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    Harmonic (HLIT) Is Down 10.4% After Selling Video Unit And Raising Broadband Guidance Has The Bull Case Changed?

    Simply Wall St·08/22/2026 18:18:35
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    • In August 2026, Harmonic Inc. reported past second-quarter results showing revenue rising to US$133.46 million while swinging from a prior-year profit to a net loss, and confirmed it had completed the sale of its Video business to focus on broadband operations.
    • At the same time, Harmonic raised its full-year 2026 broadband revenue and earnings guidance, highlighting confidence in its pure-play broadband model backed by a larger backlog and demand for fiber and its broader broadband portfolio.
    • We’ll now examine how Harmonic’s sharpened focus on broadband, alongside its raised full-year guidance, reshapes the company’s investment narrative.

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    Harmonic Investment Narrative Recap

    To own Harmonic today, you need to believe its shift to a pure-play broadband company can convert strong demand for fiber and virtualized access into durable earnings power. The key near term catalyst is execution against its expanded broadband backlog and raised 2026 guidance, while the biggest risk is that customer concentration and any operational hiccups slow that conversion. The delayed 10-Q filing is a watchpoint but does not yet appear to fundamentally alter this core thesis.

    The most relevant development is Harmonic’s decision to raise full year 2026 broadband revenue guidance to US$505 million to US$525 million, alongside higher operating profit and net income targets. This sharper, broadband-only outlook directly ties to the catalyst of large scale fiber and DOCSIS upgrades converting into revenue, while also testing whether the company can manage margin pressures and reporting complexity as it exits Video and runs as a focused broadband business.

    Yet the raised guidance and broadband focus also increase the importance of one issue investors should be aware of, especially if the delayed 10 Q hints at...

    Read the full narrative on Harmonic (it's free!)

    Harmonic's narrative projects $609.8 million revenue and $92.1 million earnings by 2029. This requires 15.3% yearly revenue growth and about an $83.6 million earnings increase from $8.5 million today.

    Uncover how Harmonic's forecasts yield a $15.29 fair value, a 23% upside to its current price.

    Exploring Other Perspectives

    HLIT 1-Year Stock Price Chart
    HLIT 1-Year Stock Price Chart

    Some of the most optimistic analysts were already modeling revenue of about US$580 million and earnings near US$69 million by 2029, so you might now see their upbeat view on regulatory and broadband tailwinds as even more aggressive or potentially more achievable, depending on how you weigh this latest shift to pure play broadband.

    Explore 3 other fair value estimates on Harmonic - why the stock might be worth just $14.26!

    The Verdict Is Yours

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.