Bandwidth (NASDAQ:BAND) Issues Q3 2026 Earnings Guidance

Bandwidth (NASDAQ:BAND) updated its third quarter 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 0.450-0.490 for the period, compared to the consensus estimate of 0.400. The company issued revenue guidance of $231.0 million-$235.0 million, compared to the consensus revenue estimate of $223.6 million. Bandwidth also updated its FY 2026 guidance to 1.710-1.790 EPS.

Bandwidth Stock Performance

BAND traded up $1.60 on Thursday, hitting $38.55. 989,881 shares of the company traded hands, compared to its average volume of 869,846. The company has a 50 day moving average of $62.18 and a 200-day moving average of $35.50. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.37. The stock has a market capitalization of $1.23 billion, a PE ratio of -101.67 and a beta of 2.92. Bandwidth has a 12-month low of $12.50 and a 12-month high of $79.08.

Bandwidth (NASDAQ:BAND) last announced its earnings results on Wednesday, July 29th. The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.01. The company had revenue of $219.90 million for the quarter, compared to the consensus estimate of $217.04 million. Bandwidth had a positive return on equity of 1.47% and a negative net margin of 0.64%.The firm’s revenue for the quarter was up 22.2% compared to the same quarter last year. Bandwidth has set its Q3 2026 guidance at 0.450-0.490 EPS and its FY 2026 guidance at 1.710-1.790 EPS. Sell-side analysts anticipate that Bandwidth will post 0.55 earnings per share for the current year.

Analyst Ratings Changes

Several equities analysts have issued reports on BAND shares. Needham & Company LLC boosted their price objective on shares of Bandwidth from $45.00 to $60.00 and gave the company a “buy” rating in a research note on Thursday, May 14th. Zacks Research cut shares of Bandwidth from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 3rd. B. Riley Financial boosted their price target on shares of Bandwidth from $55.00 to $85.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Citigroup restated a “market outperform” rating on shares of Bandwidth in a research report on Monday, July 20th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Bandwidth in a report on Friday, July 17th. Five investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Bandwidth currently has a consensus rating of “Moderate Buy” and an average target price of $61.75.

Insider Buying and Selling at Bandwidth

In other news, insider Rebecca Bottorff sold 9,425 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $45.30, for a total value of $426,952.50. Following the completion of the transaction, the insider owned 50,535 shares in the company, valued at $2,289,235.50. This trade represents a 15.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Kade Ross sold 20,000 shares of the business’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $51.56, for a total transaction of $1,031,200.00. Following the sale, the insider directly owned 43,894 shares in the company, valued at approximately $2,263,174.64. This represents a 31.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 117,269 shares of company stock worth $6,876,623. Company insiders own 5.26% of the company’s stock.

Key Bandwidth News

Here are the key news stories impacting Bandwidth this week:

• Positive Sentiment: Q2 results exceeded expectations: Bandwidth reported revenue of $219.9 million, up 22.2% year over year and above the $217.0 million consensus estimate. Non-GAAP earnings of $0.37 per share also topped expectations of $0.36. Adjusted EBITDA rose 27% to $28 million, producing a record 18% margin. Bandwidth Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Higher outlook: Management raised its 2026 revenue forecast to $900 million-$910 million, versus a prior consensus estimate of $891 million, and increased adjusted EBITDA guidance to $123 million-$125 million. Third-quarter revenue and EPS guidance also came in above analyst expectations. Bandwidth Raises 2026 Revenue and EBITDA Outlook
• Positive Sentiment: AI and enterprise momentum: Voice AI adoption is increasing demand for Bandwidth’s communications platform, while larger strategic customer wins—including deals worth more than $1 million—support expectations for continued growth. Management also cited improving retention rates and stronger business fundamentals. Bandwidth Q2 Earnings Call Highlights AI Shift
• Neutral Sentiment: Mixed earnings reaction: Although sales, EBITDA and guidance were strong, earnings were slightly below the year-ago $0.38 per share, and the company continues to report a small negative net margin. Investors are weighing improving cash profitability against the need for sustained execution.
• Negative Sentiment: Earlier selloff and guidance concerns: Reports highlighting a decline in non-GAAP EPS and a reduction in a component of the 2026 EPS outlook triggered a steep post-earnings selloff. The reaction underscored concerns about valuation, profitability and whether AI-driven growth will translate into consistent earnings expansion. Why Bandwidth Stock Is Nosediving

Hedge Funds Weigh In On Bandwidth

Hedge funds have recently bought and sold shares of the company. Victory Capital Management Inc. boosted its position in Bandwidth by 16.5% during the third quarter. Victory Capital Management Inc. now owns 25,280 shares of the company’s stock worth $421,000 after purchasing an additional 3,584 shares in the last quarter. Numerai GP LLC increased its position in shares of Bandwidth by 62.3% in the third quarter. Numerai GP LLC now owns 20,430 shares of the company’s stock valued at $341,000 after buying an additional 7,839 shares in the last quarter. Man Group plc raised its stake in shares of Bandwidth by 76.5% during the 2nd quarter. Man Group plc now owns 21,132 shares of the company’s stock worth $336,000 after buying an additional 9,158 shares during the last quarter. State of Wisconsin Investment Board raised its stake in shares of Bandwidth by 19.2% during the 4th quarter. State of Wisconsin Investment Board now owns 19,235 shares of the company’s stock worth $297,000 after buying an additional 3,100 shares during the last quarter. Finally, Deutsche Bank AG boosted its position in shares of Bandwidth by 6.0% in the 4th quarter. Deutsche Bank AG now owns 18,343 shares of the company’s stock worth $283,000 after buying an additional 1,043 shares in the last quarter. 68.53% of the stock is 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.