Ribbon Communications (RBBN) Q3 Earnings and Revenues Miss Estimates

Core Insights - Ribbon Communications reported quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.06 per share, and down from $0.05 per share a year ago [1][2] - The company posted revenues of $215.37 million for the quarter ended September 2025, which was 2.27% below the Zacks Consensus Estimate and an increase from $210.24 million year-over-year [3] - The stock has underperformed the market, losing about 2.9% since the beginning of the year compared to the S&P 500's gain of 14.5% [4] Earnings Performance - The earnings surprise for the quarter was -33.33%, with the company having surpassed consensus EPS estimates only once in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $252.8 million, and for the current fiscal year, it is $0.23 on revenues of $875.05 million [8] Industry Context - Ribbon Communications operates within the Zacks Communication - Network Software industry, which is currently ranked in the top 18% of over 250 Zacks industries [9] - The industry outlook can significantly impact the stock's performance, with research indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with mixed trends in estimate revisions noted prior to the earnings release [5][7] - The current Zacks Rank for Ribbon Communications is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [7]