Bandwidth (NASDAQ:BAND) Updates FY 2026 Earnings Guidance

Bandwidth (NASDAQ:BAND) updated 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 earnings per share 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.

Wall Street Analyst Weigh In

Several research analysts have commented on BAND shares. Zacks Research lowered Bandwidth from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 3rd. Weiss Ratings reiterated a “sell (d-)” rating on shares of Bandwidth in a report on Friday, July 17th. Needham & Company LLC raised their target price on Bandwidth from $45.00 to $60.00 and gave the company a “buy” rating in a research note on Thursday, May 14th. B. Riley Financial lifted their target price on Bandwidth from $55.00 to $85.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Finally, Wall Street Zen lowered Bandwidth from a “strong-buy” rating to a “buy” rating in a research note on Sunday, June 28th. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $61.75.

Bandwidth Stock Performance

Shares of BAND stock traded up $2.03 on Thursday, hitting $38.98. 1,026,734 shares of the stock traded hands, compared to its average volume of 869,846. The company’s fifty day moving average is $62.18 and its 200 day moving average is $35.50. Bandwidth has a 1-year low of $12.50 and a 1-year high of $79.08. The company has a market capitalization of $1.25 billion, a PE ratio of -101.93 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 (NASDAQ:BAND) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.37 earnings per share for the quarter, beating analysts’ consensus estimates 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 business had revenue of $219.90 million during the quarter, compared to the consensus estimate of $217.04 million. The company’s quarterly 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. On average, equities research analysts predict that Bandwidth will post 0.55 earnings per share for the current fiscal year.

Insider Activity

In other Bandwidth news, COO Devesh Agarwal sold 15,000 shares of the firm’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $57.24, for a total value of $858,600.00. Following the sale, the chief operating officer directly owned 61,414 shares in the company, valued at approximately $3,515,337.36. This trade represents a 19.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO David A. Morken sold 4,632 shares of the stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $58.85, for a total transaction of $272,593.20. Following the completion of the sale, the chief executive officer directly owned 7,198 shares in the company, valued at approximately $423,602.30. This trade represents a 39.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 117,269 shares of company stock worth $6,876,623 over the last 90 days. Insiders own 5.26% of the company’s stock.

Trending Headlines about Bandwidth

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Q2 results exceeded expectations: Bandwidth reported revenue of $219.9 million, up 22.2% year over year and above the $217.0 million consensus estimate. Non-GAAP earnings of $0.37 per share also topped expectations of $0.36. Adjusted EBITDA rose 27% to $28 million, producing a record 18% margin. Bandwidth Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Higher outlook: Management raised its 2026 revenue forecast to $900 million-$910 million, versus a prior consensus estimate of $891 million, and increased adjusted EBITDA guidance to $123 million-$125 million. Third-quarter revenue and EPS guidance also came in above analyst expectations. Bandwidth Raises 2026 Revenue and EBITDA Outlook
• Positive Sentiment: AI and enterprise momentum: Voice AI adoption is increasing demand for Bandwidth’s communications platform, while larger strategic customer wins—including deals worth more than $1 million—support expectations for continued growth. Management also cited improving retention rates and stronger business fundamentals. Bandwidth Q2 Earnings Call Highlights AI Shift
• Neutral Sentiment: Mixed earnings reaction: Although sales, EBITDA and guidance were strong, earnings were slightly below the year-ago $0.38 per share, and the company continues to report a small negative net margin. Investors are weighing improving cash profitability against the need for sustained execution.
• Negative Sentiment: Earlier selloff and guidance concerns: Reports highlighting a decline in non-GAAP EPS and a reduction in a component of the 2026 EPS outlook triggered a steep post-earnings selloff. The reaction underscored concerns about valuation, profitability and whether AI-driven growth will translate into consistent earnings expansion. Why Bandwidth Stock Is Nosediving

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. CSM Advisors LLC bought a new position in Bandwidth in the 4th quarter valued at about $5,342,000. AQR Capital Management LLC raised its holdings in Bandwidth by 49.1% during the second quarter. AQR Capital Management LLC now owns 587,305 shares of the company’s stock worth $9,338,000 after purchasing an additional 193,398 shares in the last quarter. Bridgeway Capital Management LLC bought a new stake in Bandwidth during the second quarter worth approximately $2,166,000. Algert Global LLC lifted its position in Bandwidth by 178.7% in the third quarter. Algert Global LLC now owns 160,977 shares of the company’s stock worth $2,683,000 after purchasing an additional 103,207 shares during the period. Finally, Archon Capital Management LLC lifted its position in Bandwidth by 28.1% in the fourth quarter. Archon Capital Management LLC now owns 446,897 shares of the company’s stock worth $6,905,000 after purchasing an additional 97,963 shares during the period. 68.53% of the stock is owned by institutional investors and hedge funds.

Bandwidth Company Profile

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.