Stock Track | Harmonic Plunges 11.93% After-Hours Despite Q2 Beat as Q3 Outlook Disappoints

Stock Track
Jul 29, 2025

Harmonic (HLIT) shares plummeted 11.93% in after-hours trading on Monday, despite reporting better-than-expected second-quarter results for 2025. The sharp decline appears to be driven by the company's weaker-than-anticipated outlook for the third quarter.

For Q2 2025, Harmonic reported net revenue of $138 million, slightly surpassing the IBES estimate of $127.6 million. The company's adjusted earnings per share (EPS) came in at $0.09, significantly beating the expected $0.03. Net income for the quarter stood at $2.9 million, marking a substantial improvement from a net loss of $12.5 million in the same period last year.

However, investors seemed to focus on Harmonic's Q3 2025 guidance, which fell short of expectations. The company forecasts Q3 revenue between $120 million and $135 million, with adjusted EPS ranging from $0.02 to $0.07. This outlook suggests a potential slowdown compared to the just-reported quarter, likely contributing to the stock's after-hours decline. Despite the company's CEO, Nimrod Ben-Natan, noting continued momentum in the Video segment and anticipating moderate growth in Broadband upgrade activity through 2025, the market's reaction indicates concerns about Harmonic's near-term growth prospects.

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