Bandwidth (NASDAQ:BAND) Issues FY 2026 Earnings Guidance

Posted by Stanley Muller on Jul 29th, 2026

Bandwidth (NASDAQ:BAND – Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 1.710-1.790 for the period, compared to the consensus estimate of 1.550. The company issued revenue guidance of $900.0 million-$910.0 million, compared to the consensus revenue estimate of $891.0 million. Bandwidth also updated its Q3 2026 guidance to 0.450-0.490 EPS.

Bandwidth Stock Performance

Shares of Bandwidth stock traded down $15.23 during midday trading on Wednesday, hitting $37.02. The company had a trading volume of 2,683,902 shares, compared to its average volume of 856,348. The business’s 50 day simple moving average is $62.60 and its two-hundred day simple moving average is $35.34. The stock has a market cap of $1.19 billion, a PE ratio of -97.45 and a beta of 2.92. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.94 and a quick ratio of 0.94. Bandwidth has a 1-year low of $12.50 and a 1-year high of $79.08.

Bandwidth (NASDAQ:BAND – Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.36 by $0.01. Bandwidth had a negative net margin of 0.64% and a positive return on equity of 1.47%. The firm had revenue of $219.90 million during the quarter, compared to analysts’ expectations of $217.04 million. The firm’s revenue was up 22.2% on a year-over-year basis. Bandwidth has set its Q3 2026 guidance at 0.450-0.490 EPS and its FY 2026 guidance at 1.710-1.790 EPS. As a group, equities analysts predict that Bandwidth will post 0.55 EPS for the current fiscal year.

Analyst Ratings Changes

Several brokerages recently issued reports on BAND. Citizens Jmp boosted their price target on Bandwidth from $70.00 to $86.00 and gave the company a “market outperform” rating in a research note on Monday, July 20th. Needham & Company LLC upped their target price on shares of Bandwidth from $45.00 to $60.00 and gave the company a “buy” rating in a research note on Thursday, May 14th. Citigroup reissued a “market outperform” rating on shares of Bandwidth in a report on Monday, July 20th. Zacks Research cut shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Finally, B. Riley Financial raised their price objective on shares of Bandwidth from $55.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $61.75.

Get Our Latest Stock Analysis on BAND

Insider Buying and Selling at Bandwidth

In other news, insider Kade Ross sold 1,588 shares of the company’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $58.85, for a total value of $93,453.80. Following the sale, the insider directly owned 47,996 shares of the company’s stock, valued at approximately $2,824,564.60. This represents a 3.20% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Daryl E. Raiford sold 4,228 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $64.15, for a total value of $271,226.20. Following the transaction, the chief financial officer directly owned 42,919 shares in the company, valued at approximately $2,753,253.85. This trade represents a 8.97% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 127,269 shares of company stock valued at $7,192,523 over the last quarter. 5.26% of the stock is owned by corporate insiders.

Bandwidth News Summary

Here are the key news stories impacting Bandwidth this week:

Positive Sentiment: Second-quarter revenue reached approximately $220 million, up 22% year over year, while adjusted EBITDA increased 27% to $28 million. The company also reported a record 18% adjusted EBITDA margin. Bandwidth Announces Second Quarter 2026 Financial Results
Positive Sentiment: Bandwidth earned $0.37 per share, exceeding the $0.36 consensus estimate, and revenue of $219.9 million surpassed expectations of $217.0 million. Bandwidth Q2 Earnings and Revenues Surpass Estimates
Positive Sentiment: Management raised third-quarter guidance to $231 million-$235 million in revenue and $0.45-$0.49 in EPS, above analyst estimates of $223.6 million and $0.40, respectively. Full-year 2026 guidance also increased to $900 million-$910 million in revenue and $1.71-$1.79 in EPS, above consensus. Bandwidth Q2 Earnings Top Estimates on Strong AI-Driven Demand
Positive Sentiment: Demand for voice-AI communications, enterprise modernization, and strategic customer wins of more than $1 million are supporting the company’s growth outlook.
Neutral Sentiment: The quarterly EPS result declined slightly from $0.38 a year earlier, despite the company’s strong revenue growth and higher guidance.
Negative Sentiment: Shares decreased sharply on unusually heavy trading volume, suggesting that investors may have been selling into the earnings strength or viewing the results as insufficient relative to elevated expectations. Bandwidth also remains marginally unprofitable, with a negative net margin, and its high beta indicates substantial volatility.

Institutional Trading of Bandwidth

Hedge funds have recently added to or reduced their stakes in the company. Invesco Ltd. lifted its position in Bandwidth by 6.7% during the fourth quarter. Invesco Ltd. now owns 66,988 shares of the company’s stock worth $1,035,000 after purchasing an additional 4,223 shares during the period. Mercer Global Advisors Inc. ADV boosted its position in shares of Bandwidth by 90.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 102,040 shares of the company’s stock worth $1,577,000 after acquiring an additional 48,359 shares in the last quarter. Empowered Funds LLC increased its stake in Bandwidth by 44.5% in the fourth quarter. Empowered Funds LLC now owns 140,471 shares of the company’s stock valued at $2,170,000 after acquiring an additional 43,246 shares during the last quarter. Bridgeway Capital Management LLC increased its stake in Bandwidth by 46.4% in the fourth quarter. Bridgeway Capital Management LLC now owns 215,471 shares of the company’s stock valued at $3,329,000 after acquiring an additional 68,246 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in Bandwidth by 8.1% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 29,896 shares of the company’s stock worth $462,000 after purchasing an additional 2,250 shares during the last quarter. 68.53% of the stock is owned by institutional investors and hedge funds.

Bandwidth Company Profile

(Get Free Report)

Bandwidth Inc operates a cloud-based communications platform that provides voice, messaging and emergency services APIs for enterprises and developers. Through its proprietary network and software-as-a-service model, the company enables customers to integrate programmable voice calls, text messaging and 9-1-1 routing into their applications. Bandwidth’s solutions aim to reduce complexity and improve reliability in mission-critical communications, serving industries such as healthcare, financial services, on-demand mobility and customer engagement.

Founded in 1999 in Raleigh, North Carolina by co-founders David Morken and Henry Kaestner, Bandwidth initially focused on voice-over-IP infrastructure before evolving into a full communications API provider.