Aviat Networks (AVNW) Stock Forecast & Price Target

Aviat Networks Inc has demonstrated strong financial performance with a 4% sequential revenue increase to $111.5 million in 2Q26, surpassing consensus expectations and reflecting robust demand, particularly in private networks. The company reported an adjusted EBITDA of $11.3 million, which represents a 24% quarter-over-quarter increase, while achieving a net gain of $23.9 million in cash flow from operations, highlighting improved operational efficiency and solid financial health. With the highest second-quarter order book in a decade and a book-to-bill ratio exceeding 1.0 for two consecutive quarters, Aviat is strategically positioned for continued growth amidst a modestly expanding market, especially in the context of 5G buildout cycles.

Aviat Networks Inc reported a year-over-year revenue decline of 5.7% for the second fiscal quarter, with North American revenue decreasing by 8.7% and international revenue dropping by 2.8%. The company's gross margin also fell by 90 basis points sequentially to 32.9%, attributed to a less favorable product mix with increased hardware sales and reduced software sales. Additionally, ongoing supply chain constraints, specifically due to chip shortages, are expected to further hinder the company's revenue growth across its diverse client base.