Calix, Inc. CALX 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.
Calix, Inc Price, Consensus and EPS Surprise
Calix, Inc price-consensus-eps-surprise-chart | Calix, Inc Quote
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.
Zacks Rank
Calix currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Arista Networks Inc. ANET is scheduled to release first-quarter 2026 earnings on May 5. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, suggesting growth of 24.62% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 17.94%. The company delivered an average earnings surprise of 9% in the last four reported quarters.
Amphenol Corporation APH is set to release first-quarter 2026 earnings on April 29. The Zacks Consensus Estimate for earnings is pegged at 95 cents per share, implying growth of 50.79% from the year-ago reported figure.
Amphenol has a long-term earnings growth expectation of 22.17%. The company delivered an average earnings surprise of 16.48% in the last four reported quarters.
Corning Incorporated GLW is set to release first-quarter 2026 earnings on April 28. The Zacks Consensus Estimate for earnings is pegged at 70 cents per share, implying growth of 29.63% from the year-ago reported figure.
Corning has a long-term earnings growth expectation of 20.53%. The company delivered an average earnings surprise of 4.41% in the last four reported quarters.
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This article originally published on Zacks Investment Research (zacks.com).