Ceragon Networks (NASDAQ:CRNT) Posts Quarterly Earnings Results

Key Points

• Strong quarterly performance: Ceragon reported Q2 revenue of $93.9 million, up 14.2% year over year and above analyst estimates of $86.45 million, with EPS of $0.02. Bookings and book-to-bill reached their strongest levels in a decade, led by India, E-band products, and private networks.
• Growth opportunities remain substantial: India bookings reached approximately $120 million through late July, while North American private-network demand was also strong. Management expects many Indian orders to convert to revenue in 2026 and a new Tier 1 customer to contribute meaningfully in 2027.
• Supply-chain pressures reduced profitability: Component shortages and higher costs lowered Q2 non-GAAP gross margin to 32.2%, prompting Ceragon to cut its 2026 gross-margin and operating-margin outlooks, though it maintained revenue guidance of $355 million–$385 million.

Ceragon Networks (NASDAQ:CRNT - Get Free Report) released its earnings results on Tuesday. The communications equipment provider reported $0.02 earnings per share (EPS) for the quarter, FiscalAI reports. Ceragon Networks had a negative net margin of 0.73% and a positive return on equity of 2.27%. The firm had revenue of $93.91 million during the quarter, compared to analyst estimates of $86.45 million.

Here are the key takeaways from Ceragon Networks' conference call:

• Positive Sentiment: Ceragon reported Q2 revenue of $93.9 million, up 14.2% year over year, while first-half bookings and book-to-bill reached their strongest levels in a decade. Management cited particularly strong momentum in India, E-band products, and private networks.
• Positive Sentiment: India bookings reached approximately $120 million through late July, driven by 4G/5G network expansion, modernization, and fixed wireless access deployments. Management expects most of these orders to convert into revenue during 2026.
• Positive Sentiment: North American demand remains healthy, with private-network bookings reaching a record and a successful 5G FR2 proof of concept with a prospective Tier 1 carrier. Ceragon expects this new customer relationship to begin contributing meaningful revenue in 2027, while managed-services wins include contracts worth $3.4 million in Mexico and up to $70 million in APAC.
• Negative Sentiment: Component shortages, longer lead times, and higher supply-chain costs reduced Q2 non-GAAP gross margin to 32.2% from 35.2% a year earlier. The company lowered its 2026 gross-margin outlook to 33.5%–34.5% and operating-margin outlook to 5%–6%, while maintaining revenue guidance of $355 million–$385 million.
• Neutral Sentiment: Management said demand and order visibility are strong, but the timing of component availability limits its ability to convert bookings into revenue. It expects gradual margin improvement in 2027 through product redesign, cost initiatives, software sales, and potential customer price increases.

Ceragon Networks Stock Up 5.4%

Ceragon Networks stock opened at $2.22 on Tuesday. The firm has a market capitalization of $202.05 million, a price-to-earnings ratio of -111.05 and a beta of 1.37. Ceragon Networks has a 52-week low of $1.85 and a 52-week high of $3.29. The company has a fifty day simple moving average of $2.48 and a 200-day simple moving average of $2.42.

Hedge Funds Weigh In On Ceragon Networks

A number of institutional investors have recently added to or reduced their stakes in CRNT. NewEdge Advisors LLC grew its holdings in Ceragon Networks by 132.2% in the 1st quarter. NewEdge Advisors LLC now owns 106,255 shares of the communications equipment provider's stock valued at $250,000 after buying an additional 60,498 shares in the last quarter. Qube Research & Technologies Ltd raised its holdings in shares of Ceragon Networks by 100.4% during the 2nd quarter. Qube Research & Technologies Ltd now owns 580,093 shares of the communications equipment provider's stock worth $1,427,000 after acquiring an additional 290,695 shares during the period. Squarepoint Ops LLC boosted its position in shares of Ceragon Networks by 642.7% during the 2nd quarter. Squarepoint Ops LLC now owns 552,939 shares of the communications equipment provider's stock valued at $1,360,000 after acquiring an additional 478,489 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of Ceragon Networks by 31.7% in the second quarter. Bank of America Corp DE now owns 372,961 shares of the communications equipment provider's stock valued at $917,000 after purchasing an additional 89,821 shares during the period. Finally, Boothbay Fund Management LLC grew its holdings in shares of Ceragon Networks by 85.6% in the second quarter. Boothbay Fund Management LLC now owns 134,364 shares of the communications equipment provider's stock valued at $331,000 after purchasing an additional 61,976 shares during the period. Hedge funds and other institutional investors own 13.31% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on CRNT shares. Zacks Research cut Ceragon Networks from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 16th. Wall Street Zen upgraded shares of Ceragon Networks from a "hold" rating to a "strong-buy" rating in a research note on Saturday, May 23rd. Craig Hallum reiterated a "buy" rating and set a $4.00 price objective on shares of Ceragon Networks in a research note on Wednesday, May 20th. Roth Capital reissued a "buy" rating and issued a $4.50 price objective on shares of Ceragon Networks in a report on Tuesday, May 19th. Finally, Weiss Ratings raised shares of Ceragon Networks from a "sell (d)" rating to a "sell (d+)" rating in a research report on Tuesday, May 26th. Four investment analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $3.75.

Ceragon Networks Company Profile

Ceragon Networks Ltd. is a global provider of wireless backhaul solutions, specializing in high-capacity, low-latency connectivity for mobile operators and private networks. The company designs and manufactures a portfolio of microwave and millimeter-wave equipment that serves as a fiber alternative for carrying voice, data and video traffic between cell sites and core networks. Ceragon's solutions are engineered to support the rigorous performance requirements of modern 4G and 5G deployments, with an emphasis on scalability, reliability and efficient spectrum utilization.

The company's product lineup includes point-to-point and multi-point radio platforms, as well as software-driven network management tools that enable operators to plan, deploy and monitor end-to-end transport networks.

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