Calix (CXA) AI Stock Analysis

Calix

(Frankfurt:CXA)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Revenue Growth and Operating LeverageRecord revenue and guidance for approximately 19% full-year growth indicate strengthening demand across Calix’s broadband customer base. Continued revenue expansion should improve operating leverage, support investment in the platform, and increase the company’s ability to compound earnings over the next several quarters.

Negative Factors

Modest Net ProfitabilityA modest net margin leaves limited room for execution errors or cost inflation and makes earnings more sensitive to changes in demand, product mix, and operating expenses. Profitability has improved from the 2024 loss, but it has not yet reached a level that fully leverages Calix’s revenue scale and equity base.

Calix (CXA) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 2.27B
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): 50.9
Beta (1Y): 0.61
Revenue Growth: 19.28%
EPS Growth: ―
Country: Germany
Employees: 1,921
Sector: General
Sector Strength: 55
Industry: Communication Equipment

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 se...

Calix Earnings Call Summary

Earnings Call Date:Nov 01, 2026(Q3-2026)|Next Earnings Date:Jan 26, 2027

Earnings Call SentimentPositive

The call was strongly optimistic, supported by record revenue, record software and service results, accelerating Calix One adoption, expanding AI capabilities, improving operating leverage, and guidance for 30% annual EPS growth. The main challenges were higher memory costs, a 220-basis-point sequential decline in appliance gross margin, ongoing supply chain uncertainty, and elevated inventory investment. Management nevertheless expressed confidence in demand, customer adoption, new-market expansion, and future productivity gains.

Positive Updates

Record Revenue and Strong Year-over-Year Growth

Third-quarter revenue reached a record $302 million, up 3% sequentially and 14% year-over-year. Management said the end-of-year forecast is expected to reach 19% year-over-year revenue growth at the midpoint, with OpEx leverage beginning.

Negative Updates

Appliance Gross Margin Decline from Memory Costs

Non-GAAP appliance gross margin was 50.7%, a sequential decline of 220 basis points, primarily due to higher memory component costs.

Company Guidance

For the fourth quarter of 2026, Calix expects revenue to be between $311 million and $317 million, non-GAAP gross margin of 52.25%-54.75%, non-GAAP operating expenses of $129.5 million-$131.5 million, and non-GAAP EPS of $0.41-$0.49; at the midpoint, 2026 non-GAAP EPS is $1.76, representing annual EPS growth of 30%, compared to revenue growth of 19%. Excluding the fourth quarter bump due to ConneXions, OpEx as a percentage of revenue is expected to drift downward to 40% and below, the long-term financial target is 15% annual growth, software and service gross margin of 70% is inside that 2027 envelope, R&D budget is expected to be flat in 2027 while delivering 1,400 capabilities versus about 1,300 in 2026 and 2025, and the company outlined a goal to grow OpEx at half the rate of revenue growth in 2028 while looking to accelerate that into 2027; appliance margins are expected to stabilize at these levels and could go up or down as we move into 2027.

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

2 New Risks

1.Failure to obtain or maintain necessary regulatory approvals from the FCC or other governmental agencies, or limitations put on on-going support of certain foreign-produced products, could significantly restrict our ability to offer and maintain certain products in the U.S. market.Q2, 2026

2.We face risks associated with dependence on third-party vendors; component prices volatility and shortages have in the past, currently are, and may in the future adversely affect our gross margin and results of operations; and our mitigation strategies may be of limited or temporary value.Q2, 2026

Calix Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

DE:CXA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIEN	73Outperform	$45.48B	61.55	22.82%	―	32.57%	367.53%
UI	72Outperform	$34.11B	34.03	85.62%	0.63%	27.22%	34.82%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
CLFD	45Neutral	$435.09M	-61.86	-2.90%	―	-27.40%	-2843.33%
ADTN	42Neutral	$532.07M	-19.77	-18.82%	―	15.75%	78.71%
NTGR	41Neutral	$614.25M	-15.37	-8.42%	―	-0.70%	-141.66%

* General Sector Average

Performance Comparison

DE:CXA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:CXA	Calix Inc	33.60	-22.90	-40.53%
ADTN	Adtran Inc	6.28	-2.12	-25.24%
CIEN	Ciena Corporation	284.34	88.53	45.21%
CLFD	Clearfield	31.82	-1.34	-4.06%
NTGR	Netgear	22.28	-7.02	-23.96%
UI	Ubiquiti Networks Inc	540.08	-233.28	-30.16%

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.

Calix AI Stock Analysis