ADTRAN Beats Q4 Earnings Estimates on Healthy Revenue Growth

ADTRAN Holdings, Inc. ADTN reported strong fourth-quarter 2025 results, with the top and bottom lines surpassing the respective Zacks Consensus Estimate.

The company recorded solid revenue growth year over year, driven by robust demand trends in both segments. Management’s focus on cost optimization and enhancing its operating model to ensure higher long-term shareholder returns is positive. However, macroeconomic headwinds are worrisome.

Net Income

On a GAAP basis, net loss in the December quarter was $1.52 million or a loss of 2 cents per share compared with a net loss of $46.11 million or a loss of 58 cents per share in the prior-year quarter. The narrower loss was attributable to top-line growth.

Excluding non-recurring items, non-GAAP earnings for the reported quarter were $12.76 million or 16 cents per share against a net loss of $1.77 million or a loss of 2 cents per share a year ago. The bottom line surpassed the Zacks Consensus Estimate by 8 cents.

For 2025, ADTRAN recorded a GAAP net loss of $41.57 million or a loss of 52 cents per share compared with a net loss of $456.91 million or a loss of $5.79 per share in 2024. Non-GAAP earnings for 2025 were $18.32 million or 23 cents per share against a net loss of $33.05 million or a loss of 42 cents per share in 2024.

ADTRAN Holdings, Inc. Price, Consensus and EPS Surprise

ADTRAN Holdings, Inc. price-consensus-eps-surprise-chart | ADTRAN Holdings, Inc. Quote

Revenues

Quarterly total revenues jumped to $291.56 million from $242.85 million in the prior-year quarter, driven by diligent execution of operational plans and increasing demand for state-of-the-art solutions for cloud, fiber, AI and edge computing. ADTRAN witnessed growth across all major revenue categories and gained market share in key areas. The top line beat the consensus estimate of $280 million. For 2025, total revenues increased to $1.08 billion from $922.72 million in 2024.

Network Solutions contributed $242.65 million in revenues compared with $197 million in the prior-year quarter. Services and Support revenues were $48.91 million, up from $45.84 million in the year-earlier quarter.

Other Details

Non-GAAP gross profit surged to $123.92 million from $100.27 million in the year-ago quarter for respective margins of 42.5% and 41.3%. Non-GAAP operating income improved to $18.78 million from $5.79 million in the year-ago quarter for respective margins of 6.4% and 2.4%.

Cash Flow & Liquidity

In 2025, ADTRAN generated $129.77 million of cash from operating activities compared with $103.57 million a year ago. As of Dec. 31, 2025, the company had $95.7 million in cash and cash equivalents and $27 million of non-current lease obligations compared with respective tallies of $76 million and $25.9 million in the prior-year period.

Outlook

For the first quarter of 2026, ADTRAN expects revenues in the range of $275-$295 million. Non-GAAP operating margin is expected to be in the band of 4% to 8%.

Zacks Rank & Stock to Consider

ADTRAN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

AST SpaceMobile, Inc. ASTS is scheduled to release fourth-quarter 2025 earnings on March 2. The Zacks Consensus Estimate for earnings is pegged at a loss of 18 cents per share, suggesting a decline of 50% from the year-ago reported figure.

Jabil Inc. JBL is slated to release second-quarter fiscal 2026 earnings on March 19. The Zacks Consensus Estimate for earnings is pegged at $2.56 per share, indicating a 32% growth from the year-ago reported figure.

Jabil has a long-term earnings growth expectation of 14.8%. Jabil delivered an average earnings surprise of 8.2% in the last four reported quarters.

Oracle Corporation ORCL is set to release third-quarter fiscal 2026 earnings on March 9. The Zacks Consensus Estimate for earnings is pegged at $1.70 per share, implying a growth of 15.6% from the year-ago reported figure.

Oracle has a long-term earnings growth expectation of 19%. Oracle delivered an average negative earnings surprise of 10.4% in the last four reported quarters.

Just Released: Zacks Top 10 Stocks for 2026

Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.

From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.

Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.

See New Top 10 Stocks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ADTRAN Holdings, Inc. (ADTN): Free Stock Analysis Report

Oracle Corporation (ORCL): Free Stock Analysis Report

Jabil, Inc. (JBL): Free Stock Analysis Report

AST SpaceMobile, Inc. (ASTS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research