Harmonic’s Broadband backlog and deferred revenue reached approximately $587.6 million at the end of the second quarter of 2026, up 71% year-over-year and exceeding the company’s entire full-year Broadband revenue target of $505 million to $525 million.
The comparison highlights the scale of forward demand entering the second half of the year, although backlog and deferred revenue are not necessarily expected to convert into revenue entirely during 2026. A portion can be recognized over future periods as products and services are delivered.
Backlog and deferred revenue increased from $344.2 million a year earlier and was also slightly above the $582.1 million reported at the end of Q1. Quarterly bookings reached $144.3 million compared with $115.9 million in Q1 and $131 million a year earlier.
The increasing order base accompanied a 54% year-over-year increase in Broadband revenue to $133.5 million from $86.9 million. Revenue also increased sequentially from $121.7 million in the first quarter.
Harmonic’s profitability improved substantially alongside the top-line growth. Broadband GAAP operating profit reached $23.6 million compared with an operating loss of $0.8 million a year earlier. Non-GAAP operating profit increased to $31.3 million from $7 million.
Broadband GAAP EPS improved to $0.16 from a $0.01 loss per share, while non-GAAP EPS increased to $0.21 from $0.03.
An important part of Harmonic’s growth strategy involves reducing its reliance on its largest customers. Rest-of-Market bookings represented approximately 60% of total Q2 bookings, while Rest-of-Market revenue increased 44% year-over-year. Management said the mix demonstrates meaningful progress in customer diversification.
Harmonic’s cOS virtualized broadband platform has now been commercially deployed with 161 customers and serves approximately 48.2 million customer-premises equipment devices. The company said deployments continue to expand across all of its tier-one accounts while it adds new customers.
The company also achieved its first deployment of the SeaStar MDU product and secured multimillion-dollar orders for the recently introduced Pearl-1XL and Oyster+ fiber products, broadening its portfolio beyond its existing DOCSIS deployments.
Harmonic increased its full-year Broadband outlook following the strong bookings performance. The company now expects 2026 revenue of $505 million to $525 million, GAAP gross margin of 50.9% to 51.8%, GAAP operating profit of $74 million to $86 million, and GAAP EPS of $0.44 to $0.53.
On a non-GAAP basis, Harmonic expects gross margin of 51% to 52%, operating profit of $99 million to $111 million, and EPS of $0.67 to $0.75.
The outlook follows a major strategic transformation completed during Q2. Harmonic sold its Video business to MediaKind in June and received approximately $137.9 million at closing, leaving Harmonic as a pure-play Broadband company with one reportable business segment.
The transaction also strengthened the balance sheet. Cash and cash equivalents increased to $231.9 million at quarter-end from $124.1 million at the end of 2025, giving Harmonic additional capital to invest in the Broadband business.
KEY QUOTES:
“Our strong business momentum continued in the second quarter, with Broadband revenue growth accelerating to 54% year over year, including 44% growth in Rest-of-Market.”
“Equally important, it was another quarter of strong bookings, led by Rest-of-Market, enabling us to once again raise our full-year 2026 outlook. With the sale of the Video business now complete, we have the capital and focus to further accelerate our broadband growth.”
Nimrod Ben-Natan, President and Chief Executive Officer of Harmonic
