Ceragon shares gain 4% after second-quarter earnings beat

Ceragon shares gain 4% after second-quarter earnings beat

Fiona Craig

Tue, August 11, 2026 at 3:49 PM GMT+3 2 min read

• CRNT +0.91%

Ceragon Networks (NASDAQ:CRNT) shares moved higher in pre-market trading on Tuesday after the wireless connectivity specialist reported second-quarter results that exceeded Wall Street expectations for both earnings and revenue.

Adjusted earnings per share came in at $0.02, above the analyst consensus of $0.01. Revenue reached $93.9 million, beating expectations of $86.78 million and increasing 14% from $82.3 million in the second quarter of 2025.

Ceragon shares rose 4.55% in pre-market trading following the release.

India demand drives revenue growth

Strong demand in India was a major contributor to Ceragon's top-line performance, with the country accounting for 48% of second-quarter revenue. North America represented a further 22%.

The company reported approximately $120 million of year-to-date bookings in India through July. Ceragon also recorded its highest-ever quarterly bookings for private networks in North America, highlighting momentum beyond its traditional carrier business.

"Our second quarter reflects the benefits of the strategy we've been executing over the past several years," said CEO Doron Arazi. "Demand remains healthy across multiple end markets, and we're seeing momentum from both our traditional carrier business and newer growth areas such as private networks and managed services."

Ceragon remains loss-making on a GAAP basis

Despite the adjusted earnings beat, Ceragon recorded a GAAP net loss of $2.1 million, equivalent to $0.02 per diluted share. That compared with a GAAP net loss of $1.3 million in the same period last year.

On an adjusted basis, the company generated net income of $1.7 million.

Margins also weakened year on year. GAAP gross margin was 31.7%, while adjusted gross margin stood at 32.2%, compared with 34.6% in the second quarter of 2025.

The margin decline provides an important counterpoint to the stronger revenue performance, with investors balancing improving demand against continued pressure on profitability.

Ceragon updates 2026 revenue and margin guidance

For fiscal 2026, Ceragon now expects revenue of between $355 million and $385 million, putting the midpoint of its outlook at $370 million.

At the same time, the company lowered its profitability expectations. Adjusted gross margin is now forecast at 33.5% to 34.5%, compared with a previous guidance midpoint of 35.5%.

Ceragon also revised its adjusted operating margin forecast to between 5% and 6%, down from a previous outlook with a midpoint of 7%.

For investors, the second-quarter earnings and revenue beat demonstrates healthy demand, particularly in India and North American private networks. However, lower margin guidance and the widening year-on-year GAAP net loss leave profitability as a key issue to monitor as Ceragon progresses through the second half of 2026.

Ceragon Networks stock price