ADTRAN Shares Tumble As Preliminary Results Miss Guidance and Estimates

ADTRAN Holdings, Inc. (NASDAQ: ADTN ) shares fell more than 16% during Wednesday’s session after the company’s preliminary second-quarter revenue and margins missed the low end of its previously issued guidance.

The decline outpaced a modest 0.2% drop in S&P 500 futures.

Revenue Falls Short ADTRAN expects preliminary second-quarter revenue of $280 million to $282 million, below the $283 million to $303 million prior guidance range and the $293.39 million analyst estimate.

The preliminary range trails the consensus estimate by approximately $11.39 million to $13.39 million.

Non-GAAP operating margin is expected between 3.5% and 4.0%, below the company’s previous guidance of 5.0% to 9.0%.

GAAP operating margin is projected between negative 3.2% and negative 4.0%.

The company expects a GAAP loss of 12 cents to 14 cents per share and non-GAAP earnings of 3 cents to 5 cents per share.

The non-GAAP range falls well below the 12-cent analyst estimate and compares with break-even earnings a year earlier.

Customer Delay Weighs CEO Tom Stanton attributed the weaker results to a project delay involving one customer and elevated component and freight costs. "Our preliminary second quarter results were directly impacted by a project delay from a single customer.

In addition, margins reflected the current elevated component and freight cost environment," Stanton said.

Stanton said the near-term pressures do not alter ADTRAN’s underlying business, customer engagement or strategic priorities.

He also pointed to continued strength in optical networking, customer opportunities and an expanding innovation pipeline.

Third-Quarter Outlook For the third quarter, ADTRAN expects revenue of $275 million to $295 million, below the $300.31 million analyst estimate.

The midpoint of the range, $285 million, is about $15.31 million below consensus.

ADTRAN also expects a non-GAAP operating margin of 1.5% to 5.5%.

ADTRAN is scheduled to announce its full second-quarter results on August 3, 2026.

ADTN Technical Outlook: Momentum Weakens Below Key Averages ADTRAN trades 19.8% below its 20-day SMA of $12.96, 29% below its 50-day SMA of $14.65 and 9.8% below its 200-day SMA of $11.54.

The setup points to broad technical weakness, with the stock trading below all three key moving averages.

The $10.50 level is the first resistance test for any rebound, while $9.00 is the key downside support if selling pressure continues.

Momentum remains bearish.

The MACD is below its signal line and the histogram is negative, indicating weakening buying pressure.

Although the stock formed a golden cross in February, its move back below the 200-day average has reduced the strength of that signal.

Analyst Consensus & Recent Actions The stock carries a Buy rating with an average price forecast of $18.67.

Recent analyst moves include: Rosenblatt: Buy (Raises Target to $20.00) (May 6) Needham: Buy (Maintains Target to $18.00) (May 6) Evercore ISI Group: Initiated with Outperform (Target $18.00) (April 14) ADTN Stock Slides Premarket After Preliminary Results ADTN Stock Price Activity: Adtran Holdings shares were down 16.31% at $10.16 at the time of publication on Wednesday, according to Pro data.

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