--- title: "Telecom Equipment Industry: Companies" description: "28 SEC filers are classified under the Standard Industrial Classification codes that describe the telecom equipment industry." canonical: https://www.getswoopr.com/stocks/industries/information-technology/telecom-equipment/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Telecom Equipment Industry ## Direct Answer 28 SEC filers are classified under the Standard Industrial Classification codes that describe the telecom equipment industry, and their latest annual reports show $72.2 billion of combined revenue and a median operating margin of -3.4%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Telecom equipment makers sell radio access, core, optical and transport gear to carriers building and upgrading networks. Orders follow carrier capital spending cycles, and a few global vendors compete on technology and price. The first numbers to compare across companies here are orders and backlog, revenue by region and technology and gross margin. ## Key Industry Metrics - **Orders and backlog**: New orders and those awaiting delivery. Orders follow carrier spending plans and lead revenue, and a growing backlog suggests an upgrade cycle underway. - **Revenue by region and technology**: Sales divided by geography and by radio, core, optical or transport gear. It shows which markets and technologies drive growth, and which regions face restrictions or downcycles. - **Gross margin**: Revenue left after hardware and delivery costs. Competition on price, mix toward software and the cost of rollouts all shape it. - **Software and services share**: The portion of revenue from licenses, support and managed work. A higher share is steadier and earns more, as it continues after hardware is installed. - **Carrier customer mix**: The split of sales among large carriers. A few operators account for most spending, so a large carrier's capital plan can move results. ## Primary Macro Drivers - **Carrier capital spending**: Network operators' budgets for radios and transport gear set orders and backlog for equipment makers. - **5G and fiber rollouts**: New radio and fiber generations require equipment to be replaced or added, creating waves in orders and mix. - **Open RAN adoption**: Standards that split radio hardware from software let operators mix suppliers, shifting share and widening the vendor field. - **Government network programs**: Funding for rural coverage and secure networks adds orders less tied to carrier commercial cycles. ## Major Risks - **Capex downcycles**: Carrier spending slows after buildouts, so orders and revenue can fall sharply; watch orders, backlog and carriers' capital guidance. - **Customer concentration among carriers**: A small number of carriers account for much of sales, so one operator's pause matters; watch carrier customer mix and backlog. - **Competition from Chinese vendors**: Lower-priced rivals compete for contracts, pressuring price and share in some regions; watch gross margin and regional revenue. - **Geopolitical restrictions**: Restrictions on suppliers or markets can close sales or force network replacement; watch regional revenue, disclosures and policy commentary. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Cyclical | | Capital Intensity | Medium | | Regulatory Intensity | Medium | | Industry Maturity | Mature | | Geographic Importance | Global | ## Telecom Equipment Filers in the SEC Record 28 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 3661, 3663, 3669. Their latest fiscal years end between 2024 and 2026, and together they reported $72.2 billion of revenue. Median revenue growth over the prior year was 15.6%. Median operating margin was -3.4% and median net margin -4.8%. Median total liabilities were 52% of total assets, and 12 of 28 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Qualcomm Inc](https://www.getswoopr.com/stocks/companies/qualcomm/) | $44.3 billion | 13.7% | 27.9% | 12.5% | FY 2025 | | [Motorola Solutions, Inc.](https://www.getswoopr.com/stocks/companies/motorola-solutions/) | $11.7 billion | 8.0% | 25.6% | 18.4% | FY 2025 | | [Ciena Corp](https://www.getswoopr.com/stocks/companies/ciena/) | $4.8 billion | 18.8% | 4.1% | 2.6% | FY 2025 | | [Lumentum Holdings Inc.](https://www.getswoopr.com/stocks/companies/lumentum/) | $3.0 billion | 83.2% | 17.4% | -230.1% | FY 2026 | | [Ubiquiti Inc.](https://www.getswoopr.com/stocks/companies/ubiquiti-inc/) | $2.6 billion | 33.4% | 32.5% | 27.7% | FY 2025 | | [Vistance Networks, Inc.](https://www.getswoopr.com/stocks/companies/vistance-networks-inc/) | $1.9 billion | 39.7% | 2.5% | 118.2% | FY 2025 | | [Adtran Holdings, Inc.](https://www.getswoopr.com/stocks/companies/adtran-holdings-inc/) | $1.1 billion | 17.5% | -1.4% | -4.2% | FY 2025 | | [Comtech Telecommunications Corp](https://www.getswoopr.com/stocks/companies/comtech-telecommunications-corp/) | $500 million | -7.6% | -27.8% | -31.1% | FY 2025 | The 8 largest of 28 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Telecom Equipment guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Information Technology - [Information Technology sector overview](https://www.getswoopr.com/stocks/industries/information-technology/) - [Vertical Market Software](https://www.getswoopr.com/stocks/industries/information-technology/vertical-market-software/) - [Technology Hardware, Storage & Peripherals](https://www.getswoopr.com/stocks/industries/information-technology/technology-hardware-storage-and-peripherals/) - [Wafer Fabrication Equipment](https://www.getswoopr.com/stocks/industries/information-technology/wafer-fabrication-equipment/) - [Technology Hardware & Equipment](https://www.getswoopr.com/stocks/industries/information-technology/technology-hardware-and-equipment/) - [Wearables](https://www.getswoopr.com/stocks/industries/information-technology/wearables/) - [Taiwanese Semiconductor Foundries](https://www.getswoopr.com/stocks/industries/information-technology/taiwanese-semiconductor-foundries/) - [Wireless Network Equipment](https://www.getswoopr.com/stocks/industries/information-technology/wireless-network-equipment/) - [Systems Integration](https://www.getswoopr.com/stocks/industries/information-technology/systems-integration/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Telecom Equipment industry? Key performance indicators for the Telecom Equipment industry include: Orders and backlog, Revenue by region and technology, Gross margin, Software and services share, Carrier customer mix. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Telecom Equipment industry? The Telecom Equipment industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing. What are the biggest risks in the Telecom Equipment industry? The primary risks for Telecom Equipment companies include: Capex downcycles, Customer concentration among carriers, Competition from Chinese vendors, Geopolitical restrictions. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).