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Calix
(NYSE:CALX)
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Rating:67Neutral
Price Target:
$39.00
▼(-2.13% Downside)
Action:Reiterated
Date:10/09/26
The score is driven primarily by improving financial performance and a strong, low-leverage balance sheet, reinforced by an earnings call that raised revenue guidance and highlighted strategic execution. These positives are tempered by weak-to-mixed technical momentum and a rich valuation (high P/E with no dividend support), which increases sensitivity to near-term margin headwinds and execution risk.
Positive Factors
Platform adoption
Completing migration of existing customers to Calix One removes a major execution burden and creates a common platform for future software adoption. The installed customer base and AI-native capabilities can support broader functionality, deeper engagement, and expansion into additional markets over the next several quarters.
Negative Factors
Memory cost margin pressure
Memory cost inflation is expected to pressure gross margin even after customer surcharges provide partial recovery. Because the surcharge adds revenue at low or zero margin, Calix may experience weaker earnings conversion, limiting the benefit of revenue growth until component costs or pricing actions improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Platform adoption
Completing migration of existing customers to Calix One removes a major execution burden and creates a common platform for future software adoption. The installed customer base and AI-native capabilities can support broader functionality, deeper engagement, and expansion into additional markets over the next several quarters.
Read all positive factors
Calix (CALX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.27B
Dividend YieldN/A
Average Volume (3M)1.08M
Price to Earnings (P/E)46.3
Beta (1Y)1.17
Revenue Growth27.84%
EPS GrowthN/A
CountryUS
Employees1,921
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.79
Shares Outstanding62,963,990
10 Day Avg. Volume1,026,639
30 Day Avg. Volume1,080,426
Financial Highlights & Ratios
PEG Ratio-1.23
Price to Book (P/B)4.12
Price to Sales (P/S)3.54
P/FCF Ratio30.61
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue2.90
Enterprise Value/Gross Profit5.12
Enterprise Value/Ebitda36.29
Forecast
1Y Price Target
$62.00Price Target Upside55.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.72
Revenue Forecast (FY)$1.19B
Calix Business Overview & Revenue Model
Company Description
Headquartered in San Jose, California, Calix, Inc., established in 1999, is a global technology provider specializing in cloud and software platforms, robust systems, and comprehensive services. The company's innovative solutions empower broadband...
How the Company Makes Money
Calix primarily makes money by selling broadband infrastructure products and related software and services to broadband service providers (e.g., regional providers, rural operators, and other network operators). Its revenue model is generally comp...
Calix Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution and product milestones (record revenue, platform migration completion, Google Cloud launch, rising current RPOs, and upgraded full-year revenue guidance) that underpin a positive growth outlook. However, material margin headwinds from higher memory costs, a temporary dual-cloud cost penalty, modest free cash flow in the quarter, and limited disclosure on Tier 1 cloud customer traction are near-term risks. Management has concrete mitigation actions (surcharges, inventory investments, and expected margin recovery as dual-cloud costs abate) and reiterated confidence in returning to target expense levels by year-end. On balance, the strategic advances and upgraded revenue guidance materially outweigh the near-term margin and visibility challenges.Positive Updates
Record Revenue
Calix reported record non-GAAP revenue of $280 million in Q1 2026, a sequential increase of 3% driven by strong platform demand.
Negative Updates
Sequential RPO Decline and Near-Term Drag
Remaining performance obligations decreased 2% sequentially (to $376 million), attributed to a robust Q4 comparison and focus on completing the platform migration.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue
Calix reported record non-GAAP revenue of $280 million in Q1 2026, a sequential increase of 3% driven by strong platform demand.
