Comtech Telecommunications Corp. CMTL reported mixed third-quarter fiscal 2026 results, with the bottom line beating the Zacks Consensus Estimate while the top line missing the same.
The company reported lower year-over-year revenues, primarily due to the planned phase-out of certain low-margin satellite and space contracts, which offset stable performance in its Allerium public safety business and ongoing improvements in operational efficiency.
Net Income
Net loss on a GAAP basis was $14.26 million or a loss of 47 cents per share compared with a net loss of $14.47 million or a loss of 49 cents per share in the prior-year quarter. Lower net sales impacted the bottom line.
Non-GAAP net loss in the reported quarter was $6.75 million or a loss of 22 cents per share compared with a net loss of $5.24 million or a loss of 18 cents per share in the prior-year quarter. The bottom line was narrower than the Zacks Consensus Estimate of a loss of 27 cents.
Comtech Telecommunications Corp. Price, Consensus and EPS Surprise
Comtech Telecommunications Corp. price-consensus-eps-surprise-chart | Comtech Telecommunications Corp. Quote
Revenues
Net sales decreased to $106 million from $126.79 million in the year-earlier quarter, owing to a decline in both the Allerium and Satellite and Space Communications (S&S) segments. The top line fell short of the Zacks Consensus Estimate of $110.21 million.
At the end of the third quarter of fiscal 2026, net bookings were $70.5 million compared with $71 million in the year-ago quarter. The book-to-bill ratio was 0.67x compared with 0.56x in the year-ago quarter. Consolidated Backlog decreased to $696.1 million from $708.1 million.
Segmental Performance
Net sales from Allerium decreased to $55.67 million from $59.22 million. The segment’s book-to-ratio was 0.32x compared with 0.91x in the year-ago quarter, primarily due to the timing of large, multi-year contract awards.
Net sales from S&S were $50.33 million, down 25.6% year over year. The segment’s book-to- ratio increased to 1.04x from 0.8x in the year-earlier quarter, reflecting stronger order activity and improved demand.
Other Details
During the quarter, non-GAAP operating income declined to $5.12 million from $9.85 million a year ago. Adjusted EBITDA was $8.25 million compared with $12.58 million in the year-ago quarter.
Operating income for Allerium decreased to $4.36 million from $8.36 million. Operating income for S&S was $1.58 million, down from $2.72 million. Adjusted EBITDA for Allerium was $10.4 million compared with $13.9 million in the year-ago quarter. Adjusted EBITDA for S&S decreased to $4.1 million from $5.7 million a year ago.
Cash Flow & Liquidity
As of April 30, 2026, Comtech had $28.5 million in cash and cash equivalents and $29.88 million of operating lease liabilities (non-current). During the quarter, the company generated $6.11 million of net cash from operating activities compared with $2.3 million in the year-ago quarter. During the first nine months, Comtech generated $19.05 million in cash against a cash usage of $19.74 million in the prior-year period.
CMTL’s Zacks Rank
Comtech currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Silicon Motion Technology Corporation SIMO sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last reported quarter, it delivered an earnings surprise of 20.61%. Silicon Motion is benefiting from rising demand for NAND flash controllers used in smartphones, PCs, and data center storage devices. The growing adoption of AI applications and high-capacity SSDs is also expected to support demand for its advanced storage solutions and long-term growth prospects.
Celestica Inc. CLS carries a Zacks Rank #2 (Buy) at present. It delivered an earnings surprise of 3.85% in the last reported quarter.
The company is experiencing strong momentum from growing demand for AI data center infrastructure, cloud networking equipment, and advanced hardware solutions. Its expanding hyperscaler customer base and focus on high-performance computing are likely to drive long-term growth.
Monolithic Power Systems, Inc. MPWR carries a Zacks Rank #2 at present. It delivered an earnings surprise of 4.29% in the last reported quarter.
Monolithic Power continues to gain from strong demand for power management solutions across AI data centers, automotive, industrial, and cloud computing markets. Its expanding product portfolio, growing adoption of high-performance power chips, and focus on innovation support steady growth and strengthen its long-term market position.
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