Adtran Holdings, a networking equipment manufacturer, saw its stock price decline following a revision to its second-quarter financial expectations. The company adjusted its preliminary revenue forecast to a range of $280.0 million to $282.0 million, representing a reduction from its prior guidance of $283.0 million to $303.0 million. The new range also fell short of analyst expectations, which had anticipated $293.4 million in quarterly revenue.
Management attributed the downward revision to two primary factors: a delay affecting a significant customer project and ongoing pressure from elevated component and freight costs. The margin guidance was similarly reduced, with preliminary non-GAAP operating margin now expected between 3.5% and 4.0%, down from the previous forecast of 5.0% to 9.0%. On a GAAP basis, the company projected operating margins between negative 3.2% and negative 4.0%.
Earnings per share expectations were also lowered. The company anticipated preliminary non-GAAP basic and diluted earnings per share between $0.03 and $0.05, while GAAP basic and diluted loss per share was forecast to range from $(0.12) to $(0.14). The company’s chief executive officer noted that results were directly impacted by the single customer project delay, combined with the challenging cost environment.
Looking forward, Adtran provided third-quarter guidance suggesting revenue between $275.0 million and $295.0 million. The company projected non-GAAP operating margin for that period between 1.5% and 5.5%, signaling that cost pressures may persist through the remainder of the year. Final second-quarter financial results are scheduled to be released after market close on August 3, 2026, with an associated earnings conference call planned for August 4. The company noted that the figures released were preliminary, unaudited, and subject to completion of its quarter-end reporting procedures.
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