Read all positive updates
Company Guidance
Calix guided Q2 revenue of $287–$293 million (midpoint +4% sequential) and raised full‑year 2026 revenue growth to 15–20% (up from prior 10–15%); Q2 non‑GAAP gross margin is guided to 54.25–57.25% with full‑year non‑GAAP gross margin expected to decline 50–150 basis points, while Q2 non‑GAAP operating expenses are forecast at $128 million at the midpoint (≈$1M sequential increase) and the company expects to return to its target expense model by year‑end; management noted the memory surcharge (effective May) is a partial recovery but will create an estimated ~200 bps headwind to 2026 margin unless adjusted, the dual‑cloud migration hit was roughly $3–$4M in Q1 and is complete, and RPOs (remaining POs $376M, down 2% seq and up 11% YoY; current RPOs $157M, +3% seq and +22% YoY) should reaccelerate in H2; Q1 results included record revenue of $280M (+3% seq), non‑GAAP gross margin 57.2% (‑80 bps seq, +100 bps YoY), DSO 36 days, inventory turns of 3, free cash flow $7M, $171M buybacks for 3.3M shares at an average $51.34 (plus an added $100M authorization), and $243M cash & investments, and management flagged BEAD contribution of “tens of millions” in H2’26 with a larger ramp in 2027 and a potential peak in 2028 (high‑tens of millions annually).Calix Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.11B | 1.00B | 831.52M | 1.04B | 867.83M | 679.39M |
| Gross Profit | 628.73M | 568.32M | 453.59M | 518.32M | 435.43M | 356.59M |
| EBITDA | 88.70M | 51.88M | -12.10M | 51.39M | 68.36M | 88.07M |
| Net Income | 51.19M | 17.88M | -29.75M | 29.32M | 41.01M | 238.38M |
Balance Sheet | ||||||
| Total Assets | 954.40M | 1.06B | 939.27M | 941.87M | 884.84M | 742.03M |
| Cash, Cash Equivalents and Short-Term Investments | 194.30M | 388.10M | 297.09M | 220.35M | 241.72M | 204.34M |
| Total Debt | 13.98M | 25.51M | 8.02M | 11.56M | 19.60M | 20.70M |
| Total Liabilities | 244.38M | 199.30M | 158.33M | 222.88M | 205.27M | 173.60M |
| Stockholders Equity | 710.02M | 859.22M | 780.94M | 718.98M | 679.57M | 568.43M |
Cash Flow | ||||||
| Free Cash Flow | 85.42M | 115.52M | 50.35M | 38.40M | 13.12M | 46.33M |
| Operating Cash Flow | 109.51M | 134.95M | 68.40M | 56.25M | 27.18M | 56.79M |
| Investing Cash Flow | 74.64M | -6.37M | -109.53M | -6.25M | -24.08M | -110.66M |
| Financing Cash Flow | -191.25M | -28.43M | 20.90M | -65.93M | 25.06M | 24.38M |
Calix Technical Analysis
Positive
39.85
Price Trends
36.52
Positive
37.17
Negative
43.10
Negative
Market Momentum
0.18
Negative
54.72
Neutral
30.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CALX, the sentiment is Positive. The current price of 39.85 is above the 20-day moving average (MA) of 35.31, above the 50-day MA of 36.52, and below the 200-day MA of 43.10, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 54.72 is Neutral, neither overbought nor oversold. The STOCH value of 30.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CALX.
Calix Risk Analysis
Calix disclosed 42 risk factors in its most recent earnings report. Calix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Calix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $48.49B | 78.21 | 22.82% | ― | 32.57% | 367.53% | |
71 Outperform | $36.62B | 38.40 | 85.62% | 0.56% | 27.22% | 34.82% | |
67 Neutral | $2.27B | 46.33 | 6.54% | ― | 27.84% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $623.49M | -15.70 | -8.42% | ― | -0.70% | -141.66% | |
52 Neutral | $396.11M | -56.70 | -2.90% | ― | -27.40% | -2843.33% | |
46 Neutral | $545.11M | -21.06 | -18.82% | 4.42% | 15.75% | 78.71% |
* Technology Sector Average
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Calix Corporate Events
Business Operations and StrategyStock Buyback
Calix Expands Stock Buyback Authorization by $100 Million
Positive
Oct 8, 2026
On October 8, 2026, Calix, Inc. announced that its board of directors expanded the company’s stock repurchase authorization by an additional $100 million under its existing buyback program. The move underscores Calix’s commitment to a ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.