HLIT
Bye-bye video, hello broadband
Harmonic is basically saying: we’re not that old cable box company anymore. After divesting its Video business, the company is now leaning hard into Broadband, and Wall Street responded with a Strong Buy upgrade. Investors usually like a cleaner story, and this one comes with a stronger growth script, too.
The numbers got people’s attention
Q2-2026 broadband revenue surged 54% year over year, which is the kind of growth that makes a spreadsheet do a double take. Even better, backlog climbed 71% to $587.6 million, suggesting demand isn’t just healthy — it’s showing up with a reserve tank.
- Broadband momentum is doing the heavy lifting
- The video divestiture removes an underperforming drag
- A stronger balance sheet gives the company more room to breathe
Management is talking bigger now
Harmonic also lifted FY-2026 revenue guidance to $505 million to $525 million. That’s not just “we feel okay” energy — that’s more like “we think the runway got longer.” Add in significant EPS growth, and you’ve got a story that’s starting to look less like a turnaround and more like an actual re-rate candidate.
Big picture: when a company sheds a slow-growing side quest and the remaining business starts sprinting, investors tend to pay attention. Harmonic just gave them a reason to do exactly that.