Calix (CALX) Up 4.5% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Calix (CALX). Shares have added about 4.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Calix due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Calix’s Q2 Earnings Beat Estimates on Healthy Revenue Growth

Calix, Inc. 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.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -5.97% due to these changes.

VGM Scores

Currently, Calix has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Calix has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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