Harmonic Inc. (NASDAQ: HLIT) shares jumped 20% to $14.40 in after-hours trading after the broadband technology company posted better-than-expected second-quarter 2026 results. The company reported net revenue of $173.0 million, surpassing the analyst estimate of $120.22 million by 11%. Non-GAAP earnings per share came in at $0.21, topping the estimated $0.16 by 31.3%.

Harmonic’s core continuing operations segment, Broadband, saw revenue grow 54% year over year to $133.5 million. This acceleration included 44% growth in Rest-of-Market customers. Nimrod Ben-Natan, President and CEO of Harmonic, stated that strong business momentum continued in the quarter with this accelerated growth.

Q2 2026 Financial Highlights

The following table summarises total company and Broadband segment results for Q2 2026 on both a GAAP and Non-GAAP basis (unaudited, in millions, except per share data).

Note: Broadband operating profit includes approximately $2.3 million of stranded costs associated with the Video divestiture for Q2 2026.

What the Numbers Show

The significant divergence between GAAP and Non-GAAP performance highlights the impact of the Video business divestiture. While total company GAAP net income per share was a loss of $(0.02), Non-GAAP net income per share stood at $0.24. This spread is largely driven by the one-time costs and accounting adjustments related to the sale of the Video business, which closed on June 16, 2026. The core Broadband segment, however, delivered robust profitability, with Non-GAAP operating profit reaching $31.3 million.

Broadband Segment Performance — Quarterly Comparison

The table below presents Broadband continuing operations key financial results across recent quarters (unaudited, in millions, except per share data).

Other Financial Information

The table below presents bookings, backlog, and cash metrics for the Broadband segment (unaudited, in millions).

Backlog and deferred revenue of $587.6 million as of quarter end represents an increase of 71% compared to $344.2 million in Q2 2025. Cash rose to $231.9 million at July 3, 2026, compared to $124.1 million at December 31, 2025, reflecting proceeds from the completed Video business divestiture.

Broadband Business Highlights

Key operational developments during Q2 2026 included:

• Commercially deployed the cOS™ solution with 161 customers, serving 48.2 million CPE devices, with ongoing expansion across all tier-1 accounts and new customer wins.
• Rest-of-Market bookings represented approximately 60% of total Q2 2026 bookings, reflecting progress in customer diversification.
• Achieved first SeaStar MDU deployment and secured multi-million dollar orders for the recently announced Pearl-1XL and Oyster+ fiber products.

Video Business Divestiture

On December 8, 2025, Harmonic entered into a Put Option Agreement to sell its Video business to Leone Media Inc. (d/b/a MediaKind) for a purchase price of $145 million in cash. On March 20, 2026, MediaKind and Harmonic executed the Asset Purchase Agreement. The transaction closed on June 16, 2026, with proceeds of $137.9 million paid at closing, subject to final post-closing adjustments. Proceeds from the divestiture include transaction costs of $3.8 million and cash retained in the business sold of $2.1 million. Following the divestiture, Harmonic operates as a pure-play broadband company with a single reportable segment: Broadband.

Financial Guidance for Continuing Operations — Broadband

Harmonic raised its full-year 2026 outlook following the strong Q2 2026 performance. The tables below present GAAP and Non-GAAP financial guidance for Q3 2026 and full-year 2026 (unaudited, in millions, except percentages and per share data).

Q3 2026 Guidance

Full-Year 2026 Guidance

Q3 2026 and FY 2026 GAAP operating profit guidance includes approximately $2.3 million and $10.0 million of stranded costs associated with the Video business divestiture, respectively. Diluted shares assumes a stock price of $12.95 (Q2 2026 average price). Components may not sum to total due to rounding.

Revenue by Geography and Customer

For Q2 2026, the Americas accounted for $120,603 thousand (91%) of Broadband net revenue, EMEA contributed $8,421 thousand (6%), and APAC contributed $4,438 thousand (3%). The top 2 customers (based on largest subscriber footprint) accounted for $84,053 thousand (63%) of Q2 2026 revenue, while Rest-of-Market contributed $49,409 thousand (37%).

Harmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Wednesday, August 12, 2026. A live webcast will be available on the Harmonic Investor Relations website, with a replay available after 5:00 p.m. PT on the same day.

Harmonic Inc (NASDAQ: HLIT) has issued updated financial guidance for the third quarter, projecting adjusted earnings per share (EPS) in the range of $0.15 to $0.19. This forecast exceeds the consensus analyst estimate of $0.14, signaling a positive deviation from market expectations. Additionally, the company anticipates sales between $125 million and $135 million, which is above the analyst estimate of $121.751 million.

The updated guidance replaces earlier projections that focused solely on GAAP EPS. The previous estimate suggested a GAAP EPS range of $0.10 to $0.14 against a $0.09 consensus. The new data provides a more comprehensive view of expected performance, incorporating both profitability and top-line growth metrics.

Financial Metrics Overview

The divergence between the guided ranges and analyst estimates highlights a shift in sentiment or operational performance expectations. With both the adjusted EPS and revenue figures sitting above consensus estimates, the data points to a quarter where Harmonic expects to outperform current market pricing and analyst models.

What the Numbers Show

The simultaneous beat in both adjusted EPS and revenue suggests broad-based operational strength rather than isolated cost-cutting measures. The upper bound of the adjusted EPS guidance implies a potential beat of approximately 36% over the consensus estimate, while the lower bound still represents an 8% upside. Similarly, the revenue guidance indicates confidence in demand, with even the conservative end of the sales range exceeding analyst projections by roughly $3.25 million.