CommScope Holding Company, Inc. COMM reported a non-GAAP adjusted EBITDA of $402.5 million, up from $204.2 million a year ago. The adjusted EBITDA margin expanded to 24.7% from 18.9% a year ago. The 97% uptick year over year is primarily driven by top-line growth.
The Access Network Solutions sales jumped 77% year over year to $338 million, while the segment’s adjusted EBITDA surged 169%. This substantial growth is backed by growing deployments of DOCSIS 4.0 amplifier and node products. The ANS segment boasts a portfolio consisting of DOCSIS 3.1, 3.1E and DOCSIS 4.0 solutions. The comprehensive product suite effectively supports all areas of hybrid coaxial fiber network architecture.
RUCKUS revenues rose 15% year over year to $178.5 million, while segment EBITDA was up 38% year over year. The growth was primarily driven by healthy demand for our Wi-Fi 7 products and subscription services. Moreover, the company has also secured U.S. federal government certification across its ICX product line. This will boost sales to U.S. federal customers. CCS segment revenues grew 51% year over year to $1.1 billion, backed by the strong cloud and datacenter growth.
The company’s adjusted operating expenses as a percentage of sales declined to 17.9% in the third quarter of 2025 compared to 23.6% in the year-ago quarter. The company expects the solid momentum to continue in the upcoming quarters. Management has raised its Adjusted EBITDA guidance. For the full year, it currently expects adjusted EBITDA in the range of $1.3-$1.35 billion compared to $1.15-$1.2 billion estimated earlier.
Taking a Look at Profitability Numbers for Competitors
CommScope faces competition from Corning Incorporated GLW and Ubiquiti Inc. UI. During the third quarter, Ubiquiti’s operating income was $261.7 million, up from $169.2 million in the prior year. Solid top-line growth is boosting margins. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment, driven by the growing proliferation of IoT devices across industries.
Corning’s operating income rose to $589 million from $302 million in the year-ago quarter. Operating margin expanded 130 basis points to 19.6%. Strong focus on improving efficiency, sales growth in high-margin verticals is propelling this growth. Strong demand for Gen AI products in the Enterprise Network Business and growing adoption of Corning gorilla glass in premium smartphones are driving growth. Management is optimistic about achieving its 20% operating margin target in the fourth quarter of 2025, one year ahead of plan.
COMM’s Price Performance, Valuation and Estimates
CommScope shares have gained 211.5% over the past year compared with the industry’s growth of 118.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, CommScope trades at a forward price-to-sales ratio of 0.65, below the industry.
Image Source: Zacks Investment Research
Earnings estimates for 2025 have increased 27.9% to $1.65 over the past 60 days, while the same for 2026 have also increased 11.1% to $1.80.
Image Source: Zacks Investment Research
CommScope currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>Corning Incorporated (GLW) : Free Stock Analysis Report
CommScope Holding Company, Inc. (COMM) : Free Stock Analysis Report
Ubiquiti Inc. (UI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
