Ribbon Communications (NASDAQ:RBBN) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Posted by Brenda Bartman on Oct 27th, 2026

Ribbon Communications (NASDAQ:RBBN – Get Free Report) released its quarterly earnings data on Tuesday. The communications equipment provider reported $0.07 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.03, Briefing.com reports. The business’s revenue for the quarter was up 1.7% compared to the same quarter last year. During the same period last year, the company posted $0.04 EPS.

Here are the key takeaways from Ribbon Communications’ conference call:

Third-quarter results improved substantially: Revenue rose 14% sequentially to $219 million, adjusted EBITDA more than doubled to $27 million, and non-GAAP EPS increased to $0.07. Management expects further sequential and year-over-year growth in the fourth quarter, forecasting revenue of $233 million–$247 million and adjusted EBITDA of $40 million–$47 million.
IP Optical Networks posted record momentum, with revenue up 17% sequentially and 5% year over year, a nine-month book-to-revenue ratio of 1.24, and new U.S. Tier 2 service-provider and utility customers. Management cited continued demand for fiber capacity, data-center connectivity, network modernization, and combined IP-routing and optical solutions.
Cloud and Edge growth is broadening: Verizon activity increased approximately 50% versus the first-half quarterly run rate, with further improvement expected in 2027, while government, defense, enterprise AI, Salesforce Agentforce, AWS, and the TNS partnership provide additional growth avenues.
Supply constraints and financial leverage remain risks. Management expects to be somewhat supply limited in the fourth quarter, potentially pushing $5 million–$10 million of customer demand into the following quarter; higher component and logistics costs are expected to add about $2 million per quarter, while net debt leverage stood at 4.4 times and third-quarter operating cash flow was negative $14 million.

Ribbon Communications Price Performance

Shares of Ribbon Communications stock traded up $0.06 during midday trading on Tuesday, reaching $1.40. 1,906,108 shares of the company’s stock traded hands. The stock has a 50 day moving average of $1.77 and a 200-day moving average of $2.26. Ribbon Communications has a 12 month low of $1.28 and a 12 month high of $3.55.

Wall Street Analyst Weigh In

A number of analysts recently commented on RBBN shares. Rosenblatt Securities reaffirmed a “neutral” rating and set a $2.20 price target (down from $3.50) on shares of Ribbon Communications in a research report on Tuesday, September 15th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Ribbon Communications in a research report on Friday, August 7th. CL King set a $3.30 price target on shares of Ribbon Communications in a report on Wednesday, July 29th. Finally, B. Riley Financial raised Ribbon Communications from a “neutral” rating to a “buy” rating and set a $3.30 price objective for the company in a report on Wednesday, July 29th. Four research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Ribbon Communications has a consensus rating of “Moderate Buy” and a consensus price target of $3.30.

Check Out Our Latest Analysis on Ribbon Communications

About Ribbon Communications

(Get Free Report)

Ribbon Communications Inc (NASDAQ: RBBN) provides communications software, networking solutions and related services for service providers, enterprises and government organizations. The company helps customers build, operate and secure voice, data and unified communications networks across cloud, IP and optical environments.

Ribbon’s offerings include session border controllers, voice and unified communications platforms, signaling and routing solutions, policy and analytics tools, and software designed to support cloud communications and 5G networks.