Key points
- Harmonic (HLIT) did a double beat: Broadband revenue rose 54% to $133.5 million and non-GAAP EPS of $0.21 beat the $0.16 estimate.
- It raised full-year 2026 guidance to $505 million to $525 million in revenue and $0.67 to $0.75 in non-GAAP EPS.
- This was its first quarter as a pure broadband company after selling the Video business to MediaKind on June 16 for $137.9 million in cash.
- A one-time charge on that sale drove a total-company net loss of $0.02 a share, but HLIT still rose about 18% after hours.
On Wednesday, August 12, Harmonic (HLIT) reported second-quarter results, its first report since the company finished selling off its Video business in June. The broadband arm that's left beat on both lines, landing above the guidance Harmonic had set for the quarter back in May and above what Wall Street expected.
The stock came into the print beaten down. We put HLIT on our bullish watch list in mid-July, and it fell about 15% that week in a broad chip selloff, then spent the summer well under its 52-week high of $17.68 from late May. Wednesday was a bit different. HLIT closed the regular session at $12.00, up 4.8%, then traded near $14.10 in after-hours trading, up about 18% from the close, once the numbers were out.
The quarter by the numbers
Harmonic now reports as a single segment, so the headline revenue figure is the whole business. Rest-of-Market, the company's term for revenue outside its single largest customer, grew 44%.
| Q2 2026 (continuing operations) | Result |
|---|---|
| Broadband revenue | $133.5M, up 54% (guided $115M to $125M) |
| Non-GAAP EPS | $0.21 (guided $0.15 to $0.19, est. $0.16) |
| GAAP EPS | $0.16 |
| Non-GAAP gross margin | 53.0% |
| Non-GAAP operating income | $31.3M |
| Backlog and deferred revenue | $587.6M (up 71%) |
| Cash and equivalents | $231.9M |
Continuing operations were solidly profitable. GAAP operating income was $23.6 million, against a $0.8 million loss a year ago, and non-GAAP operating income was $31.3 million.
Harmonic raised its outlook again
The bigger news for the stock was guidance. Harmonic lifted its full-year 2026 targets across the board, the second raise this year, and set a range for the third quarter.
| Guidance | Prior (May) | New |
|---|---|---|
| FY2026 Broadband revenue | $475M to $495M | $505M to $525M |
| FY2026 non-GAAP EPS | $0.57 to $0.67 | $0.67 to $0.75 |
| FY2026 GAAP EPS | $0.36 to $0.45 | $0.44 to $0.53 |
| Q3 2026 revenue | not given | $125M to $135M |
| Q3 2026 non-GAAP EPS | not given | $0.15 to $0.19 |
Chief executive Nimrod Ben-Natan tied the raise to bookings. "Our strong business momentum continued in the second quarter, with Broadband revenue growth accelerating to 54% year over year, including 44% growth in Rest-of-Market," he said. "Equally important, it was another quarter of strong bookings, led by Rest-of-Market, enabling us to once again raise our full-year 2026 outlook. With the sale of the Video business now complete, we have the capital and focus to further accelerate our broadband growth."
The order book backs him up. Backlog and deferred revenue reached $587.6 million at quarter end, up 71% from $344.2 million a year ago, which is the pipeline that turns into future revenue.
The first quarter without Video
The bottom line needs a second look. On paper, Harmonic lost money, posting a total-company GAAP loss of $0.02 a share. That loss came entirely from discontinued operations, a $19.4 million charge on the Video business Harmonic sold to MediaKind and no longer runs.
The Video sale closed on June 16 for $137.9 million in cash. That pushed Harmonic's cash to $231.9 million at quarter-end, from $124.1 million at the end of 2025.
What it's focused on now is cOS, its software broadband platform. Harmonic said cOS is deployed commercially at 161 customers and serving 48.2 million broadband devices. Those deployments drive the 54% growth, and with video gone, they are the metric to watch from here.
Harmonic reported into a strong stretch for networking-hardware earnings. Applied Optoelectronics (AAOI) did its own double beat and guided up 42% a week earlier.
For Harmonic, the comparisons get harder from here, so the number to watch next quarter is whether broadband growth stays anywhere near 54%.
Sources
- Harmonic Inc., "Harmonic Announces Second Quarter 2026 Results," August 12, 2026, for the Q2 revenue, margins, EPS, backlog, cash, cOS metrics, the Nimrod Ben-Natan quote, and the full-year and third-quarter guidance
- Harmonic Inc., "Harmonic Announces First Quarter 2026 Results," May 11, 2026, for the prior full-year and second-quarter guidance ranges
- Harmonic Inc., "Harmonic Completes Divestiture of Video Business to MediaKind," June 17, 2026, for the sale terms and closing date
- Prices are the August 12, 2026 regular-session close against the August 11 close, with the HLIT after-hours quote taken Wednesday evening, August 12
