Harmonic: Sale Of Video And A Robust Q2 Lead To A Rating Upgrade

Robert F. Abbott 1.69K Followers Follow Summary Harmonic Inc. is now a pure-play Broadband business after divesting its Video business, with a Strong Buy rating upgrade. Q2-2026 broadband revenue surged 54% YoY, offsetting Video revenue loss, while backlog rose 71% to $587.6 million, signaling accelerating demand. HLIT raised FY-2026 revenue guidance to $505–$525 million and reported significant EPS growth, supported by strong product uptake and a robust balance sheet. An aggressive EV/EBITDA valuation yields a $27.50 target price, 118.95% above recent levels, reflecting operational tailwinds and capital allocation flexibility. Getty Images Investment thesis Harmonic Inc. ( HLIT ) has undergone a transformation, finalizing the sale of its Video business and becoming a pure-play Broadband business. In addition, the second quarter earnings report eased previous concerns about revenue and bottom-line results. This article was written by Robert F. Abbott 1.69K Followers Follow Robert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident of Airdrie, Alberta, Canada, Robert has earned Bachelor of Arts and Master of Business Administration (MBA) degrees. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.