Overview

• Broadband solutions provider's Q1 revenue rose sharply, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company raised full-year broadband revenue outlook and repurchased 4.2 mln shares in Q1

Outlook

• Harmonic raises 2026 Broadband revenue outlook to $475 mln-$495 mln

• Company expects Q2 net revenue of $115 mln-$125 mln and GAAP EPS of $0.10-$0.14

• Harmonic expects sale of Video business to close in Q2 2026

Result Drivers

• BROADBAND GROWTH - Q1 revenue rose 43% year over year, driven by strong demand for broadband solutions, per CEO Nimrod Ben-Natan

• CUSTOMER DIVERSIFICATION - Rest-of-Market bookings exceeded 50% of total Q1 bookings, reflecting progress in diversifying the customer base

• PRODUCT DEPLOYMENTS - Ongoing expansion of cOS solution and new DOCSIS 4.0 and fiber product wins supported revenue growth

Company press release: ID:nPnbFsVx2a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$171.80 mln	$102.21 mln (5 Analysts)
Q1 Adjusted EPS	Beat	$0.21	$0.12 (6 Analysts)
Q1 EPS		$0.07

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy."

• Wall Street's median 12-month price target for Harmonic Inc is $13.00, about 1.5% above its May 8 closing price of $12.81

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 13 three months ago

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