We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Calix's Q2 Earnings Beat Estimates on Healthy Revenue Growth
Read MoreHide Full Article
Key Takeaways
Calix topped Q2 2026 revenue and earnings estimates as sales rose 21% year over year.
CALX grew Appliance and Software revenues on broadband, cloud and managed services demand.
Calix expects Q3 2026 revenues of $301M-$307M and non-GAAP EPS of 37-45 cents.
Calix, Inc. (CALX - Free Report) 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.
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).
Arista Networks Inc. (ANET - Free Report) 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 - Free Report) 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 - Free Report) 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.
View the Zacks #1 Rank List
Image: Bigstock
Calix's Q2 Earnings Beat Estimates on Healthy Revenue Growth
Key Takeaways
Calix, Inc. (CALX - Free Report) 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 - Free Report) 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 - Free Report) 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 - Free Report) 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.