Bandwidth Q3 2026: AI Agent Traffic Drives 21.9% Revenue Growth
As seen on the 24/7 Wall St. homepage on October 29, 2026.
AI agents calling and texting on behalf of businesses are now showing up in Bandwidth's numbers: revenue rose 21.9% year over year, beating expectations. Management guided 2026 revenue to $905 million to $910 million.
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Bandwidth's third-quarter revenue rose 21.9% to $234 million as businesses leaning on AI agents for voice and text pushed more traffic through its platform, exceeding analyst estimates.
Adjusted non-GAAP earnings per share came in at $0.50, exceeding expectations and a step up from the $0.01 reported in Q2 2026, a quarter that fell short of estimates.
The profit improvement was broad: non-GAAP gross margin expanded to 61% from 58%, meaning incremental AI-driven volume carries better economics than the base business.
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Management raised the full-year 2026 revenue outlook to $905 million to $910 million. The company also flagged four new customer wins and expansions each worth more than $1 million that have not yet fully layered into results, including Salesforce naming Bandwidth its first certified international carrier for its Contact Center rollout.
For 2027, Bandwidth expects double-digit Cloud Communications revenue growth driven by voice usage demand, a forecast that rests on the assumption that AI agent deployments keep scaling. The key variable to watch is whether enterprise customers continue expanding platform usage at the pace seen this quarter, or whether adoption plateaus once initial AI rollouts stabilize.
Mentioned: BAND