Bandwidth (NASDAQ:BAND) Issues FY 2026 Earnings Guidance

Key Points

• Bandwidth raised or updated its FY 2026 outlook to EPS of $1.71–$1.79 and revenue of $900 million–$910 million, both above Wall Street estimates of $1.55 EPS and $891 million revenue. Q3 guidance was set at $0.45–$0.49 EPS.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $61.75; several firms recently raised their targets substantially.
• Shares opened down 8.6% at $52.25, despite the stronger guidance and a previous quarterly earnings beat. Insiders have sold $7.2 million of stock over the past three months, while institutional investors own 68.53% of the company.

Bandwidth (NASDAQ:BAND - Get Free Report) updated its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 1.710-1.790 for the period, compared to the consensus EPS 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 Analysts Forecast Growth

A number of research firms recently issued reports on BAND. Needham & Company LLC boosted their target price on shares of Bandwidth from $45.00 to $60.00 and gave the company a "buy" rating in a research report on Thursday, May 14th. Citizens Jmp upped their price objective on shares of Bandwidth from $70.00 to $86.00 and gave the stock a "market outperform" rating in a research report on Monday, July 20th. Wall Street Zen cut shares of Bandwidth from a "strong-buy" rating to a "buy" rating in a research report on Sunday, June 28th. B. Riley Financial upped their target price on Bandwidth from $55.00 to $85.00 and gave the company a "buy" rating in a report on Thursday, July 9th. Finally, Citigroup reissued a "market outperform" rating on shares of Bandwidth in a research report on Monday, July 20th. Five equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Bandwidth has a consensus rating of "Moderate Buy" and an average price target of $61.75.

Bandwidth Stock Down 8.6%

BAND opened at $52.25 on Wednesday. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.37. The stock has a market cap of $1.67 billion, a price-to-earnings ratio of -137.50 and a beta of 2.92. Bandwidth has a twelve month low of $12.50 and a twelve month high of $79.08. The company's 50-day moving average price is $62.60 and its two-hundred day moving average price is $35.34.

Bandwidth (NASDAQ:BAND - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.06. Bandwidth had a negative net margin of 0.64% and a positive return on equity of 1.47%. The company had revenue of $208.78 million during the quarter, compared to analyst estimates of $201.58 million. Bandwidth has set its FY 2026 guidance at 1.770-1.830 EPS and its Q2 2026 guidance at 0.350-0.370 EPS. As a group, equities analysts expect that Bandwidth will post 0.55 earnings per share for the current year.

Insider Buying and Selling at Bandwidth

In other Bandwidth news, COO Devesh Agarwal sold 4,066 shares of Bandwidth stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $58.85, for a total transaction of $239,284.10. Following the completion of the transaction, the chief operating officer owned 68,579 shares of the company's stock, valued at $4,035,874.15. The trade was a 5.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Devin M. Krupka sold 1,198 shares of Bandwidth stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $58.85, for a total value of $70,502.30. Following the sale, the insider owned 26,371 shares of the company's stock, valued at approximately $1,551,933.35. This trade represents a 4.35% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 127,269 shares of company stock worth $7,192,523 in the last three months. 5.26% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Deutsche Bank AG grew its stake in shares of Bandwidth by 6.0% in the fourth quarter. Deutsche Bank AG now owns 18,343 shares of the company's stock worth $283,000 after acquiring an additional 1,043 shares during the period. Mercer Global Advisors Inc. ADV boosted its holdings in Bandwidth by 2.1% in the third quarter. Mercer Global Advisors Inc. ADV now owns 53,681 shares of the company's stock worth $895,000 after purchasing an additional 1,129 shares during the last quarter. Franklin Resources Inc. boosted its holdings in Bandwidth by 3.6% in the fourth quarter. Franklin Resources Inc. now owns 58,141 shares of the company's stock worth $898,000 after purchasing an additional 2,043 shares during the last quarter. Price T Rowe Associates Inc. MD grew its position in Bandwidth by 8.1% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 29,896 shares of the company's stock worth $462,000 after purchasing an additional 2,250 shares during the period. Finally, Tower Research Capital LLC TRC grew its position in Bandwidth by 183.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company's stock worth $60,000 after purchasing an additional 2,445 shares during the period. Hedge funds and other institutional investors own 68.53% of the company's stock.

About Bandwidth

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.

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