s focus on cost optimization and enhancing its operating model to ensure higher long-term shareholder returns is positive. However, macroeconomic headwinds are worrisome.
Net Income
On a GAAP basis, net loss in the December quarter was $1.52 million or a loss of 2 cents per share compared with a net loss of $46.11 million or a loss of 58 cents per share in the prior-year quarter. The narrower loss was attributable to top-line growth.
Excluding non-recurring items, non-GAAP earnings for the reported quarter were $12.76 million or 16 cents per share against a net loss of $1.77 million or a loss of 2 cents per share a year ago. The bottom line surpassed the Zacks Consensus Estimate by 8 cents.
For 2025, ADTRAN recorded a GAAP net loss of $41.57 million or a loss of 52 cents per share compared with a net loss of $456.91 million or a loss of $5.79 per share in 2024. Non-GAAP earnings for 2025 were $18.32 million or 23 cents per share against a net loss of $33.05 million or a loss of 42 cents per share in 2024.
ADTRAN Holdings, Inc. Price, Consensus and EPS Surprise
Quarterly total revenues jumped to $291.56 million from $242.85 million in the prior-year quarter, driven by diligent execution of operational plans and increasing demand for state-of-the-art solutions for cloud, fiber, AI and edge computing. ADTRAN witnessed growth across all major revenue categories and gained market share in key areas. The top line beat the consensus estimate of $280 million. For 2025, total revenues increased to $1.08 billion from $922.72 million in 2024.
Network Solutions contributed $242.65 million in revenues compared with $197 million in the prior-year quarter. Services and Support revenues were $48.91 million, up from $45.84 million in the year-earlier quarter.
Other Details
Non-GAAP gross profit surged to $123.92 million from $100.27 million in the year-ago quarter for respective margins of 42.5% and 41.3%. Non-GAAP operating income improved to $18.78 million from $5.79 million in the year-ago quarter for respective margins of 6.4% and 2.4%.
Cash Flow & Liquidity
In 2025, ADTRAN generated $129.77 million of cash from operating activities compared with $103.57 million a year ago. As of Dec. 31, 2025, the company had $95.7 million in cash and cash equivalents and $27 million of non-current lease obligations compared with respective tallies of $76 million and $25.9 million in the prior-year period.
Outlook
For the first quarter of 2026, ADTRAN expects revenues in the range of $275-$295 million. Non-GAAP operating margin is expected to be in the band of 4% to 8%.
AST SpaceMobile, Inc. (ASTS - Free Report) is scheduled to release fourth-quarter 2025 earnings on March 2. The Zacks Consensus Estimate for earnings is pegged at a loss of 18 cents per share, suggesting a decline of 50% from the year-ago reported figure.
Jabil Inc. (JBL - Free Report) is slated to release second-quarter fiscal 2026 earnings on March 19. The Zacks Consensus Estimate for earnings is pegged at $2.56 per share, indicating a 32% growth from the year-ago reported figure.
Jabil has a long-term earnings growth expectation of 14.8%. Jabil delivered an average earnings surprise of 8.2% in the last four reported quarters.
Oracle Corporation (ORCL - Free Report) is set to release third-quarter fiscal 2026 earnings on March 9. The Zacks Consensus Estimate for earnings is pegged at $1.70 per share, implying a growth of 15.6% from the year-ago reported figure.
Oracle has a long-term earnings growth expectation of 19%. Oracle delivered an average negative earnings surprise of 10.4% in the last four reported quarters.
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ADTRAN Beats Q4 Earnings Estimates on Healthy Revenue Growth
Key Takeaways
ADTRAN Holdings, Inc. (ADTN - Free Report) reported strong fourth-quarter 2025 results, with the top and bottom lines surpassing the respective Zacks Consensus Estimate.
The company recorded solid revenue growth year over year, driven by robust demand trends in both segments. Management’s focus on cost optimization and enhancing its operating model to ensure higher long-term shareholder returns is positive. However, macroeconomic headwinds are worrisome.
Net Income
On a GAAP basis, net loss in the December quarter was $1.52 million or a loss of 2 cents per share compared with a net loss of $46.11 million or a loss of 58 cents per share in the prior-year quarter. The narrower loss was attributable to top-line growth.
Excluding non-recurring items, non-GAAP earnings for the reported quarter were $12.76 million or 16 cents per share against a net loss of $1.77 million or a loss of 2 cents per share a year ago. The bottom line surpassed the Zacks Consensus Estimate by 8 cents.
For 2025, ADTRAN recorded a GAAP net loss of $41.57 million or a loss of 52 cents per share compared with a net loss of $456.91 million or a loss of $5.79 per share in 2024. Non-GAAP earnings for 2025 were $18.32 million or 23 cents per share against a net loss of $33.05 million or a loss of 42 cents per share in 2024.
ADTRAN Holdings, Inc. Price, Consensus and EPS Surprise
ADTRAN Holdings, Inc. price-consensus-eps-surprise-chart | ADTRAN Holdings, Inc. Quote
Revenues
Quarterly total revenues jumped to $291.56 million from $242.85 million in the prior-year quarter, driven by diligent execution of operational plans and increasing demand for state-of-the-art solutions for cloud, fiber, AI and edge computing. ADTRAN witnessed growth across all major revenue categories and gained market share in key areas. The top line beat the consensus estimate of $280 million. For 2025, total revenues increased to $1.08 billion from $922.72 million in 2024.
Network Solutions contributed $242.65 million in revenues compared with $197 million in the prior-year quarter. Services and Support revenues were $48.91 million, up from $45.84 million in the year-earlier quarter.
Other Details
Non-GAAP gross profit surged to $123.92 million from $100.27 million in the year-ago quarter for respective margins of 42.5% and 41.3%. Non-GAAP operating income improved to $18.78 million from $5.79 million in the year-ago quarter for respective margins of 6.4% and 2.4%.
Cash Flow & Liquidity
In 2025, ADTRAN generated $129.77 million of cash from operating activities compared with $103.57 million a year ago. As of Dec. 31, 2025, the company had $95.7 million in cash and cash equivalents and $27 million of non-current lease obligations compared with respective tallies of $76 million and $25.9 million in the prior-year period.
Outlook
For the first quarter of 2026, ADTRAN expects revenues in the range of $275-$295 million. Non-GAAP operating margin is expected to be in the band of 4% to 8%.
Zacks Rank & Stock to Consider
ADTRAN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
AST SpaceMobile, Inc. (ASTS - Free Report) is scheduled to release fourth-quarter 2025 earnings on March 2. The Zacks Consensus Estimate for earnings is pegged at a loss of 18 cents per share, suggesting a decline of 50% from the year-ago reported figure.
Jabil Inc. (JBL - Free Report) is slated to release second-quarter fiscal 2026 earnings on March 19. The Zacks Consensus Estimate for earnings is pegged at $2.56 per share, indicating a 32% growth from the year-ago reported figure.
Jabil has a long-term earnings growth expectation of 14.8%. Jabil delivered an average earnings surprise of 8.2% in the last four reported quarters.
Oracle Corporation (ORCL - Free Report) is set to release third-quarter fiscal 2026 earnings on March 9. The Zacks Consensus Estimate for earnings is pegged at $1.70 per share, implying a growth of 15.6% from the year-ago reported figure.
Oracle has a long-term earnings growth expectation of 19%. Oracle delivered an average negative earnings surprise of 10.4% in the last four reported quarters.