ADTRAN Eyes 2026 Momentum at Needham Conference as Optical Demand, Europe Huawei Swap Accelerate

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MarketBeat

Thu, January 15, 2026 astatine 10:01 AM CST 8 min read

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ADTRAN sees beardown momentum into 2026 driven by broad-based optical demand, seasonal entree spot successful H1 and caller wins that began converting successful precocious 2025.
The institution expects a continuing Huawei replacement accidental of astir $800 cardinal annually successful Europe, astir divided betwixt entree and optical, with replacement enactment and backing discussions (including EU support) unfolding successful phases.
Profitability and balance-sheet progress includes gross margins trending toward a 42–43% range, a extremity of double-digit operating margins, and a ~$200 cardinal convertible financing utilized to wage down higher-cost indebtedness and reopen the recognition facility.
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ADTRAN Stock is simply a Compelling Broadband Infrastructure Play

ADTRAN (NASDAQ:ADTN) executives highlighted improving request trends, expanding optical momentum, and a increasing acceptable of European opportunities during a treatment astatine Needham’s 20th Annual Growth Conference. Chairperson and CEO Tom Stanton and CFO Tim Santo besides addressed profitability progress, equilibrium expanse actions, and however customers are readying networks amid AI-driven postulation growth.

Stanton said the institution feels “much better” entering 2026 compared with the play erstwhile ADTRAN was moving done proviso concatenation readjustments. He attributed immoderate of 2025’s optical show to a instrumentality toward much mean spending arsenic customers worked done inventory that had “hung implicit for a mates of years,” and to expanding enactment that ADTRAN archetypal noticed successful the anterior twelvemonth done requests for proposals and planning. Those plans, helium said, began translating into results successful the 3rd quarter, leaving the institution feeling it had “really bully momentum” for the remainder of the twelvemonth and beyond.

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Looking to 2026, Stanton described the accidental acceptable arsenic broad-based, citing continued optical momentum and emblematic seasonal spot successful the entree concern during the archetypal fractional of the twelvemonth arsenic European carriers “start coming online.” He added that ADTRAN has caller wins expected to lend successful that period.

A large absorption of the treatment was the ongoing replacement of Huawei instrumentality successful Europe. Stanton characterized the wide accidental arsenic “somewhere astir $800 cardinal annually” that implicit clip shifts distant from Huawei to different vendors, calling it a continuing agleam spot. He noted enactment remains strong, with accrued strategy discussions astir what to bash astir the installed base.