Harmonic Inc. (HLIT) AI Stock Analysis

Harmonic Inc. specializes in video delivery software, products, systems, and services globally, operating across two primary segments: Video and Cable Access. The Video segment offers video processing, production, and playout solutions, including encoders, video servers, edge processors, and Software-as-a-Service tools for live streaming, video-on-demand, and cloud-based DVR services. The Cable Access segment provides CableOS software-based solutions and centralized cloud services for cable operators seeking advanced network infrastructure. Harmonic's products enable the creation, storage, and streaming of video across devices ranging from televisions and computers to tablets and smartphones, supported by technical consulting and maintenance services.

Revenue fluctuated over the past five fiscal years, rising 33.9% to $507.1M in FY2021 and reaching $678.7M in FY2024 with a 53.9% gross margin. In FY2025, revenue fell 46.9% to $360.5M, resulting in a net loss of -$43.3M, a net margin of -12.0%, and a five-year revenue CAGR of -1.0%. Over the trailing twelve months, revenue totaled $443.9M with an operating margin of 18.0% and EPS of $0.26. Growth accelerated in the latest quarter ended June 30, 2026, with quarterly revenue expanding 53.5% year-over-year and quarterly earnings growing 31.9%.

As of June 30, 2026, Harmonic held $231.9M in cash and short-term investments alongside total debt of $130.1M, yielding net cash of $101.7M. Liquidity remains supported by a current ratio of 3.05 and a debt-to-equity ratio of 0.36 against shareholders' equity of $360.3M. In FY2025, the company generated $108.0M in operating cash flow and $96.9M in free cash flow. Capital allocation in FY2025 directed $11.1M toward capital expenditures and $79.0M toward share buybacks.

Harmonic trades at a trailing P/E of 41.1x and an EV/EBITDA of 49.8x, both above the median of its US-listed Technology peers at 28.1x and 16.6x, respectively. Its forward P/E of 18.8x matches the peer median of 18.8x, while its price-to-sales ratio of 2.6x sits below the peer median of 2.8x. Over the past year, the stock returned 3.9%, trailing the S&P 500 return of 16.8%. Over five years, the stock gained 15.3% compared to an 83.0% return for the S&P 500.

Wall Street coverage includes 2 Strong Buy, 2 Buy, 2 Hold, 0 Sell, and 1 Strong Sell ratings. The mean price target of $16.14 represents a 51.0% premium over the last close of $10.69. For the fiscal year ending December 31, 2026, analysts estimate revenue of $516.6M and EPS of $0.50, representing projected EPS growth of 230.7%. Harmonic beat EPS estimates in each of its last 4 quarters and is scheduled to report earnings next on November 2, 2026.

This page is an AI-written research summary of Harmonic Inc. (HLIT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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