Analysts Set Expectations for RBBN FY2026 Earnings

Key Points

• Northland Securities cut its FY2026 earnings estimate for Ribbon Communications to a loss of $0.05 per share from a prior estimate of $0.04 in earnings, below the $0.02-per-share consensus.
• Ribbon’s latest quarterly results missed expectations, with an adjusted loss of $0.03 per share versus the anticipated $0.01 loss. Revenue of $192.34 million exceeded forecasts but declined 13% year over year.
• Analyst sentiment remains generally positive, with five Buy ratings and one Sell rating producing a “Moderate Buy” consensus and a $3.52 average price target, while the stock recently traded at $2.12.

Ribbon Communications Inc. (NASDAQ:RBBN - Free Report) - Research analysts at Northland Securities dropped their FY2026 earnings estimates for shares of Ribbon Communications in a research report issued on Wednesday, July 29th. Northland Securities analyst T. Savageaux now anticipates that the communications equipment provider will post earnings of ($0.05) per share for the year, down from their previous estimate of $0.04. The consensus estimate for Ribbon Communications' current full-year earnings is $0.02 per share.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The communications equipment provider reported ($0.03) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.02). Ribbon Communications had a net margin of 1.96% and a return on equity of 19.70%. The firm had revenue of $192.34 million during the quarter, compared to the consensus estimate of $189.99 million. During the same period in the prior year, the firm earned $0.05 earnings per share. The firm's quarterly revenue was down 13.0% compared to the same quarter last year.

Several other brokerages have also recently issued reports on RBBN. Rosenblatt Securities reduced their price objective on Ribbon Communications from $4.00 to $3.50 and set a "buy" rating on the stock in a research note on Wednesday, July 29th. B. Riley Financial upgraded shares of Ribbon Communications from a "neutral" rating to a "buy" rating and set a $3.30 price target on the stock in a research report on Wednesday, July 29th. CL King set a $3.30 price objective on shares of Ribbon Communications in a research report on Wednesday, July 29th. Wall Street Zen lowered shares of Ribbon Communications from a "buy" rating to a "hold" rating in a research note on Sunday, May 3rd. Finally, Weiss Ratings downgraded Ribbon Communications from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday, May 11th. Five investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $3.52.

Ribbon Communications Price Performance

Shares of RBBN opened at $2.12 on Tuesday. Ribbon Communications has a 52 week low of $1.80 and a 52 week high of $4.24. The company has a current ratio of 1.37, a quick ratio of 1.09 and a debt-to-equity ratio of 0.77. The firm has a market cap of $373.42 million, a price-to-earnings ratio of 26.50 and a beta of 1.36. The stock has a 50 day moving average of $2.45 and a 200-day moving average of $2.44.

Institutional Investors Weigh In On Ribbon Communications

Several hedge funds have recently modified their holdings of RBBN. Kennedy Capital Management LLC purchased a new position in Ribbon Communications during the fourth quarter valued at approximately $2,047,000. Arrowstreet Capital Limited Partnership grew its position in Ribbon Communications by 99.6% in the third quarter. Arrowstreet Capital Limited Partnership now owns 964,446 shares of the communications equipment provider's stock worth $3,665,000 after acquiring an additional 481,276 shares in the last quarter. Jacobs Levy Equity Management Inc. increased its stake in shares of Ribbon Communications by 88.9% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 890,168 shares of the communications equipment provider's stock worth $2,564,000 after purchasing an additional 418,967 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in Ribbon Communications by 85.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 787,493 shares of the communications equipment provider's stock worth $2,268,000 after purchasing an additional 363,334 shares in the last quarter. Finally, AQR Capital Management LLC raised its holdings in Ribbon Communications by 190.6% during the fourth quarter. AQR Capital Management LLC now owns 491,471 shares of the communications equipment provider's stock valued at $1,415,000 after buying an additional 322,364 shares in the last quarter. 70.92% of the stock is owned by hedge funds and other institutional investors.

About Ribbon Communications

Ribbon Communications Inc is a global provider of real-time communications software and network solutions for service providers and enterprises. The company's offerings address the full life cycle of voice, video and data transmission across fixed, mobile and cloud environments. Ribbon's technology portfolio is designed to enable secure, intelligent and interoperable communications in applications such as unified communications, contact centers, wholesale VoIP interconnect and next-generation 5G networks.

Ribbon's product suite includes session border controllers (SBCs), which secure and interwork IP voice and multimedia sessions; Diameter signaling controllers for 4G/5G policy and charging control; network edge virtualization platforms; and analytics engines for service assurance and fraud management.

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