The Q2 revenue hole is a gap between approved spending phases, not lost demand, with Huawei displacement and an early hyperscaler optical upgrade still ahead.

The delayed Access customer remains intact after a CEO meeting in London, with next-phase funding approved, purchase orders expected soon, and shipments starting late this year with bulk volumes in 2027, so the Q2 revenue hole looks like a gap between spending phases. A German customer has more orders than can be fulfilled and should grow through 2026 and 2027, turning Access & Aggregation from a drag into a growth leg. Roughly $850m of Huawei's annual spend in Adtran's categories is still to be displaced, plus more than $10B of installed European gear already being ripped out, with dual-sourcing tilting toward Adtran and Nokia. A large hyperscaler distributed data-center upgrade is just beginning and pulls through 100ZR pluggables and optical line systems, while the model still points to $310-$320m quarterly revenue, 42-43% gross margin, and 10% operating margin after a Q2 described as largely an anomaly.