Ceragon Networks Q1 Results

Ceragon Networks reported its Q1 2026 financial results, with revenue of $85.0 million, down 4.1% year-over-year [1]. The company's GAAP operating income was $2.1 million, and non-GAAP operating income was $4.2 million, with a gross margin of 35.4% [1]. The results reflect continued healthy demand across many of Ceragon's key markets, highlighted by strong activity in India.

Q1 Results and Business Highlights

The company's revenue breakdown by geography showed sequentially higher revenue and strong bookings in India, with notable interest in E-band solutions [1]. In North America, revenue remained robust, with activity progressing with a new Tier 1 CSP and potential for initial orders starting Q3 [1]. The private network business is also expanding, with multiple contracts across various customers and use cases [1]. Ceragon's CEO, Doron Arazi, commented that the company is more optimistic about its strategic positioning and the underlying demand environment in its key markets [1].

Outlook and Guidance

The company reiterated its 2026 outlook, with revenue expected to be between $355 million and $385 million, and non-GAAP gross margin improvement of 100bps at the midpoint of the provided revenue guidance range [1]. The company also expects non-GAAP operating margin to be between 6.5% and 7.5% at the midpoint of the provided revenue guidance range [1]. The outlook takes into account recent macro and industry-wide cost increases and continued adverse foreign currency trends, which may lead to higher pressure on margins, especially in the near term [1].

What to watch

• The company's progress with its FR2 new solution, which has seen a successful POC with a major tier North American carrier and increased interest from other potential customers [1]
• The development of the private network business, with multiple contracts across various customers and use cases [1]
• The company's ability to minimize cost challenges and maintain its strategic positioning in the competitive landscape [1]

The Q1 results and outlook provide a mixed picture for Ceragon Networks, with positive momentum in India and an improved balance sheet, but also challenges from macro and industry-wide cost increases and adverse foreign currency trends. The company's ability to navigate these challenges and maintain its strategic positioning will be key to its success in the remainder of 2026.