Comcast and Constitution Communications nonetheless signify the majority of Harmonic’s broadband enterprise as each transfer forward with expansive community upgrades. Nevertheless, the provider can be seeing some decide up amongst different operators that fall exterior these high two – what Harmonic calls “rest-of-market” – as these service suppliers start to push forward with improve initiatives.
Harmonic mentioned two clients represented 58% of complete revenues from its broadband enterprise within the first quarter of 2026. Harmonic did not specify these two clients and the way a lot of that 58% they soaked up, however traditionally these clients have been Comcast and Constitution. Comcast is leaning on Harmonic’s digital cable modem termination system and nodes for a DOCSIS 4.0 community improve that now spans thousands and thousands of households. Constitution can be making progress on a multi-phased hybrid fiber/coax (HFC) community improve that may characteristic Harmonic’s vCMTS, which virtualizes varied CMTS features in software program on commercial-off-the-shelf (COTS) servers moderately than on purpose-built {hardware} chassis. Harmonic’s “cOS” platform, which types the idea of its vCMTS, has been tailored to help each HFC and fiber-to-the-premises (FTTP) networks.
Harmonic is beginning to see some momentum exterior the highest two, noting that its rest-of-market phase grew 78% year-over-year. That features comparatively latest wins with Taiwan’s KBRO, Vyve and Optimum Communications.
Harmonic additionally has notched “a few wins on fiber and DOCSIS in Europe,” Nimrod Ben-Natan, Harmonic’s president and CEO, mentioned on Monday’s Q1 earnings name.
He mentioned the acceleration of remainder of world exercise has centered on a mixture of strikes, together with DOCSIS 4.0 upgrades and the virtualization of each FTTP and HFC platforms.
Harmonic ended the interval with 150 cOS clients, up from 146 within the prior quarter. These deployments now serve about 45.7 million cable modems.
Want to discover ‘strategic M&A’
Harmonic’s broadband unit is rising amid the pending sale of its video enterprise unit to MediaKind for about $145 million. That deal, which is able to successfully flip Harmonic into extra of a pure-play broadband provider, is on monitor to shut within the second quarter of 2026.
As soon as that deal is closed, Harmonic will likely be a bit extra flush. Harmonic ended Q1 with about $109 million in money and $82 million of cash nonetheless undrawn from a credit score facility.
Ben-Natan mentioned Harmonic will proceed to put money into natural development and returns to shareholders, however added that the corporate can even discover “strategic M&A” that permits Harmonic to additional develop and diversify its broadband enterprise.
He did not elaborate a lot on the place Harmonic will search M&A alternatives, however famous that the corporate feels “pretty good” about its place in cable and DOCSIS. “It isn’t nearly bundling merchandise or firms. It is actually about creating one thing that may add worth to our clients and to the platform that we deliver to market,” he mentioned.
Harmonic is not alone on this considering. Vistance Networks (previously CommScope) and its HFC- and PON-focused Aurora Networks unit mentioned they’re going to even be on the hunt within the wake of a deal to promote the Ruckus unit to Belden for $1.84 billion.
That commentary signifies that the cable tech sector might quickly bear a brand new wave of consolidation. The DOCSIS market “continues to be fragmented with many small gamers,” Vistance CEO Chuck Treadway mentioned in late April. Vistance’s bigger clients have expressed a “need to work with gamers of scale … We are going to work with our bigger clients to outline that,” Treadway added.
Monetary snapshot
Harmonic posted Q1 2026 gross sales of $121.7 million, up 43% year-over-year, and effectively forward of analyst expectations of $102.2 million.
Harmonic expects second quarter revenues from its broadband enterprise to be within the vary of $115 million to $125 million. Harmonic additionally raised its full-year 2026 steerage to $475 million to $495 million from $440 million to $480 million, citing differed revenues and record-breaking backlog.
In a analysis be aware, Raymond James analyst Simon Leopold mentioned he feels that Harmonic’s elevated full-year steerage is “conservative,” but additionally thinks it is comprehensible given cable’s historic lumpy spending patterns alongside provide chain dangers that many suppliers are at present dealing with.
