Calix (CALX) Down 10% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Calix (CALX). Shares have lost about 10% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Calix due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Calix, Inc before we dive into how investors and analysts have reacted as of late.

Calix Beats Q1 Earnings Estimates on Solid Y/Y Top-Line Growth

Calix, Inc. reported strong first-quarter 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate.

The company posted a solid 27% year-over-year increase in revenues, driven by strong demand from broadband providers and increased adoption of its platform by existing and new customers, along with support from AI services and pricing changes.

Net Income

Net income on a GAAP basis was $11.2 million or 16 cents per share against a net loss of $4.8 million or a loss of 7 cents per share in the year-ago quarter. Top-line growth boosted the bottom line during the quarter.

Non-GAAP net income in the reported quarter was $27.2 million or 40 cents per share compared with $13.1 million or 19 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 38 cents.

Revenues

Net sales increased to $280 million from $220.2 million in the year-ago quarter, primarily driven by solid growth in both Appliance and Software and service segments. The top line beat the consensus estimate of $277.2 million.

In the first quarter of 2026, revenues from the Appliance segment were $232.8 million compared with $179.7 million in the year-earlier quarter. Sales increased as broadband providers bought more equipment to expand and upgrade their networks. Revenues from the Software and service segment were $47.1 million, up 16.4% year over year.

Other Details

Non-GAAP gross profit was $160.2 million compared with $123.8 million in the year-ago quarter, with respective margins of 57.2% and 56.2%. Non-GAAP operating expenses totaled $126.9 million compared with $109.8 million in the year-ago period. Non-GAAP operating income was $33.3 million compared with $14 million in the year-ago quarter. At the end of the first quarter of 2026, total remaining performance obligations were $376.3 million.

Cash Flow & Liquidity

In the first quarter of 2026, Calix generated $14.6 million of net cash from operating activities compared with $17.2 million in the year-ago quarter. As of March 28, 2026, the company had $54.6 million in cash and cash equivalents and $11.9 million in operating leases. During the quarter, the company repurchased 3.3 million shares for $170.9 million.  

Outlook

For the second quarter of 2026, revenues are expected to be in the range of $287-$293 million. Management estimates non-GAAP earnings per share in the band of 35-45 cents. Non-GAAP gross margin is expected in the range of 54.25-57.25%. Non-GAAP operating expenses are expected to be between $127 million and $129 million.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Calix has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Calix has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Calix belongs to the Zacks Internet - Software industry. Another stock from the same industry, BlackBerry (BB), has gained 14.2% over the past month. More than a month has passed since the company reported results for the quarter ended February 2026.

BlackBerry reported revenues of $156 million in the last reported quarter, representing a year-over-year change of +10.1%. EPS of $0.06 for the same period compares with $0.03 a year ago.

BlackBerry is expected to post earnings of $0.03 per share for the current quarter, representing a year-over-year change of +50%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

BlackBerry has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research