Bandwidth (NASDAQ:BAND) Releases Q2 2026 Earnings Guidance

Bandwidth (NASDAQ:BAND) issued an update on its second quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.350-0.370 for the period, compared to the consensus estimate of 0.280. The company issued revenue guidance of $214.0 million-$220.0 million, compared to the consensus revenue estimate of $206.2 million. Bandwidth also updated its FY 2026 guidance to 1.770-1.830 EPS.

Bandwidth Trading Up 52.1%

Shares of Bandwidth stock traded up $12.61 on Thursday, reaching $36.81. 4,150,585 shares of the company were exchanged, compared to its average volume of 431,334. Bandwidth has a fifty-two week low of $11.93 and a fifty-two week high of $36.88. The firm has a market capitalization of $1.16 billion, a price-to-earnings ratio of -85.60 and a beta of 2.03. The company has a current ratio of 1.42, a quick ratio of 1.42 and a debt-to-equity ratio of 0.62. The stock has a fifty day moving average price of $18.14 and a 200-day moving average price of $15.80.

Bandwidth (NASDAQ:BAND) last released its quarterly earnings results on Thursday, April 30th. The company reported $0.38 earnings per share for the quarter, beating analysts’ consensus estimates of $0.31 by $0.07. The business had revenue of $208.78 million during the quarter, compared to analyst estimates of $201.57 million. Bandwidth had a positive return on equity of 0.95% and a negative net margin of 1.71%.Bandwidth has set its FY 2026 guidance at 1.770-1.830 EPS and its Q2 2026 guidance at 0.350-0.370 EPS. On average, analysts expect that Bandwidth will post 0.38 EPS for the current year.

Analysts Set New Price Targets

A number of research firms have recently issued reports on BAND. Wall Street Zen lowered shares of Bandwidth from a “buy” rating to a “hold” rating in a report on Sunday, April 19th. Citigroup reiterated an “outperform” rating on shares of Bandwidth in a research report on Thursday. Needham & Company LLC increased their target price on Bandwidth from $20.00 to $45.00 and gave the company a “buy” rating in a report on Thursday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Bandwidth in a research report on Monday, April 20th. Finally, B. Riley Financial lifted their price target on Bandwidth from $20.00 to $27.00 and gave the company a “buy” rating in a report on Friday, April 17th. Five analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $31.00.

Insider Buying and Selling

In other Bandwidth news, CFO Daryl E. Raiford sold 17,026 shares of the company’s stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $15.47, for a total value of $263,392.22. Following the transaction, the chief financial officer owned 52,745 shares in the company, valued at approximately $815,965.15. This represents a 24.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 6.50% of the company’s stock.

Key Bandwidth News

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Record Q1 results — Bandwidth reported Q1 revenue of ~$209M (up ~20% YoY), adjusted EBITDA of $26M, and EPS of $0.38, beating estimates; management cited AI-driven platform adoption and enterprise momentum. Bandwidth Announces First Quarter 2026 Financial Results
• Positive Sentiment: Raised guidance — Bandwidth lifted Q2 and FY26 guidance (Q2 EPS 0.35–0.37 vs. ~0.28 consensus; FY26 EPS 1.77–1.83 and revenue $880–900M), signaling stronger-than-expected demand and margin progress. Bandwidth Announces First Quarter 2026 Financial Results
• Positive Sentiment: Major partnership and AI tailwinds — The ramp of the Salesforce Agentforce partnership and AI-driven consumption gains are cited as key drivers for accelerating usage, large enterprise wins and sustained retentive revenue growth. Bandwidth: Market Is Finally Catching On As Agentforce Partnership Ramps
• Positive Sentiment: Analyst upgrade/target lift — Needham raised its price target from $20 to $45 and assigned a Buy rating, signaling stronger sell-side conviction that upside remains. Benzinga report
• Positive Sentiment: Market reaction — Media coverage shows the stock trading to 52-week highs and surging on the earnings/guidance combo, with heavy intraday volume as investors re-rate growth prospects. Bandwidth hits 52-week high after Q1 revenue beat: Full outlook
• Neutral Sentiment: Analyst write-ups and metric checks — Coverage (Zacks, etc.) highlights the beat and the AI-driven lift but suggests watching customer-level metrics, retention cadence and margin conversion as the company scales. Bandwidth (BAND) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Profitability and valuation caveats — Despite improving EBITDA, Bandwidth still showed a small negative net margin in Q1 and the stock carries a high reported PE (reflecting rapid re-rating), which increases expectations and potential downside if growth slows.

Hedge Funds Weigh In On Bandwidth

A number of hedge funds have recently modified their holdings of the stock. Rhumbline Advisers increased its stake in shares of Bandwidth by 15.0% in the second quarter. Rhumbline Advisers now owns 40,927 shares of the company’s stock worth $651,000 after acquiring an additional 5,324 shares during the last quarter. Quantbot Technologies LP acquired a new stake in Bandwidth during the second quarter valued at $128,000. Arrowstreet Capital Limited Partnership grew its stake in Bandwidth by 26.6% in the second quarter. Arrowstreet Capital Limited Partnership now owns 373,153 shares of the company’s stock valued at $5,933,000 after purchasing an additional 78,360 shares in the last quarter. Invesco Ltd. increased its position in Bandwidth by 4.7% in the 2nd quarter. Invesco Ltd. now owns 56,367 shares of the company’s stock worth $896,000 after purchasing an additional 2,532 shares during the last quarter. Finally, Jump Financial LLC acquired a new position in Bandwidth in the 2nd quarter worth about $221,000. 68.53% of the stock is owned by institutional investors and hedge funds.

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.