Calix (NYSE:CALX) Posts Earnings Results, Beats Expectations By $0.03 EPS

Calix (NYSE:CALX) issued its quarterly earnings results on Tuesday. The communications equipment provider reported $0.40 earnings per share for the quarter, beating analysts’ consensus estimates of $0.37 by $0.03, FiscalAI reports. Calix had a return on equity of 4.20% and a net margin of 3.20%.The business had revenue of $279.98 million during the quarter, compared to the consensus estimate of $277.50 million. During the same period in the previous year, the business earned $0.19 EPS. The business’s quarterly revenue was up 27.2% on a year-over-year basis. Calix updated its Q2 2026 guidance to 0.350-0.450 EPS.

Here are the key takeaways from Calix’s conference call:

• Company reported record revenue of $280 million in Q1 (+3% sequential), added 14 new customers, and raised 2026 revenue guidance to 15%–20% with Q2 guidance of $287M–$293M, citing continued strong customer demand.
• Management completed migration of all customers to the third‑generation platform on Google Cloud and says >1,200 customers are loaded on the AI‑native Calix One, enabling Agent Workforce and faster AI-driven operational improvements for customers.
• Non‑GAAP gross margin was 57.2% (down ~80 bps sequential) and the company expects 2026 gross margins to decline 50–150 bps as higher memory costs and a new memory surcharge (which it estimates creates ~200 bps headwind) affect appliance margins.
• Calix repurchased $171 million of stock in the quarter at an average $51.34/share and the board authorized an additional $100 million, while ending the quarter with $243 million in cash and investments and $7 million of free cash flow.
• Management expects BEAD‑related revenue of “tens of millions” in H2 2026 with a ramp in 2027 and a potential peak in 2028 in the “high tens of millions,” but timing and total magnitude remain uncertain.

Calix Price Performance

Shares of CALX opened at $42.49 on Thursday. Calix has a 12 month low of $36.25 and a 12 month high of $71.22. The stock has a fifty day moving average price of $50.77 and a 200 day moving average price of $54.52. The company has a market cap of $2.75 billion, a P/E ratio of 88.52 and a beta of 1.53.

Key Stories Impacting Calix

Here are the key news stories impacting Calix this week:

• Positive Sentiment: Q1 beat and strong growth — Calix reported Q1 EPS $0.40 and revenue of $279.98M (up 27% Y/Y), beating estimates; management gave Q2 EPS guidance of $0.35–$0.45, above consensus. This is the primary catalyst lifting the stock. Article Title
• Positive Sentiment: Board increases buyback authorization by $100M — the company expanded its repurchase program, signaling management views shares as undervalued and supporting EPS/share over time. Article Title
• Positive Sentiment: Analyst support — Needham (Buy) reiterated conviction around the Calix One transition and long-term outlook; Rosenblatt reaffirmed Buy with a $70 PT, both providing favorable sell-side momentum. Article Title
• Neutral Sentiment: Investor Day scheduled — Calix announced an Investor Day at the NYSE to outline the next phase of its Calix One strategy; could provide longer-term clarity but is informational until new targets are given. Article Title
• Neutral Sentiment: Executive incentives granted — Calix issued long- and short-term performance rights to management (disclosed in Australian filings); typical for retention but may modestly dilute over time. Article Title
• Negative Sentiment: Margin pressure flagged on earnings call — management acknowledged margin compression despite top-line strength, which could cap near-term profitability multiple expansion. Article Title
• Negative Sentiment: Mixed analyst moves — Northland cut Calix from Outperform to Market Perform ($52 PT) and JPMorgan trimmed its PT from $70 to $65, creating some sell-side variability that can pressure sentiment. Article Title

Calix declared that its Board of Directors has approved a share buyback program on Wednesday, January 28th that authorizes the company to buyback $125.00 million in shares. This buyback authorization authorizes the communications equipment provider to repurchase up to 3.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Smartleaf Asset Management LLC increased its holdings in shares of Calix by 27.0% during the second quarter. Smartleaf Asset Management LLC now owns 1,245 shares of the communications equipment provider’s stock valued at $64,000 after purchasing an additional 265 shares during the period. Maryland State Retirement & Pension System grew its position in Calix by 3.2% in the 4th quarter. Maryland State Retirement & Pension System now owns 8,813 shares of the communications equipment provider’s stock valued at $466,000 after buying an additional 270 shares in the last quarter. Vident Advisory LLC grew its position in Calix by 2.8% in the 4th quarter. Vident Advisory LLC now owns 10,570 shares of the communications equipment provider’s stock valued at $559,000 after buying an additional 287 shares in the last quarter. Federation des caisses Desjardins du Quebec grew its position in Calix by 2.3% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 22,320 shares of the communications equipment provider’s stock valued at $1,181,000 after buying an additional 493 shares in the last quarter. Finally, California State Teachers Retirement System grew its position in Calix by 1.0% in the 2nd quarter. California State Teachers Retirement System now owns 54,729 shares of the communications equipment provider’s stock valued at $2,911,000 after buying an additional 554 shares in the last quarter. 98.14% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on CALX. Needham & Company LLC lowered their price target on Calix from $70.00 to $62.00 and set a “buy” rating for the company in a report on Thursday. Wall Street Zen downgraded Calix from a “strong-buy” rating to a “buy” rating in a report on Saturday, April 18th. Craig Hallum set a $60.00 price objective on Calix in a research note on Friday, January 30th. Zacks Research downgraded Calix from a “hold” rating to a “strong sell” rating in a research note on Thursday, April 16th. Finally, Weiss Ratings upgraded Calix from a “sell (d-)” rating to a “hold (c-)” rating in a research note on Monday, February 23rd. Six analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Calix presently has an average rating of “Moderate Buy” and a consensus target price of $67.00.

Calix Company Profile

Calix, Inc is a provider of cloud and software platforms, systems, and services that enable broadband service providers to transform their networks and subscriber experiences. The company’s flagship Calix Cloud platform delivers real-time analytics, automation and intelligence designed to simplify network operations, improve service agility and drive revenue growth. Calix also offers a comprehensive suite of premises and access systems, including broadband access nodes, fiber-to-the-home optics and residential gateways under the GigaSpire brand.

Through its software-defined network architecture, Calix helps service providers virtualize key network functions and introduce new services with minimal capital expenditure.