Bandwidth (NASDAQ:BAND) Updates FY 2026 Earnings Guidance

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

Bandwidth Trading Down 8.6%

Shares of NASDAQ:BAND opened at $52.25 on Wednesday. The stock has a market capitalization of $1.67 billion, a price-to-earnings ratio of -137.50 and a beta of 2.92. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.94 and a current ratio of 0.94. The stock’s 50-day simple moving average is $62.60 and its two-hundred day simple moving average is $35.34. Bandwidth has a 52-week low of $12.50 and a 52-week high of $79.08.

Bandwidth (NASDAQ:BAND) last released its quarterly 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 negative net margin of 0.64% and a positive return on equity of 1.47%. The firm 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. Analysts expect that Bandwidth will post 0.55 EPS for the current year.

Analyst Ratings Changes

A number of brokerages have commented on BAND. Citizens Jmp upped their target price on shares of Bandwidth from $70.00 to $86.00 and gave the company a “market outperform” rating in a report on Monday, July 20th. Citigroup restated a “market outperform” rating on shares of Bandwidth in a research note on Monday, July 20th. Wall Street Zen cut Bandwidth from a “strong-buy” rating to a “buy” rating in a report on Sunday, June 28th. Needham & Company LLC lifted their target price on Bandwidth from $45.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday, May 14th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Bandwidth in a research report on Friday, July 17th. Five investment 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. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $61.75.

Insider Transactions at Bandwidth

In related news, General Counsel Richard Brandon Asbill sold 29,214 shares of the business’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $72.03, for a total value of $2,104,284.42. Following the sale, the general counsel directly owned 3,000 shares in the company, valued at approximately $216,090. The trade was a 90.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Daryl E. Raiford sold 4,228 shares of Bandwidth stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $64.15, for a total value of $271,226.20. Following the completion of the sale, the chief financial officer directly owned 42,919 shares in the company, valued at approximately $2,753,253.85. The trade was a 8.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 127,269 shares of company stock valued at $7,192,523. 5.26% of the stock is owned by insiders.

Institutional Trading of Bandwidth

Several hedge funds have recently made changes to their positions in the business. Tower Research Capital LLC TRC boosted its holdings in shares of Bandwidth by 183.7% in the second quarter. Tower Research Capital LLC TRC now owns 3,776 shares of the company’s stock valued at $60,000 after purchasing an additional 2,445 shares during the period. Raymond James Financial Inc. purchased a new stake in Bandwidth during the second quarter worth $85,000. Quantbot Technologies LP bought a new position in shares of Bandwidth in the 2nd quarter worth $128,000. State of Wyoming lifted its position in shares of Bandwidth by 104.6% during the fourth quarter. State of Wyoming now owns 8,756 shares of the company’s stock valued at $135,000 after buying an additional 4,476 shares during the last quarter. Finally, Brevan Howard Capital Management LP acquired a new stake in Bandwidth in the third quarter valued at approximately $174,000. 68.53% of the stock is currently owned by hedge funds and other institutional investors.

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.