As we communicated in our preliminary results press release, a project delay from a single customer, combined with unfavorable impacts from product and customer mix, caused our results to fall short of our guidance. This customer remains committed to its deployment objectives, and we view this as a timing adjustment rather than a change in demand. Overall customer demand remained strong during the quarter, a challenging supply environment limited our ability to fulfill that demand, constraining shipments and resulting in an unfavorable mix. To be clear, absent these incremental supply constraints, we would have met our original revenue guidance.

Against this backdrop, ADTRAN delivered second quarter revenue of $281.1 million, consistent with our preliminary results, and non-GAAP operating margin of approximately 3.8%, also in line with our pre-announcement. Revenue from enterprise, government, and cloud customers grew a strong 47% year-over-year and 19% sequentially, accounting for 25% of total company revenue in the quarter. Within this customer segment, revenue from hyperscalers increased 97% year-over-year, underscoring the strength of our diversification strategy. As we broaden our customer adoption and expand our solutions footprint, we believe we are well positioned to benefit from these longer-term growth trends.

Secure connectivity is another area where we continue to drive increasing customer demand. Within our service provider segment, we continue to unlock opportunities driven by vendor replacement programs, network modernization initiatives, broadband expansion efforts, and increasing security requirements. Optical networking revenue was $109.7 million, up 22% year-over-year and 13% sequentially. Access & Aggregation Solutions revenue was $86.9 million and was directly impacted by the customer timing dynamics I discussed earlier.

More on ADTRAN Holdings, Inc.

Reported 2026-08-04 · figures from the ADTRAN Holdings, Inc. Q2 2026 earnings call.

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