Ribbon Communications Reports Q2 Earnings with Strong IP Optical Demand but Lowers Full-Year Outlook
Ribbon Communications (NASDAQ: RBBN) reported second-quarter revenue of $192 million in fiscal year 2026, up 18% sequentially but down 13% from the prior-year period. The company exceeded its guidance for both revenue and adjusted EBITDA, which improved to $12 million with a non-GAAP gross margin increase to 49.3%. Strong performance in IP Optical Networks offset weaker results in Cloud and Edge services due to lower Verizon sales. The IP Optical segment saw record bookings with a book-to-bill ratio of 1.6x, driven by data-center interconnect projects, defense contracts, and infrastructure demand. Backlog for the segment grew over 60% year-to-date despite an adjusted EBITDA loss of $6 million in Q2. Ribbon revised its full-year revenue guidance to between $810 million and $840 million with adjusted EBITDA expected at $78–$88 million. The outlook was tempered by slower Verizon deployments, higher costs, and delayed voice-modernization projects.
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