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Investing.com - Calix (NYSE:CALX) delivered impressive third-quarter 2025 results that significantly exceeded analyst expectations, prompting Needham to reiterate its Buy rating and $70.00 price target on the stock. The company’s shares are currently trading at $62.23, near their 52-week high of $64.30.
The company reported revenue and earnings per share that beat consensus estimates by 8% and $0.10 respectively, marking the second consecutive quarter of approximately 10% quarter-over-quarter revenue growth. Calix also achieved record gross margins and its best operating margin in four years. Despite not being profitable over the last twelve months, InvestingPro data shows analysts expect the company to be profitable this fiscal year.
All three customer segments showed robust performance with over 20% year-over-year revenue growth, with the Large customer segment standing out at 243% growth year-over-year. This exceptional growth likely benefited from the reclassification of T-Mobile’s rural acquisitions, providing important market validation. This performance aligns with Calix’s impressive 14% revenue CAGR over the past five years.
Remaining performance obligations (RPO) and current RPO grew 20% and 28% year-over-year respectively, highlighting the company’s strong future revenue visibility. Calix also provided fourth-quarter 2025 guidance that exceeded consensus estimates by 8% for revenue and $0.06 for earnings at the midpoint. This positive outlook has prompted 6 analysts to revise their earnings estimates upward for the upcoming period, according to InvestingPro data.
Needham noted that decreased competitive pressure and accelerating spending by broadband service providers are driving an increase in Calix’s U.S. market share, with Broadband Equity, Access, and Deployment (BEAD) program subsidies poised to begin in 2026, potentially leading to upward revisions in consensus estimates for fiscal years 2025 and 2026. With a market capitalization of $4.06 billion and a 78.46% year-to-date return, Calix appears overvalued according to InvestingPro’s Fair Value model. Discover comprehensive analysis and 10 additional ProTips in the Pro Research Report available for Calix and 1,400+ other stocks.
In other recent news, Calix, Inc. reported impressive third-quarter earnings that exceeded analyst expectations. The company announced adjusted earnings per share of $0.44, surpassing the consensus estimate of $0.34. Revenue for the quarter reached a record $265.4 million, which not only exceeded the expected $246.21 million but also marked a 32% year-over-year increase and a 10% sequential growth. Additionally, Calix provided an optimistic forecast for the current quarter, further boosting investor confidence. These developments highlight the company’s strong financial performance and positive outlook. The earnings announcement has caught the attention of the investment community, as Calix continues to demonstrate significant growth.
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