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Stocks•28 April 2026•

1 min read

Calix Receives Bullish Update Despite Margin Pressures and Rising Memory Costs

Key Facts

1Calix Q1 revenue rose 27% YoY with non-GAAP EPS reaching $0.40.

2Management expects gross margin headwinds to persist through 2026 due to rising memory costs.

3The company targets 100-200bps annual margin improvement starting in 2027.

Calix, Inc. has received a bullish analyst update following a recent stock pullback, as experts suggest the sell-off over margin concerns was an overreaction. The company reported a solid 27% year-over-year increase in Q1 revenue, with non-GAAP EPS reaching $0.40. While management anticipates gross margin headwinds to persist through 2026 due to rising memory costs, the strategic shift toward a recurring revenue software model remains on track. Calix is targeting an annual margin improvement of 100-200 basis points starting in 2027. Analysts view the current valuation as an opportunity, citing the company's long-term growth potential despite near-term inflationary pressures on components.