Ribbon Communications Q3 revenue rises sequentially on IP Optical Networks
RBBN•Ribbon Communications’ Q3 revenue rose 14% sequentially to $219 million, below analyst expectations of $221.81 million, while adjusted EPS of $0.07 beat the $0.04 estimate. The company projects Q4 2026 revenue of $233 million to $247 million.
1. Quarterly results
Ribbon Communications reported Q3 revenue of $219 million, up 14% sequentially but below the $221.81 million analyst estimate. Adjusted EPS was $0.07, beating the $0.04 estimate; adjusted EBITDA of $26.77 million missed the $28.69 million estimate.
2. Segment performance and outlook
IP Optical Networks revenue rose 17% quarter over quarter, driven by new wins in North America and two new U.S. Tier 2 ISP customers. Cloud and Edge revenue increased 11%, led by U.S. Tier 1 network modernization and higher sales to its largest customer. Ribbon projects Q4 2026 revenue of $233 million to $247 million, non-GAAP gross margin of 53.5% to 54.5%, and adjusted EBITDA of $40 million to $47 million.
