Harmonic Marks Strong Q1 2026 Performance, Raises Full-Year Outlook

In a recent conference call, Harmonic reported a strong start to the year with robust financial results and significant progress in expanding its growth profile. As CEO Nimrod Ben-Natan highlighted during the call, Q1 marked a validation of the strategy outlined last quarter.

The company executed effectively across the business, driven by continued strength in rest-of-market demand. This momentum has given Harmonic improved visibility for the remainder of the year, leading to an increase in its full-year 2026 broadband revenue outlook.

Harmonic's progress extends beyond financial results, as the company is expanding its growth profile through a uniquely focused broadband strategy with multiple growth drivers. Key highlights from Q1 include:

A 43% year-over-year rise in broadband revenue to $121.7 million, driven largely by rest-of-market demand which represented 42% of this total.

Strong bookings during the quarter drove an 87% increase in backlog and deferred revenue year-over-year.

The company continued returning capital to shareholders through share repurchases, acquiring approximately 4.2 million shares for $43 million during Q1.

The pending sale of Harmonic's video business remains on track to close in the second quarter, positioning the company as a more focused broadband entity moving forward.

One key highlight from the first quarter was the acceleration of Harmonic's rest-of-market business. Year-over-year revenue growth exceeded the long-term growth target and demonstrated expanding global adoption of the Harmonic platform across a broader range of industry operators.

The company's deployed cOS base now includes 150 customers serving 45.7 million CPE devices. This expansion reflects leadership in the market with significant wins, including recent selections by Kbro and Vyve Broadband to drive fiber deeper into their networks.