Bandwidth (NASDAQ:BAND) Releases FY 2026 Earnings Guidance

Bandwidth (NASDAQ:BAND) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.770-1.830 for the period, compared to the consensus estimate of 1.440. The company issued revenue guidance of $880.0 million-$900.0 million, compared to the consensus revenue estimate of $873.0 million. Bandwidth also updated its Q2 2026 guidance to 0.350-0.370 EPS.

Bandwidth Trading Up 19.5%

Shares of BAND stock traded up $7.18 during mid-day trading on Friday, hitting $43.99. The company’s stock had a trading volume of 2,281,082 shares, compared to its average volume of 465,448. The company has a market cap of $1.38 billion, a PE ratio of -102.64 and a beta of 2.03. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.42 and a current ratio of 1.42. The company’s fifty day simple moving average is $18.14 and its 200-day simple moving average is $15.80. Bandwidth has a 52 week low of $11.93 and a 52 week high of $43.95.

Bandwidth (NASDAQ:BAND) last announced its earnings results on Thursday, April 30th. The company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.32 by $0.06. Bandwidth had a positive return on equity of 0.95% and a negative net margin of 1.71%.The company had revenue of $208.78 million for 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 research analysts expect that Bandwidth will post 0.38 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a report on Monday, April 20th. Citigroup reaffirmed an “outperform” rating on shares of Bandwidth in a research report on Thursday. Wall Street Zen lowered Bandwidth from a “buy” rating to a “hold” rating in a report on Sunday, April 19th. Needham & Company LLC raised their price objective on Bandwidth from $20.00 to $45.00 and gave the company a “buy” rating in a research note on Thursday. Finally, B. Riley Financial boosted their price objective on Bandwidth from $20.00 to $27.00 and gave the company a “buy” rating in a report on Friday, April 17th. Five investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $31.00.

Insider Buying and Selling at Bandwidth

In related news, CFO Daryl E. Raiford sold 17,026 shares of Bandwidth stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $15.47, for a total transaction of $263,392.22. Following the transaction, the chief financial officer owned 52,745 shares of the company’s stock, valued at $815,965.15. The trade was a 24.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 6.50% of the stock is owned by corporate insiders.

Key Bandwidth News

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Q1 results beat consensus: Bandwidth reported $0.38 EPS and $209M revenue (≈+20% YoY), with adjusted EBITDA up and strong enterprise wins cited — a core catalyst for the rally. Bandwidth Announces First Quarter 2026 Financial Results
• Positive Sentiment: Management raised FY‑2026 revenue guidance to $880M–$900M and EPS to $1.77–$1.83 (well above prior consensus), and Q2 guidance also topped expectations — investors view this as confirmation of stronger demand. Bandwidth projects $880M-$900M 2026 revenue as it raises guidance on AI-driven voice and messaging demand
• Positive Sentiment: AI tailwinds and a ramping Salesforce Agentforce partnership are driving consumption-based usage growth and large enterprise momentum (including $1M+ deals), which supports the raised outlook. Bandwidth: Market Is Finally Catching On As Agentforce Partnership Ramps
• Positive Sentiment: Analyst support strengthened: Needham raised its price target to $45 and reiterated a buy rating, contributing to bullish sentiment and upward momentum. Bandwidth (NASDAQ:BAND) Price Target Raised to $45.00 at Needham & Company LLC
• Positive Sentiment: Operational improvements: management highlighted disciplined capital allocation (debt retirement and share repurchases) and sequential margin/EBITDA improvement, which reduces long‑term risk. Bandwidth Announces First Quarter 2026 Financial Results
• Neutral Sentiment: Investors can review the full earnings presentation and call materials for detail on customer metrics and unit economics. Bandwidth Inc. 2026 Q1 – Results – Earnings Call Presentation
• Neutral Sentiment: Analyst writeups and metric breakdowns (net revenue retention, retention rates, consumption footprint) are circulating and helpful for modeling how AI usage could translate to revenue — useful but not new incremental news. Bandwidth Q1 Earnings Beat Estimates on Strong AI-Driven Demand
• Negative Sentiment: Profitability and risk: Bandwidth still shows a negative net margin (reported -1.7%) and a negative P/E on trailing basis, and the stock carries above‑market volatility (beta ≈2.0), which raises execution risk if AI adoption slows. Bandwidth earnings report and materials

Hedge Funds Weigh In On Bandwidth

A number of hedge funds have recently bought and sold shares of BAND. CSM Advisors LLC bought a new stake in shares of Bandwidth in the 4th quarter worth $5,342,000. AQR Capital Management LLC lifted its position in shares of Bandwidth by 49.1% during the second quarter. AQR Capital Management LLC now owns 587,305 shares of the company’s stock valued at $9,338,000 after purchasing an additional 193,398 shares in the last quarter. Bridgeway Capital Management LLC bought a new position in shares of Bandwidth during the second quarter valued at about $2,166,000. Algert Global LLC boosted its holdings in Bandwidth by 178.7% during 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 last quarter. Finally, Archon Capital Management LLC boosted its holdings in Bandwidth by 28.1% during 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 last quarter. 68.53% of the stock is owned by hedge funds and other institutional investors.

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.