Calix, Inc. CALX reported strong second-quarter 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate.
The company posted a strong 21% year-over-year increase in revenues, driven by robust demand from broadband providers, increased adoption of its appliance-based platform and continued expansion of its cloud and managed services among new and existing customers.
Net Income
Net income on a GAAP basis was $17.1 million or 26 cents per share against a net loss of $0.2 million or near breakeven 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 $30.6 million or 47 cents per share compared with $22.2 million or 33 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 7 cents.
Calix, Inc Price, Consensus and EPS Surprise
Calix, Inc price-consensus-eps-surprise-chart | Calix, Inc Quote
Revenues
Net sales increased to $293.3 million from $241.9 million in the year-ago quarter, primarily driven by steady growth in both Appliance and Software and service segments. The top line beat the consensus estimate of $289.9 million.
In the second quarter of 2026, revenues from the Appliance segment were $242.8 million compared with $198.1 million in the year-earlier quarter. Sales increased due to higher demand from broadband providers for its Access Edge and Experience Edge appliances. Revenues from the Software and service segment were $50.5 million, up 15.5% year over year, driven by higher demand for Calix Cloud, managed services and software licenses.
Other Details
Non-GAAP gross profit was $160.8 million compared with $137.3 million in the year-ago quarter, with respective margins of 54.8% and 56.8%. Non-GAAP operating expenses totaled $122.2 million compared with $111.1 million in the year-ago period. Non-GAAP operating income was $38.5 million compared with $26.2 million in the year-ago quarter. At the end of the second quarter of 2026, total remaining performance obligations have increased 11% year over year to $386.4 million.
Cash Flow & Liquidity
In the second quarter of 2026, Calix generated $16.5 million of net cash from operating activities compared with $39.4 million in the year-ago quarter. During the first six months, the company generated $31.1 million in cash compared with $56.6 million in the year-ago quarter. As of June 27, 2026, the company had $68.9 million in cash and cash equivalents and $11.2 million in operating leases. During the quarter, the company repurchased 1.6 million shares for $69.4 million.
Outlook
For the third quarter of 2026, revenues are expected to be in the range of $301-$307 million. Management estimates non-GAAP earnings per share in the band of 37-45 cents. Non-GAAP gross margin is expected in the range of 50.5-53.5%. Non-GAAP operating expenses are expected to be between $123.5 million and $125.5 million.
Zacks Rank
Calix currently carries a Zacks Rank #5 (Strong 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 second-quarter 2026 earnings on Aug. 8. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting growth of 21.92% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 19.86%. The company delivered an average earnings surprise of 8.31% in the last four reported quarters.
Amphenol Corporation APH is set to release second-quarter 2026 earnings on July 29. The Zacks Consensus Estimate for earnings is pegged at $1.19 per share, implying growth of 46.91% from the year-ago reported figure.
Amphenol has a long-term earnings growth expectation of 24.01%. The company delivered an average earnings surprise of 14.08% in the last four reported quarters.
Corning Incorporated GLW is set to release second-quarter 2026 earnings on July 28. The Zacks Consensus Estimate for earnings is pegged at 76 cents per share, implying growth of 26.67% from the year-ago reported figure.
Corning has a long-term earnings growth expectation of 23.89%. The company delivered an average earnings surprise of 2.41% in the last four reported quarters.
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