ADTRAN Holdings, Inc. (NASDAQ: ADTN) reported fourth‑quarter and full‑year 2025 results that exceeded analyst expectations, with revenue of $291.6 million, up 20.1% from $242.9 million in Q4 2024. The year‑over‑year growth reflects a 46.7% increase in the Optical Networking segment and solid performance in Network Solutions and Services & Support, which together generated $291.6 million in revenue for the quarter.
Non‑GAAP earnings per share rose to $0.16, a $0.08 beat over the consensus estimate of $0.08. The earnings gain was driven by a 6.4% expansion in non‑GAAP operating margin, up from 2.4% in the prior year, as the company’s mix shifted toward higher‑margin optical products and disciplined cost management offset the impact of higher raw‑material costs.
Management highlighted that the optical segment’s 46.7% year‑over‑year growth was a key driver of the overall revenue increase. Tom Stanton, Chairman and CEO, said, “We delivered a strong fourth quarter, with revenue above our outlook and growth across all three revenue categories. Performance reflected solid execution and sustained fiber investment across our core markets.”
For the first quarter of 2026, ADTRAN guided revenue of $275.0 million to $295.0 million and a non‑GAAP operating margin of 4.0% to 8.0%. The guidance signals confidence in continued demand for fiber deployments, cloud‑driven networking, and high‑risk vendor replacement initiatives in Europe, while maintaining a focus on margin expansion and cash generation.
The results and guidance reinforce ADTRAN’s strategic emphasis on high‑margin optical solutions and operational discipline. The company’s ability to grow revenue and margins in a competitive market suggests strong execution and positions it well for future growth, despite the GAAP net loss reported for the quarter.
The market reacted positively to the earnings announcement, reflecting investor confidence in the company’s growth trajectory and margin improvement.
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