Calix slides as memory cost headwinds weigh on margins forecast

Calix

22/04/2026 15:24

Updates

** Cloud and software platform provider Calix's CALX.N stock falls 13.2% to $43.05, hits lowest level since May

** Stock set for steepest one-day fall since January 2024

** Gross margins to fall by 50 to 150 bps in 2026 vs 100 to 200 bps expansion expected earlier - co

** Q2 adj. gross margin between 54.25% to 57.25%, down from 59% in Q1, primarily due to memory component surcharge - co

** J.P.Morgan cuts PT to $65 from $70 on margin headwinds lowering near-term earnings expectations, but expects better flow-through to revenue once memory-related headwinds pass

** Co hikes its stock repurchase authorization by $100 mln after Q1 profit beat estimates

** Seven analysts rate stock "buy" or higher, one "hold", median PT at $70 - LSEG-compiled data

** Including session's moves, CALX down over 18.6% YTD

 (Reporting by Purvi Agarwal in Bengaluru)

 ((Purvi.Agarwal@thomsonreuters.com;))