Harmonic (HLIT) stock surged 6.56% in pre-market trading on Tuesday following the company's release of better-than-expected third-quarter 2025 results and announcement of an expanded partnership with Charter Communications.

The video delivery technology company reported Q3 revenue of $142.4 million, exceeding analyst expectations. Non-GAAP earnings per share came in at $0.12, also surpassing estimates. Harmonic's broadband segment showed particular strength, with revenue reaching $90.5 million and gross margins of 47.3%.

Adding to investor optimism, Harmonic announced an expanded partnership with Charter to extend its CableOS virtualized broadband platform across Charter's entire footprint, including the deployment of DOCSIS 4.0 unified Remote PHY devices. This development reinforces Harmonic's leadership in virtualized broadband and positions the company for future growth.

Looking ahead, Harmonic expressed confidence in its growth trajectory for 2026, citing accelerating adoption of unified DOCSIS 4.0 and expanding fiber deployments. The positive outlook was further bolstered by Jefferies raising its price target for Harmonic from $8 to $10 following the earnings release.