Harmonic Raises 2026 Revenue Outlook After Record Rest-of-Market Mix

The Tip Desk · November 10, 2026 · 3 min read

Continuing-operations revenue reached $148.8 million, 64% above a year earlier, and the company lifted full-year 2026 guidance to $545 million–$555 million.

Harmonic Inc. (HLIT) reported continuing-operations net revenue of $148.8 million for the third quarter ended October 2, 2026, a 64% increase from a year earlier that accelerated from 54% growth in the second quarter and exceeded the high end of its prior outlook.

President and chief executive officer Nimrod Ben-Natan said the company’s accelerating momentum produced a breakout quarter driven mainly by Rest-of-Market growth. Rest-of-Market revenue more than doubled year over year to $68.7 million, a record 46% of the total, after 44% growth in the prior quarter. Top-two-customer revenue, based on largest subscriber footprint, fell to $80.1 million, or 54% of the total, from 63% in the second quarter.

GAAP operating profit from continuing operations increased to $26.2 million from $4.0 million a year earlier, including about $1.5 million of stranded costs tied to the Video-business sale. Non-GAAP operating profit was $33.0 million. GAAP diluted net income from continuing operations was $0.16 a share, versus a $0.00 loss a year earlier; non-GAAP earnings were $0.23 a share. GAAP gross margin was 51.8% of revenue.

Appliance and integration revenue rose to $137.2 million from $76.2 million a year earlier. SaaS and service revenue declined to $11.7 million. Americas revenue was $133.1 million, or 90% of the total. APAC revenue rose to $4.8 million from $0.7 million a year earlier.

Bookings for the quarter were $105.9 million. Backlog and deferred revenue declined to $534.0 million from $587.6 million at the end of the second quarter, still 58% above $338.0 million a year earlier. Rest-of-Market bookings represented over 60% of total third-quarter bookings.

Cash and cash equivalents were $142.8 million at October 2, 2026, down from $231.9 million at July 3, 2026, after a $75 million repayment on the revolving credit facility, leaving $160 million available. The company had completed the sale of its Video business to MediaKind on June 16, 2026, receiving $137.9 million at closing, and now operates as a pure-play broadband company with a single reportable segment. Post-closing adjustments are expected to finish in the first quarter of 2027.

The cOS virtualized broadband platform was commercially deployed with 167 customers serving 52.6 million CPE devices, up from 161 customers and 48.2 million devices in the second quarter. In September the company launched cOS SensAI as a recurring-revenue service, unveiled Recon in collaboration with Comcast, and acquired a vendor-agnostic fiber management and provisioning platform company.

Harmonic raised full-year 2026 continuing-operations revenue guidance to $545 million–$555 million from $505 million–$525 million. Fourth-quarter GAAP revenue is guided at $141 million–$151 million, with GAAP operating profit of $22 million–$28 million and non-GAAP operating profit of $28 million–$34 million. Full-year GAAP operating profit is guided at $93 million–$99 million and non-GAAP operating profit at $118 million–$124 million. Guidance includes about $7.6 million of stranded costs for the full year.