Ceragon beats estimates on India, North America infrastructure strength

Ceragon Networks (NASDAQ:CRNT) reported first-quarter revenue that surpassed analyst expectations, driven by resilient deployments of its millimeter-wave backhaul solutions across India and North America despite a slight year-over-year contraction in total sales.

The Rosh Ha'ain, Israel-based wireless connectivity specialist generated total revenue of $85 million for the three months ended March 31, 2026, down 4.1% compared to the $88.7 million recorded in the first quarter of fiscal 2025.

However, the top-line result comfortably beat the Wall Street consensus estimate of $80.4 million.

Geographically, revenue distribution remained balanced between mature and emerging 5G infrastructure markets.

North America anchored the quarter, contributing 37% of total revenue, closely followed by India at 35%, where a surge in high-capacity E-band frequency orders lifted regional visibility.

Under GAAP measures, Ceragon's gross margin improved to 35.4%, fueled by a favorable software and service delivery mix.

The company recorded a GAAP operating income of $2.1 million and a GAAP net loss of $1.3 million, translating to a diluted loss of $0.01 per share.

On a non-GAAP basis, operational leverage expanded, yielding an operating income of $4.2 million.

Non-GAAP net income arrived at $0.7 million, or $0.01 per diluted share, matching consensus expectations.

Backed by positive free cash flow during the period, Ceragon’s cash and cash equivalents rose to $39.2 million at quarter-end.

Operationally, management highlighted structural milestones, including the rollout of its RADCOM Neura AI analytics platform and a successful proof-of-concept for its next-generation FR2 solutions with a major Tier-1 carrier in North America.

Initial commercial orders from that deployment are projected to begin in the third quarter of 2026.

Following the financial print, management reaffirmed its full-year fiscal 2026 guidance.

Ceragon continues to forecast annual revenue between $355 million and $385 million, representing a midpoint of $370 million, alongside expectations for higher year-over-year non-GAAP operating margins.